1. Problems for Farmers Debt – Farmers to borrow money to buy food, clothing, and seed from stores. – Led to “big business” farming tied to markets and railroads Cash Crops – Farmers only grow cash crops such as tobacco, cotton, corn, wheat Low prices – caused by overproduction resulting in an increase in supply brought on by new land and machines. – Low prices led to less income to pay debt – Farmers lose money with bad crops or drops in prices More Expenses – High Tariffs increase cost of machines – Railroads could charge any price Pools – competing railroads shared revenue in a market – railroads agree to charge farmers same rates Rebates – Refund given to large businesses

2. Farmer Response Farmers were at mercy of banks, railroads, nature, taxes – caused many small farmers to go bankrupt Grange – Founded by Oliver Kelley in 1867 Originally was a social organization – Changes to a political organization Farmers gathered and talked about their problems led to calls for change – By 1875 800,000 members Cooperatives (Farmers Alliance) – Businesses, owned by groups of farmers, were created to buy and control resources – lowered prices because middleman was eliminated – Ignored tenant farmers and blacks Political Action – Farmers elect politicians that would support their needs laws limited railroad and storage rates – Most success in IL, WI, IA, MN – Munn v Illinois (1877) allow state regulation of commerce Wabash v Illinois (1886) said states cannot regulate INTERstate trade – Greenback Labor Party won million votes in 1878

3. Coinage of Silver (Silverites) Populists attack Wall Street and “money trust” – Wanted nationalized railroads, telephone; income tax; government protection of farm prices Populists and farmers want gold AND silver to back money (bimetallist) – Would increase amount of money in circulation – Leads to inflation – supported by debtors – Farmers want inflation, so support Silver Free Silver Leaders – William Harvey Coin’s Financial School(1894) argued for coinage of silver – Mary E Lease “raise less corn and more Hell” Populists won many votes in 1892 forcing major parties to take notice of their issues

4. Coxey’s Army and the Pullman Strike Coxey’s Army (“Commonweal Army”) – Jacob Coxey led group of unemployed people to demand federal public works programs to relieve unemployment and printing of paper money Pullman Strike (1894) – Pullman made sleeper cars for trains Pullman created a company town in which everything was owned by Pullman. – Panic of 1893/Depression of 1894 Businesses lose money so cut wages to protect profit but didn’t lower rent of workers in company towns – American Railway Union led by Eugene V Debs Debs led strikes and boycotts against poor treatment of workers by Pullman Debs becomes leader of Socialist Party in America – Pullman put mail cars on each train to make stopping them a federal offense – President Cleveland send troops to stop strike Federal Government reaction created sympathy and increased radicalization of labor movement

5. Conflict over money supply Money Supply – Refers to the amount of money in circulation Cheap Money (bimetallism) – more money leads to a rise in prices (inflation) also known as cheap money – less money leads to lowering of prices (deflation) Hard Money (Gold bugs, Gold Standard) – United States government backed every dollar with a certain amount of gold – Money supply limited because supply of gold is limited – prevents inflation – favored by creditors, businesses and Republicans

6. Election of 1896 William Jennings Bryan (Democrat) – Democrats opposed Cleveland because of his role in Pullman strike, hard money and Morgan bond deal – Bryan argued against the gold standard and the Populists supported him – “Cross of Gold” Speech – given at convention to inspire unlimited coinage of silver William McKinley (Republican) – Supported big business and believed government should help big business Wealth of laborers benefitted from strong business – McKinley argued coining silver would lead to factories closing and people losing their jobs – Supported gold standard and protective tariff – Trusts gave McKinley campaign large amounts of money to appeal to voters (outspent Democrats 16:1)

7. Election of 1896 McKinley Wins – Victory symbolizes strength of big business, urban, middle class values and financial conservatism over rural in politics – Last attempt by a politician to win with agriculture – Republican conservatives get control of Presidency for 16 years; ends period of reform McKinley Presidency – Avoided reform and allowed trusts to operate without regulation – Tariff issue Wilson-Gorman tariff was not raising enough revenue Dingley Tariff Bill (1897) established high tariff rates – Economy improved which silenced money issue – New discoveries of gold “cheapened” its value