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

19131913

Founder of the Founder of the National Grange of National Grange of

the Patrons of the Patrons of Husbandry (1867)Husbandry (1867)

The Grange The Grange MovementMovement 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 (stores, Set up cooperative associations (stores,

grain elevators, grain warehouses).grain elevators, grain warehouses). Social and educational components too – Social and educational components too –

picnics, concerts, lectures, etc.picnics, concerts, lectures, etc. Succeeded in lobbying for state Succeeded in lobbying for state “Granger “Granger

Laws”Laws” to regulate RR rates & storage to regulate RR rates & storage fees (fees (Munn v. IllinoisMunn v. Illinois))

Wabash v. IllinoisWabash v. Illinois (1886) overruled (1886) overruled statestate regulation of RR – why?regulation of RR – why?

Rapidly declined after Rapidly declined after WabashWabash..

The Farmers The Farmers AlliancesAlliancesØ Begun in the late 1870s (Texas first

– the Southern Alliance; then in the Midwest—the Northern Alliance).Ø Built upon the ashes of the Grange.Ø More political and less social than the Grange.Ø Ran candidates for office.Ø Controlled 8 state legislatures & had 47 representatives in Congress during the 1890s.

United United We We

Stand, Stand, Divided Divided We FallWe Fall

Ø In 1889 both In 1889 both the Northern andthe Northern andSouthern Southern AlliancesAlliancesmerged into onemerged into one—the —the Farmers’ Farmers’ AllianceAlliance..

Ø Will Will eventualeventually seek ly seek alliance alliance with with northern northern industriaindustrial l workers workers - labor - labor unions.unions.

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

Ø Farmers’ Alliance excluded blacks & ignored issues of tenant farmers & sharecroppers – weakened it

Ø By early 1890s, Farmers’ Alliance has produced the Peoples’ Party – a political coalition of farmers from the W & the S.

Ø Goals:Goals:Ø More political power to the people (through political More political power to the people (through political

reform, lowering tariff)reform, lowering tariff)Ø Government intervention to aid struggling farmers – Government intervention to aid struggling farmers –

at the mercy of industrialists, banks & interest rates.at the mercy of industrialists, banks & interest rates.

Ø Attacked Wall Street and the “Money Trust”Attacked Wall Street and the “Money Trust”Ø Early champion: Early champion: Mary Elizabeth Lease of KS

Ø ““Kansans should raise less corn and raise Kansans should raise less corn and raise more hell!”more hell!”

Platform of Platform of LunacyLunacy

A farmers’and workers’alliance?

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

Ø Founded by James B. Founded by James B. WeaverWeaverand Tom Watson.and Tom Watson.

Ø Omaha Convention Omaha Convention in July,in July,1892 - NE.1892 - NE.

Ø Got almost 1 million Got almost 1 million popularpopularvotes in ’92 election.votes in ’92 election.

Ø Several Congressional Several Congressional seatsseatswon.won.

James B. Weaver, James B. Weaver, Presidential Presidential CandidateCandidate

Omaha Platform of Omaha Platform of 189218921.1. System of System of “sub-treasuries.”“sub-treasuries.”

2.2. Free silver (unlimited coinage of Free silver (unlimited coinage of silver).silver).

3.3. Graduated income tax.Graduated income tax.4.4. Direct election of Senators.Direct election of Senators.5.5. Govt. ownership of RRs, telephone & Govt. ownership of RRs, telephone &

telegraph companies.telegraph companies.6.6. Restriction of undesirable immigration.Restriction of undesirable immigration.7.7. 8-hour work day for government 8-hour work day for government

employees.employees.8.8. Abolition of the Pinkerton detective Abolition of the Pinkerton detective

agency.agency.9.9. Australian secret ballot.Australian secret ballot.10.10. Abolition of the National Bank.Abolition of the National Bank.11.11. A single term for President & Vice A single term for President & Vice

President.President.

Govt.-Owned Govt.-Owned CompaniesCompanies

1892 Election1892 Election

Cleveland again – only President to ever serve two non-consecutive terms.Same old Cleveland, but different nation – debtors up in arms!

Bi-Metallism Bi-Metallism IssueIssue

Major Problems in Cleveland’s Second Term:

First large-scale depression in the new industrial economy.

