Chapter 7 Postwar Industrialization, Agriculture, and Urban Growth #2 The Problems of Farmers & The Populists

Essential Question: Who were the Populists & what new ideas did they promote in order to help western farmers?

Group Activity: The Problem of Farmers & Rise of the Populist Party In groups of 2, (10 mins) complete these tasks: Examine the documents provided & determine what major problems farmers faced in the Gilded Age Write your answers in the matrix When finished, generate a plan that provides a solution to meet the needs of farmers

The Problems of Farmers In the 1870s & 1880s, western farmers faced serious problems: Prices for their crops were falling due to over-production of grains Banks were charging high interest rates on mortgages & were foreclosing on debtors Railroads charged high rates for shipping & storing their crops

Price Index for Consumer & Farm Goods

The Problems of Farmers Government policies hurt farmers: The gov’t reduced the paper money (greenbacks) & relied on gold-backed currency This led to deflation making it harder for farmers to pay off debts When westerners appealed to their politicians, nothing was done

Reform Attempts by Farmers Farmers attempted to organize & fight back through groups like the Grangers & the Farmers’ Alliance: These groups attacked abusive banks & railroad companies They called on farmers to form their own co-op stores, banks, & storage silos to avoid exploitation Both groups failed to gain improvements for farmers

Granger Meeting

The Populist Party In 1890, the Populist Party was formed & demand reforms: Government regulation of railroads in order to lower rates A national income tax to take the burden of taxation off farmers Direct-election of Senators to make politicians more responsive Bimetalism: Using gold & silver to inflate the money supply Their platform included the Ocala Demands, an 8-hour day, gov’t control of RRs & banks, the breakup of monopolies, & tighter immigration restrictions Populists emerged as a powerful 3rd party & got numerous state & national politicians elected

Bi-Metalism

The Rise of the Populist Party From 1890 to 1896, the Populist Party emerged as an influential 3rd party & began to challenge the Democrats & Republicans …the state gov’ts of Idaho, Nevada, Kansas, & North Dakota were dominated by Populists , & dominated the state governments of Idaho, NV, CO, KS, & ND During this time, 3 governors, 10 congressmen, & 5 senators were elected as Populist candidates… In 1892, Populist James Weaver made a run at the presidency

William Jennings Bryan & the Election of 1896 In the 1896 presidential election, William Jennings Bryan embraced Populist ideas & was nominated by the Democrat & Populist Parties: Bryan made bimetallism the issue of the campaign as a result of his “Cross of Gold” speech Republican William McKinley argued for the gold standard

Bryan’s “Cross of Gold” Speech

Bimetallism: A recipe for prosperity or lunacy?

The Election of 1896 McKinley’s defeat of Bryan in the election of 1896 killed the Populist Party… …but key Populist ideas such as the income tax, direct election of Senators, & regulation of railroads will be enacted by the Progressives from 1890 to 1920