Social Studies Lesson 18.4

Did You Know? * The Mugwumps were a group of independent Republicans who wanted a reformer in the White House. The group was given its name, an old slang word for "kingpin," by the New York Sun newspaper. When the Democrats nominated Grover Cleveland in July 1884, the Mugwumps left the Republican Party and campaigned for Cleveland. Now the word mugwump means a person who is an independent rather than a Democrat or a Republican.

The Farmers Organize (Pages ) * After the Civil War, farming expanded in the West and South. But the supply of crops grew faster than the demand for them, causing prices to fall. At the same time, expenses for seed, farm equipment, and other manufactured goods remained high. *The farmers turned their anger on three groups. They resented railroads, which charged what the farmers felt were unfairly high prices to ship crops. They were angry with eastern manufacturers for the high prices they charged for their goods. And they resented banks, which charged high interest rates for the loans farmers needed to buy seed, equipment, and other goods. When crops failed and farmers could not repay loans, they risked losing their farms.

* Farmers began to organize to solve their problems. The first farmers' organization was a network of self- help organizations known as the Grange. It offered, among other services, cash co-ops, where farmers could buy products from one another. They charged lower prices than other stores, helped farmers sell their crops, and removed the burden of debt by dealing in cash. The Grange cooperative eventually failed because farmers were usually short of cash. By the 1870s, the Grange had declined.

* The Grange was followed by Farmers' Alliances, which started in the West and South in the 1880s. They grew tremendously, with millions of members by the early 1890s. The Colored Farmers' National Alliance was also established and grew to more than 1 million members. * The Farmers' Alliance also sponsored education and cooperative buying for farmers. To reduce the power of railroads, merchants, and banks over farmers, the alliance also proposed that the federal government loan money to farmers, using their crops as collateral. * The Farmers' Alliance would have become a powerful political force if it had remained united. But regional and personal conflicts kept the groups from remaining united nationally.

Discussion Question * Why did farmers resent the railroads, the banks, and merchants? * They blamed these groups for their economic problems because they felt that all three groups charged too much. The railroads kept the costs of shipping crops to markets high. The banks, which loaned the farmers money for seed and equipment, had high interest rates on the loans and could foreclose on a farm if a farmer had a bad year. Merchants charged high prices for the goods the farmers needed.

A Party of the People (Pages ) * In 1890 the leaders of the Farmers' Alliance formed the People's Party of the U.S.A., also known as the Populist Party. The new party wanted to appeal to the common people.

* The Populist Party thought that the government, not private companies, should own railroads and telegraph lines. It wanted to replace the country's gold-based currency with a currency system based on the unlimited production of silver coins. This would have given farmers more money to pay their debts. Populists also supported limiting the president and vice president to one term, electing senators directly, shortening the length of the work week, and creating a national income tax.

* The Populist Party made good showings in the presidential elections of 1892 and in the local elections of * When Southern state legislatures placed restrictions on the rights of African American voters in the 1890s, many African Americans who might have supported the Populists were unable to vote. * There were also racial and sectional antagonisms among members. * It lacked money and organization * The Populist Party had problems that prevented its growth.

* The Populist ticket received only 222,600 popular votes and no electoral votes. * The public voted for William McKinley, who represented stability. * But good economic times were returning, even for farmers, and the Populist economic message seemed less urgent. * The Populists nominated William Jennings Bryan to run on their ticket in the 1896 presidential election.

* Although the Populist Party did not win any national elections, many of its ideas were later adopted in the 1890s. These included abandoning the gold standard, adopting the eight-hour workday, instituting an income tax, and allowing the direct election of senators. * These included abandoning the gold standard, adopting the eight-hour workday, instituting an income tax, and allowing the direct election of senators.

Discussion Question * Would you consider the Populist Party a success or a failure? * Students should consider the party’s eventual successes in getting many of its ideas later adopted into law as well as the fact that its candidates did not achieve national office and the party soon disappeared.