Big Ideas

Economics and Society The Populist movement and its presidential candidate William Jennings Bryan strongly supported silver as the basis for currency.

Content Vocabulary

• populism

• greenbacks

• inflation

• deflation

• cooperatives

• graduated income tax

Academic Vocabulary

• bond

• currency

• strategy

People and Events to Identify

• Farmers’ Alliance

• People’s Party

• William Jennings Bryan

• William McKinley

A. A

B. B

Do you feel that presidential candidates must be eloquent speakers in order to run for office?

A. Yes

B. No

A B

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Unrest in Rural America

Deflation, low crop prices, and tariffs hurt farmers economically.

• Populism was a movement to increase farmers’ political power and to work for legislation in their interest.

• Some farmers thought adjusting the money supply would solve their economic problems.

Unrest in Rural America (cont.)

− During the Civil War the federal government issued millions of dollars in greenbacks.

− This increase in the money supply without an increase in goods for sale caused inflation.

• To get inflation under control, the federal government stopped printing greenbacks, began paying off its bonds, and stopped making silver coins.

• As the economy expanded, deflation began and hit farmers especially hard.

Unrest in Rural America (cont.)

• In 1867, Oliver H. Kelley founded the first national farm organization, the Patrons of Husbandry, better known as the Grange.

• Grangers responded to the recession in 1873 by pressuring state legislatures to regulate railroad and warehouse rates.

Unrest in Rural America (cont.)

Why Were Farmers Having Problems?

− They also tried to create cooperatives.

− None of the strategies the Grangers employed improved farmers’ economic conditions.

• As the Grange began to fall apart, the Farmers’ Alliance began to form.

Unrest in Rural America (cont.)

− When Charles W. Macune became the leader of the Alliance, he announced a plan to organize very large cooperatives, which he called exchanges.

− Ultimately, the large cooperatives failed.

A. A

B. B

In the case of Wabash v. Illinois which decision did the Supreme Court make?

A. States could regulate railroads and commerce that crossed state lines.

B. States could not regulate railroads and commerce that crossed state lines.

A B

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The Rise of Populism

Farmers started the People’s Party to fight for their interests and attracted many supporters when a depression hit in the 1890s.

• Members of the Kansas Alliance formed the People’s Party, also known as the Populists, and nominated candidates to run for Congress and the state legislature.

• To get the Southern Democrats to support the Alliance, Charles Macune introduced the subtreasury plan.

The Rise of Populism (cont.)

− Macune believed the plan would enable farmers to hold their crops off the market in large enough quantities to force prices up.

• The Populists nominated James B. Weaver to run for president in 1892.

• The Populist platform endorsed the following:

The Rise of Populism (cont.)

− a return to unlimited coinage of silver at a ratio that gave 16 ounces of silver the same value as one ounce of gold

− federal ownership of railroads

− a graduated income tax

− proposals designed to appeal to organized labor

The Rise of Populism (cont.)

• Grover Cleveland won the election.

A. A

B. B

C. C

D. D

E. E

The People’s Party called for which of the following?

A. Free coinage of silver

B. An end to protective tariffs and national banks

C. Tighter regulation of railroads

D. A and B

E. All of the above A B C D E

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The Election of 1896

Although William Jennings Bryan had the support of the Populists and the Democrats, Republican William McKinley defeated him.

• The Democrats nominated William Jennings Bryan as their candidate.

The Election of 1896 (cont.)

− He transformed the campaign for silver into a crusade.

− The Populists decided to support Bryan instead of possibly splitting the silver vote.

Election of 1896

• The Republicans nominated William McKinley as their candidate.

The Election of 1896 (cont.)

− Due to McKinley’s reputation as a moderate on labor issues and as tolerant toward ethnic groups, he won the campaign.

• The Populist Party declined after 1896.

Election of 1896

A. A

B. B

Which of the candidates launched a “Front Porch Campaign”?

A. William Jennings Bryan

B. William McKinley

A B

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populism

political movement founded in the 1890s representing mainly farmers, favoring free coinage of silver and government control of railroads and other large industries

greenback

a piece of U.S. paper money first issued by the North during the Civil War

inflation

the loss of value of money

deflation

a decline in the volume of available money or credit that results in lower prices, and, therefore, increases the buying power of money

cooperative

store where farmers buy products from each other; an enterprise owned and operated by those who use its services

graduated income tax

tax based on the net income of an individual or business and which taxes different income levels at different rates

bond

a note issued by the government that promises to pay off a loan with interest

currency

paper money used as a medium of exchange

strategy

a plan or method for achieving a goal