Causes of the 1893 Causes of the 1893 PanicPanic

Ø Began 10 days after Cleveland took office.Began 10 days after Cleveland took office.1.1. Several major corporations went Several major corporations went

bankrupt.bankrupt. Over 16,000 businesses disappeared.Over 16,000 businesses disappeared. Triggered a stock market crash.Triggered a stock market crash.

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

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

4.4. Ongoing agricultural depression.Ongoing agricultural depression.Ø Americans cried out for relief, but the Americans cried out for relief, but the

Federal Gov’t.Federal Gov’t.continued its continued its laissez faire policieslaissez faire policies!!!!

Panic Panic Spreads!Spreads!

How is it “resolved” by Cleveland?How is it “resolved” by Cleveland?Gets J.P. Morgan to loan gov’t $65 million in gold….Gets J.P. Morgan to loan gov’t $65 million in gold….

for which he charged a commission of 7 million!for which he charged a commission of 7 million!

Here Lies Here Lies ProsperityProsperity

The Populist argument that farmers & laborers alike are being victimized is strengthened.

2. Coxey’s Army, 2. Coxey’s Army, 18941894

Ø Jacob Coxey & his “Army of Jacob Coxey & his “Army of the Commonweal of Christ” (500, not the Commonweal of Christ” (500, not 100,000)100,000)

Ø March on Washington - “hayseed March on Washington - “hayseed socialists!”socialists!”

Ø Cleveland doesn’t handle the problem Cleveland doesn’t handle the problem well……well……

3. Pullman Strike, 3. Pullman Strike, 18941894

Cleveland gets federal injunction – based on interference with the mail.

Uses federal troops to put down the strike.

Eugene Debs arrested & jailed-6 mos. for contempt.

As with Coxey’s Army, does not seem that government (Cleveland) is sympathetic to plight of the people

4. Ultra-conservative 4. Ultra-conservative Supreme Court DecisionsSupreme Court Decisions

U.S. vs. E.C. Knight caseCt. refused to break up sugar trust

using Sherman Antitrust Act – argued that Act applies ONLY to commerce, not manufacturing

U.S. vs. Debs caseDebs denied writ of habeus corpusJailed for 6 mos. / comes out a

socialist

5. Silver 5. Silver IssueIssue

“Crime of ’73” demonetization of silver (govt. stopped coining silver); cries for “free silver.”

Bland-Allison Act (1878) is the compromise: limited silver coinage to $2-$4 mil. per mo. (based on the 16:1 ratio of silver to gold); ineffective since gov’t always purchased minimum amount.

Sherman Silver Purchase Act (1890)– Next compromise attempt: The U.S. Treasury

must purchase $4.5 mil. oz. of silver a month. (gold in treasury being depleted – why?)

– Cleveland forces repeal in 1893– U.S. has worst depression in its history

•Gov’t bailed out in 1895 by J.P. Morgan’s gold loan!

– S & W wings of Democratic party desert Cleveland

Result of Election Result of Election ReturnsReturns

Ø Populist voteincreased by40% in the 1894 mid-term elections

Ø Democratic party losses in

the West werecatastrophic!

Ø But, Republicanswon control of

the House.

Gold / Silver Bug Gold / Silver Bug Campaign PinsCampaign Pins

William Jennings William Jennings Bryan Bryan

(1860-1925)(1860-1925)

The “Great Commoner” – 36 The “Great Commoner” – 36 years oldyears old

DEMOCRATPOPULIST

William Jennings BryanWilliam Jennings BryanPrairie avenger, Prairie avenger, mountain lion, mountain lion,Bryan, Bryan, Bryan, Bryan, Bryan, Bryan, Bryan, Bryan,Gigantic Gigantic troubadour, troubadour, speaking like a speaking like a siege siege gun, gun,Smashing Smashing Plymouth Rock Plymouth Rock with his with his bouldersboulders from the West. from the West.

Ø Revivalist style of oratory.Ø “A great voice rather than a great brain.”

Bryan’sBryan’s“Cross of Gold” “Cross of Gold”

SpeechSpeechYou shall not You shall not press down press down upon the brow upon the brow of labor this of labor this crown of crown of thorns; you thorns; you shall not shall not crucify crucify mankind upon mankind upon a a cross of goldcross of gold!!

Bryan: The Farmer’s Bryan: The Farmer’s FriendFriend

(The Mint Ratio)(The Mint Ratio)

18,000 miles of campaign “whistle 18,000 miles of campaign “whistle stops” – 600 speeches!stops” – 600 speeches!

