4.03: POPULISM

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4.03 POPULISM
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G4 The West Rise of the Debtor

• US 4.03 Describe the causes and effects of the
  financial difficulties that plagued the American
  farmer and trace the rise and decline of
  Populism.
• Student Objectives
• By the end of this chapter, students will be able
  to
• Identify explain the reasons behind the
  tensions between settlers Native Americans
• Explain the economic problems facing farmers
• Identify the different political groups organized
  to fight for farmers
• Analyze the effectiveness of the Populist Movement

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Refresh Your Memory

• Why are Americans settling the Great Plains?
• What are some of the problems farmers were
  facing?

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Farmers Economic Problems

• As farming expanded, agricultural products
  flooded the market, driving the prices down
• Competition from foreign countries too!
• Farming equipment storage was very expensive
• Farmers took out loans to buy equipment, if they
  couldnt pay, the bank took over the farm
• Transporting equipment was pricey as railroads
  charged high rates for short runs
• What the western farmers used
• Farmers losing money without any possibility of
  making it!
• What are they to do?

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Price Indexes for Consumer Farm Products
1865-1913
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Currency

• Deflation Less in circulation
• Increased value of
• Prices decrease
• Inflation More in circulation
• Decreased value of
• (cheap money)
• Prices increase
• Farmers supported inflation

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Love/Hate Relationship with the Railroads

• Farmers love the railroad for transportation
  (goods, leisure)
• Farmers hated the railroads because they charged
  higher rates for those in the West than in the
  East
• There was no regulation of rates Railroads
  could charge what they wanted
• Boston to Kansas might be 50, but Kansas to
  Boston might be 500
• Banks loaned , but charged high interest
• Farmers cant repay the high rates go into
  debt, sometimes lost their farms!

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The Grange, 1867

• Farmer life was lonely, The Grange was organized
  for social professional purposes
• Barn raising, dances, education etc.
• Created by Oliver Kelly
• Became a political movement for farmers
• Members were known as the Grangers
• Farmers began to form cooperatives to combat high
  prices of equipment railroad rates
• Not very successful, but not enough numbers

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Munn vs. Illinois1877

• The State Govt. can regulate private industry
  for public interest
• Regulating the railroads in the interest of
  Western settlers
• Regulates the railroads
• Granger laws may regulate intrastate trade
• Within a state

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Wabash v Illinois

• States cannot regulate interstate trade
  (railroads)
• Led to the creation of the Interstate Commerce
  Act
• Interstate Trade Between states

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Interstate Commerce Commission

• Purpose To regulate railroads to ensure fair
  rates to eliminate rate discrimination

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The Farmers Alliance, 1877

• Farmers werent just fighting against high
  equipment railroad rates, they were plagued by
  many other problems, especially not being heard
  by Congress!
• The Texas Alliance was created in 1874 to protect
  farmers from horse thieves
• Several other states began creating Farmer
  Alliances
• Farmers Alliance Group of farmers brought
  together to protect their interests (political,
  economic social)
• The Kansas Farmers Alliance created the
  Peoples Party to serve as a voice for farmers
  in government
• Not successful until several other states united

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United We Stand, Divided We Fall

• In 1889 both the Northern andSouthern
  Alliancesmerged into onethe Farmers Alliance.

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Written by a Farmer at the End of the 19c

• When the banker says he's broke And the
  merchants up in smoke, They forget that it's
  the farmer who feeds them all. It would
  put them to the test If the farmer took a rest
  Then they'd know that it's the farmer feeds
  them all.

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Populist Party

• Political party created by the unification of
  many state Farmers Alliances
• 3rd Party made up of farmers, fighting for
  farmers rights
• Wanted to make sure farmers had a say in
  government
• Wanted to end farmer debt
• Serious contenders in the 1892 1896 elections
• Short lived political party that made a huge
  impact on our government

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The Populist Platform
Changes in Government
Financial Changes
Changes in Transportation
Referendum People vote on bills Passed by
legislature
Main Goal To increase money In circulation
Regulate railroads By controlling prices
Initiative People may introduce bills to
Congress
Bimetallism Both gold silver support currency
Use secret ballot to End voting fraud
Recall People vote to remove an elected
official from office
Graduated Income Tax The more you make, The
more you pay
Senators elected by Popular vote
Restrict immigrants Due to job competition
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Election of 1896

• Currency was the main issue
• Will US currency be backed by silver or gold?
• Lower class wanted both, but the upper classes
  wanted only gold

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1. William McKinley
William McKinley

• Rep. Candidate who supported the gold standard
  deflation
• Only gold would back out currency
• Goldbugs bankers businessmen who supported
  McKinley

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William Jennings Bryan

• Dem/Populist candidate who supported Bimetallism
• Not all Democrats supported Bryan ran their own
  candidate
• Splits the Democratic vote the Republicans will
  win
• Silverites Farmers laborers who supported
  Bryan

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William J. Bryan
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The Seasoned Politician v. The Young Newcomer
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Into which box will the voter of 1896 place his
ballot?
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Cross of Gold

• Infamous speech given by Bryan at Democratic
  National Convention
• Against gold standard
• You shall not press down upon the brow of labor
  this crown of thorns you shall not crucify
  mankind upon a cross of gold!

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Decline of the Populists

• McKinley won the 1896 election
• The Populists do not appeal to any other group
  except farmers
• They dont seek support from miners etc.
• By 1900, farmers problems had eased up the
  economy was improving
• Significance of the Populists
• Proved that the downtrodden could organize
  have a political voice
• Had huge impact on American life
• 8 hour workday, 17th Amendment, 16th Amendment,
  19th Amendment, restricted immigration,
  initiative, recall, referendum,

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Wizard of Oz

• Said to be directly related to the Populists
  ideas
• Oz ounce, standard measure of gold
• Dorothy Everyman
• Silver slippers
• Tinman Industrial Worker
• Scarecrow Farmer
• Cowardly Lion WJ Bryan
• Wizard President
• Munchkins Little people
• Yellow Brick Road Gold standard

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5. Conclusion

• The population of the west increased due to the
  success of farming mining
• Creation settlement of boom towns, mining
  towns, cattle towns railroad towns
• Conflict between Native Americans settlers
  increased as more farmers moved on to Native
  American territory
• Farmers organized created political parties to
  fight against high prices low profits