 US 4.03: Describe the causes and effects of the financial difficulties that plagued the American farmer and trace the rise and decline of Populism. Student Objectives By the end of this chapter, students will be able to:  Identify & explain the reasons behind the tensions between settlers & Native Americans;  Explain the economic problems facing farmers;  Identify the different political groups organized to fight for farmers;  Analyze the effectiveness of the Populist Movement

 Why are Americans settling the Great Plains?  What are some of the problems farmers were facing?

 As farming expanded, agricultural products flooded the market, driving the prices down  Competition from foreign countries too!  Farming equipment & storage was very expensive  Farmers took out loans to buy equipment, if they couldn’t pay, the bank took over the farm  Transporting equipment was pricey as railroads charged high rates for short runs  What the western farmers used  Farmers losing money without any possibility of making it!  What are they to do?

 Deflation: Less $ in circulation  Increased value of $  Prices decrease  Inflation: More $ in circulation  Decreased value of $  (cheap money)  Prices increase  Farmers supported inflation

 Farmers love the railroad for transportation (goods, leisure)  Farmers hated the railroads because they charged higher rates for those in the West than in the East  There was no regulation of rates – Railroads could charge what they wanted  Boston to Kansas might be $50, but Kansas to Boston might be $500  Banks loaned $, but charged high interest  Farmers can’t repay the high rates & go into debt, sometimes lost their farms!

 Farmer life was lonely, The Grange was organized for social & professional purposes  Barn raising, dances, education etc.  Created by Oliver Kelly  Became a political movement for farmers  Members were known as the Grangers  Farmers began to form cooperatives to combat high prices of equipment & railroad rates  Not very successful, but not enough numbers

 The State Gov’t. can regulate private industry for public interest  Regulating the railroads in the interest of Western settlers  Regulates the railroads  Granger laws may regulate intrastate trade  Within a state

 States cannot regulate interstate trade (railroads)  Led to the creation of the Interstate Commerce Act  Interstate Trade: Between states

 Purpose: To regulate railroads to ensure fair rates & to eliminate rate discrimination

 Farmer’s weren’t just fighting against high equipment & railroad rates, they were plagued by many other problems, especially not being heard by Congress!  The Texas Alliance was created in 1874 to protect farmers from horse thieves  Several other states began creating Farmer Alliances  Farmers’ Alliance: Group of farmers brought together to protect their interests (political, economic & social)  The Kansas Farmers’ Alliance created the “Peoples’ Party” to serve as a voice for farmers in government ▪ Not successful until several other states united

United We Stand, Divided We Fall  In 1889 both the Northern and Southern Alliances merged into one—the Farmers’ Alliance.

When the banker says he's broke And the merchant’s up in smoke, They forget that it's the farmer who feeds them all. It would put them to the test If the farmer took a rest; Then they'd know that it's the farmer feeds them all.

Political party created by the unification of many state Farmers’ Alliances 3 rd Party made up of farmers, fighting for farmers’ rights Wanted to make sure farmers had a say in government Wanted to end farmer debt Serious contenders in the 1892 & 1896 elections Short lived political party that made a huge impact on our government

Financial Changes Changes in Government Changes in Transportation Main Goal: To increase money In circulation Regulate railroads By controlling prices Bimetallism: Both gold & silver support currency Referendum: People vote on bills Passed by legislature Restrict immigrants Due to job competition Senators elected by Popular vote Use secret ballot to End voting fraud Initiative: People may introduce bills to Congress Recall: People vote to remove an elected official from office Graduated Income Tax: The more you make, The more you pay

 Currency was the main issue  Will US currency be backed by silver or gold?  Lower class wanted both, but the upper classes wanted only gold

Rep. Candidate who supported the gold standard & deflation  Only gold would back out currency Goldbugs: bankers & businessmen who supported McKinley William McKinley

Dem/Populist candidate who supported Bimetallism Not all Democrats supported Bryan & ran their own candidate  Splits the Democratic vote & the Republicans will win Silverites: Farmers & laborers who supported Bryan

William J. Bryan

The Seasoned Politician v. The “Young” Newcomer

Into which box will the voter of 1896 place his ballot?

n Infamous speech given by Bryan at Democratic National Convention n Against gold standard n “You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold!”

1. McKinley won the 1896 election 2. The Populists do not appeal to any other group except farmers They don’t seek support from miners etc. 3. By 1900, farmers’ problems had eased up & the economy was improving 4. Significance of the Populists n Proved that the downtrodden could organize & have a political voice n Had huge impact on American life 8 hour workday, 17 th Amendment, 16 th Amendment, 19 th Amendment, restricted immigration, initiative, recall, referendum,

 Said to be directly related to the Populists ideas  Oz = ounce, standard measure of gold  Dorothy = Everyman  Silver slippers  Tinman = Industrial Worker  Scarecrow = Farmer  Cowardly Lion = WJ Bryan  Wizard = President  Munchkins = Little people  Yellow Brick Road = Gold standard

1. The population of the west increased due to the success of farming & mining Creation & settlement of boom towns, mining towns, cattle towns & railroad towns 2. Conflict between Native Americans & settlers increased as more farmers moved on to Native American territory 3. Farmers organized & created political parties to fight against high prices & low profits