A School History of the United States

by John Bach McMaster

4. After July 1, 1891, the silver need not be coined, but might be stored in the Treasury, and silver certificates issued.

%550. The Farmers' Alliance%.—This legislation, combined with an agricultural depression and widespread discontent in the agricultural states, caused the defeat of the Republicans in the elections of 1890. The Democratic minority of 21 in the House of Representatives of the Fifty-first Congress was turned into a Democratic majority of 135 in the Fifty-second. Eight other members were elected by the Farmers' Alliance.

For twenty years past the farmers in every great agricultural state had been organizing, under such names as Patrons of Husbandry, Farmers' League, the Grange, Patrons of Industry, Agricultural Wheel, Farmers' Alliance. Their object was to promote sociability, spread information concerning agriculture and the price of grain and cattle, and guard the interests and welfare of the farmer generally. By 1886 many of these began to unite, and the National Agricultural Wheel of the United States, the Farmers' Alliance and Cooperative Union of America, and several more came into existence. In 1889 the amalgamation was carried further still, and at a convention in St. Louis they were all practically united in the Farmers' Alliance and Industrial Union.

The purpose of this alliance was political, and as its stronghold was Kansas, the contest began in that state in 1890. At a convention of Alliance men and Knights of Labor, a "People's Party" was formed, which elected a majority of the state legislature. Five out of seven Congressmen were secured, and one United States senator. Before Congress met (in December, 1891), another member of the House was elected elsewhere, and three more senators. The support of fifty other representatives was claimed. Greatly elated over this important footing, the Alliance men marked out a plan for congressional legislation. They demanded

1. A bill for the free and unlimited coinage of silver.

2. The subtreasury scheme.

3. A Land Mortgage Bill.

%551. The Subtreasury Plan of the Alliance Party.%—The idea at the base of these demands was that the amount of money in circulation must be increased, and loaned to the people without the aid of banks or capitalists. It was proposed, therefore, that the government should establish a number of subtreasury or money-loaning stations in each state, at which the farmers could borrow money from the government (at two per cent interest), giving as security non-perishable farm produce.

%552. The Land Mortgage Scheme% provided that any owner of from 10 to 320 acres of land, at least half of which was under cultivation, might borrow from the government treasury notes equal to half the assessed value of the land and buildings.

%553. The People's Party organized.%—That either of the old parties would further such schemes was far from likely. A cry was therefore raised by the most ardent Alliance men for a third party, and at a conference of Alliance and Labor leaders in May, 1891, a new national party was founded, and named "The People's Party of the United States of America."