Keepin’ the Farmers DownKeepin’ the Farmers Down

The Populist Movement in the The Populist Movement in the United StatesUnited States

McCormick mechanicalreaper- Production surges, profits plunge for farmers

The ProblemsThe Problems

Agriculture became mechanizedAgriculture became mechanized– Means:Means:

More capital neededMore capital neededMoney for upkeep and repairMoney for upkeep and repair

Opening of new agricultural landsOpening of new agricultural lands– Kept increasing farmlandKept increasing farmland– Wanted to grow more crops to make more Wanted to grow more crops to make more

moneymoney

Specialized Farm ProductsSpecialized Farm Products– Investing all time and capital into single Investing all time and capital into single

‘cash’ crop‘cash’ crop

More problems….More problems….

Changing character of agricultural Changing character of agricultural marketsmarkets– International markets had grownInternational markets had grown

75% of international trade was crops75% of international trade was crops

– Middlemen and railroads often ate into Middlemen and railroads often ate into profitsprofits

Farmers did not see benefits of expansionFarmers did not see benefits of expansion

The Grange—The FirstThe Grange—The First

““The National Grange of the Patrons of The National Grange of the Patrons of Husbandry”Husbandry”– Worked to pass pro-farmer legislationWorked to pass pro-farmer legislation– Instituted farming “cooperatives”Instituted farming “cooperatives”

Pooling capitalPooling capital

Purchased machinery, supplies, and insurancePurchased machinery, supplies, and insurance

Populist Party’s Omaha Platform (1892)Populist Party’s Omaha Platform (1892)

Permanent union of working classesPermanent union of working classesWealth for all workersWealth for all workersGovernment ownership of RRGovernment ownership of RRGovernment ownership of communication systemsGovernment ownership of communication systemsFlexible and fair distribution of currencyFlexible and fair distribution of currencyFree & unlimited coinage of silverFree & unlimited coinage of silverAll land owned must be usedAll land owned must be usedSecret ballot (Australian ballot)Secret ballot (Australian ballot)Graduated income taxGraduated income taxDirect election (by popular vote) of senatorsDirect election (by popular vote) of senators

Main Populist Critiques:Main Populist Critiques:

Too much emphasis on property rightsToo much emphasis on property rights

Monopolies an economic/social evilMonopolies an economic/social evil

Social Darwinism/laissez-faire are Social Darwinism/laissez-faire are bankrupt ideologiesbankrupt ideologies

Wealth was unevenly distributedWealth was unevenly distributed

Silver and Gold!Silver and Gold!Coinage Act of 1873- embraced gold standardCoinage Act of 1873- embraced gold standard

Bland Allison Act 1878- required US gov’t to buy silver and Bland Allison Act 1878- required US gov’t to buy silver and put it into circulation as silver dollars. Also creates a 16:1 put it into circulation as silver dollars. Also creates a 16:1 ratio (16 ounces of silver for one ounce of gold)ratio (16 ounces of silver for one ounce of gold)

Sherman Silver Purchase Act 1890- increased amount of Sherman Silver Purchase Act 1890- increased amount of silver gov’t purchases, meets demands of ‘silverites’ silver gov’t purchases, meets demands of ‘silverites’ farmers and debtors who needed cheap money to pay farmers and debtors who needed cheap money to pay loansloans

A gold certificate, could be converted into gold coins. Used from 1882-1932

Silver dollar

Silver and Gold Silver and Gold (Farmer/ Borrower vs. Banker/Moneylenders)(Farmer/ Borrower vs. Banker/Moneylenders)

1870’s farmers join Greenback Party, gain relief 1870’s farmers join Greenback Party, gain relief from low prices & high debt from low prices & high debt

Relief…How? Inflation of the currency makes it easier Relief…How? Inflation of the currency makes it easier for farmers to pay debts to the bankers (easy money for farmers to pay debts to the bankers (easy money for loans)for loans)Populists & later the Democrats (led by William Populists & later the Democrats (led by William Jennings Bryan in 1896) advocate the free silver Jennings Bryan in 1896) advocate the free silver approachapproachRepublicans led by William McKinley/Mark Hanna & Republicans led by William McKinley/Mark Hanna & eastern bankers/industrialists advocate the gold eastern bankers/industrialists advocate the gold standard which will keep inflation down, and value of standard which will keep inflation down, and value of the dollar up. the dollar up.

THE ISSUE- Free Silver. Should the U.S. adopt the free & THE ISSUE- Free Silver. Should the U.S. adopt the free & unlimited coinage of silver and thereby inflate the currency unlimited coinage of silver and thereby inflate the currency

to aid the farmers?to aid the farmers?

Bryan and the Dems. say “Yes”Bryan and the Dems. say “Yes”Bryan delivers ‘Cross of Gold’ speech, says gold Bryan delivers ‘Cross of Gold’ speech, says gold standard would be a burden, comparing the gold standard would be a burden, comparing the gold standard (and specifically its effects on western standard (and specifically its effects on western farmers) to the Crown of Thorns worn by Jesus farmers) to the Crown of Thorns worn by Jesus at his crucifixion. at his crucifixion. Gold standard would allow Eastern bankers to Gold standard would allow Eastern bankers to force western farmers into widespread debt, force western farmers into widespread debt, leading to a consolidation of western property leading to a consolidation of western property into the hands of the centralized banks.into the hands of the centralized banks.

More thoughts on Gold vs. Silver More thoughts on Gold vs. Silver Standard…Standard…

McKinley & Repubs. say “No”McKinley & Repubs. say “No”

The ‘Gold Bugs’ argue that currency The ‘Gold Bugs’ argue that currency should be tied to the gold standardshould be tied to the gold standard

Silver standard they argue will= runaway Silver standard they argue will= runaway inflationinflation

The End Result?The End Result?

Populist Party becomes the “Demo-Pop” party as Populist Party becomes the “Demo-Pop” party as Dems. co-opted many of the Pop. Party platform, Dems. co-opted many of the Pop. Party platform, esp. the free silver issueesp. the free silver issue

After being defeated in 1896, Bryan ran and lost After being defeated in 1896, Bryan ran and lost again in 1900 and 1908 , each time carrying mostly again in 1900 and 1908 , each time carrying mostly Southern and Great Plains states. Southern and Great Plains states.

McKinley wins pres. election in 1896 McKinley wins pres. election in 1896

A victory for big bus., middle-class, & financial A victory for big bus., middle-class, & financial conservatives.conservatives.

Repub. Party control White House for next 16 yearsRepub. Party control White House for next 16 years