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RAILROADS AND COTTON. Railroads Wanted. Railroad lines expand West and make their way through Texas. Promised cheap, reliable, and fast transportation. Texas cities eager for railroad lines. Railroad Boom. Government aided railroad development. Railroad companies begin to race West.
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Railroads Wanted • Railroad lines expand West and make their way through Texas. • Promised cheap, reliable, and fast transportation. • Texas cities eager for railroad lines.
Railroad Boom • Government aided railroad development. • Railroad companies begin to race West. • Farmers followed railroads in search of cheap land. • Population of Jack County: • 1870 – 61,000 • 1900 – 350,000 • Texas is now connected to the rest of the country. • No need for cattle drives • Farming can move crops to far away markets
Railroad Commission • James Hogg elected Governor in 1890. • Enforced laws that regulated business – Hogg Laws • Created the Texas Railroad Commission – regulate and set rules for RRs
Farmers Move West • Railroads encouraged settlement near new tracks for farmers – hoping to make money by selling land • Railroad companies created advertisements using city development plans to attract settlers
Farming in the West • The soil in West Texas differs from the soil in East Texas • Farmers will face limited water resources West East
Farming and Technology • Windmills helped with irrigation by tapping into the underground water supply. • And Many farmers switched to crops that needed less water than cotton, such as wheat. • New dry farming techniques were adopted such as terracing, ridges or multiple levels to catch rainfall and prevent soil erosion.
Commercial Farming • Increase of agriculture lead to commercial farming – large scale growth of crops to sell for profit. • Machinery inventions aided large scale farming. • Steam powered tractors • Threshers – machines that separated grain or seeds from plants • Steel-tipped plows
Steel Tipped Plow John Deere
McCormick’s Reaper Cyrus McCormick
Cotton Gin Eli Whitney
Cotton BOOM - Cotton is King • Cotton was the most profitable crop • Many farmers switched to growing ONLY cotton • Pesticides kept insects like boll weevils from damaging crops
Cotton BOOM - Cotton is King • Cotton contributed to town growth • Commercial farming draws European immigrants • Town merchants support farmers • Need for manufacturing of cotton and cotton seed oil
Supply and Demand • Boom in crop production leads to a bust in prices. • Supply began to exceed demand, causing prices to fall – economic law of supply and demand.
Supply and Demand Scenario 1… Scenario 2… LOW SUPPLY leads to HIGH DEMAND(& prices) HIGH SUPPLY leads to LOW DEMAND(& prices)
Boom & BUST Cycle for Cotton • Cotton prices fell from 11 cents to 6 cents per pound. • Farmland went from $10/acre to $500/acre. • Being a cotton farmer was TOUGH.
How do you PREDICT the TX ECONOMY will be affected by the Railroad Boom?