Chapter 7 Postwar Industrialization, Agriculture, and Urban Growth

■ #2 The Problems of Farmers & The Populists

■ Essential QuestionEssential Question:

–Who were the Populists & what new ideas did they promote in order to help western farmers?

Group Activity:The Problem of Farmers & Rise of the Populist Party

■ In groups of 2, (10 mins) complete these tasks:–Examine the documents provided

& determine what major problems farmers faced in the Gilded Age

–Write your answers in the matrix–When finished, generate a plan that

provides a solution to meet the needs of farmers

The Problems of Farmers

■In the 1870s & 1880s, western farmers faced serious problems:

–Prices for their crops were falling due to over-production of grains

–Banks were charging high interest rates on mortgages & were foreclosing on debtors

–Railroads charged high rates for shipping & storing their crops

Price Index for Consumer & Farm Goods

The Problems of Farmers

■Government policies hurt farmers:

–The gov’t reduced the paper money (greenbacks) & relied on gold-backed currency

–This led to deflation making it harder for farmers to pay off debts

–When westerners appealed to their politicians, nothing was done

Reform Attempts by Farmers■Farmers attempted to organize &

fight back through groups like the GrangersGrangers & the Farmers’ AllianceFarmers’ Alliance:–These groups attacked abusive

banks & railroad companies –They called on farmers to form

their own co-op stores, banks, & storage silos to avoid exploitation

–Both groups failed to gain improvements for farmers

Granger Meeting

The Populist Party■In 1890, the Populist PartyPopulist Party was

formed & demand reforms:–Government regulation of

railroads in order to lower rates–A national income tax to take the

burden of taxation off farmers –Direct-election of Senators to

make politicians more responsive–Bimetalism: Using gold & silver to

inflate the money supply

Bi-Metalism

The Rise of the Populist PartyFrom 1890 to 1896, the Populist Party emerged as an influential 3rd party & began to challenge the Democrats & Republicans

During this time, 3 governors, 10 congressmen, & 5 senators were

elected as Populist candidates…

…the state gov’ts of Idaho, Nevada, Kansas, & North Dakota were dominated by Populists

In 1892, Populist James Weaver made a run at the presidency

William Jennings Bryan & the Election of 1896

■In the 1896 presidential election, William Jennings Bryan embraced Populist ideas & was nominated by the Democrat & Populist Parties:–Bryan made bimetallism the

issue of the campaign as a result of his “Cross of Gold” speech

–Republican William McKinley argued for the gold standard

Bryan’s “Cross of Gold” Speech

Bimetallism: A recipe for prosperity or lunacy?

OR?

The Election of 1896McKinley’s defeat of Bryan in the

election of 1896 killed the Populist Party…

…but key Populist ideas such as the income tax, direct election of Senators, & regulation of railroads will be enacted by

the Progressives from 1890 to 1920