Chapter 19: Economic Change and the Crisis of the 1890's

Chapter 19: Economic Change and the Crisis of the 1890's

1. What were the demands of the Knights of Labor?

Higher wages, shorter hours, better working conditions, bread and butter goals of working ppl. Collective bargaining with employers. Giving unskilled and semi-skilled workers union representation.

2. Why did Labor unions suffer a backlash?

During the 1800's Labor Unions including the Knights of Labor provoked several protests one of which had catastrophic consequences, the Haymarket riot at which four people were killed. Tragically skilled artisans had noticed an alarming trend that the employed were working for their wages rather than their product. In other words the quality and talent had begun to be in rarity.

3. What provoked the farmer protest movements in the last third of the 19th century?

During the last third of the 19th century there was a plague of grasshoppers, dry cycles and abnormal weather that forced farmers to move east. Not only that but the wholesale price index of 2 major commodities declined by 45%, wheat and cotton. Long periods of price deflation exacerbated the problem of credit. The dual currency between Greenbacks and Gold deviated and would not stay on par further pushing credit problems. Banks began to cut circulation of silver to decrease coinage infuriating the people.

4. What issues were at stake in the contest between 'free silver' and the 'gold buggy'?

The ratio was 16:1 but new discoveries of gold in the west just after 1848 increased the circulation of gold leaving silver severely undervalued. Anti-deflationist were enraged calling the "the crime of 1873" as they believed it was a conspiracy to destroy the people's money, silver, and benefit the banker's money, gold. Ironically several silver mines were discovered later but the deflation still plagued the people dropping the ratio to 20:1. The Sherman silver purchase act of 1890 greatly increased silver coinage but favored "gold bugs" and did not retain the original 16:1 ratio.

5. Explain the rise and fall of the Populist Party?

The farmers alliance worked toward developing their own political agenda. They made several demands that seemed radical at the time. In anticipation of rejection of their demands, the farmers alliance was eager to create a third party, the populist party. They called for government ownership of railroads, limitless coinage of silver at original rate of 16:1. However they did not receive the amount of votes needed.

6. What were effects of growth of American cities and an American Middle class?

Tragically during the industrialization era much of the wealth was not evenly distributed. The rich got richer and the poor reached poverty. Working conditions were adverse and injuries were severe. What was known as America's middle class had slow ceased to exist.

Terms:

Knights of Labor:

The principle Labor organization in the 1880s. Originally founded in 1869 in Philadelphia as a secret fraternal society. Under the leadership of Terrence Powderly, a machinist by trade, the knights abandoned secrecy in 1879 and emerged as a potent national federation of unions or assemblies. Most of the assemblies organized by industry as opposed to craft allowing many semiskilled and unskilled workers union representation for the first time.

Haymarket riot:

During a time of labor radicalism in Chicage, a new Socialist Labor Party arose. 4/5's being foreign born, the members embraced anarchism and seeked to overthrow the capitalist system. Hostile to labor organizers and protesters, the people quickly responded to the strike to attain the 8 hour workday on May 1,1886. Evidently much brutality and havoc arose from an anarchist meeting at the Haymarket square on May 4 as a bomb was thrown the police opened fire. 60 were injured leaving the 8 anarchists to trial for conspiracy and murder. Seven were convicted and one committed suicide. Due to their opposition of the wage system, the Knights of Labor were also caught in the backlash. As a result a new Labor organization was recorded, American Federation of Labor, they accepted the capitalist and wage system and seeked to better the conditions of worker, gain higher wage, less hours, and more safety. 

Henry George:

Member of the Knights of Labor and renowned for his best selling book "Progress and poverty"; Henry George brought the contrast of wealth and poverty to the societys attention. He exclaimed the phenomena as a result of "land monopoly" and promoted the "single tax". He believed that 100% tax on the purchase price of an estate and the market value  "capital gains" would resolve the issue. Henry George was a very influential man and struck the minds of many when he ran for mayor, his emphasized flaws in  labor.

Homestead Strike:

During a time that the middle class fearing that America was falling apart, Strikes became much more prevalent. One of the most infamous of strikes occured at the Homestead plant, Carnegie Steel Company. Along with his plant manager Henry Frick, Carnegie sought to break the union ofthe Amalgamared Association of Iron, Steel and Tin Workers. The issue lied on the working condition and wages, Frick seeked to lockout the union by disputiong over the dilemmas. However a full scale gun battle occurered when the uninon decided to have a sitdown and Frick's 300 pinkerton  guards ousted them. Much public sympathy occurred but faded away when an anarchist attempted to assasinate Frick. Another strike occured shortly after and destroy the succesor of Carnegie steel, "US Steel". The Homestead strike led to a serious weakening of unionism in the steel industry until the 1930s.

Coxey's Army:

During the depression and much political controversy about the American monetary system, unemployment was on the rise.  However one Ohio reformer had an idea 40 years ahead of it's time. He began a living petition dubbed "coxes army" a group of unemployed men to march the railroads. Unfortunately his efforts of relieving unemployment through public was deemed futile despite it's vast attention.

Sherman Silver Purchase Act:

During the depression of the 1890's much discoveries of gold were noted. As a result the value of silver dropped dramatically. However Senator John Sherman came with a resolution to increase the frequency at which government purchased silver. This became known as the silver purchase act and enabled nearly unlimited coinage of the silver dollar. Due to the monthly increase in coinage, the future of the gold standard became uncertain causing a run on the gold treasury.

Farmer's Alliance:

In the late 19th century a new farmers organization came to place. They sought to set up marketing cooperatives to "eliminate the middleman" and fought to serve the needs of farmer families. Their vast political agenda later on became law: "1. Graduated income tax. 2. Direct election of US senators as opposed to state legistlature. 3. Free and unlimited coinage of silver at 16:1 4. Effective government control, owenrship of railroad, telegraph, and telephone companies if necessary. 5. the establishment of federal warehouses or subtreasuries for storage of crops, with government loans at 2%" Farmers greatly favored to store their crops to account for fluctuation of market prices and government loans to pay their annual debts. Inevitably, they expected rejection of their demands and established the people's party, a group of populists that sought reformation. However the 2 party systems failed to respond the issues of the 1890s.

William Jennings Bryan:

A significant unexpected presidential candidate, William Bryan uplifted people and compelled much applause upon his peroration. He spoke and sought to resolve the cause of free silver. He was a one-term congressman and reshaped the political landscape at the time. His platform emphasized free silver, income tax, and disabled government order against labor. Much of this built conflict with the populists.