1. Warm-Up Question:
What was more important in the development of the West after the Civil War: The Homestead Act or Transcontinental Railroad? Be able to support your answer.

2. The Problems of Farmers
In the 1870s & 1880s, western farmers faced serious problems:
Prices for their crops were falling due to over-production of grains
Banks were charging high interest rates on mortgages & were foreclosing on debtors
Railroads charged high rates for shipping & storing their crops

3. Price Index for Consumer & Farm Goods

4. The Problems of Farmers
Government policies hurt farmers:
The gov’t reduced the paper money (greenbacks) & relied on gold-backed currency
This led to deflation making it harder for farmers to pay off debts
When westerners appealed to their politicians, nothing was done

5. Reform Attempts by Farmers
Farmers attempted to organize & fight back through groups like the Grangers & the Farmers’ Alliance:
These groups attacked abusive banks & railroad companies
They called on farmers to form their own co-op stores, banks, & storage silos to avoid exploitation
Both groups failed to gain improvements for farmers

6. Granger Meeting

7. The Populist Party
In 1890, the Populist Party was formed & demand reforms:
Government regulation of railroads in order to lower rates
A national income tax to take the burden of taxation off farmers
Direct-election of Senators to make politicians more responsive
Bimetalism: Using gold & silver to inflate the money supply
Their platform included the Ocala Demands, an 8-hour day, gov’t control of RRs & banks, the breakup of monopolies, & tighter immigration restrictions
Populists emerged as a powerful 3rd party & got numerous state & national politicians elected

8. Bi-Metalism

9. The Rise of the Populist Party
From 1890 to 1896, the Populist Party emerged as an influential 3rd party & began to challenge the Democrats & Republicans
…the state gov’ts of Idaho, Nevada, Kansas, & North Dakota were dominated by Populists
, & dominated the state governments of Idaho, NV, CO, KS, & ND
During this time, 3 governors, 10 congressmen, & 5 senators were elected as Populist candidates…
In 1892, Populist James Weaver made a run at the presidency

10. William Jennings Bryan & the Election of 1896
In the 1896 presidential election, William Jennings Bryan embraced Populist ideas & was nominated by the Democrat & Populist Parties:
Bryan made bimetallism the issue of the campaign as a result of his “Cross of Gold” speech
Republican William McKinley argued for the gold standard

11. Bryan’s “Cross of Gold” Speech

12. Bimetallism: A recipe for prosperity or lunacy?

13. The Election of 1896
McKinley’s defeat of Bryan in the election of 1896 killed the Populist Party…
…but key Populist ideas such as the income tax, direct election of Senators, & regulation of railroads will be enacted by the Progressives from 1890 to 1920