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

1. Farmers and the Populist Movement Farmers unite to address their economic problems, giving rise to the Populist movement.

2. Why were the Farmers so angry? “ What you farmers need to do is to raise less corn and more Hell! We want the accursed foreclosure system wiped out. . . . We will stand by our homes and stay by our firesides by force if necessary, and we will not pay our debts to the loan-shark companies until the Government pays its debts to us.” —MARY ELIZABETH LEASE quoted in “The Populist Uprising”

3. What problems did farmers face in the late 1800s? (List 4) • ___________________________________________________ • ___________________________________________________ • ___________________________________________________ • ___________________________________________________

5. What were the goals of the Granger Movement?

6. What is happening in this political cartoon? Which of the problems listed before does this cartoon address? What did the farmers want the government to do to address this problem?

7. Why were the Farmers so angry? Review What problems did farmers face in the late 1800s ? Economic Distress • Farmers buy more land to grow more crops to pay off debts • After Civil War, government takes greenbacks out of circulation • Debtors have to pay loans in dollars worth more than those borrowed • Prices of crops fall dramatically • 1870s, debtors push government to put more money in circulation • 1878 Bland-Allison Act—money supply increase not enough for farmers Continued…

8. Lets Review Problems with the Railroads • Lack of competition lets railroads overcharge to transport grain • Farms mortgaged to buy supplies; suppliers charge high interest The Farmers’ Alliances • 1867, _____________________starts Patrons of Husbandry or _________ • Purpose is educational, social; by 1870s, Grange fighting railroads • _______________—groups of farmers and sympathizers — lectures on interest rates, government control of railroads, banks — gain over 4 million members Oliver Hudson Kelley • Grange Farmers’ Alliances

9. What was the Populist Party ? What was the Populist Party Platform?

10. Populist Platform: • Direct popular election of US Senators. • Enact state laws through initiatives and referendums. • Unlimited coinage of silver (increase $ supply) • A graduated income tax • Public ownership of railroads, telegraph, and telephone systems. • Loans and warehouses for farmers to stabilize prices. • 8 hour work day for industrial workers. • Secret ballots • Immigration controls Continued…

11. How did the Populist think that bimetallism would solve their problems?

12. Greenbacks During the Civil War, the North printed paper money called greenbacks to increase the supply of money • The value of greenbacks was not tied to the value of gold, so its value was not stable • The money was popular with farmers, workers, and debtors

13. Greenbacks When paper money is not backed by gold, its value changes with the public’s faith in its ability to be used to buy goods At the end of the Civil War, a $1.00 greenback was worth only 46 cents If the value of the greenback goes up to 67 cents, your debt increases. Imagine you go into debt when the value of the greenback is 46 cents.

14. How Paper Money Works II • In gold-based currency systems, governments print as much paper money as they have gold to buy it back I can print $300 in paper bills Ihave $300 in gold

15. The Issue of Silver You can also increase the money supply by using silver to back paper money Silver Gold MO’ MONEY!

16. The Silver Debate • Debtors, farmers, and workers wanted more silver to be used to back paper money • Two laws were passed to increase the money supply… but was it enough? • Sherman Silver Purchase Act (1890) – increased US purchases of silver for increasing the money supply • Bland-Allison Act (1878) – US resumed using silver to increase the money supply

17. The Panic of 1893 • Railroads expand faster than markets; some go bankrupt • Government’s gold supply depleted, leads to rush on banks — businesses, banks collapse — panic becomes depression Continued…

19. Election of 1896 Republicans Candidate: Supporters: Platform: Democrats Candidate: Supporters: Platform:

20. Silver or Gold Gold bugs: gold only would create more stable, if expensive currency Silverites: bimetalism would create more money, stimulate economy • Gold standard—backing currency with gold only • Bimetallism—system using both silver and gold to back currency

21. The Wizard of Oz Follow the Yellow Brick Road Gold Standard Washington D.C Emerald City ____________________ – Where all of the problems are supposed to be solved America Dorothy Represented_________________- honest and plucky, kindhearted She is lost and trying to find her way home

22. “. . .You come to us and tell us that the great cities are in favor of the gold standard; we reply that the great cities rest upon our broad and fertile prairies. Burn down your cities and leave our farms, and your cities will spring up again as if by magic; but destroy our farms and the grass will grow in the streets of every city in the country. . . .” —William Jennings Bryan, 1896 In the late 19th century, farmers attempted to address what issue raised by William Jennings Bryan in this speech? What does the “cross of gold” represent?

23. Who won the election of 1896?

24. What lasting impact did the Populists have on U.S. Policy? Regulating Railroads • _______________________—congress passed in 1887 • First time the federal government regulated an industry • Objective: make railroad rates fair • Created the _______________________ ICC to oversee the railroads Interstate Commerce Act Interstate Commerce Commission

25. What lasting impact did the Populists have on U.S. Policy? • Many Populist ideas survived the demise of the movement and were enacted into law over the span of the next 20 years. • The graduated income tax, • the direct election of senators, • the secret ballot, • government subsidies to farmers all had Populist origins. • The party would also serves as one of the origins of the Progressive movement, which pushed for major reforms during the first few decades of the 20th century.