Populism. Late 1800’s farmers where having to mortgage their farms to be able to buy land and produce more crops. Banks wee foreclosing and railroads.

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Presentation transcript:

Populism

Late 1800’s farmers where having to mortgage their farms to be able to buy land and produce more crops. Banks wee foreclosing and railroads were taking advantage and charging too much for shipping.

Problems with Rail Roads Often RR were charging more in shipping than what the cargo was worth. RR made deals with grain brokers and merchants to control grain storage prices.

Farmer’s Alliance 1867, Oliver Kelley Patrons of Husbandry (the Grange) – Social outlet – Education for isolated farmers – Banded together to fight RR – Fight politically against RR – Lower interest rates on loans Colored Farmer’s Alliance – 25,000 members

The Grange and Rail Roads Farmers started to demand govt. control of RR’s. Misuse of Govt. land grants by the RRs. RR entered fixed prices, put farmers in debt. RR charged different prices to different customers Munn vs. Illinois (1877) – Supreme court upheld Granger laws, the state won the right to regulate the railroads – Interstate Commerce Act 1886 S.C. ruled that a state could not regulate rates on interstate commerce reestablished the right of federal govt. to supervise the RR ICC is created (Interstate Commerce Commission)

Fall of Populism Panic of 1893 – Economy grew too fast – Farmers and business people had overextended themselves with loans and debt. – Feb, 1893: RR’s closed Philadelphia Reading July, 1893 – Erie – Northern Pacific – Union Pacific – Santa Fe

Impacted other industries – Iron, steel, 15,000 various business – 600 banks Dec – 1/5 of the population /workforce was unemployed

Silver or Gold? Populist Party did well in 1892 – 94 elections Looking for Presidential in 1896 Central issue was Gold “Free Silverites” or Bimetallism, govt. giving people gold and silver for exchange of paper money “Gold Bugs” favored paper money being soley backed by gold.

Bryan’s Cross of Gold Speech William McKinley – Republican nominee – Committed to gold standard William Jennings Bryan – Democrat nominee – Bimetallism – People’s Party was hesitant to side with him due to the fact that his VP was a wealthy banker who did not support farmers. – Gold Wins OUT – McKinley wins