Life on the farms was hard  Severe weather: Cold winters, Dry summers, tornadoes  Indian Attacks  Farmers had to use a technique called dry-farming (growing crops that needed little water.)  Sometimes grasshoppers would eat all the crops.

Farmers Struggle  During the 1880s, new inventions greatly increased farm production  But greater production led to lower prices for farm goods

FARMERS AND THE POPULIST MOVEMENT  In the late 1800s, many farmers were struggling Crop prices fell, Farmers had no cash, went further into debt, and their lenders foreclosed on their mortgages The railroad companies charged outrageous prices to ship crops (no regulation!)

ECONOMIC DISTRESS HITS FARMERS  Between 1867 and 1887 the price of a bushel of wheat fell from $2.00 to 68 cents  Farmers got caught in a cycle of debt

The Grange The Grange was set up in 1867 to help farmers in the South. Many farmers joined the Grange to get help during the difficult economic times It purpose was to provide a social outlet & an educational forum for isolated farm families. The Grangers pressured railroads to reduce their rates to haul their goods to market.

Farmer’s Alliances  By the late 1880s, a new organization known as the Farmers Alliance began to form  The Farmer’s Alliances sent lecturers from town to town to educate people on lower interest rate on loans & government control on railroads & banks.  Farmers Alliances were created throughout the south and west but alliance failed help the farmers enough

POPULIST PARTY IS BORN  Populist is another word for people. Founded in 1892 and became a national People’s Party.  Leaders of the farmers organization realized they needed to build a base of political power  Populism – began where the people sought reforms to lift the burden of debt from the farmers and workers and to give the people a greater voice in their government. THIS POLITICAL CARTOON SHOWS A POPULIST CLUBBING A RAILROAD CAR

Populist Reforms Regulate the railroad companies (Stop them from charging such high rates) Make cash more available (back the dollar with silver, not gold, so dollar would be worth less), income tax Constitutional demands: single term for President and Vice-President, secret ballot, popular election of Senators To get industrial workers to support them: 8-hour workday, restrict immigration

THE PANIC OF 1893  Nationwide economic problems took center stage in America in 1893  Railroads went bankrupt, the stock market lost value, 15,000 businesses and 500 banks collapsed,  3 million people lost their jobs – putting unemployment at 20% THE STOCK MARKET CRASHED IN 1893

THE END OF POPULISM  With McKinley’s election victory, Populism collapsed, burying the hopes of the farmer  The U.S. stays on the Gold Standard until the 1970s  Third Parties can cause major parties to change agendas  Depressions cause panic in the moment but are soon forgotten once prosperity begins  Many of the beliefs of the Populists were the root of Progressives THE PEOPLE’S PARTY WAS SHORT-LIVED BUT LEFT AN IMPORTANT LEGACY