1. Inflation/Deflation
What is inflation? What could the government do to fight this?
What is deflation? What could the government do to fight this?
Which is worse? Why?

2. Farmers and the Populist Movement
Ch. 13.3

3. I. Farmers’ Problems Debts
Railroads charged high prices for shipping and storage
Few companies- little competition
Farmers bought seeds on credit w/high interest rates
Prices fell, farmers mortgaged their farms
Banks foreclosed on farms

5. Monetary Issues
Greenbacks, money not backed by a metal, were printed during the Civil War- not worth much
Greenbacks phased out, value of money went up (deflation)
With prices falling, farmers wanted more money in circulation

6. II. Rise of Populism Farmer’s Alliances
The Grange, founded by Oliver Hudson Kelley, helped organize farmers and fight against railroads and banks
other Farmers’ Alliances were formed and organized lecturers

8. Populist Party “People’s Party” formed 1892 Platform:
Lift tax burden from farmers
Increase money supply- higher prices
Graduated income tax
Federal loans
Popular election of senators, secret ballots, 1 term for President
8-hr work day, immigration reform
Party had early success, adopted by Democratic Party

10. Panic of 1893
Causes: Farmer debt, fast growth of railroads, limited gold supply
Effects: Stocks fell, silver dropped, businesses and banks collapsed, unemployment, wages and prices fell
Year
Lebergott
Romer
1890
4.0
1891
5.4
4.8
1892
3.0
3.7
1893
11.7
8.1
1894
18.4
12.3
1895
13.7
11.1
1896
14.5
12.0
1897
12.4
1898
11.6
1899
6.5
8.7
1900
5.0

11. Silver and Gold Gold Bugs- wanted $ backed by gold standard
Bankers and businesses
Stable currency, deflation
Silverites- wanted bimetallism, $ backed by silver and gold
Farmers and laborers
Inflation, stimulate the economy

13. III. Fall of Populism Election of 1896
William McKinley (Rep., Gold) vs William Jennings Bryan (Dem., Silver)
Bryan campaigned hard but McKinley outspent Bryan
McKinley won, killing the Populist movement

14. Legacy of Populism
Popular movements of the poor could have political impact
Many reforms ideals would later succeed

15. 1

16. 2

17. 3

18. 4

19. 5