unit 7 populists & progressives the farm industry

Unit 7Unit 7Populists & ProgressivesPopulists & Progressives

The Farm IndustryThe Farm Industry

Overproduction and Falling Overproduction and Falling PricesPrices

• 1865- Farmers produced more food than people could afford to buy.

- New farmlands on the prairies and new farm machinery increased the amount of food that could be produced.

• Supply of farm products on the world market was greater than the demand -- Prices fell. - Wheat (1868) - $2.50/bushel ---- down to $.78/bushel

in the late 1880's.

• Farmers had to pay high prices for manufactured goods, which made farming an impossible

venture. - High protective tariffs kept European goods out of

the country and U.S. monopolies kept prices high.

- Farmers were constantly in debt -- mortgages, loans for seed & supplies, low farm prices - Interest rates during 1880's on farm loans rose from 8% -- 20%

The Money Question and The The Money Question and The Railroads/DistributorsRailroads/Distributors

• Money as a Medium Of Exchange- something of value given in exchange for goods or

services.

- Sound (hard) Money-- not much $ in circulation -- hard to pay debts (Bankers) --1870’s to 1890’s: Money had become tight (same amount of crops brought in less cash)- Cheap (soft) Money-- a lot of $ in circulation --

easy to pay debts (Farmers) -- Farmers wanted the government to increase the amount of money in circulation.

• Distributors- These brokers, produce buyers, grain-elevator operators, and stockyard owners took a large cut of the farmers’ income.

• Railroad Shipments - Long-Haul Rates between cities were cheaper because of competition among several railroad lines. - They made up for this by charging more for Short- Hauls. (No competition)

The Grange and Farmers’ The Grange and Farmers’ CooperativesCooperatives

• The 1st national farm organization. Founded in 1867 by Oliver Kelley.

- Farmers could meet for social and educational activities.

- By 1875 there were 1.5 million Grangers due to falling farm prices--Mostly Midwest.

• The Farmers who joined the Grange were more concerned with addressing their economic problems than in socialization ------ “Down With Monopoly”

• Farmers' Alliances- 400,000 farmers joined regional organizations to gain economic and political power.

• Cooperatives - associations run by farmers to bypass the distributors.

- Sold products from groups of farmers directly to big city markets.

- Bought farm machinery and supplies in quantity at wholesale prices.

• Most cooperatives failed because the farmers lacked experience and the necessary

capital to compete.

Opposition To Unfair Opposition To Unfair Railroad PracticesRailroad Practices

• During the 1870's several Midwestern states passed "Granger Laws" which fixed maximum railroad freight rates. (Illinois, Minnesota, Iowa, Wisconsin) - Railroads opposed these laws and ignored them. - Supreme Court ruled that state legislatures could regulate businesses that affected the public -- including grain elevators and railroads.

• The railroads continued to get around the laws or had them repealed.

• 1886 - Supreme Court modified its earlier ruling. - Court decided that only the federal government (not the states) could regulate traffic that crossed from one state to another.

• Interstate Commerce Act (1887) - Provisions: (applied to all railroads passing through more than one state)* It was illegal to:

a. Make pooling agreements b. Grant special discounts or rebates c. Charge more for a short-haul than a long-haul d. Charge unreasonable rates

The Free Silver IssueThe Free Silver Issue • 1834 -- Government would exchange silver --

gold at the ratio of 16 -- 1. [16 oz. silver = 1 oz. gold]

• Silver strikes in Nevada/Colorado increased silver supply -- value falls to less than 16 –1.

• Went to sell silver to the Government but found that in 1873 Congress no longer minted

silver coins -- "CRIME OF '73“

• Sherman Silver Purchase Act (1890) - Political deal between the East and West (McKinley Tariff ---- Cheap Money Bill) - Required Treasury to buy 4.5 million oz. silver

a month (pay with paper $ - redeem in gold/silver).

* Price of silver did not rise and farm prices did not rise.

The Populist PartyThe Populist Party

The Early Populist The Early Populist MovementMovement • Republican and Democratic farmers joined

ranks to form the Populist, or People's, Party at Cincinnati, Ohio in 1891. - Farmer's Alliances from the West and Mid-West followed the fiery rhetoric of Mary Elizabeth Lease and her cry that workers and farmers were slaves to manufacturing and finance interests of the industrial Northeast.

- The Parties platform was…“We seek to restore the government of the Republic to the hands of the ‘plain people’…We assert our purposes to be identical with the purposes of the National Constitution.”

