Overview
This lecture reviews the economic and political challenges faced by U.S. farmers during the Gilded Age, highlighting their organizational and political responses, leading to the rise of the Populist Party.
Farmers' Economic Challenges
- Falling crop prices reduced farmers' incomes due to technological advances and improved transportation.
- High tariffs made farming equipment and tools more expensive by taxing imported goods.
- Farmers competed with international producers because of global trade improvements.
- Banks charged high interest rates on loans farmers needed for equipment and supplies.
- Railroads engaged in price gouging, charging high fees to transport farm goods.
Monetary Policy and the Silver Debate
- Farmers favored a monetary system backed by both gold and silver to increase money supply and reduce interest rates.
- Banks and businesses supported the gold standard, which limited the currency supply.
Farmers' Organizations and Early Political Movements
- Farmers formed the Grange (Grangers), organizations similar to unions, to advocate for their interests.
- Granger Laws aimed to regulate railroad rates but were ruled unconstitutional in the Supreme Court’s Wabash case.
- The Greenback Party was created to promote increased circulation of paper money ("greenbacks").
- Farmers' Alliances emerged, enrolling millions to collectively address shared issues.
Obstacles to Farmer Solidarity
- Racial divisions resulted in separate black and white alliances, limiting movement unity.
- Continued North-South tensions from the Civil War also hindered cooperation among farmers.
Rise of the Populist Party
- Discontent with Democrats and Republicans led farmers to create the Populist (People’s) Party.
- The Omaha Platform listed key Populist demands, including silver currency and public ownership of railroads.
- James Weaver became the first Populist presidential candidate, and the party started to gain political influence.
Key Terms & Definitions
- Gilded Age — period from 1870 to 1900 marked by rapid economic growth and inequality.
- Tariff — a tax on imported goods, making foreign items more expensive.
- Grange (Grangers) — farmer organizations formed to address economic and political issues.
- Granger Laws — state laws aimed to regulate railroads, later ruled unconstitutional.
- Greenback Party — political party supporting increased circulation of paper money.
- Farmers’ Alliance — collective groups of farmers advocating for reforms.
- Populist Party — political party representing farmers' interests, also called the People's Party.
- Omaha Platform — Populist Party’s statement of demands, including free silver and public railroad ownership.
Action Items / Next Steps
- Review the details of the Omaha Platform.
- Read about the Wabash Supreme Court case and its implications.
- Prepare to discuss the impact of the Populist Party on U.S. politics.