Guide to Lecture 5 (The Populist Revolt)
Background
Rapid industrial growth—social problems
Political protest movements for reform
Farmers first to organize politically
Why the Farmers?
Overproduction lowers farm income
Agriculture more mechanized and efficient
1860-1900--Amount of land in cultivation doubled
1862 Homestead Act—settle trans-Mississippi West
Tried working harder, producing more, aggravated situation
South and West hardest hit
Kansas:
1866—bushel of wheat $2.06
1894--$0.49 (depression)
Georgia:
1889—pound of cotton $.05, cost $.07
Options:
Leave the land, take city factory jobs
Lose the land, become tenant farmers or share croppers
Who’s to Blame?
Railroads
Gross rate discrimination—rebates in Northeast industrial area, make
up losses in South and West
Banks
Vital as source of credit, danger of foreclosure on farms
“Wall Street”—synonymous with greed and corruption
The lien system
Unique to South—not many banks
Credit at general stores against lien or legal claim on crops
Exorbitant interest rates (25% typical)
Higher prices for credit
Mired in debt, carryover year to year
Became peons, tied to the land
The tax system
Basis was property tax, easy to assess the farmers’ land and livestock
Corporations could hire lawyers, find loopholes, pass along costs to
consumers
Protective tariffs
Aided industry, increased farmers’ costs
Imports more expensive
American goods more expensive, too
The Remedy
1867—The Grange, founded by Agriculture Dept. official, Oliver Kelley
Peaked in mid-1870s at 1.5 million members
First largely social—dances, picnics, lectures
Soon, addressed economic problems—cooperatives
Purchase in bulk at discount
Market cooperatively, eliminate middlemen
Then, turned to politics
Regulate rail rates
Late 1870s—some Granger Laws passed
Granger Laws struck down by courts—interstate
commerce
Interstate Commerce Act of 1887
ICC, first federal regulatory agency, over RRs
1880--Grange began to fizzle out
The Farmer’s Alliance
1877—established in Lampasas, Texas
Sub-treasury plan
Warehouses in every agricultural county in US.
Non-perishable goods stored there
Paid 80% of current market value (loan, 1%)
Farmer sells stored commodities, repays loan
Break dependence on banks and merchants
Federal govt. source of credit
1890—millions of members, most in the South
Ocala Platform—farmer political agenda until 1900
Sub-treasury plan
Progressive income tax
Tariff reduction
Direct election of US Senators
Regulation of RRs and telegraph firms
Free silver (16 to 1)
Make coins of all silver in Treasury
Increase money supply
Increase inflation (raise farm prices & reduce real
debt)
Wealthy backed gold standard
Formation of People’s Party
Farmer’s Alliance actions:
In South, obtain pledges from Democratic candidates to Ocala Platform
1890—Governor Jim Hogg, Texas and Gov. “Pitchfork” Ben Tillman,
South Carolina
Not very effective or reneged on promises, so Alliance formed a new party
People’s Party (Populists) had a number of strengths:
Presidential candidate—James B. Weaver, former Union
general and long-time farm politics veteran.
Platform—basically Ocala Platform, except nationalization of
RRs and telegraph companies
Militant leadership
Tom Watson, Georgia
Mary Elizabeth Lease, Kansas
“Raise less corn and more hell”
Political strategy
South and West versus money power of Northeast
Black and white versus South’s conservative, Democratic elite
Reach out to labor—8-hour work day (support of Knights of
Labor)
Results of Political Challenges
Weaver did not win in 1892, but 8.5% and 4 states (Id, Kan., Colo. & Nev.)
Three governors elected, number of Congressmen and Senators,
hundreds of local officials
Better in 1894
1896 Presidential race was their demise, typical of third parties in
America
Democratic convention: Gold vs. Silver
Grover Cleveland—“goldbug”
William Jennings Bryan—famous “cross of gold” speech, won
candidacy
Populists had dilemma with selection of Bryan—free silver only one
plank of platform
Bryan became dual candidate—Democratic and People’s Party
“Battle of the Standards”—William McKinley of Ohio (gold
standard) vs. William Jennings Bryan (silver standard)
McKinley won, 51% to 49%
Destroyed People’s Party--compromised independence
Significance of People’s Party
First to raise critical questions about costs of industrialization
Broke with “laissez-faire”, govt. good if used correctly
Subsequent reform movements would achieve their goals
Footnote
L. Frank Baum, author of The Wonderful Wizard of Oz
From New York, moved to South Dakota (1887) and Chicago (1891),
midst of industrial and agrarian ferment
Supported Bryan in 1896 and that year published The Wizard.
Dorothy—from Populist stronghold of Kansas
Aunt Em—worn out by her labor
In Oz, Dorothy follows yellow brick road
Emerald City—even citizens are green
Scarecrow—like farmer, no brain
Tin Woodsman—cursed by Wicked Witch of East, needs to show
has heart not just a machine, like industrial worker
Cowardly Lion—like politicians, lacks courage
Wizard of Oz—like Bryan, from Nebraska and mostly a voice
Glinda, Good Witch of the South—“silver shoes have wonderful
powers”
Wonderful children’s tale and great political fable