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The Plight of American Farmers and the Rise of Populism

Learn about the causes and effects of financial difficulties faced by American farmers, and the rise and decline of Populism as a political movement aimed at addressing their concerns. Explore the impact of declining profits, rising costs, and changes in the money supply on farmers, and discover the strategies they used to increase their power and influence.

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The Plight of American Farmers and the Rise of Populism

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  1. 4.03 Describe the causes and effects of the financial difficulties that plagued the American farmer and trace the rise and decline of Populism

  2. Populism!Can we predict what this word refers to?

  3. : A political strategy aimed at addressing the concerns of ordinary people. Usually in contrast with wealthy elites

  4. FARMERS ARE STRUGGLING!!!!!

  5. Declining Profits • Thanks to new technologies, farmers had opened up the Great Plains and were producing a much greater supply of grains • Grain supply ↑ = Grain prices ↓ • Farmers were earning LESS

  6. Rising Costs • High tariffs + unionized factory workers = high prices on manufactured goods • Unethical Banks were charging high interest on loans • Corrupt Railroads were charging higher fees for shipping grain to eastern markets • Farmers were paying MORE

  7. The Money Supply • To fund the Civil War, US government had flooded the market with paper money (“greenbacks”) • Supply of $↑ = Value of $↓ (inflation)

  8. 3 Types of Money • Greenbacks • Gold & Silver coins • Bank notes backed by government bonds

  9. Government response to inflation • Stopped printing greenbacks • Stopped minting silver coins • Started paying off government bonds to reduce number of bank notes in circulation • Response was too strong and reduced the money supply too greatly • Supply of $↓ = Value of $↑ = Prices ↓ (deflation)

  10. Deflation Hurts Farmers • Decrease in money supply meant loans were harder to get and interest rates were higher • Farmers were getting LESS for their crops but paying MORE for mortgages & other loans

  11. What can Farmers do to increase their power/influence? Cafeteria Example

  12. The Grange • “The Patrons of Husbandry” founded in 1867 by USDA official Oliver H. Kelley • Designed to organize rural farmers; by 1874, the Grange had over 1 million members

  13. The Grange Takes Action • Pressured state legislatures to regulate railroad & warehouse rates • Joined Independent National Party (also called the Greenback Party) a new political party aimed at getting the government to print more paper money • Created farmers’ cooperatives

  14. Farmers’ Cooperatives • Pooled farmers’ crops and held them off the market in order to limit supply and force up prices • By working together, farmers could also negotiate better shipping and warehousing rates

  15. The Grange Fails • Greenback Party failed to win public support – average American didn’t trust paper money • Cooperatives never grew large enough to be effective • Many states did pass laws setting maximum rates for railroads, but ….

  16. Wabash v. Illinois • 1886 • Supreme Court ruled that states could not regulate railroads because the railroads were involved in interstate commerce; interstate commerce can only be regulated by federal law

  17. Other attempts by Farmer’s…..

  18. The Farmer’s Alliance • Formed in 1877 in Texas • By 1890 had nearly 3 million members • Also tried to create cooperatives, but failed for many of the same reasons

  19. At this point, what can farmers do to increase their power even more? Add to cafeteria example..

  20. The People’s Party • Founded in 1890, more commonly called The Populist Party • Western farmers of the Alliance decided that the changes needed to help farmers required a new political party • Southern farmers opposed a third-party because it might weaken the Democratic Party

  21. The Omaha Platform • Called for unlimited coinage of silver at a ratio of 16 oz. of silver = 1 oz. of gold (bimetallism) • Called for federal takeover of railroads • Called for a graduated income tax • Called for government regulation of banks

  22. Goldbugs vs. Silverites • Repeal of the Sherman Silver Purchase Act split the Democratic Party • Goldbugs believed that US currency should be backed exclusively with gold • Silverites believed that coining unlimited silver would ease the economic crisis

  23. Election of 1896

  24. William Jennings Bryan • Only 36 when Democrats & Populists nominated him for president • Powerful speaker who won nomination with his pro-silver “Cross of Gold”speech

  25. The “Cross of Gold” Speech • “Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold.”

  26. Bryan’s Campaign • Toured the country for weeks, giving hundreds of speeches • Strongly supported in the West and South, but not by city-dwellers (who didn’t care about the silver issue) or Catholic immigrants (who didn’t like his Protestant minister style speeches)

  27. William McKinley’s“Front Porch” Campaign • Republican candidate • McKinley refused to travel and speak, opting instead to stay home in Ohio and let visitors come to him • Republican Party had local Republicans campaign for McKinley instead • Won support of urban workers and big business • Who wins? What does this suggest about elections?

  28. Why did the Populist Party decline?

  29. William McKinley • 1843 – 1901 • 25th President (1897-1901) • Republican • Expansionist who oversaw the Spanish-American War • Assassinated in 1901

  30. Gold in Alaska • Alaska had been purchased by US from Russia in 1867 for $7.2 million • Discovery of gold in 1898 boosted the nation’s gold reserves and ended the silver debate, leading to the decline of the Populist Party

  31. What is the lasting legacy of the Populists?

  32. 1. Has Populism occurred in modern times?2. How is this story similar/different from the original Populist movement?

  33. The Populist Party • With a partner, read the 2 populist speeches and compose a short response to the following question: Why did the Populist Party attract millions of supporters? You must: • Use evidence from BOTH primary sources • Consider the context of the speeches • Consider the conditions of farmers/workers

  34. Short Response • As American citizens, we must form opinions on what the role of government should be in a free society such as America. • Answer the 20 questions on the role of government in America today. • Keep a tally of how many yes’ and how many no’s. This will be key to figure out your philosophy on the role of government

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