Populism

1. Populism

2. Setting the Scene After Reconstruction, farm production increased dramatically across the nation, creating a larger food supply Any increase in supply means a decrease in prices These lower prices meant that farmers could no longer break even or repay their debt

3. Setting the Scene Farmers began to demand that the federal government intervene to stabilize the farm industry Such intervention may be common today, but was extremely rare in the 1800s Farmers voiced their concerns over three particular issues: tariffs, monetary policy, and the bimetallic standard

4. Farmers’ Concerns • Tariffs: taxes on imported goods • Good for business, because they reduced international competition • Bad for farmers, because they raised prices on farm equipment and reduced the international market • Farmers argued that the government unfairly supported big business

5. Farmers’ Concerns • Monetary Policy: the government’s plan for the makeup and quantity of the nation’s money supply • More money in circulation causes inflation, or increased prices • Increased prices are good for sellers (like farmers) and borrowers of money (like farmers) • Less money in circulation causes deflation, or decreased prices, which are good for buyers and lenders • Farmers therefore argued for an increased money supply

6. Farmers’ Concerns • The bimetallic standard: currency consisting of both gold and silver coins • Using both gold and silver increases the money supply • After an economic panic in 1873 the federal government adopted the gold standard, reducing the money supply and causing deflation, or lower prices • Farmers fought for free silver to increase the money supply

7. Government Response • Bland-Allison Act, 1878 • Required the federal government to purchase and coin more silver • US Treasury refused to circulate the silver coins it minted • Sherman Silver Purchase Act, 1890 • Authorized free, unlimited silver coinage • Repealed after the panic of 1893 reduced the nation’s gold reserves

8. Farmers Get Organized • The Grange, founded in 1866 • Helped farmers form cooperatives • Pushed for regulation of grain elevators and railroads • Farmers’ Alliances, 1880s • Fought for the regulation of railroads, a greater money supply, and government relief from floods, blizzards, and droughts • Many women played key roles in alliances

9. Government Response • Mixed Responses • Grover Cleveland, 1887: “…though the people support the government, the government should not support the people.” • LAISSEZ-FAIRE politics at their finest! • Interstate Commerce Act of 1887 gave Congress the right to regulate the railroads • Implemented ICC • Sherman Antitrust Act of 1890 curbed the power of monopolies • Loosely enforced

10. The Populists • The People’s Party, founded 1891 • 1892 convention held in Omaha • Built their platform around four issues • Increased circulation of money • Unlimited minting of silver • Progressive income tax • Government ownership of communication and transportation systems

11. The Populists • Sought support from urban workers • Endorsed an eight-hour workday • Spoke out against Pinkerton strike-breakers • Sought support from black farmers • Argued that the industrialists took advantage of black farmers just as much as they did white farmers • Selected James B. Weaver to run for President in 1892, lost badly, but fared well for 3rd party candidate

12. The Populists • Selected William Jennings Bryan to run for President against Republican William McKinley in 1896 • The gold standard issue dominated the election • Bryan delivered his “Cross of Gold” speech during the campaign • Despite a furious effort, Bryan lost (also lost presidential elections in 1900 & 1908)

14. Populism’s Legacy • By 1900 new gold discoveries had increased the world’s gold supply • The US returned to the gold standard, killing the silver movement, and Populism with it • Political reform • Even though the Populists could not get Bryan elected, they proved that a third party could bring important issues to the national stage