Populist Movement

“There is something radically wrong. The railroads have never been so prosperous. The banks have never done a better business. Manufacturing enterprises have never made more money. Towns and cities flourish and ‘boom’. And yet agriculture languishes.”

What is meant by this quote?

What is meant by this quote?

“The farmer fed all other men and lived himself upon the scraps.”

• Populism is a movement which supports "the people" versus "the elites."

What is Populism?

Price Index for Famers

Need money for supplies, land, and payments

Mortgage farm to buy supplies and land

Cannot make payments

Causes Effects

New inventions & efficient techniques introduced

Prices of farm products decline

Lack of competition among railroads

Farmers’ earnings decrease, paying monopoly prices

Machinery is needed; shipping costs higher

Farmers are unable to pay back loans

Money is in short supply

Banks lend less money to farmers. Need more in circulation (silver!)

• Formed by farmers to help farmers

• Provided social functions– Dances, picnics, lectures

• Economic help– Pool resources– Pressure states to regulate

railroads– Cooperatives

• Cash only• Farmers lack cash to buy

goods

The National Grange (1867)

• Network of organizations similar to National Grange– Southern Alliance– Colored Farmer’s

National Alliance– Northwestern Alliance

• More political

Farmers’ Alliances (1876)

Populist Party (1891)

• Believed that…– Railroad should be regulated by government– Increase money supply (bimetallism)

• Also believed in…– More direct involvement in government– Eight hour workday– Graduated income tax

Platform Platform of Lunacyof LunacyPlatform Platform of Lunacyof Lunacy

Bimetallism

• U.S. $$$ were worth a set amount of gold or silver

• Using one metal would cause value of dollar to increase– This makes it difficult for debtors to repay a loan– Also makes it better for those without debt

Metallic standard – dollars in the USA were backed by metal, typically gold or silver.

“Crime of 1873” Govt. stopped coining silver

This put less money into circulation, helping big business and hurting “little guys”- farmers.

                     

        

Legal Gold price of silveror how many tons of silver

you need to buy one ton of gold ?16 :1

              

                          

371 grains of pure silver

<= ONE DOLLAR IS DEFINED AS =>

                                                        

                  

23.5 grains of pure

gold

Silver vs Gold

Causes

• Several major companies go bankrupt– RR companies– 16,000 companies disappear– Stock market crashes– People take money out of banks at once

• Banks have no money to lend

So what happens?

– 500 banks close

– 1895 = 20% unemployment

– Plenty of room for a new, extreme party of the people to rise

Here Lies ProsperityHere Lies ProsperityHere Lies ProsperityHere Lies Prosperity

Tech-Bubble Dot-com bubble

Housing Bubble

Election of 1892

Election of 1896

• Democratic/Populist Party nominates William Jennings Bryan

• Republican Party nominates William McKinley

• Republicans have 16 times the amount of money the Democratic party does– Think about it: bankers & business vs. poor farmers & workers