the political doctrine
that supports the rights
and powers of the
common people in their
struggle with the
privileged elite
http://www.sternberg-press.com/files/book/11/populism_reader_cover.jpg
Bellringer:
Why do merchants and service industries
accept paper money or coins in return for
goods and services? What gives these
items value?
Learning Targets: I Can…
 Describe farmers’ economic complaints
during the late 1800s.
 List the key organizations formed to
protest problems faced by farmers.
 Understand populism, the people behind
the movement, and its legacy.
Farmers and Tariffs
Tariffs on imported goods discourage
people from buying imports. Goods are
more expensive.
 Industrialists claimed tariffs protected
American factory jobs and their own
profits
 Reduced foreign competition –
encouraged American firms to raise prices
– not good for workers
 Helped farmers by protecting against
competition from farm imports

Tarriff
Hurt farmers by raising
prices of manufactured
goods and preventing
foreigners from earning
American currency to by
U.S. crops
 Tariffs indirectly reduced
the international market
for American farm
products
 Whenever government
raised tariffs to benefit
industry, farmers
protested

http://www.cartoonstock.com/newscartoons/cartoonists/rma/lowres/rman438l.jpg
Money Issue



If the government
increases the money
supply, the value of
every dollar drops.
This shows up as
inflation.
Borrowers benefitmoney they pay back
is worth less than
what they borrowed
Inflation allows sellers
to charge higher
prices
http://comps.fotosearch.com/comp/LIQ/LIQ102/bug-dancing-money_~vl0001b032.jpg
If the government
reduces the money
supply deflation or a
drop in the prices of
goods occurs
 After the Civil War the
money supply shrank
= a prolonged period
of deflation


Monetary Policy –
The federal
government’s plan
for the make-up
and quantity of the
nation’s money
supply
Gold Bugs
U.S. bimetallic standard until 1873, both
gold and silver
 1873 Congress put U.S. on gold standard
to prevent inflation and ensure economic
stability
 This reduced the money supply, it would
be limited by the amount of gold held by
the government

Silverites
Called for free silver
Unlimited coining of silver dollars as a
means of increasing the money supply
 Brand-Allison Act – required the
federal government to purchase and
coin more silver, increasing the
money supply and increasing inflation


Passed by Congress
Vetoed by President Hayes
Congress overrode the veto
Limited effect bought only
minimum/refused to circulate (Treasury)
 Sherman Silver Purchase Act 1890 increase the amount of silver the
government was required to buy per
month






Notes could be turned in for silver or gold
Gold supply began to deplete so President
Cleveland repealed the act in 1893
Farmer Protest
The Grange – patrons of husbandry 1866
founded by Oliver H. Kelley
 Formed cooperatives
 Pressured state legislatures to
regulate businesses farmers depend
on (railroad, etc.)

Farmers Alliances 1880s




Launched attacks on monopolies
Emphasized federal regulation of railroads
More money in circulation
Creation of state departments of
agriculture
Anti-trust laws/farm credit
Women held offices
Mary Elizabeth Lease – popular speaker,
Kansas Lawyer - raise “less corn and more
hell!”
 “Colored Farmers Alliance”



Inactive Government







1880-1892 no candidate won a majority of
popular vote
President protected American Industry due to
their promises of support
Cleveland did sign Interstate Commerce
Act of 1887 - Regulated the prices that
railroads charged to move freight between
states
requiring rates to be set in proportion to the
distance traveled
illegal to give special rates to some
customers
set up Interstate Commerce Commission
(ICC) to enforce laws
1890 President Harrison passed Sherman
Anti-trust Act
Populists
called for increased circulation of money
urged unlimited minting of silver
supported a progressive income tax
(% of taxes owed increase
w/income)
 Government ownership of
communication/transportation systems
 Endorsed 8 hour work day (to attract
urban support)



Opposed use of Pinkertons to reach out to
African American and white farmers
 1892 election President Cleveland
reelected – he then alienated labor - put
down Pullman Strike/ angered farmers by
supporting gold standard

Bryan’s “Cross of Gold”
1896 election
Republican William McKinley was for the
Gold Standard and ran a traditional
campaign giving front porch speeches
from home in Ohio.
 Populists and Democrats William Jennings
Bryan was a silverite and ran an active
campaign.
 He gave a moving speech criticizing the
Cross of Gold.
 Bryan lost. He did not carry urban
industrialist.


Legacy





More gold strikes raised world supply
Congress put U.S. back on gold standard
Crop prices began a slow raise until 1920
Silver movement and populism died
Progressives later applied populists ideas
to urban and industrial problems
Exit Slip:
1.
2.
3.
4.
5.
Describe farmers’ economic complaints during the late
1800s.
List the key organizations formed to protest problems
faced by farmers.
Summarize Populism, the people behind the movement,
its promises, and its legacy.
Why were Americans divided over the issue of tariffs at
this time? Why did industrialist profit from them and
farmers protest them? What other times in history has
this been an issue?
Populism appealed to people in many parts of the
country. How can you explain, then, the failure of the
Populist party to win the presidential election of 1896?