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Farmers on the Plains

Farmers on the Plains. Early Success and the Reality of International Trade. Farmers’ Plight. Early Success Easy Credit Terms Railroads promoted land and credit Several successful years for small and large commercial farmers – International business

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Farmers on the Plains

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  1. Farmers on the Plains Early Success and the Reality of International Trade

  2. Farmers’ Plight • Early Success Easy Credit Terms Railroads promoted land and credit • Several successful years for small and large commercial farmers – International business • Lots of rainfall and good crops worldwide • But gradually climate dried and land failed.

  3. Farmers’ Plight • Supply rises, prices fall and farmers produce more, to make up in volume what they lost in price. • Big grain supply allowed railroads to hike prices on all farmers, cutting deeply into profits. • Borrowed “Cheap” money and heavily in debt. • Sought Government help through regulation

  4. Farmers Fight Back! The Grange, Farmers Alliances and the beginning of Populism

  5. Farmers Battle Debt • During Reconstruction (1875), Congress pulled money – Greenbacks - out of circulation - back to gold standard. • So money increases in value again – bad for farmers. • They had borrowed with ‘cheap money’ not backed by gold but must pay back with more valuable money that is based on gold. • Once again farmers push for ‘cheap money’.

  6. High Expenses - Low Income • Railroad monopolies (no competition) allowed charging of any prices they demanded. • Secret deals with storage companies & middlemen on rates allowed agents to charge high prices to farmers. • Wheat prices fell in late 1870s when money increased in value AND when international competition increased. • Paying high prices for freight & receiving low prices for crops hurt profits and kept them in debt.

  7. Farmers Unite! • Patrons of Husbandry - Oliver Kelley - 1867 • Grange – a farmers organization for education - Fight railroads’ high pricing - Teach farmers how to organize - Set up farm co-operatives - Elect officials to speak for their interests - Sponsor state legislation • Farmers Alliance – 4 Million Members

  8. Rise of Populism • 1892 – Populist Party – formed in Omaha, Nebraska out of farmers’ alliance movement • Sought political power for farmers – supported… - Graduated income tax - Cheap money to pay debt easier - Federal loan programs - Restrictions on immigration - Direct election of senators - 8 hour workday • Important contributions to Democrats in later years

  9. Populist Ideology • Challenged ‘laissez-faire’ capitalism. • Rejected idea that the rights of business ownership were considered absolute (do what they want). • Supported Industrialism and Capitalism but believed it was developing in brutal and chaotic ways. • Growth should be more guided by needs of people and their communities.

  10. Populism and Bimetallism • Bimetallism – making currency based on silver and gold. • Free Silver - money exchanged for either metal makes more money available – and thus cheaper - because more silver than gold was available. (Debt repayment) • Big issue in Presidential Campaign of 1896 • William Jennings Bryan makes ‘Cross of Gold’ Speech • McKinley beats Bryan and Populism fades until Roosevelt

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