Populism

Key Terms Money supply Deflation Monetary policy Bimetallic standard Free silver Bland-Allison Act Sherman Silver Purchase Act The Grange Interstate Commerce Act Populist Cross of Gold speech

The Farmers’ Complaint Panics of 1873 and 1893 – Ailing railroad led to a cascading national panic Banks failed Banks wanted debt payments from farmers Tariffs on imported goods discourage people from buying imports by making them more expensive Tariffs helped farmers by protecting them against competition from farm imports – Tariffs hurt farmers in two ways Raised the prices of manufactured goods Kept foreigners from earning the US currency they needed to buy American crops

The Money Issue The value of money is linked to the money supply If the government reduces the money supply, the value of each dollar becomes greater. – Causes deflation, helps bankers The nation’s money supply shrank as the federal government took out of circulation the paper money issued during the war

Gold Bugs and Silverites In 1873, Congress put the nation’s currency on a gold standard – Reduced the amount of money in circulation because the money supply was limited by the amount of gold held by the government The Bland-Allison Act was passed in 1878 – Required the federal government to purchase and coin more silver The Sherman Silver Purchase Act was passed in 1890 – Increased the amount of silver the government was required to purchase every month – Cleveland later repealed it

Organizing Farmer Protests The Grange soon began helping farmers form cooperatives, through which they bought goods in large quantities at lower prices. – They pressured state legislators to regulate businesses Farmers’ Alliance was established – Launched harsh attacks on monopolies – Called for federal regulation of the railroads, more money in circulation, creation of state departments of agriculture, antitrust laws, and farm credit Natural disasters led to an increase in activity

Government Responses The Interstate Commerce Act was passed – Regulated the prices that railroads charged Cannot give special rates to anyone Set up the Interstate Commerce Commission

The Populists Alliances founded the People’s Party – Called Populists Platform: – Increased circulation of money – Unlimited minting of silver – Progressive income tax – Government ownership of communications and transportation systems

Populism’s Legacy After gold discoveries in different areas that summed up to $100 million dollars, Congress returned the nation to a gold standard – Silver movement died, as did populism

Questions to Consider Explain the platform of the Populist Party What is the difference between Gold Bugs and Silverites? What was the problem with the money during this time? j92cU j92cU