Price Indexes for Consumer Price Indexes for Consumer & Farm Products: 1865-1913& Farm Products: 1865-1913

The Farmers’ ComplaintTariffs helped farmers by protecting them against competition from farm imports. But, they also hurt farmers because they raised the prices of manufactured goods, such as farm machinery, and kept foreigners from earning U.S. money with which to buy American crops.

Farmers and Tariffs

Farmers wanted an increase in the money supply, the amount of money in the national economy. As a result, the value of every dollar drops, leading to a widespread rise in prices, or inflation. This trend would benefit people who borrow money (farmers), but it would not be good for money lenders (banks). A decrease in the money supply would cause deflation. Monetary policy, the federal government’s plan for the makeup and quantity of the nation’s money supply, thus emerged as a major political issue.

The Money Issue

Before 1873 U.S. currency was on a bimetallic standard, consisting of gold and silver. Then Congress put the currency on a gold standard which decreased the money supply. “Gold bugs” (big lenders) were pleased.

Gold Bugs

SilveritesThe Bland-Allison Act of 1878 The move to a gold standard

enraged the “silverites,” mostly silver-mining interest and western farmers. Silverites called for free silver, the unlimited coining of silver dollars to increase the money supply.

Required the federal government to purchase and coin more silver, thereby increasing the money supply and causing inflation

Vetoed by President Hayes because he opposed the inflation that it would cause

Congress overrode the veto. The Treasury Department refused

to buy more than the minimum amount of silver required by the act. The act had limited effect.

Sherman Silver Purchase Act of 1890

Increased the amount of silver that the government was required to purchase every month

The law required the Treasury to buy the silver with notes that could be redeemed for either silver or gold.

Many people turned in their silver Treasury notes for gold dollars, thus depleting the gold reserves.

In 1893, President Cleveland repealed the Silver Purchase Act.

Founder of the National Grange of Founder of the National Grange of the Patrons of Husbandry (1867)the Patrons of Husbandry (1867)

The Grange MovementThe Grange Movement

First organized in the 1870s in the First organized in the 1870s in the Midwest, the south, and Texas.Midwest, the south, and Texas.

Set up cooperative associations.Set up cooperative associations.

Social and educational components.Social and educational components.

Succeeded in lobbying for Succeeded in lobbying for “Granger “Granger LawsLaws.”.”

Rapidly declined by the late 1870s.Rapidly declined by the late 1870s.

Organizing Farmer ProtestsOrganized in 1867 in response to farmers’ isolation, it helped farmers form cooperatives which bought goods in large quantities at lower prices. The Grange also pressured government to regulate businesses on which farmers depended.

The Grange

Another powerful political group, the Farmers’ Alliance called actions that many farmers could support. The alliance won support for women’s rights. The African Americans worked through a separate but parallel “Colored Farmers’ Alliance.”

Farmers’ Alliance

Government Response

In 1887 President Cleveland signed the Interstate Commerce Act. It regulated prices that railroads charged to move freight between states. It also set up the Interstate Commerce Commission to enforce laws.

Giftfor the

Grangers:

The FarmerPays for All!

Organizing Farmer ProtestsOrganized in 1867 in response to farmers’ isolation, it helped farmers form cooperatives which bought goods in large quantities at lower prices. The Grange also pressured government to regulate businesses on which farmers depended.

The Grange

Another powerful political group, the Farmers’ Alliance called actions that many farmers could support. The alliance won support for women’s rights. The African Americans worked through a separate but parallel “Colored Farmers’ Alliance.”

Farmers’ Alliance

Government Response

In 1887 President Cleveland signed the Interstate Commerce Act. It regulated prices that railroads charged to move freight between states. It also set up the Interstate Commerce Commission to enforce laws.

The Farmers AlliancesThe Farmers Alliances

Begun in the late 1880s (Texas first – the Begun in the late 1880s (Texas first – the Southern AllianceSouthern Alliance; then in the; then in the Midwest—the Midwest—the Northern AllianceNorthern Alliance).).

Built upon the ashes of the Grange.Built upon the ashes of the Grange.