DemocratDemocratic Party ic Party Taken Taken

Over by Over by the the

Agrarian Agrarian LeftLeft

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

Note: Eastern laborers won’t support them & will vote to protect their jobs…..

Mark Hanna: Mark Hanna: The “Front-Porch” The “Front-Porch”

CampaignCampaign

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

REPUBLICANOhio

Former Civil War major & in Congress many years Focus on Cleveland’s Democratic Panic Promises “Full Dinner“Full Dinner Pail”Pail” Praises protective tariff MASSIVE dissemination of literature

Mark Hanna to Mark Hanna to Candidate Candidate

McKinley McKinley

Highly organized,extremely well-funded campaignthat capitalizeson economicfears.

Raised $16 million to fund this campaign!

““A Giant Straddle”: A Giant Straddle”: Suggestion for a Suggestion for a McKinley Political McKinley Political

PosterPoster

The The Seasoned Seasoned PoliticianPolitician

vs.vs.The The

“Young” “Young” NewcomeNewcome

rr

Joshua A. Joshua A. Levering: Levering:

Prohibition PartyProhibition Party

Into Into Which Which

Box Will Box Will the the

VoterVoterof ’96 of ’96 Place Place His His

Ballot? Ballot?

1896 Election 1896 Election ResultsResults

Significance of the Significance of the 1896 Election1896 Election

MARKS THE FAILURE OF THE MARKS THE FAILURE OF THE POPULIST PARTYPOPULIST PARTY

Turning point in politics! Turning point in politics! The The future of politics in cities, not future of politics in cities, not agrarian votes.agrarian votes.

Victory for big business, big Victory for big business, big cities, middle class values & cities, middle class values & financial conservatism.financial conservatism.

Republicans take White House Republicans take White House for all but 8 of the next 36 for all but 8 of the next 36 years!years!

The Next The Next President President of the U. S.of the U. S.

• McKinley will be cautious and conservative

• Will give business free rein ; no regulation of trusts

• Tariff (Dingley) will be high (46.5%)

Gold Triumphs Over Gold Triumphs Over SilverSilver

Ø 1900 - 1900 - Gold Standard Gold Standard ActAct

Ø Confirmed the nation’s Confirmed the nation’s commitment to the gold commitment to the gold standard.standard.Ø Paper currency could Paper currency could

be freely redeemed in be freely redeemed in goldgold

Ø New gold discoveries in New gold discoveries in AK & S.Africa will finally AK & S.Africa will finally stop deflationstop deflation

Ø A victory for the forces A victory for the forces ofofconservatism.conservatism.

Why Did Populism Why Did Populism Decline?Decline?

1.1. The economy experienced rapid The economy experienced rapid change.change.

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

3.3. Race divided the Populist PartyRace divided the Populist Party, , especially in the South.especially in the South.

4.4. The Populists were not able to The Populists were not able to breakbreakexisting party loyalties; most of existing party loyalties; most of their agenda was co-opted by the their agenda was co-opted by the Democrats.Democrats.

Why Did Populism Why Did Populism Decline?Decline?

5.5. Failure of farmers and industrial Failure of farmers and industrial workers of the Northeast to unite.workers of the Northeast to unite.

6.6. Gold strike in AK in 1898 – Gold strike in AK in 1898 – increased $ supply (& farmers’ increased $ supply (& farmers’ access to credit).access to credit).

7.7. Crop failures in Europe by 1900 – Crop failures in Europe by 1900 – led to increase in grain exports.led to increase in grain exports.

8.8. Immigration in massive numbers Immigration in massive numbers to urban areas – more markets & to urban areas – more markets & higher prices for agrarian higher prices for agrarian products.products.

But, Populism Still But, Populism Still Lives!Lives!

Al Gore in 2000Al Gore in 2000

Populist Goals thatPopulist Goals thatSurvived:Survived:

• 16th Amendment – income tax

• 17th Amendment – direct election of Senators

• Secret ballot• Direct primary

elections

Written by a Written by a Farmer at the Farmer at the End of the 19cEnd of the 19cWhen the banker says he's When the banker says he's

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

The The Wizard Wizard of Ozof Oz by L. by L. Frank Frank BaumBaum

1964: Henry 1964: Henry Littlefield’s Littlefield’s Thesis?Thesis?