Populism
Farmers Complaint
Long term decline in crop prices/competition from foreign farmers/big business
competition
Farmers and Tariffs
tariffs discourage ppl from buying foreign goods and they buy
American
causes prices to be high
protect American business
helps
farmers by keeping their prices high
hurts
by making things they buy expensive
foreigners can't sell stuff in US to get $ to buy farmers
crops
protest high tariffs as proof that gov't liked business better
BONANZA FARMS-large farms like a corporation - use machinary - one crop
(specialization) - over production - falling prices
Money issues
deflation - TIGHT MONEY
money supply decreases and the price of goods goes down
the money you get for goods is less so hard to repay
loans
farmers usually in debt - so ouch
helps lenders - usually in East and wealthy - like
banks
inflation - LOOSE MONEY
money supply increases and the price of goods goes up
easier to repay loans since you get more money
farmers like this
Gold Bugs - since gold was in less supply it tended to be
DEFLATIONARY
won a victory when US currency put on gold standard and
could no longer be converted into silver
reduces the money supply
prevents inflation
adds economic stability since NO inflation
Silverites
silver mining interests and farmers in west
lowers farm prices
want unlimited coining of silver - cause inflation and raise
prices
less economic stability
Bland-Allison Act - 1878
some increase in money supply - farmers a bit happier
vetoed by President Hayes
over-ridden by Congress
Treasury Dept. refused to by the amount designated
or mint silver dollars
Sherman Silver Purchase Act 1890
Congress tries again
issues notes that can be turned in for gold OR silver
most ppl want gold so gold supply goes DOWN
Treasury get nervous that gold is flowing
out
Cleveland asks for and get repeal of the Sherman
Act
Populist
Platform
increase in the circulation of money - inflationary
unlimited minting of silver (see #1)
Supported a PROGRESSIVE INCOME TAX
the more you make the more you pay - stick it to the
rich
gov’t ownership of transportation and communication
systems
to get urban voter
8 hour work day
business can't use Pinkertons to break strikes - see
Homestead Strike of 1892
Try to appeal to Blacks and white farmers both
both of your groups are exploited by the rich businesses
who "enslave you"
Williams Jennings Bryan - Populist candidate 1896
chance to win when
Cleveland hurts labor in putting down the Pullman
Strike
supports gold standard
economic depression-many unemployed
Republicans run McKinley
Bryan a great speaker
promises that his supporters will not let the
Republicans" crucifiy mankind upon a Cross
of Gold"
Democrats and Populist make him their candidate
Loses election
carries Democratic West and South
no urban votes of workers in industrial North,
Midwest and cities
feared inflation would hurt business
and their jobs
inflation reduce their wages buying power
increasing gap between urban and rural areas
American moving away from agriculture to
industry
Ironically gold strikes in South Africa and Yukon increases the
money supply without inflation
crop prices begin a rise that lasts until 1920
Populist ideas adopted by Reformers
apply the ideas to urban and industrial problems