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The economic struggles of farmers in the late 1800s, leading to the formation of the Populist Party. Farmers faced falling crop prices, excessive railroad shipping costs, and high-interest loans. The Populist Party proposed reforms such as an increased money supply, a graduated income tax, and government control over railroads and banks.
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One American's Story
As a young adult in the early 1870s, Mary Elizabeth Lease left home to teach school on the Kansas plains. After marrying farmer Charles Lease, she joined the growing Farmers’ Alliance movement and began speaking on issues of concern to farmers. Lease joked that her tongue was “loose at both ends and hung on a swivel,” but her gold- en voice and deep blue eyes hypnotized her listeners.
A PERSONAL VOICE MARY ELIZABETH LEASE “ What you farmers need to do is to raise less corn and more Hell! We want the accursed foreclosure system wiped out.... We will stand by our homes and stay by our fire- sides by force if necessary, and we will not pay our debts to the loan-shark companies until the Government pays its debts to us.” —quoted in “The Populist Uprising”
Farmers had endured great hardships in helping to transform the plains from the “Great American Desert” into the “breadbasket of the nation,” yet every year they reaped less and less of the bounty they had sowed with their sweat.
In the late 1800s, many farmers were trapped in a vicious economic cycle. Prices for crops were falling, and farmers often mortgaged their farms so that they could buy more land and produce more crops. Good farming land was becoming scarce, though, and banks were foreclosing on the mortgages of increasing numbers of farmers who couldn’t make payments on their loans. Moreover, the railroads were taking advantage of farmers by charging excessive prices for shipping and storage.
•Oliver Hudson Kelley •Grange •Farmers’ Alliances •Populism
•bimetallism •gold standard •William McKinley •William Jennings Bryan
Mary Elizabeth Lease, the daughter of Irish immigrants, was a leader of the Populist Party.
AnalyzingAnalyzing
farmers were part of a larger economic prob- lem affecting the entire nation. During the Civil War, the United States had issued almost $500 million in paper money, called greenbacks. Greenbacks could not be exchanged for silver or gold money. They were worth less than hard money of the same face value. Hard money included both coins and paper money printed in yellow ink that could be exchanged for gold. After the war, the government began to take the greenbacks out of circulation. Retiring the greenbacks caused some discontent. It increased the value of the money that stayed in circulation. It meant that farmers who had borrowed money had to pay back their loans in dollars that were worth more than the dol- lars they had borrowed. At the same time they were receiving less money for their crops. Between 1867 and 1887, for example, the price of a bushel of wheat fell from $2.00 to 68 cents. In effect, farmers lost money at every turn. Throughout the 1870s, the farmers and other debtors pushed the government to issue more money into circulation. Those tactics failed—although the Bland- Allison Act of 1878 required the government to buy and coin at least $2 million to $4 million worth of silver each month. It wasn’t enough to support the increase in the money supply that the farmers wanted.
high prices to transport grain. Lack of competition among the railroads meant that it might cost more to ship grain from the Dakotas to Minneapolis by rail than from Chicago to England by boat. Also, railroads made secret agreements with middlemen—grain brokers and merchants—that allowed the railroads to control grain storage prices and to influence the market price of crops. Many farmers mortgaged their farms for credit with which to buy seed and supplies. Suppliers charged high rates of interest, sometimes charging more for items bought on credit than they did for cash purchases. Farmers got caught in a cycle of credit that meant longer hours and more debt every year. It was time for reform.
needed to organize. In 1867, Oliver Hudson Kelley started the Patrons of
THE PLIGHT OF THE FARMERS Farmers were particularly hard hit in the decades leading to the financial panic of 1893. They regarded big business interests as insurmountable enemies who were bringing them to their knees and leaving them with debts at every turn. This cartoon is a warning of the dangers confronting not only the farmers but the entire nation.
SKILLBUILDER Analyzing Political Cartoons
A
B
MAIN IDEAMAIN IDEA
A
Analyzing Issues Why did farmers think that an increased money supply would help solve their economic problems?
MAIN IDEA MAIN IDEA
B
Analyzing Causes What were some of the causes of farmers’ economic problems?
Investments declined, and consumer purchases, wages, and prices also fell. Panic deepened into depression as 3 million people lost their jobs. By December 1894, a fifth of the work force was unemployed. Many farm families suffered both hunger and unemployment.
political parties became deeply divided in a struggle between different regions and economic interests. Business owners and bankers of the industrialized Northeast were Republicans; the farmers and laborers of the agrarian South and West were Democrats. The central issue of the campaign was which metal would be the basis of the nation’s monetary system. On one side were the “silverites,” who favored bimetallism , a monetary system in which the government would give citi- zens either gold or silver in exchange for paper currency or checks. On the other side were President Cleveland and the “gold bugs,” who favored the gold standard —backing dollars solely with gold. The backing of currency was an important campaign issue because people regarded paper money as worthless if it could not be turned in for gold or silver. Because silver was more plentiful than gold, backing currency with both metals, as the silverites advocated, would make more cur- rency (with less value per dollar) available. Supporters of bimetallism hoped that this measure would stimulate the stagnant economy. Retaining the gold standard would pro- vide a more stable, but expensive, currency.
