Lesson 2: Rise and Fall of Populism

Lesson Focus

After the Granger movement, struggling farmers formed new alliances. This lesson explores how they created the Populist Party to challenge the political and economic power of big industry, sparking a major political battle.

People to Know

William Jennings Bryan, William McKinley, Mark Hanna

Learning Objectives

• Understand why farmers supported 'cheap money' policies like greenbacks and free silver to combat falling prices and debt.
• Analyze the pivotal 1896 presidential election, including its key candidates, central issues, and ultimate outcome.
• Evaluate the goals and lasting impact of the Populist movement, even after the party itself faded from politics.

After the Civil War, the U.S. experienced decades of deflation, where money became more valuable and prices for goods dropped. This crushed farmers, who had large debts. To make their debts easier to repay, they demanded inflation, or “cheap money.” They first supported printing more paper greenbacks. Later, they joined miners in demanding free silver, the unlimited government coinage of silver, to increase the money supply and raise prices.

Feeling ignored by the major parties, frustrated farmers formed the People's, or Populist party, to fight for their interests. During the election of 1892, they issued the Omaha Platform, which condemned the gold standard and the power of banks and railroads. It called for an expansion of government power to help ordinary people. Note that this platform showed that farmers were now a united political force demanding major economic changes.

President Grover Cleveland's second term began with the Panic of 1893. A strong defender of the gold standard, Cleveland forced the repeal of a law requiring the government to purchase silver. He then made a deal with banker J. Pierpont Morgan to obtain gold, which enraged farmers who saw it as a betrayal. These actions split the Democratic Party, turning many western and southern members into “Popocrats” who supported free silver.

At the 1896 Democratic convention, William Jennings Bryan delivered his passionate “Cross of Gold” speech, attacking the gold standard and championing the cause of farmers and laborers. His powerful performance won him the presidential nomination. The Populist party, seeing their main goal adopted by a major party, decided to endorse Bryan as well. This set the stage for a national election focused almost entirely on the issue of free silver.

The election of 1896 pitted Bryan against the Republican William McKinley, who was heavily funded by business interests organized by Mark Hanna. While Bryan toured the country delivering speeches, McKinley's campaign portrayed him as the key to prosperity. McKinley won a decisive victory, marking a triumph for industry over agriculture. After this defeat, the Populist party faded away, though many of its ideas were later adopted by the major parties.