Farmers and the Populist Movement Chapter 5 / Section 3

Farmers Unite to Address Common Problems In the late 1800’s many farmers were trapped in a bad economic situation. (crop prices fall) Also farmers being hurt because of deflation from the Civil War. Good for consumer but bad for farmers. So they try to persuade the government to increase money supply.

Farmers Unite to Address Common Problems (cont’d) Led to Bland-Allison Act, increased money supply; wasn’t enough. Farmers also struggling because increased cost of transportation. Railroads deal with middlemen. Left farmers in cycle of credit that meant long hours and more debt.

Farmers Unite to Address Common Problems (cont’d) Knowing reform needed farmers unite. Oliver Kelly starts the Patrons of Husbandry. Becomes known as the Grange, a group created to be a social outlet and educational forum for isolated farmers. But farmers end up attempting to combat power of railroads.

The Rise and Fall of Populism Populism, movement seeking to advance interests of farmers and laborers. Goals of Party: 1) Increase money supply 2) Graduated Income Tax 3) Federal loan program

The Rise and Fall of Populism (cont’d) Radical reforms for time, but attractive to farmers. By 1893 depression hits the U.S. Occurs due to fast growth and to much debt. People fear paper currency. Because of Panic of 1893 the two big parties become divided.

The Rise and Fall of Populism (cont’d) In 1896 election major issues is which metal will rule. Bimetallism, policy in which government gave people gold or silver in exchange for paper money. System favored by “free silverites” “Gold Bugs” want gold standard to back money.

William McKinley / William Bryan

The Rise and Fall of Populism (cont’d) Election of 1896 William McKinley, Republican candidate who backs gold standard. William Jennings Bryan, Democratic candidate, party backs both. Gives “Cross of Gold” Speech; in which he attacks “gold bugs” who back only gold.

The Rise and Fall of Populism (cont’d) As much backing as Bryan had he still struggles due to lack of funds. McKinley wins election of 1896. Win buries the Populist Party, leaves farmers in remorse. However, led to many reforms in the 20th Century.