debate, the Populist Party called for bimetallism and free coinage of silver. Yet their strategy was undecided: should they join forces with sympathetic candidates in the major parties and risk losing their political identity, or should they nominate their own candidates and risk losing the election? As the 1896 campaign progressed, the Republican Party stated its firm com- mitment to the gold standard and nominated Ohioan William McKinley for president. After much debate, the Democratic Party came out in favor of a com- bined gold and silver standard, including unlimited coinage of silver. At the Democratic convention, former Nebraska congressman William Jennings Bryan , editor of the Omaha World-Herald , delivered an impassioned address to the assembled
bankers and businessmen gold standard less money in circulation Loans would be repaid in stable money. DEFLATION
Who They Were What They Wanted
Why Effects
farmers and laborers bimetallism more money in circulation Products would be sold at higher prices. INFLATION
D
KEY KEYPPLLAAYYEERR
William Jennings Bryan might be considered a patron saint of lost causes, largely because he let beliefs, not politics, guide his actions. He resigned his position as secretary of state (1913–
MAIN IDEA MAIN IDEA
D
Analyzing Causes What caused the panic of 1893?
delegates. An excerpt of what has become known as the “Cross of Gold” speech follows.
A PERSONAL VOICE WILLIAM JENNINGS BRYAN “ Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests, and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.” — Democratic convention speech, Chicago, July 8, 1896
Bryan won the Democratic nomination. When the Populist convention met two weeks later, the delegates were both pleased and frustrated. They liked Bryan and the Democratic platform, but they detested the Democratic vice-presidential candidate, Maine banker Arthur Sewall. Nor did they like giving up their identity as a party. They compromised by endorsing Bryan, nominating their own candidate, Thomas Watson of Georgia, for vice-president, and keeping their party organization intact.
had led gold bug Democrats to nominate their own candidate. It also weakened his support in cities, where consumers feared inflation because it would make goods more expensive. In addition, Bryan’s meager funds could not match the millions backing McKinley. Bryan tried to make up for lack of funds by campaigning in 27 states and sometimes making 20 speeches a day. McKinley, on the other hand, campaigned from his front porch, while thousands of well-known people toured the country speaking on his behalf. McKinley got approximately 7 million votes and Bryan about 6.5 million. As expected, McKinley carried the East, while Bryan carried the South and the farm vote of the Middle West. The voters of the industrial Middle West, with their fear of inflation, brought McKinley into office. With McKinley’s election, Populism collapsed, burying the hopes of the farm- ers. The movement left two powerful legacies, however: a message that the down- trodden could organize and have political impact, and an agenda of reforms, many of which would be enacted in the 20th century.
•Oliver Hudson Kelley •Grange
•Farmers’ Alliances •Populism
•bimetallism •gold standard
•William McKinley •William Jennings Bryan
MAIN IDEA
Which effect has the most impact today? Explain.
CRITICAL THINKING
How did the Grange and the Farmers’ Alliances pave the way for the Populist Party?
Populist Party
Causes Effects
E
William Jennings Bryan’s “Cross of Gold” speech inspired many cartoonists.
MAIN IDEAMAIN IDEA
E
Analyzing Issues Why was the metal that backed paper currency such an important issue in the 1896 presidential campaign?
... And in the county of Kiansis They cornered him after all; Though they were more than three hundred He leaped out of their corral.
Then the Major Sheriff said, As if he was going to cry, “Cortez, hand over your weapons; We want to take you alive.”
—Anonymous, “The Ballad of Gregorio Cortez,” translated by Américo Paredes
Then said Gregorio Cortez, And his voice was like a bell, “You will never get my weapons Till you put me in a cell.”
Then said Gregorio Cortez, With his pistol in his hand, “Ah, so many mounted Rangers Just to take one Mexican!”
All the land south of the Arkansas belongs to the Kiowas and Comanches, and I don’t want to give away any of it. I love the land and the buffalo and will not part with it. I want you to understand well what I say. Write it on paper. Let the Great Father [U.S. president] see it, and let me hear what he has to say. I want you to understand also, that the Kiowas and Comanches don’t want to fight, and have not been fighting since we made the treaty. I hear a great deal of good talk from the gentlemen whom the Great Father sends us, but they never do what they say. I don’t want any of the medicine lodges [schools and churches] within the country. I want the children raised as I was. When I make peace, it is a long and lasting one—there is no end to it.... A long time ago this land belonged to our fathers; but when I go up to the river I see camps of soldiers on its banks. These soldiers cut down my timber; they kill my buffalo; and when I see that, my heart feels like bursting; I feel sorry. I have spoken. —Chief Satanta, speech at the Medicine Lodge Creek Council (1867)
Chief Satanta
From the gauchos of the Argentine pampas to the workers on Australian sheep stations, many nations have had their own versions of the cowboys of the American West. Use the links for American Literature to research one such nation. Prepare a bulletin-board display that shows the similarities and differences between Western cowboys and their counterparts in that country.
Vaquero (modeled 1980/cast 1990), Luis Jiménez. National Museum of American Art/Art Resource, New York.