Farmers and the Populist Farmers and the Populist MovementMovement

Chapter 5 Section 3Chapter 5 Section 3

Main IdeaMain Idea

Farmers united to address their economic Farmers united to address their economic problems, giving rise to the Populist problems, giving rise to the Populist movement.movement.

Farmers and Common ProblemsFarmers and Common Problems

Problems for the farmers:Problems for the farmers: Prices for crops were falling (deflation)Prices for crops were falling (deflation) Farmers often mortgaged their farms to buy more Farmers often mortgaged their farms to buy more

land and produce more crops (never-ending cycle land and produce more crops (never-ending cycle of mortgage and debt)of mortgage and debt)

Good farming land was becoming scarceGood farming land was becoming scarce Railroads were charging high prices for shipping Railroads were charging high prices for shipping

and for storage (high railroad rates)and for storage (high railroad rates)

Reform Reform

1867 – Oliver Hudson Kelley founded the Grange1867 – Oliver Hudson Kelley founded the Grange Grange – a social and educational organization Grange – a social and educational organization

through which farmers attempted to combat the through which farmers attempted to combat the power of the railroads in the late 19power of the railroads in the late 19 thth century (aka the century (aka the Patrons of Husbandry)Patrons of Husbandry) Taught farmers how to organizeTaught farmers how to organize How to set up farmers’ cooperativesHow to set up farmers’ cooperatives How to sponsor state legislation to regulate the railroadsHow to sponsor state legislation to regulate the railroads

Farmers’ AlliancesFarmers’ Alliances

Groups of farmers (or those that had sympathy Groups of farmers (or those that had sympathy for farmers) who sent speakers from town to for farmers) who sent speakers from town to town to educate people about agriculture and town to educate people about agriculture and rural issuesrural issues

Rise and Fall of PopulismRise and Fall of Populism

Movement that demanded that people have a Movement that demanded that people have a greater voice in government and seeking to greater voice in government and seeking to advance the interests o farmers and laborersadvance the interests o farmers and laborers

Populist Party Platform:Populist Party Platform: Increase in money supplyIncrease in money supply Graduated income taxGraduated income tax Eight hour work daysEight hour work days Immigration restrictionsImmigration restrictions Single terms for the presidents and vice-presidentsSingle terms for the presidents and vice-presidents

Panic of 1893Panic of 1893

Causes:Causes: Overexpansion of key industries like the railroad Overexpansion of key industries like the railroad

companiescompanies Shrinking of the federal gold reserveShrinking of the federal gold reserve

Silver or GoldSilver or Gold

Gold BugsGold Bugs Bankers and businessmanBankers and businessman Wanted less money in Wanted less money in

circulationcirculation Loans would be repaid in Loans would be repaid in

stable moneystable money Deflation – prices fall, value Deflation – prices fall, value

of money increases, fewer of money increases, fewer people have moneypeople have money

SilveritesSilverites Farmers and laborersFarmers and laborers Bimetalism Bimetalism More money in circulationMore money in circulation Products would be sold at Products would be sold at

higher priceshigher prices Inflation – prices rise, value Inflation – prices rise, value

of money decreases, more of money decreases, more people have moneypeople have money

definitionsdefinitions

Bimetallism – the use of both gold and silver Bimetallism – the use of both gold and silver as a basis for a national monetary systemas a basis for a national monetary system

Gold standard – monetary system in which the Gold standard – monetary system in which the basic unit of currency is defined in terms of a basic unit of currency is defined in terms of a set amount of gold (backing dollars solely with set amount of gold (backing dollars solely with gold)gold)

Question…?Question…?

Why was the metal that backed currency so Why was the metal that backed currency so important?important?

Because people thought that paper currency Because people thought that paper currency only had value if it could be turned in for only had value if it could be turned in for precious metals such as gold or silverprecious metals such as gold or silver

McKinley vs. BryanMcKinley vs. BryanElection of 1896Election of 1896

William McKinley – Republican candidateWilliam McKinley – Republican candidate William Jennings Bryan – Democratic William Jennings Bryan – Democratic

candidatecandidate McKinley, with the help of a much larger bank McKinley, with the help of a much larger bank

account, won the 1896 election account, won the 1896 election This effectively ended the populist movementThis effectively ended the populist movement