Agrarian Discontent

The late nineteenth century was the beginning for the rise of industry in eastern America, but in the west farmers were facing a crisis. The farmers complaints over their economic hardship were valid, even though the government didn't recognize the problems. In the period, 1880-1900, agrarian discontent occurred due to the unfair economic practices of the time, the high rates charged by railroads, and monopolies and trusts.

Deflation and falling crop prices caused much dissatisfaction for farmers in the late nineteenth century. The area of farmland in the West doubled, but only one in three people farmed causing a decrease in competition in America. Also, the money supply was static, meaning it stayed the same. Even though America had a static money supply, deflation was caused by an increase in immigration. Growing agrarian discontent lead to the rise of the Populists who stood for unlimited coinage of silver, a graduated income tax, and loans for farmers. The platform of the People's party stated, "... a vast public debt payable in legal-tender currency has been funded into gold bearing bonds, thereby adding millions to the burdens of the people." (A) The Omaha platform shows a great favor for silver money, showing that the gold standard decreases the value of property and human labor, and for an increase in the money supply.

The U.S. data shows that between 1865 and 1870 the population increased by nearly four thousand, but the money in circulation decreased. (C) This was caused by the withdraw of greenbacks after the Civil War. Even though the chart seems to show an increase in circulation of money with an increase of population, this is biased. The Bland Allison Act of 1878, originally vetoed by President Hayes which shows the corruption in government, was created as a compromise and released money in circulation. In the late 1880's or early 1890's, a Chicago newspaper released a cartoon title The Farmer's Voice. The cartoon portrays an industrialist taking many farmers to the court house in chains. The sign on the court house says, "farm mortgages foreclosed here." (D) The cartoon shows the amount of power the industrialists of the time had over the farmers, and that the government sided with corporations. Farmers felt victimized because the industrialists gained the power to control market prices and were also determined by the world market. The point of view is that of the farmers, but the newspaper is published in an eastern city showing that the issues the farmers faced was a western problem as well as an American problem.

President William McKinley's acceptance speech in 1896 states that a false theory had been created, that silver coinage would solve all problems. Instead, he proposed, "... It would not make labor easier, the hours shorter, or the pay better." (B) President McKinley was wrong in his statement because a gold standard would only supply a certain amount of gold, meaning you could only print a certain amount of gold. Also, people wouldn't be able to borrow as much money, which would idle the economy. Last, farmers would not be able to get money in their hands even though higher officials and the wealthy could. The Atlantic Monthly published an article in 1896 titled, "Causes of Agricultural Unrest."