Farming America post Civil War

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Presentation transcript:

Farming America post Civil War Farmers & Populism Farming America post Civil War

Farmers… Post Civil War farm production rose, so did DEBT Tariffs- this discouraged people from buying imported goods, encouraging the purchase of domestic goods Raised the price of manufacturing production Europe retaliated with tariffs on American crops Farmers saw tariffs as the government favoring industry

Impact of Tariffs Farmers had to borrow the money necessary to afford the new farm equipment to keep up with production demands Then, competition from abroad caused crop prices to decline Tenant farming increased as farmers lost their land because of debt

The money issue The value of money is linked to the money supply The sliver supply Inflation-benefited farmers, price of crops rose Deflation- dollar becomes worth more, benefits lenders Post Civil War the government tried to take back the paper dollar This hurt farmers!

The gold standard Reduced the amount of money in circulation Money supply was based on the amount of gold held in the government Benefitted big lenders Tight money policy

Silverites The gold standard angered miners, farmers, people who used silver They felt that the gold standard would hurt farmers They called for free silver The unlimited coining of silver to increase the money supply Bland-Allison Act 1878- the government had to coin more silver, causing inflation President Rutherford B. Hayes vetoed it, but congress overrode it!!! The treasury department refused to buy more than the minimum amount of silver So this basically did not help

OK…..Farmers are getting mad Farmers alliances– political group Helped farmers form cooperatives, bought goods in large quantities at lower prices 1800’s most farmers joined an alliance Launched attacks on monopolies, like railroads Wanted things like More money in circulation Creation of state department of agriculture Antirust laws Farm credit

Populists 1890- farm alliances created a political party, THE PEOPLES PARTY They were referred to as populists Populists wanted An increase circulation of money Unlimited minting of silver Progressive income tax Government ownership of transportation and communication systems Sought a united front with industrial workers, African Americans, and white farmers

Election of 1896 Major issue was currency Republicans- William McKinley (gold standard) Democrats- William Jennings Bryan (Silverite) Cross of Gold Speech McKinley won Returned the nation to a gold standard, and surprisingly prices began to rise Populism could not bridge the gap between industrial and farming America This is the beginning of an era of reforms “You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold!”