• The Omaha Platform

1. The free and unlimited coinage of silver at the ratio of 16 - 1 (increase currency).

2. Government ownership of railroads, telegraphs, telephones, and the Money supply (Not Banks).

3. Graduated Income Tax -- higher taxes to be paid by those who received higher incomes.

4. Political reforms -- direct election of U.S. Senators, secret ballot, initiative, and referendum.

5. Attracted some industrial workers by calling for shorter hours and restrictions on

immigration.

The Election of 1892The Election of 1892 • The Parties and Results

- POPULIST - James B. Weaver (Iowa) -- spoke to enthusiastic crowds throughout the Mid West. - REPUBLICANS - Benjamin Harrison (incumbent from Indiana). - DEMOCRATS - Grover Cleveland (former president from New York)

*** RESULTS - Cleveland 277 electoral votes, Harrison - 145, Weaver - 22 (1 million+ popular).

- Strong showing by the Populists -- gained several seats in Congress and state legislatures.

• Cleveland’s 2nd Term and the Run of Gold 1. A severe economic depression hit the country in 1893. - Factories closed, farm prices fell, and

thousands lost their jobs. 2. Cleveland blamed the depression on the Sherman Silver Purchase Act of 1890. 3. Farmers, factory workers, and "cheap" money people blamed the depression on "tight" money.

4. "Bimetallism" - The country's money was backed by both gold and silver.

5. The value of silver was falling by 1893. This led people to exchange their silver bank

notes for gold coins.

- Gold reserves fell to $100 million in 1893 and down to $41 million by 1895.

6. It appeared likely that the U.S. would go off the gold standard and have uncontrolled inflation.

7. Cleveland accepted a deal from banker J.P. Morgan to lend gold to the government in exchange for government bonds.

- Confidence in the government's finances returned and the run on gold ended.

The Election of 1896The Election of 1896 • Chief Issue: "Sound Money" Gold Standard

conservatives vs. "Cheap Money" Silver people.

• REPUBLICANS - William McKinley (Ohio) - favored big business and the gold standard.- The real leader of the Republican Party was a

conservative Cleveland businessman named Marcus Alonzo Hanna.

- Hanna managed McKinley's “Front Porch” campaign from Canton, Ohio. - Mark Hanna spent over $3,500,000 for speakers, advertisements, & campaign buttons. - Newspapers backed McKinley and factory owners threatened their workers to vote Republican or else lose their jobs.

• DEMOCRATS - adopted a free coinage of gold and silver platform.

- William Jennings Bryan (Boy Orator of the Platte) - a 36 year old lawyer and Nebraska congressman stepped forward to address the Democratic National convention with one of the greatest political speeches in American history. - Bryan's famous "Cross of Gold" speech wins

over the crowd and the nomination.

- Bryan's campaign crusade traveled 18,000 miles and delivered 600 speeches.

- Bryan became the hero of farmers, miners, and small businessmen in the West and South.

- * POPULISTS - also nominated William Jennings Bryan (free and unlimited coinage of silver)

• RESULTS - McKinley 271 electoral votes to Bryan's 176.

- McKinley also wins the popular vote by 600,000.

- The Gold Standard had won out but the farmers and "cheap money" people came close.

- The Populist Party dies out with this defeat but better times for farmers and reforms lie

ahead with the Progressive movement of the early 1900's.

The Progressive PartyThe Progressive Party

The Early Progressive The Early Progressive MovementMovement

• The Progressive reformers included both Democrats and Republicans. - Make government more democratic (more power in

the hands of the people). - Reverse the tide of greed and corruption growing from the new industrial age. - Greater economic opportunity for all by regulating the

powerful business and money interests.

• Muckrakers - writers who exposed the injustices and corruption of politics and business. - Lincoln Steffens - felt the major problem in society was caused by the demand for special privileges from government -- this led to abuses and corruption. - Ida Tarbell - "History of the Standard Oil Company" - Upton Sinclair- "The Jungle" - exposed unsanitary conditions in meat-packing plants.

• Robert M. "Fighting Bob" La Follette - Wisconsin governor and senator: was one of

the great leaders of the Progressive movement.- An honest man and excellent speaker -- La Follette fought for farmers and workers. - He broke the Republican political machine that had been running the state.

- As governor La Follette increased the taxes and regulation of the railroads, public utilities and helped conserve Wisconsin's forests and water-power sites.

- "Wisconsin Idea" – the use of university scholars as advisors, regulators, and legal assistants.

Greater Control of Government Greater Control of Government is Given to the Peopleis Given to the People

• Australian Ballot (Secret Ballot) - names of candidates were printed on a single sheet of paper -- voters could now cast their ballots in secret.

