Chapter 13-3: Critical Thinking # 3

What do you think were the most significant factors in bringing an end to the Populist Party? Think about:

• monetary policy
• third-party status
• source of popular support
• popular participation policy

The most significant factors to bringing an end to the Populist Party were the Panic of 1893, silver and gold, and the support of the population.

Throughout the 1880's, farmers had been exceeded of their limits with debts and loans. The railroad industry was spreading faster than stores. By the year of 1893, many companies were going bankrupt. This lead to panic of all the citizens and to the trade of paper money for gold. Once the supply of gold ran low, people traded the paper money that they had for silver, eventually putting silver mines out. Once a year had passed, the panic of the people became a stage of depression because businesses and companies incomes were falling. The unexpected downfall of the people caused much tension between the Populist Party and everyone who was in the situation. (p.428)

Once the trade for gold and silver became very large, the Populist Party had the responsibility of something called the monetary policy. The monetary policy made the Populists chose whether people can trade paper money for silver and gold, or just gold. Since the Populist Party was supported by the citizens and farmers who were in debt, everything they decided mattered. If the people could not trade in paper money for silver or gold, they thought that everything they had was completely useless. The thought of inflation became a huge problem and sent people into fear. (p.428)

If the source of support for the Populist Party declined, so did the role they had. Once the popular participation and popular support began to fall, the end of the Populist party became even closer. While loosing supporters, the Populist Party also had another disadvantage; they were a third-party status. They were considered a smaller, less powerful political party. As a result, once the issue of money came into hand, the Populist Party hit a weak spot. They lost their supporters and once William McKinley was nominated for president and debated that both gold and silver should be used, Populism came to a downfall. The farmers who were in debt and supported the Populist party now had lost all their expectations. (p.429)