Farmers and Populist Movement

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Presentation transcript:

Farmers and Populist Movement Notes: Chapter 5 Section 3

I.) Farmers Face Problems Crop Prices Fall Farmer Mortgage Farms to Buy More Land Good Farm Land Scarce Banks Begin to Foreclose Railroads Charge High Shipping Prices

A. ) Money Problems Cause: 1. During Civil War U. S A.) Money Problems Cause: 1. During Civil War U.S. issue “Greenbacks” which cannot be exchanged for gold/silver 2. Greenbacks worth less than hard money 3. Govt. take them out of circulation Effect: 1. Farmers had to pay back loans in dollars worth more than the dollars they had borrowed 2. Foreclosures Increase & Farmers lose money

B. Problems with the Railroads Cause: 1 B. Problems with the Railroads Cause: 1. Lack of competition for railroads 2. Secret agreements = railroads control grain prices Effect: 1. Farmers pay high prices to transport goods 2. Farmers mortgage farms & pay high interest Outcome: 1. Calls for Reform!

II.) Reform Movements The Grange- organization for farmers whose purpose it was to provide a social outlet & educational opportunities for farm families 1. most time spent fighting to regulate railroads in 1870’s B. Farmers’ Alliances- organization of farmers with the goals to: - educate farmers about lower interest rates - urge govt. control of banks & railroads

1. advocated for farmers & workers D. Populist Party Platform: Populism- political movement of the late 1800’s demanding that people have a greater say in govt. 1. advocated for farmers & workers D. Populist Party Platform: 1. Economic reform: -increase money supply -graduated income tax -federal loan program 2. Government reform: -senators elected by popular vote -single terms for president & vice -secret ballot to end vote fraud 3. Social reform: -eight hour work day -restrictions on immigration

III.) The Populist Party & Issues Election of 1892- Populist presidential candidate won 10% of vote B. Panic of 1893- Cause: -major railroads go bankrupt -gold supply limited = people trade paper money for gold - Wall Street stocks fall - silver price falls = mines close Effect: -15,000 businesses close - 500 banks collapse - wages, investments, prices fall - 3 million lost jobs

C. Gold or Silver. 1. Bimetallism- monetary system in which govt C. Gold or Silver? 1. Bimetallism- monetary system in which govt. give citizens gold or silver in exchange for paper currency (Silverites) 2. Gold Standard- monetary system in which dollars are backed solely by gold (Gold Bugs) D. Election of 1896- 1. Republican candidate William McKinley (Gold Bug) 2. Democratic candidate William Jennings Bryan (Sliverite) 3. Populist candidate Thomas Watson Outcome: -McKinley wins election - Populist Party collapses Legacy: -people could organize and make reforms - leaves only two major political parties!!!!!