- Replaced the open voting where parties had their ballots on separate colored paper.

• Initiative - citizens could write their own bills and have them placed before the state legislatures if a petition with the names of 5 - 15% of the voters was attached to the proposed law.

• Referendum - was similar to the initiative. Voters would get signatures on a petition for a proposed bill. It would then be on the election ballot for ALL the voters to accept/ reject.

• Recall - Voters became able to remove an elected government official from office before their term expired. - A special election had to be held if 25% of the

voters signed a petition asking for a recall election.

- 20 states adopted the initiative and referendum -- 12 adopted the recall.

• Direct Primary - an election held several months prior to the general election in which the registered voters from each political party selected their nominee for office. - This replaced the old method of professional

politicians choosing the party's candidate at political conventions without the input of the people. - First adopted in Wisconsin (1900) --- it spread

to most other states.

• Direct Election of Senators - (1913) - 17th Amendment to the Constitution states that the two U.S. senators from each state will be elected by the people of that state directly.

- The state legislatures will no longer choose senators.

Theodore RooseveltTheodore Roosevelt

Theodore Roosevelt and the Theodore Roosevelt and the “Square Deal”“Square Deal”

• The Election of 1900- (Rep.) William McKinley runs for re-election with Theodore

Roosevelt as V.P. Candidate. - McKinley was confident of victory because business was booming and he had just led the U.S. to victory over Spain in "a splendid little war.”

• Democrats nominate William Jennings Bryan who runs on the free silver issue again.

• McKinley is returned to the White House with 292 electoral votes to Bryan's 155.

• On September 6, 1901 McKinley is shot by a crazed anarchist --- He dies a week later.

• Theodore Roosevelt becomes the nation's youngest president.

- T.R. was independent; He did not take orders from conservative Republicans and party bosses.

- "Teddy" wanted strong armed forces and an aggressive foreign policy. “Speak softly and carry a big stick.”

- Roosevelt would use the presidency as a "Bully Pulpit" to fight for a number of reforms.

The Pennsylvania Coal The Pennsylvania Coal StrikeStrike

• (1902) - Anthracite Coal Strike in Pennsylvania against the railroad-owned mining

companies. • The United Mine Workers Union was led by

John Mitchell (Illinois). - The miners wanted a 9-hour day, a 20% wage

increase, and recognition of their union.

• The mine owners refused to negotiate with the miners so they started a peaceful strike.

- The production of hard coal came to a stop -- the strike went on into the Fall.

• Roosevelt called representatives from both sides to the White House.

- Mine owners refused to accept Arbitration - they wanted troops to break the strike.

- T.R. forced the mine owners to accept arbitration by threatening to run the mines with the army.

• Miners went back to work and the arbitration board granted the U.M.W. a 9-hour day, a 10% salary increase, and set up a board of conciliation to help avert future strikes.

- This was the first time the Federal Govt. intervened in a labor dispute for the public good.

Trustbusting and The Trustbusting and The Hepburn ActHepburn Act

• For the first time the Federal govt. actively sought to regulate business practices in the interest of the public welfare. Roosevelt would bring suits against business under the Sherman Anti-Trust Act.

- 44 cases were brought to the courts during Roosevelt's administration.

- Roosevelt defined business combinations as "Good" or "Bad" for the public.

- ELKINS ACT (1903) - prohibited manufacturers from accepting a rebate from a railroad.

• Hepburn Act (1906) - gave the Interstate Commerce Commission the authority to: - Regulate railroad companies, oil pipelines, bridges,

terminals, and ferries doing business across state lines. - Set up reasonable rates to be approved by federal

courts. - End the practice of giving free passes to government

officials. -Require railroads to use uniform methods of bookkeeping and accounting.

Election of 1904Election of 1904 • Republicans - nominate Theodore Roosevelt

for re-election.

- T.R. was not conservative enough for many Republicans but he was too popular.

• Democrats - nominate bland, conservative Judge Alton B. Parker.

• Results - Roosevelt wins big: Electoral Vote is 336 – 140 // Popular vote is won with

over 2 million.

- T.R. was now free to follow his own reform policies -- no longer a political accident.

Teddy Reforms A Teddy Reforms A NationNation • Public Health Legislation

- Spanish-American War soldiers complained about the spoiled and wormy food they had to eat. - Patent medicines often contained addictive drugs and claimed impossible healing powers.- Upton Sinclair's THE JUNGLE described the killing of

diseased animals and the filth in the meat-packing industry.

