Chapter 5 Section 3 Continued

Plight of Agriculture
Farmers Organizations
–
–
The Grange “Patrons of Husbandry”
Growth of Populist Party
Problems Farmers faced in Mid to
late 1800’s.







Insects destroyed crops
prairie fires & dust storms
Drought-the biggest problem
Increased technology, increased cost of
production- and lowered prices
Debt forced farmers to turn to banks
Railroads took advantage of farmers
Banks and RR’s were said to be “Farming
Farmers”
The Patrons of Husbandry


Commonly called The
Grange
National farmers
organization founded
by Oliver Hudson
Kelley
Purposes of the Grange


Was to relieve the
isolation and
loneliness in the lives
of farm families by
providing social
activities
Was the first fraternal
organization to admit
women on an equal
basis
Local Grangers


Local Grange
organizations pooled
farmers resources to set
up mills, factories, banks,
insurance companies,
grain elevators, and co-ops
Involved themselves with
local and national politics
and pressed the state for
laws to help the farmers
The Grange Gains Members



By 1874 the Grange had 1.5 million
members throughout the mid-west the south
and the west
Several states passed (Granger) laws that
fixed maximum freight and passenger rates,
also did not allow railroads to discriminate
between places and shippers
Attempted to regulate monopolies of farmers
necessities like grain elevators or ware
houses
Supreme Court Decision



In 1877 the Supreme Court
decided in favor of the
Granger laws in the case of
Munn vs. Illinois
The court stated that the
common carriers like the
railroads and public utilities
like grain elevators “stand in
the very gateway of
commerce” and “take toll of
all who pass.”
Therefore these carriers
must “submit to being
controlled by the public for
the common good.”
The Collapse of the Grange


Ventures into business activities like plow
and reaper factories, grain elevators, packing
plants and banks got bitter opposition from
private companies, and had poor
management, so the businesses failed
By 1880 membership was less than 1/4 of
what it had been in 1874.
The Wabash Railway Decision



The Supreme Court held that the states could
control railroad traffic only within each states
own borders
Because most railroad traffic crossed state
boundaries the courts decision effectively wiped
out states’ regulation of railroad rates
This helped establish the foundation for
FEDERAL govt. regulation of interstate
commerce and led to Congress creating the
Interstate Commerce Act
Rise and Fall of Populism
The People’s Party


1880’s discontent grew to new heights in
rural areas
Farm prices continued to fall, money was in
short supply, people were losing their land to
creditors.


Many blamed their problems not only on the
drought but on human forces as well: greedy
bankers, industrialists, and railroad
companies that were accused of controlling
government policies and bleeding rural areas
dry.
“Farming Farmers” – RR & bankers took
advantage of farmers situation
definitions


Inflation-If the number of dollars in circulation
increases while there is no increase in the
amounts of goods and services for sale, the
dollar buys less and prices go up.
Deflation-If the number of dollars in
circulation decreases while there is no
decrease in the amount of goods and
services for sale, the dollar buys more, and
prices go down.
After the Civil War


The production of agricultural staples, such
as wheat and cotton, nearly quadrupled while
the supply of money increased very little.
The prices received by farmers dropped by
nearly two-thirds.
Gold Standard- ended here
1865-$10.60 in circulation for every person in
the country.
 By 1895 per capita circulation had sunk to
$4.50.
Partly result of a movement toward adoption of
gold standard, where every dollar printed
was backed by Gold.

Difficulty with Gold Standard



Due to the decision in 1873 to go on the Gold
Standard, and not redeem money for silver
also, deflation occurred, and less money was
in circulation
This drove prices down, causing deflation
which was hard for farmers
Thousands of farmers lost their land.
Greenback



Prices dropped as farmers started to demand
inflation. They wanted GREENBACKS
They protested that bankers and
bondholders had lent “50 cent dollars” during
the war; they now wanted to be repaid in 100
cent dollars.
1878 Greenback Party polled more than 1
million votes.
Coining Silver-




1873-Congress decided to stop coining
money and adopted the gold standard.
6 years later, federal government resumed
specie, or coin payments.
Farmers & others wanted a “Free Silver”
policy where the dollar was backed by either
gold or silver, not gold alone, to inflate the
money supply.
Silver was much easier to come by than gold
at that time
Comstock Lode



Comstock Lode produced a flood of silver
that would no longer be coined
Crime of ’73- Silver miners demanded a
policy of free silver meaning that the
government should coin all silver brought to
the mint.
Farmers of the West & South joined this
“Free Silver” Movement, in hopes of a
cheaper dollar & higher prices
Brand Allison Act of 1878



Law that required the treasury buy from $2
million to $4 million worth of silver a month
and issue currency against it.
Passed over President Hayes’s veto
Did not halt deflation, but somewhat
increased the money supply.
Election of 1892




Notable because a third party won electoral
votes
The new organization, the People’s or
Populist party, was principally an expression
of farmers grievances.
The Party helped bring attention to these
issues.
Purpose- bank & Railroad regulation and
unlimited coinage of silver
Government policies




Federal policies favored industry over
agriculture.
Farm prices went down steadily
The United States remained on the gold
standard- to the advantage of creditors
Protective tariff raised the price of the goods
farmers bought to the advantage of
manufacturers
Populism grows from Two
organizations
Southern Alliance
-covered the cotton
and tobacco belt
Northern alliance
- plains region

Although the two
alliances failed to
merge they made
similar demands
-free silver, more
paper money,
cheaper credit,
government
ownership of
railroads
Omaha Platform- of the Populist
Party


The preamble of the Omaha Platform
expressed indignation (anger) at the existing
political and economic conditions.
It condemned the political corruption, the
newspapers dominated by business
interests, the mortgage burden and the
condition of labor.
continued


It revealed that it was the agriculturalists-not
organized labor who dominated the Populist
party.
Labors demands were placed among a
miscellaneous list called “Expression of
Sentiments.”
Populists



Populists proposed not to overthrow the
capitalist system but simply to change the
rules.
Aimed to achieve their ends not through
revolution but through the orderly process of
free elections
Even though the party was no longer a force
in elections after 1896, most of their ideas
were adopted by other parties and some put
into law- greatly influencing politicians even
though the party lasted only a few years.