Unit 5D: The Working Class

Notes

Farming Struggles

• In The Gilded Age, western farmers faced major problems

  • Crop prices fell due to overproduction by farmers

  • Banks Charged high interest rates on mortgages and foreclosed on farmers

  • Railroads charged high rates for shipping crops

• Lowered prices meant farmers might be unable to repay debts and face financial ruin

Groups

• Groups like the Grangers and the Farmers Alliance demanded government regulation of railroads and banks and the formation of co-op stores, banks, and silos

• in 1890, westerners formed a new political party to bring about reforms called the populist party

  • The Populists demanded the end of Lasissez-faire policies and begin to regulate railroads to force them to lower rates on farmers

  • They wanted a national income tax to take the tax burden off farmers

  • Called for an amendment to allow citizens (not state legislatures) to directly elect senators

  • populists demanded bimetallism

1896 Election

• in the 1896 election, bimetallism was the most important issue

  • Republican William McKinley supported the gold standard

  • the populist canident William Jennings Bryan supported bimetallism

• William Jennings Bryan gave his speech “Cross of Gold” speec that explained the disastrous effects of the gold standard on the working class in America

• Despite Bryan’s success among farmers in the west, McKinley won the election

• As president, McKinley returned to the gold standard and killed he bimetallism movement

• after the election of 1896, the populist party died

  • But populist ideas such as the income tax direct election of senators and regulation of railroads will be enacted in the progressive era (1890-1920)

Dates

• 1890 - Populist party formed

• 1890-1920 - Progressive erra

Vocab

• Bimetallism: using currency based on gold and silver in order to inflate the money supply