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

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.

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

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

If the government increases the money supply, the value of every dollar drops. This shows up as inflation.

Borrowers benefit- money 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

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

Called for free silverUnlimited coining of silver dollars as a

means of increasing the money supplyBrand-Allison Act – required the

federal government to purchase and coin more silver, increasing the money supply and increasing inflation

Passed by CongressVetoed by President HayesCongress overrode the vetoLimited 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 goldGold supply began to deplete so President

Cleveland repealed the act in 1893

The Grange – patrons of husbandry 1866 founded by Oliver H. Kelley

Formed cooperativesPressured state legislatures to

regulate businesses farmers depend on (railroad, etc.)

Launched attacks on monopoliesEmphasized federal regulation of railroadsMore money in circulationCreation of state departments of

agriculture

Anti-trust laws/farm creditWomen held officesMary Elizabeth Lease – popular speaker,

Kansas Lawyer - raise “less corn and more hell!”

“Colored Farmers Alliance”

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

called for increased circulation of moneyurged unlimited minting of silversupported a progressive income tax (%

of taxes owed increase w/income)Government ownership of

communication/transportation systemsEndorsed 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

1896 electionRepublican 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.

More gold strikes raised world supplyCongress put U.S. back on gold standardCrop prices began a slow raise until 1920Silver movement and populism diedProgressives later applied populists ideas

to urban and industrial problems

1. Describe farmers’ economic complaints during the late 1800s.

2. List the key organizations formed to protest problems faced by farmers.

3. Summarize Populism, the people behind the movement, its promises, and its legacy.

4. 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?

5. 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?