• Meat Inspection and Pure Food and Drugs Acts (1906)- Provided for federal inspection of all meats which crossed state lines.- Prevented the manufacture, sale, or transportation of impure or harmful foods and medicines.- Required patent medicines to have truthful labels listing ingredients.

• Conservation - Govt. gave corporations forests, grazing plains, mineral deposits, oil fields, & water-power sites. - By 1900 only 25% of the country's natural forests were still standing. - Cattlemen and sheepherders overgrazed the

grasslands, turning these areas into dust bowls.

- Coal companies’ left abandoned mines, natural gas was allowed to escape into the air, and the cities polluted rivers and streams with industrial sewage -- killing the fish.

- The nation's vast but limited natural resources were being used selfishly for the present.

- Roosevelt made conservation a national crusade and reminded Americans that minerals, coal, iron, oil, and gas were not renewable. - During his administration T.R. removed from

public sale and protected 150 million acres of forest land as well as millions of acres

of coal lands. - Congress created wildlife sanctuaries and national parks.

• The Newlands Reclamation Act (1902)

- Money from the sale of western public lands was to be used for irrigation and other

projects designed for the Reclamation of wastelands -- make it suitable for farming.

- Thousands of acres of wasteland were transformed into rich farmlands.

Election of 1908Election of 1908 • Roosevelt decided not to run again. He said in

1904 that no man should serve three terms. • Republicans - T.R. hand picked his close friend

William Howard Taft (Ohio) to continue his policies.

- Platform: strengthen the I.C.C. and Sherman Acts, conservation, improved highways.

• Democrats- select William Jennings Bryan once again.

- Platform: lower tariff, income tax, more antitrust laws, and restrictions on injunctions. - Results: Taft - 321 electoral votes to Bryan's

162. Republicans kept control of Congress.

William Howard Taft and William Howard Taft and Woodrow WilsonWoodrow Wilson

Taft Continues The Taft Continues The Progressive ReformProgressive Reform

• Taft - lawyer, judge, Secretary of War, and Governor of the Philippines -- Quiet and cautious.

• Taft was more active than Roosevelt in prosecuting the trusts --- 90 antitrust suits to 44.

• Mann - Elkins Act (1910) – placed telephone, telegraph, and wireless companies under the control of the Interstate Commerce Commission. I.C.C. – more power over the railroads.

• Department of Labor created, 8 hour day for government contract jobs, and the 16th amendment passed. (Allows federal income tax)

Taft Loses Progressive Taft Loses Progressive SupportSupport

• 1908 - Taft promises to support the Progressive's lower tariff.

• (1909) - Payne-Aldrich Tariff- high tariff supported by President Taft.

- This about-face angered many progressives and Taft moved closer to the conservatives.

• Taft's Secretary of the Interior Richard A. Ballinger became embroiled in a controversy with Forestry head Gifford Pinchot. - Taft was perceived as weak on conservation

and the Republicans lost the House in 1910.

• Joseph "Uncle Joe" Cannon (Speaker of the House) – Taft sided with the conservative leader of the House who blocked progressive legislation.

Woodrow Wilson’s “New Woodrow Wilson’s “New Freedom”Freedom”

• Woodrow Wilson (Democratic) defeats both Taft (Republican) and Teddy Roosevelt (Progressive) to win the 1912 election.

• President Wilson called a special joint session of Congress to ask for lower tariffs.

- Wilson called high protective tariffs the "mother of trusts" which favored monopolies and led to a higher cost of living. He said American industries no longer needed this protection.

• (1913) Underwood Tariff Act - reduced tariffs to their lowest point in 50 years.

- Duties on a thousand goods were lowered -- agricultural as well as manufactured goods.

- Provided for a graduated income tax of between 1% - 6% on incomes over $3,000/yr.

• Clayton Antitrust Act (1914) -- strengthened the Sherman Anti-trust Act of 1890.

- 1913 - A congressional committee discovered that a small number of rich banks controlled much of the manufacturing, mining, and

transportation industries in the U.S. - 1% of the population controlled 87% of all the

wealth.

- The Clayton Act declared illegal several business practices that had been used by large companies to gain monopoly status and restrict competition. - Price-cutting to eliminate competition & stock

buying to create monopolies made illegal. - Formally legalized labor unions and farm organizations ; restricted injunctions.

• The Federal Trade Commission (1914) – used to prevent the growth of monopolies.

- "Bipartisan" commission of 5 members regulated industries in foreign or interstate trade.

- Investigated the business practices of owners and corporations.

- Gave corporations "cease-and-desist" orders to stop unfair methods of competition.

- The courts would enforce these "cease-and-desist" orders from the commission.