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Populism in America
The
Farmers and
Railroad Monopolies
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Populism in America for
kids:
The Granger Movement
Populism in America had its roots in America's first
national farm organization called
the National Grange of the Patrons of Husbandry. The
association was founded by Oliver H. Kelley in 1867 and
became known as the
Granger Movement. The
Granger Movement was initially formed mainly for social
purposes, to help alleviate the isolation felt by
farmers. The Grangers goals were to change due to the
economic situation and the
Rise of Big Business and
Corporations owned by greedy and ruthless
Robber Barons
who monopolized the main industries in America,
including the railroads during the period in American
history known as the
Gilded
Age.
Populism in America for
kids:
The Railroads
and the Farmers
The livelihoods of the farm workers in the country areas
were effected when the powerful railroad companies gained a
monopoly on the
Grain Elevators, used for loading grains
transported from local farms via the railroad to distant
markets. The Grain elevator operators bought
the farmers produce and then sold the crops on at
inflated prices, accumulating large profits. The Grain
Elevator operators, employed by the railroad magnates used their purchasing power to
control prices of crops.
Populism in America for kids: Railroad Protest Picture
The picture depicts the
power of the railroads and the Robber Barons and the effects on the farmers.
The train has the words "Depression", "Bribery" and
"Extortion" on the cars that are moving on an unstoppable
railroad track towards
farmers being crushed by the power of the railroads. A
clear representation for the rise of Populism in America.
Populism in America for kids: The
Political Strategy
Populism in America was a political strategy that
strongly appealed to the interests of ordinary, working class
people.
Populism supported the rights and powers of the common
working people in their struggle with the powerful, wealthy and
privileged Robber Barons. Populism in America sparked the
movement to increase the political power of farmers and laborers
and to work for legislation in their interest against the
bankers and the railroad magnates.
Populism in America for kids:
Panic
of 1873, the Long Depression
The
Panic of 1873, also referred to as the
Long Depression,
saw the rise of
Populism in America.
The Panic of 1873 was a
serious financial
crisis that triggered a depression in America that lasted for
6
years and lead to economic hardships, civil unrest,
protests and the first nationwide
strikes.
Membership of the Granger movement dramatically
increased following the Panic of 1873. The farmers were helpless
against the falling crop prices, triggered by increased
production. There was a reduction in the money supply, rates of
interest on loans soared and tariffs (taxes) increased. The
small farmers were completely obstructed by the railroad
monopolies and ever increasing transportation costs. By 1874 the
Granger Movement had over 1 million members, most of whom
adhered to the new idea and principles of Populism realizing
that political action was required to improve their dire
situation.
Populism in America for kids: The Granger
Movement Fails
The problems of the farmers and their support of
Populism led to new tactics being employed by the Granger
Movement:
● They created marketing
organizations, called 'Cooperatives', pooling farmers crops
and restricting supply in order to force up prices - but the
railroads refused to operate with the cooperatives
● The
Grange applied pressure to state legislatures to regulate
railroad, grain elevator and warehouse rates. Some
favorable 'Granger Laws' were passed but the railroads
fought back and in the 1886 Supreme Court ruling in Wabash
vs. Illinois it was decided that states could not regulate
commerce that crossed state lines
● Many Grange members
joined the Independent National Party (the Greenback
Party) to address the problems caused by insufficient money
supply but it failed to gain support from the public
The failure of the new
tactics resulted in the demise of the Granger Movement and its
members started to join other organizations who adhered to
Populism in America and the Farmers’ Alliance was formed in
1877.
Populism in America: The
Farmers Alliance
The Farmers Alliance, led by Charles W. Macune, was a
coalition of several farming groups that operated large
cooperatives, consisting of:
● The
National Farmers' Alliance among the white farmers
of the Midwest and Plains
● The Southern Farmers'
Alliance and Industrial Union among the white farmers of the
South
● The Farmers' Mutual
Benefit Association
● The
Colored Farmers' National Alliance and Cooperative Union
Populism in America:
Black Populism
The black farmers formed the Colored Farmers'
National Alliance and Cooperative Union in 1886 which strongly supported
the doctrine of
Black Populism.
