1. What was the plight of the farmer during the Gilded Age?
Mrs. Sinacore, 2010

2. Changes Farming Most farmers were no longer subsistence farmers
Most farmers tended to specialize in a single cash crop
Profits rose, but so did expenses. . .

3. The Setting:
In the 30 years after the Civil War, more land was settled than in the whole of American history before that time
The US Government had been supporting westward settlement since the 1860s. . .
Homestead Act
1862
Timber Culture
Act
1873
Desert Land Act
1877
Morrill Land Grant
Act
1862
Timber & Stone Act
1878

4. Who do you think profited the most?

6. New Problems As farmers moved further west, they encountered:
Tornadoes
Fires
Swarming grasshoppers
Extreme temperatures

7. Farmers’ Expenses Heavy Equipment Fencing (barbed wire after 1874)
For digging wells, pumping water, plowing hard soil, harvesting
Fencing (barbed wire after 1874)
Merchants (“middle-men”)
Grain Elevator Operators
Railroads

8. How did farmers pay for their growing expenses?
Money had been “cheap,” so many farmers mortgaged their land
This meant they were even more reliant on cash crops
If they had a bad crop, they would lose their land

9. Problems. . .
With increased supply, prices farmers could charge for their crops decreased
Railroad grain elevator companies were increasing prices for transport of crops
Many farmers found it hard to repay their debts
Many farmers faced foreclosure
It was becoming more difficult to borrow more money

10. Why were the farmers suffering? – the Silver Issue
“Crime of ‘73” – demonitzation of silver (the government stopped coining silver)
Bland-Allison Act (1878) – Limited silver coinage to $2-$4 million per month (based on 16:1 ration of silver to gold)
Sherman Silver Purchase Act (1890) – The U.S. Treasury must purchase $4.5 million ounces of silver per month; deposits silver into Treasury instead of increasing money in circulation

11. Price Indexes for Consumer and Farm Products: 1865-1913

12. The Farmers React
National Grange of the Patrons of Husbandry, 1867 leads to the GRANGE MOVEMENT
Began in Midwest, South, and Texas
Cooperatives
Social function
Educational components
Successful in lobbying for “Granger Laws”
Rapidly declined by the late 1870s

13. The Supreme Court Reacts
Munn v. Illinois, 1877
Wabsh v. Illinois, 1886

14. The Farmers Alliances
Picked up where the Grange left off in Texas and then spread; other regional alliances formed
More political and less social than the Grange
Ran candidates for office
controlled 8 state legislatures and had 47 Representatives in Congress during the 1890s

15. The Populist Party 1890 1892: 800 met in St. Louis, MO
Southern Alliance wanted to gain control of the Democratic Party
Northern Alliance rad a 3rd party candidate
1892: 800 met in St. Louis, MO
Majority were Alliance members
Over 100 were African Americans
Representatives of labor organization and other reformers were presents, also

16. The Populists Organize
A political party, as opposed to the Grange and the Farmers Alliances
Founded by James Weaver and Thomas Watson
Convened in Omaha in July 1892 to formulate a platform
Won almost 1 million popular votes
Won several seats in Congress

17. The Platform of Lunacy

18. The Omaha Platform Bi-Metallism
Sub-treasury System to replace the National Bank
Direct Election of Senators
Government ownership of RRs, telephone and telegraph companies
Government-operated postal savings banks
Immigration restrictions
8-Hour work day for government employees
Elimination of the use of Pinkertons
Use of the Australian secret ballot
Re-monitization of sliver
Single term for President and Vice President
Bi-Metallism

19. Bi-Metallism
The Populists focused on the unlimited coinage of silver so that inflation would occur.
Decrease the value of money
Increase prices (profits)
Make debts easier to repay
Urban-dwellers did not want prices to increase
Bankers did not want to be repaid with money that was less valuable than the money they loaned out

20. Election of 1892

21. Cleveland Takes Office
The Panic of 1893 began 10 days into his term
Several major corporations went bankrupt
Stock Market Crashed
Banks failed and credit contracted
Unemployment soared
Laissez faire policies continued…

24. The Populists Gain Popularity
Despite the 40% increase in Populist votes in 1894 and the loss of many Democratic candidates, the Republicans won control of the House of Representatives

25. The Election of 1896

26. W.J. Bryan’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!”

29. The Election of 1896

30. Why did W.J. Bryan Lose?
His focus on silver (which would lead to INFLATION) undermined efforts to build bridges to urban voters
He did not form alliances with other groups
McKinley’s campaign was well-organized and highly funded

31. Silver became a “non issue”
More gold was discovered and the money supply naturally increased
1900 – Gold Standard Act

33. Populism Declined
The economy rapidly changed: The era of small producers and small farmers was fading away
Race increasingly divided the Populist Party
The Democratic Party co-opted many of their ideas