Populism

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Populism
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Excesses of Big Business
Responses
Labor Unions
Progressive Legislation
Populism
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Populism

• the political doctrine that
• supports the rights and powers of the common
  people
• in their struggle with a privileged elite

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Populist

• a believer in the rights, wisdom, or virtues of
  the common people
• a member of the Peoples Party,
• formed in 1892
• to represent farmers interests and
• to advocate the free coinage of silver and
  government control of monopolies

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Gold Bugs
vs.
Silverites
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Monetary Policy

• The governments plan for the makeup and amount
  of money in circulation
• The value of money depends on the amount in
  circulation.

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• If the money supply increases, the value of each
  dollar decreases.
• The drop in value shows as an increase in the
  price of everything.
• It takes more dollars to buy the same amount of
  stuff.
• This is called inflation.

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• If the money supply decreases, the value of each
  dollar increases.
• The rise in value shows as a drop in the price of
  everything.
• It takes less dollars to buy the same amount of
  stuff.
• This is called deflation.

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Supply and demand
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Business Interests Money Supply

• Borrowers (farmers) like inflation.
• The money they pay back is worth less than the
  money they borrowed.
• They borrow expensive money and pay back cheap
  money.

• Lenders (Banks) like deflation.
• The money they lend is worth less than the money
  they get paid back.
• They lend cheap money and get back expensive
  money.

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After the Civil War, huge Silver deposits were
discovered in the Western U.S.

• Farmers argued for unlimited minting of silver
  coins as a way to increase the money supply
• This would cause inflation

• Bankers supported use of only gold. This would
  limit the money supply
• This would cause deflation
• In 1873, the U.S went on a gold standard. The
  Gold Bugs had won.

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Response

• In 1878 and 1890, Silverites forced through
  Congress laws requiring the Federal government
  purchase of silver minting of silver coins.
• Because gold remained more popular, this caused a
  run on the gold supply.
• In 1893, President Cleveland managed the repeal
  of the silver laws.

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The Farmers Organize
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The Grange

• Founded in 1867
• Formed Cooperatives to save farmers money by
  buying in large quantities
• Worked to regulate businesses farmers depended
  upon
• Grain elevators
• Railroads

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Farmers Alliances

• Formed in the 1870s and 1880s
• Supported federal regulation of railroads
• Supported more money in circulation (silver)
• Supported antitrust laws
• Supported farm credit and disaster aid
• Women often prominent members
• Supported womens rights.

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Results

• 1887 Interstate Commerce Act
• Regulated railroad prices
• Made special rates illegal
• Set up the Interstate Commerce Commission to
  enforce the law
• 1890 Sherman Antitrust Act
• Intended to curb trusts and monopolies
• Poorly enforced.

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The Peoples Party

• Formed by the Farmers Alliances in 1892
• Members known as Populists

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The Peoples Party

• Increase money circulation Free Silver
• Progressive Income Tax
• Would tax rich more heavily than poor
• Government ownership of communication and
  transportation systems (socialism)
• 8 hour working day (to get urban support)
• Opposed use of Pinkertons (to get Union support)
• Joint action between white and African American
  farmers

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Election of 1896

• Williams Jennings Bryan, Nebraska Silverite,
  nominated by Democrats
• Bryan gave speech You shall not crucify mankind
  upon a cross of gold
• Populists also nominated him for President

• Bryan lost the election to Republican McKinley
• Byran won in the West in Southern farming
  states.
• Lost in industrial states
• Factory workers feared inflation would destroy
  value of their wages

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Decline of Populism

• New gold discoveries increased supply of gold
• This increased money supply without use of silver
• Growth of U.S. city population increased demand
  for farm produce
• Farm prices began to rise
• Eliminated interest in silver upon which Peoples
  Party had based support.

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