Chapter 6 Section 4

• Populism was a movement to increase farmers’ political power and to pass laws in their interest.

• An example:• One problem that concerned farmers

was the nation’s money supply

Greenbacks

• During the Civil War, the government issued greenbacks, paper money not backed gold or silver. This caused inflation, a decline in the value of money. Prices of goods rose.

After the Civil War

• After the war, the government stopped printing greenbacks, paid off bonds, and stopped minting silver coins.

• As the economy grew, deflation occurred. The value of money increased and prices fell.

• Deflation hurt farmers. Many had to borrow money for seeds and supplies.

Banks

• Farmers concluded that their problems were caused by shortage of money and thought Eastern banks had pressured Congress into reducing the money supply.

Grange

• Falling prices meant farmers sold their crops for less.

• Many farmers joined the Grange. – It organized cooperatives that

worked for the benefit of their members.

– Creates a supply and demand situation

– When there is more supply of a good, there is less demand.

– When there is a demand for a good, there is less of a supply

Grange

• The Grange pressured state legislatures to regulate railroad rates. Cooperatives pooled crops and kept them off the market to force prices up.

• Many Grange cooperatives failed because they were too small to affect prices.

Farmers’ Alliance

• Railroads and businessmen also refused to deal with them.

• In the 1880s, the Farmers’ Alliance formed and organized larger cooperatives, which also failed.

Populist Party

• Farmers’ Alliance members in the West formed the People’s Party, or the Populists.

• Farmers in the West wanted the government to mint silver coins.

• They nominated candidates for Congress and state offices.

Southern Alliance

• Alliance leaders in the South did not want a third party.

• They wanted to produce a list of demands and vote for candidates that supported them.

Southern Alliance

• Part of their strategy was the Subtreasury Plan, developed by Charles Macune . – It asked the government

to set up warehouses to store crops and provide farmers with low interest loans.

Southern Alliance

• Southern Alliance leaders also called for:– Free coinage of silver– End to protective tariffs – National banks– More regulation of

railroads– Direct election of

senators.

Democrats not supportive

• Alliance members in the South elected Democrats.

• However, many Southern Democrats did not support the Alliance program once they took office.

Omaha, Nebraska

• In 1892, the People’s Party held a national convention in Omaha, Nebraska.

• Its platform called for coinage of silver, federal ownership of the railroads and a graduated income tax.

• This taxes higher earnings more heavily.

• People’s Party was not successful in 1892 because…

Grover Cleveland

• The Democrats and Grover Cleveland won the election.

Election of 1896

• As the election of 1896 approached, leaders of the People’s Party (Populist Party) decided to make free coinage of silver an important issue.

• They held their convention after the Republican and Democratic conventions.

• They nominated a former Civil War General, James Weaver as President.

William McKinley • The Republicans supported the

gold standard, nominating William McKinley as their candidate.

• McKinley is from Ohio and at the time the current Governor.

• McKinley launched a “Front Porch Campaign.” He greeted delegations at his home. – He rarely gave speeches to large

crowds.

• William McKinley's personal reputation helped to improve the Republican Party's image with urban workers and immigrants.

W. J. Bryan• The Democratic Party nominated

William Jennings Bryan, a strong supporter of free silver.

• Bryan was a powerful speaker. In an electrifying address in defense of silver, Bryan said “you shall not crucify mankind on a cross of gold.” – It was a biblical reference he made

about gold. • He carried his campaign across the

country. – Made thousands of speeches

• But this crusade only irritated many immigrants and city people.– They thought he was too religious.

Election Results • Many employers warned

workers that if Bryan won, businesses would fail and unemployment would rise.

• Most workers and business leaders supported the Republican Party.

• McKinley won the election, Bryan and the Democrats lost in the northeastern industrial region.

• The Populist Party declined after 1896. Some of the reforms they favored were adopted later.