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The Reign of King Cotton

The Reign of King Cotton. Chapter 18. Economy After the Civil War. Bond : Certificate issued by a government promising to pay back the money they borrowed with interest People’s savings were tied up in Confederate bonds, which became worthless. Credit Problems.

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The Reign of King Cotton

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  1. The Reign of King Cotton Chapter 18

  2. Economy After the Civil War • Bond: Certificate issued by a government promising to pay back the money they borrowed with interest • People’s savings were tied up in Confederate bonds, which became worthless.

  3. Credit Problems • Credit: An agreement where a buyer is allowed to pay over a period of time with interest • During the Civil War, businesses had sold goods to the Confederate government on credit & now their debts would never be paid.

  4. Return of the Small Farm • As more businesses failed, many people lost their jobs. • For many, the only way to survive was to grow their own food. As a result, the small farm became common in Texas again.

  5. Subsistence Farming • After the Civil War, most Texas farmers turned to Subsistence Farming, where only enough food was grown to meet the family’s needs.

  6. Tenant Farming • Since many people lost their land after the Civil War, many turned to Tenant Farming, where they could rent the land on which they lived & farmed. • Problem: Rental payments never end; no ownership.

  7. Sharecropping • Sharecropping: Tenant farming where the farmer receives a share of the value of the crop, minus rent & expenses. • Sharecroppers owed their crop to the landlord & had to buy food & clothing on credit.

  8. Cycle of Poverty • Along with poor Anglos, African American families also had to turn to sharecropping to survive. • Sadly, this system established a cycle of debt & poverty that was very difficult to break free from.

  9. Railroad Expansion • By 1890, Texas had over 8,000 miles of railroad tracks. • By the early 1900s, goods could be shipped to any place in the U.S. from anywhere in Texas.

  10. Railroads Encourage Expansion • This encouraged farmers to buy land for commercial farms from railroad companies, who owned a lot of Texas land. • Farms & cities grew along the railroads & into West Texas.

  11. Cotton Industry Grows • The expansion of railroads allowed the cotton industry to grow. • Cotton produced so much money that Southern states named the crop “King Cotton.”

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