The Rise of Populism
POPULISM
• Finally, people (especially farmers) are
getting fed up with a government that they
don’t believe is making their lives better
and catering to big business.
• POPULISM was the movement to
increase farmers’ political power and to
work for legislation in their interest.
Why are farmers
having problems?
• 1) Crop prices drop because of
technology (Higher supply means lower
demand and price).
• 2) High tariffs make it hard for farmers to
sell goods overseas.
• 3) Railroads are overcharging and making
it difficult to ship goods.
• 4) DEFLATION
INFLATION and
DEFLATION
• During the Civil War, the government needs to
increase the MONEY SUPPLY. They produce
“Greenbacks” – paper money without gold or
silver backing. This causes INFLATION – the
value of money goes DOWN, and prices go UP.
• After the Civil War, the U.S. stops printing
greenbacks and stops using SILVER to back
the dollar. This leads to DEFLATION – the
value of money goes UP, and the price of goods
goes DOWN.
DEFLATION HURTS
FARMERS
• Farmers have to borrow $$ for seed and
supplies. Farmers owe more because
interest rates RISE. They also bought
farm equipment at INFLATED prices.
However, crop prices fall, so farmers are
making less profit.
• Farmers want INFLATION again – using
Greenbacks and silver to back the dollar.
Realize that, like factory workers, they
needed to ORGANIZE.
THE GRANGE
• 1867 – Farmers organize a group known as
THE GRANGE.
• Grange grows quickly in the 1870s.
• The Grange helps farmers create
COOPERATIVES.
• Cooperatives helped farmers keep crop prices
higher, and helped them order supplies in bulk.
• The Grange and their cooperatives are
ultimately UNSUCCESSFUL.
The People’s Party
(Populists)
• Farmers soon realize that they need to be active
POLITICALLY to get things done.
• Farmers feel like government is taking care of
BIG BUSINESS, not them.
• In1877, the Farmers’ Alliance is formed and
spreads to many states.
• Some alliance members begin a new
POLITICAL PARTY, known as the People’s
Party (or Populists). They begin to run
candidates in elections.
POPULISTS’ DEMANDS
• The Populists wanted:
– Free coinage of silver (to increase the money
supply)
– An end to protective tariffs
– Better RR regulation
– Direct election of senators
– A graduated income tax
– The Populists gain support in the WEST and
in the SOUTH.
SHERMAN SILVER
PURCHASE ACT
• In 1890, Republicans get worried that
farmers will start voting for the Populist
party. They pass the Sherman Silver
Purchase Act to buy silver and put more
$$ into circulation.
• It reduces deflation some, but doesn’t help
the farmers enough.
Election of 1892
• By 1892, the Populists decide to run a
candidate for PRESIDENT.
• They select James B. Weaver to run.
Weaver loses, but gets more votes that
expected.
PANIC of 1893
• Nation gets into worst economic
depression it had ever experienced to this
point.
• Railroads go bankrupt, can’t pay loans,
Wall Street suffers, and banks close.
GOLDBUGS and
SILVERITES
• Cleveland REPEALS the Sherman Silver
Act. The U.S. gold reserves are at a low
level.
– GOLDBUGS: Wanted U.S. currency only
based on gold
– SILVERITES: People who thought coining
silver should be allowed.
Some Democrats are Goldbugs and some are
silverites
ELECTION of 1896
• Populists want to get the vote of the
SILVERITES from the Democrats.
• The Democrats steal the Populists’
thunder, however, and nominate the prosilver WILLIAM JENNINGS BRYAN.
• Republicans nominate WILLIAM
McKINLEY.
• Populists eventually decide to support
Bryan.
William Jennings
Bryan
• Bryan was a great ORATOR. He gave
famous speeches about the need to coin
silver. The most famous of these is
known as the “CROSS OF GOLD”
speech.
• Bryan goes across the country to speak,
but McKinley stays around Ohio.
Because of the economic depression and
big business support, McKinley wins
easily.
Populism Fades Out
• After the Election of 1896, the Populist
party declines.
• The U.S. officially adopts a GOLD-BASED
currency in 1900.
William Jennings Bryan
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Who?
William Jennings Bryan
What?
1896 Presidential
candidate for Populists
and Democrats
When?
1896
Where?
From Nebraska
• How?
• Campaigned across the
United States giving
speeches (“Cross of
Gold.”) Huge proponent
of free coinage of silver.
• So What?
• Lost to William McKinley.
His defeat was a huge
blow to farmers and
begins the decline of the
Populist party.