The Gold (& Silver) Issue AP US History

Price Indexes for Consumer & Farm Products: 1865-1913

Overproduction of crops. FARMER'S REVOLT Civil War-time of prosperity—Northern gov’t encouraged farm expansions to feed troops, but by the late late 1800s farmers are in tough times Overproduction of crops.

Farmers blamed Northern businesses for their troubles Farmer’s Revolt Farmers blamed Northern businesses for their troubles Would form into an independent political party and threaten the Democrats and Republicans. Also called the “People’s Party”, and would become a national political party called the Populists.

THE POPULISTS: Grassroots Movement Local and state level Organized in 1867 in response to farmers’ isolation. Helped farmers form cooperatives which bought goods in large quantities at lower prices. The Grange also pressured government to regulate businesses on which farmers depended. The Grange People’s Movement Spreads The Farmers’ Alliance called for political actions that many farmers could support. The alliances won support for women’s rights. Blacks allowed but parallel “Colored Farmers’ Alliance.” Farmers’ Alliance Becomes a national movemnt Populists Farmers’ Alliances formed a new political party, The People’s Party or the Populists. A national movement that was supported by farmers, the West and parts of the South…. Populists would elect a presidential candidate in the 1892 and 1896 presidential elections.

Founder of the National Grange of the Patrons of Husbandry (1867)

Successful at the local and state level with the Granger laws. Grange movement, a coalition of U.S. farmers, of the 1870s. Had social and educational components. Successful at the local and state level with the Granger laws. Gift for the Grangers: The Farmer Pays for All!

Populist/Ocala Platform of 1892 Purer democracy: more involvement of people Women’s suffrage Direct election of U.S. senators Australian Secret Ballot Term limits for Congress Govt. ownership of RRs, telephone & telegraph companies. Income tax Initiative and referendum Citizens propose and review legislation Restriction of undesirable immigration. 8-hour work day for government employees. Demanded free and unlimited coinage of silver A single term for President & Vice President.

Bimetallic Standard Review Since 1790, a Gold standard ratio of 16:1 Silver dollars  worthless Crime of ’73 Discontinued selling of silver to gov’t New strikes  increased silver supply-gov’t buys more silver Miners and farmers seek inflation Front and back of an 1873 Silver Dollar

FARMER'S COMPLAINTS The Money Issue Farmers wanted an increase in the money supply, the amount of money in the national economy. WHY? Value of every dollar drops, leads to a widespread rise in prices, or inflation. This trend would benefit people who borrow money (farmers), but it would not be good for money lenders (banks). A decrease in the money supply would cause deflation. Monetary policy, the federal government’s plan for the makeup and quantity of the nation’s money supply, thus emerged as a major political issue.

Laws and Silver Bland-Allison Act-1878 Gov’t purchases $2-$4m per month Hayes vetoes/still passes Treasury Dept. buys minimums Sherman Silver Purchase Act (1890) Compromise to pass McKinley Tariff Increased amount of gold gov’t buys per month Treasury buys silver with notes redeemable in silver and gold

$ Drama Panic of 1893 Run on gold from the Sherman Silver Purchase Act Gov’t attempts to keep stock of gold Reserves fall from $200m in gold to $41m in 2 years Cleveland repeals Sherman Silver Purchase Act JP Morgan purchases $65m in gov’t bonds

Coxey’s Army, 1894 Jacob Coxey & his “Army of the Commonwealth of Christ.” March on Washington  “hayseed socialists!” Demanded US Govt. public works programs, mainly railroads for the nation's unemployed. Before "General" Coxey could deliver a historic speech, however, he was arrested by District police - for walking on the grass Coxey's Army was a protest march by unemployed workers from the United States, led by the populist Jacob Coxey. They marched on Washington D.C. in 1894, the second year of a four-year economic depression that was the worst in United States history to that time. Officially named the Commonweal in Christ, its nickname came from its leader and was more enduring. It was the first significant popular protest march on Washington and the expression "Enough food to feed Coxey's Army" originates from this march.

Result of Election Returns Populist vote increased by 40% in the bi-election year,1894. Democratic party losses in the West were catastrophic! But, Republicans won control of the House.

Election of 1896 McKinley for Republicans Platform Maintain gold standard High protective tariffs Who would this appeal to? Democrats unhappy with Cleveland Laws Republican gains Who to replace Cleveland? William McKinley William Jennings Bryan

Election of 1896 Continued William Jennings Bryan emerges after “Cross of Gold” speech “Gold Bugs” bolt after Bryan secures nomination Bryan’s platform Reduced tariff Strict regulation of RR and industry Principle of the income tax Limiting the use of the injunction Free & unlimited coinage of silver

Populists Left “out in the cold” What to do? Nominate candidate? Support Bryan?

Campaign Strategy Republican Democratic “McKinley and the full dinner pail.” Front porch campaign “Spellbinder” Democratic Bryan campaigns fervently

Bryan’s Downfall Bryan’s undoing Price of wheat rises last months of election Inability to sustain emotionalism Campaign spending $4.8m vs. $.3m

McKinley Administration Conservative 1897 Dingley Tariff enacted Gold Standard Act of 1900 (gold only) Return to prosperity Foreign crop failures Recovery from Panic of 1893 Technology/new gold discoveries

The Wizard of Oz by L. Frank Baum

1964: Henry Littlefield’s Thesis?

a. The Wizard of Oz Thesis   b. The Tin Woodsman = eastern industrial worker   c. The Scarecrow = farmer Wicked Witch of the East = Bankers Wicked Witch of the West =Drought   d. Dorothy and her "silver slippers" = the proposed silver standard   e. The Cowardly Lion = William Jennings Bryan f. The Yellow-Brick Road = the gold standard supported by financiers   g. The Wizard of Oz = President William McKinley   h. Toto = a small, black dog