The populist movement

APUSH Notes — Farmers, Currency Debate, and the Populist Movement (Late 1800s)

I. Post–Civil War Economic Issues

1. Currency Debate: Easy Money vs. Sound Money

Key Terms

  • Fiat currency: money with value based on government authority (not gold).

  • Greenbacks: paper money issued during Civil War.

  • Easy/soft money: more paper money → inflation.

  • Sound/hard money: gold-backed currency → stable value.

  • Gold standard: fixed currency based on gold supply.

Groups and Positions

  • Farmers and workers → supported easy money.

    • More money in circulation.

    • Inflation raises crop prices.

    • Easier to repay debts.

  • Bankers and creditors → supported sound money.

    • Limited supply prevents inflation.

    • Protects value of loans.

Political Divide

  • Republicans → gold standard (business, investors).

  • Democrats → silver or more currency (farmers).

Compromise

  • Bimetallism: gold + silver backing currency.

2. Inflation vs. Deflation

  • Inflation: prices rise, money value falls.

    • Helps debtors (repay with cheaper dollars).

  • Deflation: prices fall, money value rises.

    • Hurts farmers (crop prices drop, debts harder to pay).

Effect on Farmers

  • Gold standard → deflation → falling crop prices → debt crisis.

3. Panic of 1873

Causes

  • Overinvestment in railroads.

  • Railroad overbuilding.

  • Bank failures (Jay Cooke’s bank collapse).

Effects

  • 5-year depression.

  • 1 in 4 banks closed.

  • 18,000 businesses failed.

  • Farmers lost money.

  • Steel industry collapsed.

Result

  • Increased demand for greenbacks.

4. Sherman Silver Purchase Act → Panic of 1893

  • Government bought large amounts of silver.

  • Reduced gold reserves.

  • Triggered another severe depression (1893).

  • High unemployment and business failures.

II. Problems Facing Farmers

Economic Problems

  • Falling crop prices due to overproduction and global competition.

  • High railroad shipping rates.

  • High interest rates on loans.

  • Expensive manufactured goods.

  • Lack of credit.

  • Deflation from gold standard.

Sharecropping

  • Farmers rented land for share of crops.

  • Often trapped in debt cycle.

  • Common in South (Black and poor white farmers).

General Conditions

  • Droughts, pests.

  • Debt accumulation.

  • Belief that banks, railroads, and corporations controlled economy.

III. Farmer Protest Movements

1. The Grange (1867)

  • Founded by Oliver H. Kelley.

  • Began as social/educational organization.

  • Created cooperatives.

  • Wanted regulation of railroad rates.

  • Passed Granger Laws.

  • Declined in political power later.

2. Greenback Party (1870s)

  • Supported paper money expansion.

  • Help debtors and farmers.

  • Won seats in Congress.

3. Farmers’ Alliance (1870s–1880s)

  • Social and political organization.

  • 1.5 million members.

  • Lectures and newspapers spread ideas.

  • Supported cooperatives and reform.

  • Excluded African Americans → weakened movement.

  • Separate Colored Farmers’ Alliance formed.

IV. Populist Party (People’s Party) — 1891

Origins

  • Grew out of Farmers’ Alliance.

  • Coalition of farmers, laborers, reformers.

  • Grassroots movement against corporate power.

Goals

  • Reduce influence of big business and banks.

  • Increase government regulation.

  • Protect farmers and workers.

Omaha Platform (1892)

Economic Reforms

  • Free coinage of silver.

  • Government-issued currency.

  • Graduated income tax.

  • Postal savings banks.

  • Government ownership of railroads and telegraphs.

Political Reforms

  • Direct election of senators.

  • Secret ballot.

  • Initiative and referendum.

  • One-term presidency.

Labor Reforms

  • 8-hour workday.

  • Support unions.

Land Reform

  • Limit corporate land ownership.

Core Idea

  • Return power to “common people.”

Key Populist Figures

  • Mary Elizabeth Lease — major speaker.

  • James B. Weaver — 1892 presidential candidate.

  • Thomas Watson — sought Black and white farmer unity.

  • Frances Willard — social reform advocate.

  • William Jennings Bryan — later Populist/Democratic leader.

V. Coxey’s Army (1894)

  • Protest march to Washington demanding jobs.

  • Led by Jacob Coxey.

  • Government suppressed protest.

  • Showed economic desperation.

VI. Election of 1896

William Jennings Bryan (Democrat + Populist)

  • Supported free silver.

  • “Cross of Gold” speech.

  • Backed farmers and workers.

William McKinley (Republican)

  • Supported gold standard.

  • Backed by big business funding.

Result

  • McKinley won.

  • Populist Party declined afterward.

VII. Impact of Populists (Long-Term Influence)

Later reforms adopted in 20th century:

  • Graduated income tax.

  • Direct election of senators.

  • Women’s suffrage.

  • Railroad regulation.

  • Federal Reserve System.

  • Farm support policies.

Core Historical Significance

  • Industrial capitalism created inequality.

  • Farmers resisted corporate and financial power.

  • Government regulation expanded.

  • Major conflict between agrarian and industrial America.

  • Populism shaped later progressive reforms.