Chapter 5 Major Topics Farmers and the Populist Movement

1
Chapter 5 Major TopicsFarmers and the Populist
Movement

• Railroads and the Panic of 1893

2
Common Problems Unite Farmers

• Falling Crops Prices
• Rising Debt for Land
• Railroad Companies were charging higher and
  higher rates to ship and store farm products

3
Problems with Greenbacks

• Civil War era paper money
• 500 Million issued
• Could not be exchanged for gold or silver
• Worth less than hard money

4
Issues with the Greenbacks(1867-1887)

• The Treasury began to take Greenbacks out of
  circulation
• The retiring of Greenbacks caused Inflation to
  hit farm products
• Farmers began to loose money as costs to produce
  their crops was more than the profit they
  received for the same crop

5
Bland-Allison Act of 1878

• Congress ordered the Treasury to buy 2-4 Million
  of Silver every month
• This would help easy the money supply issue
• Hopefully would make farm prices increase

6
Problems with the Railroads

• Railroad Companies changed farmers inflated rates
  to ship and store products
• RR Companies made secret agreement with middlemen
  (brokers)

7
Oliver Hudson Kelley

• Organizes the first Farmers Union in 1867
• The Grange
• Set up Farm Co-Ops
• Sponsored State Legislation to control the
  Railroad Companies

8
Rise of Populism (1892)

• Organized in Omaha, Nebraska
• Peoples Party
• Reforms to lift the burden of Farm Debt
• Give Farmers a voice in government

9
Populist Party Platform (1892)

• Increase the Money Supply
• Income Tax
• Election of Senators by popular vote
• Single term for President
• Secret Ballot
• 8 hour workday

10
Election of 1892

• 10 percent of the vote went to Populist
• 5 U.S Senators elected
• 3 Governors elected
• 1,500 state legislators

11
Panic of 1893

• Farmers had over-extended their credit
• Railroad Companies had expanded faster than their
  markets
• Seven Railroads went into bankruptcy
• Gold supply was thin
• People traded paper money for gold
• Panic spread to the Stock Market
• 15,000 businesses collapsed
• 3 million workers lost their jobs
• Prices fell, unemployment reached 5

12
Silver or Gold

• Bimetallism was supported by farmers and
  Silverites
• Gold Standard was backing paper money with only
  gold
• Paper money was worthless is not backed by gold

13
The Cross of Gold

• Speech by Nebraska congressman William Jennings
  Bryan
• Supported Bimetallism
• Mankind shall not be crucified on a cross of
  Gold

14
End of Populism

• Election of 1896
• William Jennings Bryan is defeated by William
  McKinley for President
• McKinley is elected with the strength of the
  industrial Middle West
• Populism collapsed and farmers hopes were buried
  with the loss of the election
• 2 Legacies reform and organization of the
  downtrodden