What was the plight of the farmer during the Gilded Age? Mrs. Sinacore, 2010

Changes Farming Most farmers were no longer subsistence farmers Most farmers tended to specialize in a single cash crop Profits rose, but so did expenses. . .

The Setting: In the 30 years after the Civil War, more land was settled than in the whole of American history before that time The US Government had been supporting westward settlement since the 1860s. . . Homestead Act 1862 Timber Culture Act 1873 Desert Land Act 1877 Morrill Land Grant Act 1862 Timber & Stone Act 1878

Who do you think profited the most?

New Problems As farmers moved further west, they encountered: Tornadoes Fires Swarming grasshoppers Extreme temperatures

Farmers’ Expenses Heavy Equipment Fencing (barbed wire after 1874) For digging wells, pumping water, plowing hard soil, harvesting Fencing (barbed wire after 1874) Merchants (“middle-men”) Grain Elevator Operators Railroads

How did farmers pay for their growing expenses? Money had been “cheap,” so many farmers mortgaged their land This meant they were even more reliant on cash crops If they had a bad crop, they would lose their land

Problems. . . With increased supply, prices farmers could charge for their crops decreased Railroad grain elevator companies were increasing prices for transport of crops Many farmers found it hard to repay their debts Many farmers faced foreclosure It was becoming more difficult to borrow more money

Why were the farmers suffering? – the Silver Issue “Crime of ‘73” – demonitzation of silver (the government stopped coining silver) Bland-Allison Act (1878) – Limited silver coinage to $2-$4 million per month (based on 16:1 ration of silver to gold) Sherman Silver Purchase Act (1890) – The U.S. Treasury must purchase $4.5 million ounces of silver per month; deposits silver into Treasury instead of increasing money in circulation

Price Indexes for Consumer and Farm Products: 1865-1913

The Farmers React National Grange of the Patrons of Husbandry, 1867 leads to the GRANGE MOVEMENT Began in Midwest, South, and Texas Cooperatives Social function Educational components Successful in lobbying for “Granger Laws” Rapidly declined by the late 1870s

The Supreme Court Reacts Munn v. Illinois, 1877 Wabsh v. Illinois, 1886

The Farmers Alliances Picked up where the Grange left off in Texas and then spread; other regional alliances formed More political and less social than the Grange Ran candidates for office controlled 8 state legislatures and had 47 Representatives in Congress during the 1890s

The Populist Party 1890 1892: 800 met in St. Louis, MO Southern Alliance wanted to gain control of the Democratic Party Northern Alliance rad a 3rd party candidate 1892: 800 met in St. Louis, MO Majority were Alliance members Over 100 were African Americans Representatives of labor organization and other reformers were presents, also

The Populists Organize A political party, as opposed to the Grange and the Farmers Alliances Founded by James Weaver and Thomas Watson Convened in Omaha in July 1892 to formulate a platform Won almost 1 million popular votes Won several seats in Congress

The Platform of Lunacy

The Omaha Platform Bi-Metallism Sub-treasury System to replace the National Bank Direct Election of Senators Government ownership of RRs, telephone and telegraph companies Government-operated postal savings banks Immigration restrictions 8-Hour work day for government employees Elimination of the use of Pinkertons Use of the Australian secret ballot Re-monitization of sliver Single term for President and Vice President Bi-Metallism

Bi-Metallism The Populists focused on the unlimited coinage of silver so that inflation would occur. Decrease the value of money Increase prices (profits) Make debts easier to repay Urban-dwellers did not want prices to increase Bankers did not want to be repaid with money that was less valuable than the money they loaned out

Election of 1892

Cleveland Takes Office The Panic of 1893 began 10 days into his term Several major corporations went bankrupt Stock Market Crashed Banks failed and credit contracted Unemployment soared Laissez faire policies continued…

The Populists Gain Popularity Despite the 40% increase in Populist votes in 1894 and the loss of many Democratic candidates, the Republicans won control of the House of Representatives

The Election of 1896

W.J. Bryan’s “Cross of Gold Speech” “You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold!”

The Election of 1896

Why did W.J. Bryan Lose? His focus on silver (which would lead to INFLATION) undermined efforts to build bridges to urban voters He did not form alliances with other groups McKinley’s campaign was well-organized and highly funded

Silver became a “non issue” More gold was discovered and the money supply naturally increased 1900 – Gold Standard Act

Populism Declined The economy rapidly changed: The era of small producers and small farmers was fading away Race increasingly divided the Populist Party The Democratic Party co-opted many of their ideas