Populist Movement

The Money SupplyDuring Civil War federal government expanded

the money supply by issuing paper money that caused inflationDecline in the value of money. Paper money lost

value and prices of goods soared. After the Civil War there was 3 types of

currency, paper money (greenbacks), gold and silver coins, and bonds.

To get inflation under control the federal government stopped printing paper money to pay off bonds and also stop making silver coins.

MoreThe decision to stop silver

coinage and printing greenbacks meant there was a deflation in the economy.An increase in the value of

moneyDecrease in the prices of

goodsGold Standard – currency is

backed by gold

Tariff Main source of Government revenue High during Civil War

Tariff create surplusIndustry no longer needs protectionSurplus withdrew money from circulationSurplus tempting to Graft – and corruption

Pendleton Act - in response of Assassination of President Cleveland Government workers have to take exam Jobs be awarded on merit rather than on

political ties (spoils system)

Rise of the People’s Party

Role of the FarmerDiversification gives way to single crop –

Wheat, CornFarmer becomes specialist and businessmenExpensive machinery

Hundreds of acres Subject to World market

CompetitiveTariffs high, hard to sell goods overseas

Hard Time on the Farm1880’s and 1890’s – low prices

Deflated currency (borrow $1,000, pay bank with 1000 bushel of corn. Price drops and it takes 2000 bushels to pay loan.)

Interest rates are high due to a shortage of moneyIncrease the amount farmers will owe on loans

NatureGrasshopper, floods, droughts, and winter of

86/87

And MoreMiddlemen

Charged high rates getting products to marketRailroad freights high

Agrarian Unrest1890 – farmers ½ total population

Independent minded and individualisticThis will hurt Populist in the long runCannot form successful group

Conditions goading farmer into large-scale political uprising High Tariff Railroad ratesDeflation of the economyNature conditions

In come the Populists

Populist Party Populists Platform

Graduated income taxDirect election of US senators Government ownership or regulation of Rail

RoadSingle Term for President Initiative and Referendum Women’s suffrage Australian Ballot Free and unlimited coinage of Silver

William Jennings Bryan Became Democratic nominee for 1896 election.

Instead of Grover Cleveland Was a strong supporter of silver Stole Populists thunder

Merged with democrats Decided it was the best chance

Bryan failed to reach urban population Did not win a state outside the South and West Lost election to William McKinley

Decline of PopulistWith Bryan defeat, populism fades out Failure to reduce hardships on farmers

Lasting EffectsBryan’s style of campaigning becomes norm

Traveling around country Giving speeches directly to the people

Reform issues picked up by ProgressivesGraduated income taxInitiative and referendum Women’s suffrage

Other issues will be realized Secret ballot Graduated income tax