More political and less social than the More political and less social than the Grange.Grange.

Ran candidates for office.Ran candidates for office.

Controlled 8 state legislatures & had 47 Controlled 8 state legislatures & had 47 representatives in Congress during the 1890s.representatives in Congress during the 1890s.

United We United We Stand, Stand, Divided Divided We FallWe Fall

In 1889 both In 1889 both the Northern and the Northern and Southern Alliances Southern Alliances merged into on— merged into on—thethe Farmers’ AllianceFarmers’ Alliance..

The Populist (Peoples’) PartyThe Populist (Peoples’) Party

1890 Election: So. Alliance - wanted to gain control of the Democratic Party.

No. Alliance - ran 3rd Party candidates.

1892 - 800 met in St. Louis, MO

majority were Alliance members.

over 100 were African Americans.

reps. of labor organizations & other reformers (Grange, Greenback Party).

The Populists The Farmers’ Alliances formed a new political party, The People’s

Party or the Populists. Their platform called for An increased circulation of money Unlimited minting of silver A progressive income tax which would put a greater financial burden on the

wealthy industrialists and a lesser one on farmers. Government-owned communications and transportation systems An eight-hour work day

The Populists sought to unite African American and white farmers. The Populist candidate for President, William Jennings Bryan, won

most of the western and southern states but lost the election. However, populist ideas lived on. In the decades ahead, reformers known as Progressives applied populist ideas to urban and industrial problems.

Platform of Lunacy

The Populist (Peoples’) Party

Founded by James B. Weaver and Founded by James B. Weaver and Tom Watson.Tom Watson.

Omaha, NE Convention in July, Omaha, NE Convention in July, 1892.1892.

Got almost 1 million popular votes.Got almost 1 million popular votes.

Several Congressional seats won.Several Congressional seats won.

James B. Weaver, James B. Weaver, Presidential CandidatePresidential Candidate

&&James G. Field, VPJames G. Field, VP

Organizing Farmer ProtestsOrganized in 1867 in response to farmers’ isolation, it helped farmers form cooperatives which bought goods in large quantities at lower prices. The Grange also pressured government to regulate businesses on which farmers depended.

The Grange

Another powerful political group, the Farmers’ Alliance called actions that many farmers could support. The alliance won support for women’s rights. The African Americans worked through a separate but parallel “Colored Farmers’ Alliance.”

Farmers’ Alliance

Government Response

In 1887 President Cleveland signed the Interstate Commerce Act. It regulated prices that railroads charged to move freight between states. It also set up the Interstate Commerce Commission to enforce laws.

Interstate Commerce Act -

1887

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Omaha Platform of 18921. System of “sub-treasuries.”

2. Abolition of the National Bank.

3. Direct election of Senators.

4. Govt. ownership of RRs, telephone & telegraph companies.

5. Government-operated postal savings banks.

6. Restriction of undesirable immigration.

7. 8-hour work day for government employees.

8. Abolition of the Pinkerton detective agency.

9. Australian secret ballot.

10. Re-monetization of silver.

11. A single term for President & Vice President.

1892 Election1892 Election

Populism

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Govt.-Owned Companies

Bi-Metallism Bi-Metallism IssueIssue

Causes of the 1893 Panic

Begun 10 days after Cleveland took office.Begun 10 days after Cleveland took office.

1.1. Several major corps. went bankrupt.Several major corps. went bankrupt.

o Over 16,000 businesses disappeared.Over 16,000 businesses disappeared.

o Triggered a stock market crash.Triggered a stock market crash.

o Over-extended investments.Over-extended investments.

2.2. Bank failures followed causing a contraction of Bank failures followed causing a contraction of credit [nearly 500 banks closed].credit [nearly 500 banks closed].

3.3. By 1895, unemployment reached 3 million.By 1895, unemployment reached 3 million.

Americans cried out for relief, but the Govt continued Americans cried out for relief, but the Govt continued its laissez faire policies!!its laissez faire policies!!

Panic Spreads!Panic Spreads!

