Populism

• Late 1800’s farmers where having to mortgage their farms to be able to buy land and produce more crops.

• Banks wee foreclosing and railroads were taking advantage and charging too much for shipping.

Problems with Rail Roads

• Often RR were charging more in shipping than what the cargo was worth.

• RR made deals with grain brokers and merchants to control grain storage prices.

Farmer’s Alliance

• 1867, Oliver Kelley• Patrons of Husbandry

(the Grange)– Social outlet – Education for isolated

farmers– Banded together to fight

RR– Fight politically against RR– Lower interest rates on

loans

• Colored Farmer’s Alliance– 25,000 members

The Grange and Rail Roads

• Farmers started to demand govt. control of RR’s.

• Misuse of Govt. land grants by the RRs.

• RR entered fixed prices, put farmers in debt.

• RR charged different prices to different customers

• Munn vs. Illinois (1877)– Supreme court upheld

Granger laws, the state won the right to regulate the railroads

– Interstate Commerce Act• 1886 S.C. ruled that a state

could not regulate rates on interstate commerce.

• 1887 reestablished the right of federal govt. to supervise the RR

• ICC is created (Interstate Commerce Commission)

Fall of Populism

• Panic of 1893– Economy grew too fast– Farmers and business

people had overextended themselves with loans and debt.

– Feb, 1893: RR’s closed• Philadelphia• Reading

• July, 1893– Erie– Northern Pacific– Union Pacific– Santa Fe

• Impacted other industries– Iron, steel, 15,000

various business– 600 banks

• Dec. 1894– 1/5 of the population

/workforce was unemployed

Silver or Gold?

• Populist Party did well in 1892 – 94 elections

• Looking for Presidential in 1896

• Central issue was Gold

• “Free Silverites” or Bimetallism, govt. giving people gold and silver for exchange of paper money

• “Gold Bugs” favored paper money being soley backed by gold.

Bryan’s Cross of Gold Speech

• William McKinley– Republican nominee– Committed to gold

standard

• William Jennings Bryan– Democrat nominee– Bimetallism– People’s Party was

hesitant to side with him due to the fact that his VP was a wealthy banker who did not support farmers.

– Gold Wins OUT – McKinley wins