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■During the civil war the economy went into a huge slump.
the government produced $500 million of money called greenback, but the problem was that they didn't have any gold to back it up so it become pretty much worhtless.
■During and after the war when people borrowed this money they ended having to pay back more then what it was worth.
■Also during the time period of 1867 and 1887 the crops did very poor and the price per bushel dropped from $2.00 to .67 cents.
■On top of the hardship of falling prices the price to ship grain dramastically rose. since there was lack of competition on the railroad ment that it may cost more to ship grain.
■In 1867, Oliver Hudson Kelley started the patrons of Husbandry. This was an organization for farmers which came to be known as Grange
■this group was to provide a social outlet and an educational forum for isolated farm families. but for the most part they spent most of their time and energy fighting the railroads.
■The Grange’s battle plan included teaching its members how to organize, how to set up farmers’ cooperatives, and how to sponsor state legislation to regulate railroads.
■Many of these farmers spent their time training and helping other farmers organize.
■they also helped them to go speak and educate people to lower interest rates and loans to help them.
■Membership in these groups grew to more than 4 million people. these people were mostly in the south and the west.
■The southerner alliance included mostly white southern farmers and was the largest organization.
■the Colored farmers national alliance consisted of more then 250,000 blacks.
■In 1892 the populist group was born. On July 2, 1892 the first populism meeting was held in Omaha, Nebraska and they demanded that reforms lift the burden of debt farmers and other workers and give the people greater voice in their governmnet.
The economic reforms proposed by the Populists included
1)an increase in the money supply which would produce a rise in prices received for goods and services
2) a graduated income tax
3) federal loan program.
The proposed governmental reforms included
1) the election of U.S. senators by popular vote
2) single terms for the president and the vice-president
3) secret ballot to end vote fraud.
■Finally, the Populists called for an eight-hour workday and restrictions on immigration.
■The proposed changes were so attractive to struggling farmers and desperate laborers that in 1892 the Populist presidential candidate won almost 10 percent of the total vote. In the West, the People’s Party elected five senators, three governors, and about 1,500 state legislators.
■The Populists’ programs eventually became the platform of the Democratic Party and kept alive the concept that the government is responsible for reforming social injustices.
■ in 1893, political issues were overtaken by economic concerns.
■ During the 1880s, farmers were overextended with debts and loans.
■Railroad construction had expanded faster than markets.
■In February 1893, the Philadelphia and Reading Railroad went bankrupt, followed by the Erie, the Northern Pacific, the Union Pacific, and the Santa Fe.
■The government’s gold reserves had worn thin, mainly due to its obligation to purchase silver. People panicked and traded paper money for gold. As a result, the stock market crashed.
■The price of silver then plunged, causing silver mines to close. By the end of the year, over 15,000 businesses and 500 banks had collapsed.
■Investments declined, and consumer purchases, wages,and prices also fell.
■Panic deepened into depression as 3 million people lost their jobs.
■By December1894, a fifth of the work force was unemployed. Many farm families suffered both hunger and unemployment.
■populist watched as two major groups split
■Business owners and bankers of the industrialized Northeast were Republicans
■ the farmers and laborers of the agrarian South and West were Democrats.
■Democrats were known as "silverites" which ment they favored bimetallism- government would give citizens gold and silver in exchange for paper currency or checks.
■Republicans were known as "goldbugs" which ment they favored the gold standard- Backing dollars solely with gold.
- People believed paper money was essentially pointless if it could not be traded in for gold and silver.
- Retaining the gold standard would provide a more stable, but expensive, currency.
- Populist wanted to win in the election so they had a choice choose between republican or democrat or make their own party and risk loosing the presidential election.
- the republicans were with the gold standard so the populist didn't want to be on there party.
- the democrats were for a mix of gold and silver standard with unlimited coinage of silver
- The populist joined this group but they didn't like the vice president so they elected their own candidate Thomas Watson.
- Bryan faced difficulties during his campaign because his free silver stand lead democrats to nominate their own candidate.
- he also lost people in big cities where they feared inflation would happen.. this would make goods more expensive.
- Bryan didn't have nearly as much funds as Mckinley so he tried making up by campaining in 27 states and making about 20 speeches a day.
- Mckinley on the other hand made speeches from his front porch while thousands of well known people traveled the country talking on his behalf.
- Mckinley got about 7 million votes. He carried the east.
- Bryan got about 6.5 million votes. he carried the south and farm votes of the midwest.
- the voters of the industrial midwest, with the fear of inflation, brought mckinley to office.
- with mckinley's election the populist group collapsed and was no longer crushing the hopes of farmers.
- But it did leave two powerful legacies and that anyone can form a group that can make an impact.
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