Problems Farmers borrowed money to pay for new equipment, crop prices dropped, couldn’t pay their loans Farmers wanted the government to put more money.

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Presentation transcript:

Problems Farmers borrowed money to pay for new equipment, crop prices dropped, couldn’t pay their loans Farmers wanted the government to put more money (silver) into circulation It caused inflation: high prices, value of money drops

The Silver Issue  “The Crime of ’1873”  govt. stopped coining silver  Wanted to cause deflation (lower prices, value of money increases)  Farmer’s are angry because they don’t want lower prices, it will hurt their profits. They want to get the governments attention.

The Grange Movement  An organization of farmers to assist each other and push for political changes.  Set up cooperative associations, buy things in bulk and share them (ex. seed).  Wanted railroad rates to be monitored  Wanted more money printed

The Farmers Alliances  Formed after the Grange.  More political than the Grange. Ran candidates for office.  Controlled 8 state legislatures & had 47 representatives in Congress during the 1890s.

The Populist Party  Also called the People’s Party  Wanted unlimited coinage of silver  Wanted the federal gov to own and monitor railroads  Wanted a graduated income tax (based on amount made) James B. Weaver, Presidential Candidate & James G. Field, VP

1892 Election

Bi-Metallism Issue Some wanted the currency based only on gold: Goldbugs Others wanted the gov to coin unlimited amounts of silver: Silverites

Causes of the 1893 Panic  Begun 10 days after Cleveland took office. 1. Several major corps. went bankrupt.  Triggered a stock market crash. 2. Bank failures caused nearly 500 banks to close 3. By 1895, unemployment reached 3 million.  Americans cried out for relief, but the Govt. continued its laissez faire policies!

Here Lies Prosperity

William Jennings Bryan ( ) Democrat: supported silver, backed by Populists

Bryant’s “Cross of Gold” Speech You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold!

William McKinley Runs a Front Porch campaign: Approachable, easily accessible, Lots of hand shaking & baby Kissing Republican: Wins the election.

ResultsResults  Gold is discovered all over the world, increases the money supply.  The depression ends.

Gold Triumphs Over Silver  1900  Gold Standard Act  Officially adopt the gold standard as the backing for U.S. money.

Why Did Populism Decline? 1. The economy experienced rapid change. 2. The era of small producers and farmers was fading away. 3. Race divided the Populist Party, especially in the South. 4. The Populists were not able to break existing party loyalties. 5. Most of their agenda was co-opted by the Democratic Party.