Here Lies ProsperityHere Lies Prosperity

Written by a Farmer at the End of the 19c

When the banker says he's broke And the merchant’s up in smoke, They forget that it's the farmer who feeds them all. It would put them to the test If the farmer took a rest; Then they'd know that it's the farmer feeds them all.

Coxey’s Army, 1894

Jacob Coxey & his “Army of the Commonweal of Christ.”

March on Washington - “hayseed socialists!”

Cleveland’s second term - 1893-1897 (unpopular)

Panic of 1893Millions of workers lost

jobs or had wages slashed

1894 - Coxey’s army demanded gov’t create jobs for unemployed

Repealed Sherman Silver Purchase Act

Sent federal troops to Chicago during the Pullman strike of 1894

Result of Election Returns

Populist vote increased by 40% in the mid-term election year, 1894.

Democratic party losses in the West werecatastrophic!

But, Republicans won control of the House.

The Populist Party

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Gold / Silver Bug Gold / Silver Bug Campaign PinsCampaign Pins

William Jennings Bryan (1860-1925)

The “Great Commoner”

William Jennings Bryan

Prairie avenger, mountain lion,Bryan, Bryan, Bryan, Bryan,Gigantic troubadour, speaking like a siege gun,Smashing Plymouth Rock with his boulders from the West.

Revivalist style of oratory.Revivalist style of oratory.

Bryan’s “Cross of Gold” Speech

““You shall not press You shall not press down upon the brow of down upon the brow of labor this crown of labor this crown of thorns; you shall not thorns; you shall not crucify mankind upon crucify mankind upon a cross of gold!”a cross of gold!”•both Democrats and Populists nominated him for President•Audio of Bryan’s speech

Bryan’s “Cross of Gold”

Populist presidential candidate William Jennings Bryan, a former “silverite” Congressman, faced off against moderate Republican William McKinley.

During the 1896 Democratic Convention in Chicago, Bryan closed the debate over party platform with his Cross of Gold speech.

Using images from the Bible, he stood with his head bowed and arms outstretched and cried out:“You shall not press down upon the brow of labor this

crown of thorns. You shall not crucify mankind upon a cross of gold!”

So impressive was his speech that both Democrats and Populists nominated him for President.

Bryan: The Farmers Friend(The Mint Ratio)

18,000 miles of campaign “whistle stops.”

Democratic Party Taken Over by the Agrarian Left

Platform - tariff reductions; income tax; stricter control of the trusts (esp. RRs); free silver.

Mark Hanna: Republican National Committee Chairman The “Front-Porch” Campaign

William McKinley (1843-1901)William McKinley (1843-1901)

Mark Hanna to Candidate McKinley

The Seasoned Politician

vs.

The “Young” Newcomer

Election of 1896

Populists - Democrats: William Jennings BryanWorking class and

farmersFree silverLabor reform“Cross of Gold”

speech

Republicans: William McKinleyNew tariff bill (raised)Stronger gold

standard“A Full Dinner Pail”

1896 Election 1896 Election ResultsResults

Map 18.5 The Elections of 1892 and 1896 (p. 540)

Into Which Box Will the Voter

of ’96 Place His Ballot?

Election of 1896: Realignment

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Why Did Bryan Lose?Why Did Bryan Lose?

His focus on silver undermined efforts to His focus on silver undermined efforts to build bridges to urban voters.build bridges to urban voters.

He did not form alliances with other He did not form alliances with other groups.groups.

McKinley’s campaign was well-McKinley’s campaign was well-organized and highly funded.organized and highly funded.

The Next President The Next President of the U. S. - William McKinleyof the U. S. - William McKinley

Gold Triumphs Over Silver

1900 - Gold Standard Act

confirmed the nation’s commitment to the gold standard.

A victory for the forces of conservatism.

The Wizard of Oz by L. Frank Baum

Heyday of Western Populism

Why Did Populism Decline?

1. The economy experienced rapid change.

2. The era of small producers and farmers was fading away.

3. Race divided the Populist Party, especially in the South.

4. The Populists were not able to break existing party loyalties.

5. Most of their agenda was co-opted by the Democratic Party.

But, Populism Still Lives!

Al Gore in 2000Al Gore in 2000