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Explore the rise of populism in the late 19th century and the challenges faced by farmers, including the impact of railroad expansion, the Homestead Act, bonanza farms, and the foreclosure system.
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Popular Populism Chapter 5, Sections 2 and 3 Notes
I’ve Been Workin’ on the Railroad… • It took 250 years to turn the first 400 million acres of land into farms • It took 30 years to turn the next 400 million acres of land into farms • A combination of government-supported private investment and government policy allowed this to happen • The Union Pacific and Central Pacific Railroads helped open up the west for those adventurous enough for the challenge • The Homestead Act gave the land to those adventurers
I’ve Been Workin’ on the Railroad… • The federal government gave away 170 million acres of land to the railroads as long as they laid RR track • In one grant, the Union Pacific and Central Pacific gained 10 square miles of land for every mile of track laid in a state; 20 square miles of land for every mile of track laid in a territory • It was competitive big business in the 19th century • The Union Pacific moved westward from Omaha, NE • The Central Pacific moved eastward from Sacramento, CA • Most track was laid by Civil War veterans, Irish and Chinese immigrants, African Americans, and Mexican Americans • Both companies reached Utah by 1869; by 1884 there were 5 transcontinental railroads • Simultaneously, the government was encouraging people to move west…
There’s No Place Like (the) Home(stead Act) • During the 2nd year of the Civil War (1862), the U.S. government passed the Homestead Act • The Homestead Act offered 160 acres of land for free to any citizen or INTENDED CITIZEN (who’s that?) who was the head of the household • From 1862-1900 up to 600,000 families took advantage of the offer, many of them African Americans known as exodusters • Still, only 10% of the land was settled by whom it was intended, and not all land was of equal value…why not? • Drier land was, obviously, more problematic and a family would need more land to make a successful living • In order to maximize profit, farmers needed new equipment • However, equipment was expensive… • What do you do if you need extra money? • Right, you get loans. And it wasn’t hard for farmers to borrow money…and if wheat (or other crop) prices were higher, farmers could usually repay those loans • But what if the price for wheat fell?…
Farmers Problems • When prices fell, farmers couldn’t afford to pay their farm’s mortgage because their crops weren’t making enough $$ • In order to bring in more money, they had to sell more crops • How could they do that? • Buy more land…that’s why the bonanza farms were created • Bonanza Farms • Large single-crop spreads of 15,000-50,000 acres of land created by the railroad companies and investors • 1 acre of land equals 4840 square yards • To comapre, a football field, counting the endzones, is 6396 square yards • The bonanzas were a short-term fix but a long-term problem • Why?
Farmers Problems • Answer: When prices fell again, farmers wouldn’t be able to pay again…what do they do? Buy more land or lose their land? • That’s a no-win situation • Most farmers tried to buy more land…leading them into deeper debt • Eventually, they couldn’t afford to pay their loans • If farmers couldn’t pay their loans, the banks foreclosed the farms and took control of them to be resold in bankruptcy • This happened to many bonanza farms • Also, what happens to the quality of the soil if you continually plant the same crop over and over again? • If there is no crop rotation, the quality of the land falls
When a Union Isn’t One • In 1867, Oliver Hudson Kelley started the Grange • The Grange’s purpose was to provide a social outlet and an educational forum for isolated farm families. • Remember, these families’ farms were very spread out • But by the 1870s most time was spent fighting the railroads • Goals of the Grange: • Teach members how to organize • Set up farmers’ cooperatives (working together) • Sponsor state legislation to regulate railroads • Farmers’ Alliances rose to educate people about lower interest rates on loans and gov’t control over railroads and banks via traveling lecturers, such as Mary Lease • Membership grew to 4 million, mostly from Southerners and Westerners
Sometimes it’s better to “LEASE” than to buy… • “What you farmers need to do is to raise less corn and more Hell! We want the accursed foreclosure system wiped out…We will stand by our homes and stay by our firesides by force if necessary, and we will not pay our debts to the loan-shark companies until the Government pays its debts to us.” –Mary Elizabeth Lease in “The Populist Uprising • This quote exemplifies the political nature of the Populist movement…so answer a few questions for me… • 1. If Lease is a Populist and explains the Populist problem, in your own words, what is Populism? • 2. What happens if something is foreclosed? • 3. What do you think that Lease thinks the government owes the Populists?
A Populist in My Words • Populism was a political movement born on July 2, 1892 • It was a farmers political party focused on lifting the burden of debt from farmers and other workers to give people a greater voice in their government • The main issues of the Populist movement were economic: • Increase the money supply (the actual number of dollar bills printed) a rise in prices (inflation) • Why would inflation be good for farmers? • A graduated income tax • This means, if you make more money, you pay more in taxes (we have this today in the U.S.) • A federal loan program • Movement to bimetallism • A focus on connecting the dollar to gold and silver, not just gold • There were also government reforms: • Elect U.S. senators by popular vote • Single terms for the President and Vice President • A secret ballot to end vote fraud • The social reforms: • An 8 hour workday • Immigration restrictions