The concerns of farmers were largely ignored in the post-Civil War (1861-65) era as industry brought prosperity to America. Agricultural prices sagged during the 1870s and 1880s, and Eastern, urban-based trusts dominated distribution of farm products. In the South and West, where agriculture remained the backbone of the economy, the problem was especially critical. Out of these frustrations, a political movement emerged to challenge the established Democratic and Republican parties. The People's Party, better known as the Populist Party, became powerful in those regions during the 1880s and 1890s. Farmers were joined by urban laborers, who shared their problems as consumers making wages that could barely pay for basic necessities.

Populists wanted to increase the money supply, which would circulate more money among farmers and laborers. Among programs that were later adopted, Populists called for an income tax that would shift the...