1. Chapter 19 Economic Change and the Crisis of the 1890s Web

2. Economic Growth, 1878-1893 All sectors expanding, especially manufacturing Railroad was single most important agent of economic growth Economic power brought political influence- and corruption Patrons of Husbandry (Grange), 1867 To combat collective power of the railroads Munn v. Illinois (1877) Technology contributed mightily to economic growth

3. ©2004 Wadsworth, a division of Thomson Learning, Inc. Thomson Learning ™ is a trademark used herein under license. Value Added by Economic Sector, 1869-1899 (in 1879 prices)

4. Costs of Economic Growth Widening gap between rich and poor Perception of inequality even greater than reality “Conspicuous consumption” “Robber Barons” Emergence of antitrust movement in 1880s Sherman Antitrust Act, 1890 U.S. v. E.C. Knight Company (1895) –Manufacturing not connected to commerce

5. Labor Strike Unsafe working conditions; loss of worker autonomy National Labor Union, 1866 Withered away in depression of the 1870s Molly Maguires in Pennsylvania coal mines Great railroad strike of 1877 Knights of Labor,1869 National federation of unions Haymarket Square, 1886 Hurt Knights of Labor

6. Labor Strike Labor Strike (cont.) American Federation of Labor, 1886 Loosely affiliated association of trade or craft unions Critics of the wage-labor system Henry George, Progress and Poverty (1879) Edward Bellamy, Looking Backward (1887) Homestead strike, 1892 Depression of 1893-1897 Began with railroad collapse, spread throughout economy Coxey’s Army, 1894 Pullman Strike 1894

7. Farmer’s Movements Increased production drove down agricultural prices Prolonged period of price deflation Farmers blamed banks, commission merchants, railroads,the monetary system Greenback Party “Free Silver” movement Bland-Allison Act 1878 Sherman Silver Purchase Act, 1890 Repealed in 1893 National Farmers’ Alliance and Industrial Union, 1890 Began as series of local/regional alliances Developed comprehensive political agenda

8. The People’s (Populist) Party Nationwide farmers’ organization formed in 1892 Ran James B. Weaver as president Results disappointing’ Economic crisis after 1893 boosted chances Election of 1896 Silver issue divided Democratic Party Nominated William Jennings Bryan –Silver and other reform issues Populists fused with Democrats and also nominated Bryan Republicans nominated William McKinley Gold standard and conservative economic platform Campaign most impassioned and exciting in a generation McKinley elected handily Proved to be advance agent of prosperity

9. ©2004 Wadsworth, a division of Thomson Learning, Inc. Thomson Learning ™ is a trademark used herein under license. Presidential Election of 1896 Web