The Black Populists organized their communities and
extended their goals to fight against the infamous
Jim
Crow laws that enforced Populism in America.
Populism in America: The
Subtreasury Plan
The Farmers Alliance had not been able to resolve the
grievances of the farmers but it had successfully backed a
number of candidates for state and Federal office. The Farmers
Alliance, under the direction of Charles Macune, developed the
Subtreasury Plan which sought to revolutionize credit and
marketing arrangements for the farmer's crops. In an effort to
gain the support of the Democrats the plan included the
promise to vote for candidates who supported its demands. The
1890 Subtreasury Plan called for:
● The government to set
up warehouses called sub-treasuries in which farmers would
store their crops in the warehouses
● The government to
provide low-interest loans to farmers
Other members of the
Farmers Alliance wanted to form a third political party.
Collective action was called for and in December, 1890, members
of the Farmers' Alliance and Industrial Union met together in
the Marion Opera House in Ocala, Florida, where they adopted the
more radical Ocala Demands.
Populism in America: The
Rise in Populism
and the Ocala Demands
The rise in Populism was demonstrated at the 1890 Ocala
Convention. The Ocala convention saw the ideals of the
Farmers' Alliance move from its fraternal and mutual benefit
roots towards an increasingly radical and political position.
The Ocala delegates hoped that future political gains would lead
to major political and economic reforms that complemented the
objectives and ideals of the
Progressive Movement
which was beginning to emerge at the same time. The Ocala
"Demands" were designed to attract the votes of the farmers and
called for:
● The Government to
adopt the Subtreasury Plan
● Government regulation
of the railroads and the telegraph system
● The reclamation of all
lands held by railroads and other corporations in excess of
what was actually used
● The abolition of
national banks
● The abolition of
protective tariffs
● A graduated income tax
● An amendment to the
United States Constitution providing for the direct election
of United States Senators
Populism in America for kids: The McKinley
Tariff
The grievances of the farmers and their support of
Populism reached a new height in 1890 when the
McKinley Tariff was
passed by Congress.
The McKinley Tariff
was particularly harmful to southern and western farmers who
sold their crops on unprotected markets, but were forced to buy
expensive manufactured goods. The backlash from the farmers
resulted in furious protests and the farmers helped vote
Republicans out of the House of Representatives in the 1890
congressional elections. They also became more politically
ambitious and wanted to push for
political and economic reforms which gave rise to the
formation of the Populist Party.
Populism in America: The People's
Party (Populist Party)
The cotton farmers in the South and the wheat farmers in
the North formed the People’s Party, also known as the
Populists, in 1891. The Populist Party promoted collective
economic action by farmers and nominated candidates to run for
Congress and the state legislature. The drive to create a new
political party grew from the belief that the Democrats and
Republicans were controlled by bankers, landowners and robber
barons who cared nothing for the needs of the small farmer.
Populists nominated former Greenback Party member James B.
Weaver for President of the United States and campaigned on a Populist Party platform
that was commonly known as the Omaha Platform. The goal of the
Populist Party was,
"...to restore the
government of the Republic to the hands of the plain
people, with which class it originated"
The Omaha Platform, the Populist
party program adopted at the convention of the Populist Party
held in Omaha, Nebraska on July 4, 1892. The Populist Party
Omaha Platform campaigned for:
● Government
ownership of all railroad and telegraph companies
● A
graduated income tax
● The
direct election of U.S. senators
● Restrictions on immigration
● Shorter working hours - an
eight hour day
● Civil service reform
● A "safe, sound, and
flexible" national currency with "the free and unlimited
coinage of silver"
The Omaha platform
denounced the government’s refusal to coin silver as a "vast
conspiracy against mankind." and called for a return to
unlimited coinage of silver to increase the money supply. The
following year, amidst all the turmoil, the unthinkable
happened. There was another financial crash caused by the Panic
of 1893.
