Populism

Question 1

Populism Overview

Answer 1

• Grievances: 1893 Depression, bankrupt businesses, farmers not benefitting, hated big businesses (Robber Barons)
• Aims: supporters of Silver over Gold Standard
• Formed in 1892, replaced by Progressivism in 1900
• Membership: mid-West farmers, silver miners and ordinary working people

Question 2

The Currency Debate

Answer 2

• USA followed the Gold Standard, gold coinage and paper currency that was convertible into gold
• Bimetallists felt that silver should be used in coinage as well as gold
• World production of gold decreased between 1865-1890, rapid growth in production of silver in the US
• Sherman Silver Purchase Act 1890: gov would buy 4.5 million ounces of silver each month at market price and use it in the production of coinage
• Those who opposed it claimed it would undermine the economy, isolate US from Europe who also used the Gold Standard, threaten big business
• 1896: Grover Cleveland removed the act, believed that the confidence of the business community had been lost due to silver in coinage

Question 3

Farmers’ Grievances

Answer 3

• Falling prices in wheat and cotton
• 1860: bushel of wheat cost $1.60, 1890, it had fallen to 60 cents
• Same time, cotton fell from 30 cents to 6 cents
• High tariffs on foreign goods, foreigners wouldn’t buy US agricultural products
• US faced increasing competition for European markets from Australia, Russia and Canada
• Late 1880s: harvests deteriorated due to poor weather conditions

Question 4

Creation of the People’s Party

Answer 4

• Formed at a convention in Omaha
• Alliance of silver and farming interests, fighting against Republicans and Democrats
• Chose James B. Weaver to stand for president in the 1892 election
• Weaver polled a million votes in the 1892 Election
• Lost to Cleveland

Question 5

People’s Party Aims

Answer 5

• Regulations of railways, particularly freight prices
• More government regulations of farm prices
• Graduated income tax, takes away dependence on tariffs as the main source of government income, ensured the rich were taxed
• Direct election of senators
• Maximum 8-hour working day
• Currency reformation, using silver and gold in coinage, not just gold