Farmers & Populism

People are disgusted by Wall Street and it's greedy practices (1), Farmers are up in arms over the low cost of the goods they produce and the high costs to ship them (resulting if little if any, profit)(2), interest of mortgages continues to grow as land value plummets(3) thousands of people’s homes are being foreclosed on because the residents can no longer afford to pay the mortgage(4), many Americans are concerned about the declining value or their money, and they are demanding government intervention. You may be surprised to learn that I'm not referring to 2009, but to 1892.

As I traveled back in time, I was struck most profoundly by the similarities between the problems of the 1890s and the problems we face today. I was surprised to find that people so long ago were irritated with the corrupt practices Wall Street engaged in, and it's lack of consideration for the average American. I was not surprised that the Democrats and Republicans were still going at it, much like our recent election. The Populists sentiment towards the two old parties is not that different that what we hear today, "The Republican Party can't keep the peace of the country" and "The Democratic Party has no sense on the money question".(5)

As a result of the economic downtown of the time, people were looking for hope of a better day, for hope of different politics and politicians who cared about the issues that affected them, and for hope that prosperity would one day return. The Farmers of Kansas were demanding relief in 1890 and calling attention to the "alarming economic conditions"(6) of the State, including the great deal of homesteads that were in foreclosure which they believed were the result of "vicious legislation"(7). Not to mention, the exorbitant rates the railroads were charging to transport the devalued goods that farmers produced.(8)

The Farmers protested against "excessively high" (9) railroad rates and asked the railroad commission to "reduce the rates to correspond with the very low prices the producer is now compelled to accept for these commodities."(10) It was suggested that the government buy and take charge of the railroads, and that Kansas was especially interested in seeing this happen because the State had for years "suffered from excessive freight rates and railroad combinations to bleed the people."(11) A specific example cited is that the "farmers of Kansas received but thirteen cents a bushel of corn which was afterwards sold in New York for fifty cents."(12) Any profit the farmer may have made was “consumed in the payment of freight”(13), which made it almost impossible to make a living as a farmer.

It was the culmination of the rising debt,inability to pay it, and he plummeting value of wheat and corn that led to the rise of the Farmer’s Alliance, which was made up of several farmer groups and the Knights of Labor.(14) The Farmer’s Alliance then developed into the People’s party aka The Populist Party. The Populist Governor of Kansas, Lewelling argues that the farmer’s would be satisfied “With even moderate returns for their products..”(15) But the prices keep getting lower and the taxes are “becoming more burdensome”.

Another problem was that while the farmer’s of America’s heartland are struggling, the Eastern mortgage holders are stuffing their pockets, and capitalizing on the farmer’s blight. Governor Lewelling emphasizes this by pointing to the conditions in Kansas, ten thousand farm people are made homeless every year by mortgage foreclosures. This leads me to ponder where was the government "bailout" for the farmers? American greed is infamous, and it goes back to the founding of our country.

The Populists of the 1890s were lamenting the very same principles of the “Eastern business elite” and “Wall Street” that upsets so many Americans today. But it was not just the former and the latter, unscrupulous real estate agents deserve part of the blame as well. “Real estate agents reaped a bountiful harvest. Money was poured in by credulous Eastern lenders, and agents were bribed to be dishonest or imprudent by receiving a commission on the money they loaned.”(16) So you see, these people had incentives to lie to people and do whatever was necessary to get someone into a house, even if they know that person can’t afford it. This is best illustrated by the quote “that while figures cannot lie, yet liars will figure.”(17)

The Populists wanted equality among all Americans far before the Civil Rights Movement. The Populist believes, as the Democratic Party does today that the government should be for the good of all Americans and “legislation should be for the multitude rather than the few.”(18) The Populist “believes that should afford protection to the weak” and “that if government which assumes to guarantee life, liberty, and the pursuit of happiness, in reality it guarantees nothing but wretchedness and want...” If this government gets to the point that is it no longer viewed as the shield of the people’s liberties “and the defender of their homes and property, and they have no hope that it can be made such” then its days are numbered.(19)

Although, Populism sounds like a good idea today, in 1896 many people thought ill of the Populists. One journalist even argues that Populism was in fact a disease.(20) But, many journalists also saw the good that the Populists wanted to bring to America and agreed that the fact the most of the wealth in this country is concentrated in the hands of the few is a problem and that Populism could be “considered as an honest effort for the securing of better conditions.”(21). Maybe if the massive income inequality would have been addressed in the Gilded and Progressive Ages, we would not have the same problem today, which has become even worse.

A principle aim of the Populist Party was to “invoke its forces and powers to devise and establish conditions under which a more equitable distribution of the nation’s wealth might be effected.”(22) During our 2008 election, the phrase “distribution of wealth” was used (unsuccessfully) to scare people away from voting for Democrats, it seems that there are many similarities between the Democrats of 2008 and the Populists of 1896. One journalist correctly predicted in 1896 that there is little doubt that some of the core principles of the Populists will be enduring and indeed be integrated into the principles of another political party.(23) Lindsay Smith



Notes

1,14,20. McVEY, FRANK L. 1896. The rise and progress of populism. The Independent ...Devoted to the Consideration of Politics, Social and Economic Tendencies, History, Literature, and the Arts (1848-1921) 48, (2493) (Sep 10): 4, http://proquest.umi.com/pqdweb?did=829321572&Fmt=7&clientId=17675&RQT=309&VName=HNP.

2,11,12. All because of Jay Gould.(1890, 02/28/1890). Philadelphia Inquirer, pp. 2.

3,7,9,10.Want Lower rates, Kansas Farmers Protest Against Heavy Railroad Charges.(1890, May 4, 1890). Wheeling Register, pp. 3.

4.Plans of the Populists, What Their Leaders Say of This Year's Contest.(1896, 01/01/1896). The State, pp. 3.

5,6.Kansas farmers demand relief.(1890, 03/18/1890). The Sun.

13,15.By the Hon. L. D. Lewelling,Governor of Kansas. 1895. Problems before the western farmer. The North American Review (1821-1940) VOL. CLX., (No. CCCCLVIII.) (Jan): 16, http://proquest.umi.com/pqdweb?did=204662181&Fmt=7&clientId=17675&RQT=309&VName=HNP.

16,17,18. Deserts the hot-bed of populism. 1895. The Social Economist (1891-1895) 8, (6) (Jun): 15, http://proquest.umi.com/pqdweb?did=735835202&Fmt=7&clientId=17675&RQT=309&VName=HNP.

19,21,22. Williams, Robert H. 1895. Populism, considered as an honest effort for the securing of better conditions. American Magazine of Civics (1895-1897) 7, (2) (Aug): 195,http://proquest.umi.com/pqdweb?did=692937282&Fmt=7&clientId=17675&RQT=309&VName=HNP.