Populism in America: The Panic of
1893
The
Panic of 1893
was a serious financial
crisis that a Wall Street crash triggering a 4 year depression
that led to terrible hardships as the national unemployment rate
approached 20%.
Major banks collapsed, ruined by over
speculation of the Philadelphia & Reading Railroad leading to foreclosures and bankruptcies.
125 railroads went into receivership.
The 1890 Sherman Silver Purchase Act had enabled the Treasury to
issued dollars backed by silver, as well as gold. The dollar
lost its value and the devalued US currency had a disastrous
effect on the nation's farmers who were unable to obtain
low-interest credit to sustain their businesses. Farmers could
not raise grain prices and thousands of farmers lost their homes
and their lands.
Populism in America:
Protests and Strikes
The terrible
working conditions, combined with poverty and
squalid living conditions, led to protests and
strikes. In 1894, Ohio businessman Jacob S. Coxey
had led 500 men "Coxey’s Army" in a march to
Washington, D.C., to petition the government for
cheap money and debt-relief programs - but they were
all arrested fro trespassing on the lawn of the
White House. Nearly 1 million workers went on
strike. The most notable was the nationwide
1894
Pullman Strike
which ended when railroad owner George Pullman and
the other railroad magnates gained the support of
President Cleveland who sent in US troops who used
harsh methods to suppress the strikers.
Populism in America: The
Call for Reform
The appalling
living and working conditions led to many
Progressive activists and the creation of the
Progressive
Movement which gave
rise to the many social and political
Progressive Reforms.
Populism in America: The
Gold
bugs and the Silverites
Another serious consequence of Panic of 1893 was a
crisis for the United States Treasury. The
federal government’s gold reserves were at a
dangerously low level.
People started trading in their paper money
in for gold and stocks fell rapidly. The
prices of silver then plunged, which led to the
closure of silver mines, more unemployment and
failed businesses. President Cleveland repealed the
1890 Sherman Silver Purchase Act which split the
Democratic Party into two factions, nicknamed the
"Gold bugs" and the "Silverites". The proponents of
monetary silver, were known as the 'Silverites' and
those who favored a gold standard were referred to
as 'Gold Bugs'. The Gold bugs wanted money to be
backed by gold which would increase the value of
money and make prices fall. The result of this
strategy would mean that less people would have
money. The Silverites wanted money to be backed by
silver which would decrease the value of money
causing deflation. The result of this strategy would
mean that more people had money. The Populist Party,
not surprisingly, were firm Silverites who believed
that coining silver in unlimited quantities would
solve the nation’s economic crisis. To end the
crisis in the US Treasury, President Cleveland
borrowed more than $60 million from financier J. P.
Morgan in 1895, the US Treasury reserve
finally reached over the $100 million mark and the
U.S. economy back on solid ground. The following
year the
1896
Klondike Gold Rush in Alaska would start the end
the depression and would increase the money supply
without turning to silver.
Populism in America: The Election
of 1896 and the end of the Populist Party
By 1896, President Cleveland had virtually no chance
of being elected for a third term in office. Many
disillusioned Americans, shattered by the financial
disaster and government reaction to the protests and
strikes, added support to the Populist Party in the
hope of winning more power for the people and
regulation of Big Business and the unethical
practices of the Robber Barons. However, the urban
city workers found it difficult to identify with the
rural farm workers and preferred to remain within
the Democratic Party. The Democrats nominated
William Jennings Bryan as their presidential
candidate who campaigned on a Populist-inspired
platform. The Populist Party and the Democratic
Party joined forces and supported William Jennings
Bryan against the Republican Candidate William
McKinley.
Populism in America: McKinley and
the End of Populism
The Republicans campaigned against the combined
Populist and Democrat party platform blaming
Cleveland’s Democratic administration for the
depression. William McKinley had a reputation for
moderation on labor issues and tolerance toward
different ethnic groups that improved the image of
the Republican Party with urban city workers and
immigrants. McKinley won and assumed the presidency
on March 4, 1897 and in 1900 he signed the
Gold Standard
Act that established gold as the sole standard
for redeeming paper money. This final action was
responsible for the death of Populism in America but
it saw the birth of the
Progressive Movement and
political and social reforms including the
1916 Federal Farm Loan Act.
The following articles
will help provide additional facts and information.
