AMERICA’S FIRST SUCCESSFUL GRASSROOTS POLITICAL MOVEMENT

Populism

OptimismOptimism RealityReality

“We were going to God’s Country”.

“We were going to a new land to get rich”

“bless the lord, he knew we needed land”

Loneliness Drought Famine Homesteaders needed at

least $1,000.00 to start their new farms, regardless of the free land.

Living conditions (Sodbusters)

Natural “scrouges” Particularly difficult for

women Natural resources scarece

Plight of Farmers

Land rush Fever!

AgricultureAgriculture BankingBanking

Crop prices were down by on average 33%.

Meanwhile inflation on other materials was as high as 50%

Congress abandoned the “Greenback” in 1877.

Meaning loans and tax payments could only made with “specie” hard silver or gold.

This was in short supply.

Specific Woes

Banking concerns

You take out a loan in 1876 when crop prices are stable. Your loan payment is $13.50 per month.

By 1881 your income has gone down by nearly ½, meanwhile deflation has deprived you of the opportunity to purchase other items that are at the same time inflated.

Meanwhile the bank rate is constant. You owe $13.50 per month, the loan you took out for farm equipment is not related to inflation. And now the more common greenback is gone—you pay your loan back in gold you don’t have and can’t get.

Railroad Concerns

Rates were never constant.Rebates were given to big cattle industry and

the large oil conglomerates to keep their business.

Those rebates had to be made up…small homesteader farmers were “squeezed” by the RR’s to make those rebates up.

Not uncommon to see a 20% increase per year in the cost of shipping to eastern markets.

Oliver Kelley’s Patrons of Husbandry

Began its life as a method for farmers to socialize.

Socialization brings complaints about their current plight.

Slowly began to spread west.

Gilded Age Economics

Farmers largely dissatisfied with America’s two party system.

Financial power monopolized by Eastern elites.

Political power was unresponsive…at the federal level

S. Grover Cleveland

Greatest Goal? Populist Party

The ultimate goal of populists like Tom Watson and Mary Lease was to make government more responsive to the needs of farmers.

View populism as the unionization efforts of farmers.

Regulating Railroads

Illinois efforts led to a victory in Munn v. Illinois. It was deemed the national good to allow states to control rail.

Decision severely limited in Wabash v. Illinois, when the court ruled ten years later in 1886 that this is a violation of interstate commerce.

Led to the formation in 1887 of the relatively ineffective ICC (Interstate Commerce Commission.

Race and Populism

Farmers nationwide are “all in the same ditch”…

Liberal minded reformers like Tom Watson urged unified efforts at reforming the system.

Onto the big stage

St. Louis 1892, the alliances and granges united into a cohesive political party and ran James B. Weaver as a candidate in 1892.

The election would bear great importance as to whether the Peoples (Populists) Party would be taken serious.

Election of 1892

Platform?Free SilverRailroad regulationGovernmental

regulation of the banking system.

Private ownership of land

They made a big impact!

Political impact

The Populists made a significant splash in state and local governments during the mid term elections of 1894, their strong showing in 1892 made them a force to be reckoned with.

Controlled several state governments in Colorado and Kansas.

The Grand Scale

The Election of 1896Provided them a

legitimate opportunity to win the White House.

William J. Bryan and Thomas Watston v. William McKinley and Garrett Hobart

Election of 1896

The key issue…Gold. The economy was

hemorraghing under the weight of a gold only economy. The Democrats (Bryan) merged with the Populists to tackle the sound money Republicans.

Bryan and the platform of 96’

Direct election of senators

Free silverGraduated income tax

Republicans:Sound moneyStatus quo

The Result

The Gilded Age not quite over as the “enigmatic” McKinley wins a tight victory on the strength of his support from big business.

“to Oz?”

L. Frank Baum the author worked for a populist newspaper in Kansas.

Was his children’s story meant to be a parable on the Populist age?

Some say no, others yes…undoubtedly his sympathies with the movement went into his creation of the story…intended or not.

Money

1880-1896 prices fell by 23%. When prices fall this is called deflation. For

many this is an economic benefit—particularly the elderly who for example may own their own home without a fixed payment to a bank.

For others whose wages depend on these prices—ala farmers, this is a disaster.

One way of bringing up prices was to add silver to the nations money supply (at a rate of 16 oz to 1 oz of gold) thus adding more money to circulation and raising prices—promoting inflation.

Say it ain’t so?

How did they lose?Populist ideas

watered down with the ideas of democratic party. The platform was broad and lacked cohesion. Funding of industrialists like Mark Hanna, the Kingmaker.

Bryan’s future…

Viewed during the election as a windbag…known for his oratories, he will become a key figure in US history.

A failure?

A young rough rider got the message…as did the American people. While the populist party failed in the short term. It’s impact will resonate throughout the Progressive Age.