Populism
Populism
Primarily an agrarian movement
Farmers experienced hardships
– Overproduction
Technology increased production
As Great Plains opened for settlement more areas
were cultivated
Prices went down
– Unpredictability of weather
– Tariffs made farmers pay more for American
made equipment
Granger movement
– Began in 1867- mostly social gatherings
– After problems occurred became more than
social gatherings
Developed stores, cooperatives, processing plants,
and factories
“Granger Laws”- attempted to regulate railroad
shipping and storage fees
Farmers’ alliance
– 1890- 1.5 million members
– Made detailed agendas for action
Strict regulations on railroads (pushed for
nationalization)
Monetary policies that would cause inflation
– Made it easier to pay debts
– Government agency that offered low interest
loans
Government run storage facilities
Populist Party “ The People’s Party”
New political party consisting of farmers’
alliance, southern democrats, some labor
unions, and a few small reform parties
Believed that government was run by the
industrialists
– The gap between the rich and the poor was growing
“Corruption dominates the ballot-box, the legislatures, the
congress, and touches even the ermine of the bench [i.e., the
courts]…. From the womb… of governmental injustices we
breed the two great classes-tramps and millionaires”
Populist Party
– Demands
Free coinage of silver
End to tariffs and the national bank
Direct election of senators
Graduated income tax- Higher income = higher
taxes
Regulation of big business
Populist Party
Had success in the South and the West
Won seats in state legislature and U.S. house
Won over many southern democrats
Nominated James Weaver for President in 1892
– 22 elect. Votes (5 states)
Depression 1893
– Repeal of the Sherman Silver Purchase Act
– Democrats split into two groups: Gold-bugs
and Silverites
Money
Supply
Inflation
up
Deflation
down
Value
down
up
Prices
up
down
Bankers
Deposits
Loans
Money in bank
Inflation (100%)
Deflation (100%)
$5000
$1250
- $5000
- $10,000
- $2500
$ 5000
$5000
$5000
$2500
Utilities
- $500
- $1000
- $250
salaries
- $ 1000
- $2000
- $500
-$3000
$3000
Inflation (100%)
Deflation (100%)
$4000
$1000
Money Remaining
$0
Farmers
Income
$2000
Mortgage payment
- $1000 - $1000
New equipment cost
- $500
- $1000
- $1000
- $250
Groceries
- $200
- $400
- $100
Feed
- $100
- $200
- $50
Money Remaining
$200
$1400
- $400
Election of 1896
Republicans
– Support Gold Standard – money supply based only
on gold
– Nominated William McKinley
– Supported by urban workers and business leaders
Democrats and Populists Unite
– Democrats Nominate William Jennings Bryan
– Populists decide to support Bryan
Supported in the south and the west
– Results
– McKinley wins Presidency
– Gold found in Alaska in 1899
– Populist Party never wins national support
and eventually fails
Ideas of the party live on and have become laws
–
–
–
–
Federal income tax
Eight-hour workday
Direct election of US senators
Abandonment of the gold standard