The Grange and Farmers' Alliance movements had limited success in influencing public policy.
Recognized the need to involve more people and become a national political party.
In 1892, the Farmers' Alliance members formed the Populist or People's Party.
The first political convention was held in Omaha, Nebraska, in July 1892.
Delegates demanded reforms to alleviate the debt burden on farmers and workers.
Advocated for changes in Washington to give people a greater voice in their government.
Appeals to Labor
Supported an eight-hour workday.
Called for restrictions on immigration.
Financial Reforms
Sought an increase in the money supply to raise prices for goods and services.
Advocated for a graduated income tax, taxing the wealthy at a higher rate.
Proposed a federal loan program to allow farmers and lower-income people to borrow money at fairer rates.
Government Reforms
Called for the popular vote election of United States Senators, instead of appointment by state governments.
Proposed limiting the president's term to one four-year term.
Advocated for a secret ballot in national elections to end voter fraud and undue influence.
Impact of the Populist Party
Despite being considered radical, the Populist candidate won over a million votes (10% of the population) in the 1892 presidential election.
Populist candidates won races in the West, including 3 governors, 5 senators, and about 1,500 state legislators.
The party performed well in the 1894 midterm elections.
Panic of 1893
The economic problems of the Panic of 1893 affected the future of the Populist Party.
Businesses failed, and people faced bankruptcy.
Investors withdrew money from banks, demanding gold, leading to low federal gold reserves.
Election of 1896
Republicans wanted to remain on the gold standard.
Democrats were divided on the gold standard versus the free coinage of silver (bimetallism).
Gold bugs wanted currency backed by gold.
Free silverites wanted more silver in circulation, causing inflation and increasing crop and labor prices.
Republicans nominated William McKinley, a supporter of the gold standard.
McKinley had support from industrialists and the middle class.
William Jennings Bryan delivered the "Cross of Gold" speech, advocating against the gold standard, which won him the Democratic nomination.
Populist Nomination
Populists nominated William Jennings Bryan, along with Thomas E. Watson as their vice president, to attract votes from the Southern Farmers' Alliance.
Campaign of 1896
McKinley had financial support from wealthy industrialists and campaigned from his home in Canton, Ohio.
Bryan campaigned extensively, traveling over 18,000 miles and giving numerous speeches in support of free silver coinage.
Election Results
McKinley won the election with about 7 million votes, compared to Bryan's 6.5 million.
The Northeast and middle-class Midwest voted for McKinley, fearing inflation.
The South and farmers of the Midwest voted for Bryan.
Decline of the Populist Party
The populist cause declined after the election, along with the hopes of farmers.
The Populist Party demonstrated that downtrodden groups could organize and make their voices heard and that a third party could impact national politics.
William Jennings Bryan Quote
"You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold."
Post-Election Decline
The Populist Party lost influence after Bryan's defeat, holding on only in some Western states.
Tom Watson took over leadership and shifted the party to the far right, denouncing socialism and suggesting the reorganization of the Ku Klux Klan.
In the 1904 election, Watson won only 117,183 votes and by 1908 they only received 29,100 votes.