Bensel

Industrialization exacerbated sectional differences in the US

The Northeast and Great Lakes states benefited enormously from manufacturing growth and the protective tariff.

Agricultural states in the South and Midwest suffered from deflationary policies.

3 Crucial Economic development policies during the late 19th Century


1) Unregulated Market

(Helped to promote industry)

2) International Gold Standard

(Guaranteed exchange rate stability with foreign currencies)

3) Protective Tariff

(Protected industry from foreign competition. Kept prices artificially higher)


Policies of Free Markets, Gold, and Protectionism kept the Republican coalition in majority status









Hofstadter – “Populism was the first modern political movement of practical importance in the United States to insist that the federal government has some responsibility for the common weal . . . it was the first such movement to attack seriously the problems created by industrialism.”

Populism as agrarian revolt against money power (Outgrowth of Granger movement)

Populism as paranoia and conspiracy

Populist’s Platform:

Free coinage of silver
Income Tax
Expanded currency and credit
Direct election of Senators
Initiative and Referendum


Populist Party a successful 3rd Party movement in 1892

General James Weaver 22 Electoral Votes

3 Governors, several House Members,


Focus on Silver


Populist Party co-opted by William Jennings Bryan and the Democrats in 1896

Populist Party dissolved shortly after members endorsed Bryan

Many Populist reforms were made law in subsequent decades

Farmers began to identify more with industry and employers