Populism – the Revolt of the Farmer

Overview of Populism and the Revolt of the Farmer

  • Time Period: Late 1800s

  • Context: Influence of the Homestead Act of 1862 and farm mechanization due to the Industrial Revolution increased agricultural production.

  • Economic Impact: Despite increased production, farmers faced declining prices for their crops due to oversupply.

Economic Dilemma of Farmers

  • Price Changes:

    • Wheat Prices (1867 vs 1889): 1867 - $2.00; 1889 - $0.78

    • Corn Prices (1867 vs 1889): 1867 - $0.78; 1889 - $0.23

  • Understanding the Dilemma:

    • Farmers needed to produce 2-3 times more to cover long-term debts like mortgages.

    • Higher production led to lower prices:

    • If a farmer produced little, prices would be high, but they would have less to sell.

Complaints of Farmers

  • Dilemma of the Farmer: Acknowledged complaints considered "unfair" given their hard work from dawn to dusk.

  • Areas of Complaint:

    • Low Crop Prices: More produced led to less value per crop.

    • Insufficient and Expensive Credit:

    • Farmers viewed as high risk due to factors like weather, crop failures, and unpredictable prices.

    • This led to higher interest rates on loans for farmers.

    • High Rates Charged by Middlemen:

    • Farmers typically received about half of what city consumers paid for agricultural products.

    • High Industrial Prices for Farm Equipment:

    • Causes: High tariff rates to protect American industry and monopolistic practices by businesses like railroads.

Farmers' Responses and Alliances

  • Cooperative Efforts:

    • Formation of Farmers' Alliances and 'Granges' aimed at addressing issues through cooperative stores and political action.

    • Some success but continuous challenges.

  • Granger Laws: Attempts to handle issues with middlemen, but were deemed unconstitutional by the Supreme Court.

  • Creation of Interstate Commerce Commission (ICC) in 1886:

    • Nation's first regulatory agency focused on fair railroad rates.

Money and Economic Struggles

  • The Money Question:

    • The debate centered on the base of the U.S. dollar, primarily a bimetallic system focused on gold.

    • The push for the "free and unlimited coinage of silver" came as a method to increase the money supply.

  • Advocates for Increased Money Supply: Farmers, miners, and laborers sought more silver to alleviate financial stresses.

  • Inflation Defined: A rise over time in the average price level of goods, leading to increased costs.

    • Gold vs. Silver: Gold was viewed as a safe basis for currency while silver was perceived as inflationary.

Legislative Actions

  • Bland-Allison Act (1878): Allowed the government to purchase more silver, but inadequate for farmer needs.

  • Economic Deal of 1890:

    • McKinley Tariff: Set a 50% tariff on imports to protect U.S. industry.

    • Sherman Silver Purchase Act: Doubled government purchases of silver.

    • Consequences:

    • Increased prices for consumers; pushed farmers to buy American products, raising their costs.

    • Coinage shift impacted cash flow – transition from paper to gold.

  • Panic of 1893: Resulted from these policies, leading to a severe economic depression.

Formation of the Populist Party

  • Creation of the National People's Party (Populist Party): Responded to dissatisfaction with mainstream political parties.

    • Primarily composed of farmers, miners, and laborers.

  • 1892 Convention in Omaha:

    • Nominated James Weaver for president, with the slogan of elevating farmer issues.

  • Mary E. Lease's Influence:

    • Encouraged an active and vocal response from farmers against political neglect.

Populist Platform and Proposals

  • Core Issues:

    • Free and unlimited coinage of silver.

    • Public ownership of railroads and communications systems.

    • Implementation of a graduated income tax.

    • Tax Bracket Chart Explanation:

      • 10% Bracket: $0 - $8,375

      • 15% Bracket: $8,375 - $34,000

      • 25% Bracket: $34,000 - $82,400

      • 28% Bracket: $82,400 - $171,850

      • 33% Bracket: $171,850 - $373,650

      • 35% Bracket: $373,650+

    • Direct election of senators to combat influence from wealthy special interests.

  • Political Tools Proposed:

    • Initiative: Allows citizens to propose legislation directly to voters.

    • Referendum: Grants citizens the ability to place a legislative decision on the ballot.

    • Australian Secret Ballot: Ensures confidentiality in voting processes.

Challenges during 1896 Elections

  • Relevance of Economic Needs:

    • President Cleveland repealed the Sherman Silver Purchase Act due to its inflationary pressures.

  • 1896 Presidential Election Context:

    • William Jennings Bryan's powerful Cross of Gold speech at the Democratic convention.

    • Democratic Party's alignment with Populist concerns diluted Populist significance.

    • McKinley's Campaign: Focused on organized, supported, and strategic campaigning, contrasting with Bryan's grassroots approach.

Aftermath and Legacy

  • McKinley's Victory: Emphasized the challenges of single-issue campaigns and the necessity for broader support.

  • Post-Election Impacts on Farmers:

    • Minor economic reversals due to European conflicts and wartime needs.

    • Populist Party faded but laid groundwork for future movements (Progressives).

    • Continued platform issues such as tariffs, income tax, and political reform were absorbed into progressive discourse.