Birth of Populism 7.4

Financial Panic Nationwide economic depression. As the economy worsens, people rush to banks to withdraw money. Banks then call in loans in order to remain afloat. Many of these loans are for family farms under the Homestead Act

Tariffs To protect farmers, Congress enacts tariffs on foreign crops. Many countries enact tariffs of their own, driving down demand (and the overall price) for American crops worldwide

The Money Issue – Inflation vs. Deflation Inflation is an increase in the money supply, and decreases the value of money. Inflation helps debtors and sellers (Farmers). Deflation is a decrease in the money supply, and increases the value of money. Deflation helps lenders (Bankers).

All US currency used backed by specie All US currency used backed by specie. The Bimetallic Standard meant that we issued coinage in both gold and silver, keeping the money supply high (inflation)

Gold Standard - 1873 Congress put the US on the Gold Standard, decreasing the money supply This pleases financially conservative (Republican) “Gold Bugs”, and angers the “Silverites” (farmers, miners, debtors)

Farmers Fight (back)! Droughts, Floods, Blizzards, Panics, Tariffs, Deflation and the Gold Standard all hurt Farmers

The Grange – 1877 Formed to help farmers set up cooperatives

“Raise less corn and more hell!” Farmers Alliances “Raise less corn and more hell!”

Farmers Alliances Help farmers fight the railroad and set up state agricultural commissions

The Populists The farmer’s movement culminates in the formation of the Populist Party. Composed of: Members of the Grange and Farmers Alliances, mining interests, debtors, Silverites, black and white farmers and some Democrats

Populist Party Platform Increased Circulation of money Unlimited minting of silver Progressive income tax Government ownership of communication and transportation systems Oliver H. Kelley

Democrats nominate William Jennings Bryan for President. Bryan barnstorms the country campaigning for president and delivering speeches.

“Cross of Gold” Incredibly popular speech Made it for years afterwards

“Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.”

Election of 1896 Bryan carries Southern and Western states, but loses more heavily populated Eastern industrial centers. Bryan loses the election and the Populist movement declines in the coming years, but their effect continues as Populists join the Progressive Movement.