Populism in America: History Timeline
Interesting facts about Populism in America and the Populist Party are provided
in the History Timeline detailed below. The history of
Populism in America is told in a
factual timeline sequence consisting of a series of interesting, short facts
and dates providing a simple method of relating the
history of the Populism in
America and the and the Populist Party for kids, schools and homework projects.
Populism in
America Timeline: History of the Populist Party
Populism in
America Timeline Fact 1:
1867: The National Grange
of the Patrons of Husbandry was founded by Oliver H.
Kelley in 1867 and became known as the
Granger Movement.
Populism in
America Timeline Fact 2: 1873: The
Panic of 1873, aka 'The
Long Depression'
saw the rise of
Populism in
America.
Populism in
America Timeline Fact 3:
1874: The Granger Movement attracts over 1 million
members
Populism in
America Timeline Fact 4: 1877: The National Farmers’ Alliance
and Industrial Union of America was established (aka the
Southern Farmers' Alliance Arkansas State Farmers)
Populism in
America Timeline Fact 5:
1877: The Southern
Alliance was founded in 1877 in Lampasas County, Texas,
as the Knights of Reliance
Populism in
America Timeline Fact 6:
1877: The Northern
Alliance was founded by Milton George, an editor of farm
publications
Populism in
America Timeline Fact 7: 1877: The Farmers’ Alliance
sanctions cooperative
enterprise
Populism in
America Timeline Fact 8:
1880:
The
Progressive
Movement
begins
Populism in
America Timeline Fact 9:
1882:
The Agricultural Wheel
was formed
Populism in
America Timeline Fact 10: 1883:
The
Farmers' Mutual Benefit
Association was formed
Populism in
America Timeline Fact 11:
1886:
The
Colored Farmers' National Alliance and Cooperative Union was
formed which supported
Black Populism
Populism in
America Timeline Fact 12:
1890:
The Subtreasury Plan was
formulated by the Farmers Alliance and the Ocala Demands
follow
Populism in
America Timeline Fact 13:
1891: The Populist
Party aka The People's Party is formed based on the
Omaha Platform.
Populism in
America Timeline Fact 14:
1893: The
Panic of 1893
Populism in
America Timeline Fact 15:
1893:
Crisis
for the United States Treasury. President
Cleveland repeals the Sherman Silver Purchase Act.
Democratic Party is split between the Gold bugs and the
Silverites
Populism in
America Timeline Fact 16:
1894: “Coxey’s Army”
marches on Washington, D.C.
Populism in
America Timeline Fact 17:
1894: The
nationwide
Pullman Strike
Populism in
America Timeline Fact 18:
1895: J. P. Morgan
bails out U.S. government
Populism in
America Timeline Fact 19: 1896:
The Presidential Election of 1896 and the end of the
Populist Party
Populism in
America Timeline Fact 20:
1997: President McKinley passes the
Dingley Tariff.
Populism in
America Timeline Fact 21: 1900:
President McKinley signs the
Gold Standard
Act
Populism in
America Timeline Fact 22: 1900:
The End of Populism and the rise of the
Progressivism and
Progressive Reforms
Populism in
America Timeline: History of the Populist Party
Populism in America
The article on
Populism in America provides
detailed facts and a summary of the
most important events and dates in the history of the
United States
- a crash course in
American History. The following video will
give you additional important facts, history and dates about the
personal and political lives of all the US Presidents.
Populism in America
●
Interesting Facts about Populism in America for kids and schools
●
Summary of the Populism in America in US history
●
The Populism in America, a major
event in US history
●
Populism in America and the Populist Party
●
Fast, facts
about major events and the rise of Populism in America
●
Foreign & Domestic
policies of President Grover Cleveland
● The Populist Party and
Populism in America for schools,
homework, kids and children
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