U.S. HISTORY: Populist Party

Problems Facing Farmers

(1870's & 1880's)

-Prices for their crops were falling due to over-production of grains

-Banks were charging high interest rates on mortgages & were foreclosing on debtors

-Railroads charged high rates for shipping & storing their crops

Govt. Policies Hurting Farmers

-The gov't reduced the paper money (greenbacks) & relied on gold-backed currency

-This led to deflation making it harder for farmers to pay off debts

-When westerners appealed to their politicians, nothing was done

Grangers & Farmer's Alliance

-These groups attacked abusive banks & railroad companies

-They called on farmers to form their own co-op stores, banks, & storage silos to avoid exploitation

-Both groups failed to gain improvements for farmers

Populist Party

Formed in 1890 & demanded . . .

-Government regulation of railroads in order to lower rates

-A national income tax to take the burden of taxation off farmers

-Direct-election of Senators to make politicians more responsive

-Bimetalism: Using gold & silver to inflate the money supply

William Jennings Bryan

-He embraced Populist ideas & was nominated by the Democrat & Populist Parties in the 1896 presidential election.

-Lost the election to William McKinley