1. Bellringer: What problems does the “New South” face? Despite much progress, they face poverty, segregation, post- war economy tied up in cotton and abolition of slavery.

2. Many changes are needed! Birmingham becomes a symbol of the New South as a developing city. Cheap labor, Railroads, and industrial growth all help the economy Still an agricultural based economy, still tied up in cotton, still not self-sufficent

3. Grady, editor of newspaper urged the south to make the following changes Economic diversity Laissez-faire capitalism Encourage modern, industrialism, & capitalist values Improved growth Improved transportation

4. Grady’s suggestions put into action Rapid industrial growth Cheap labor was an incentive for business relocation from the North Richmond-tobacco industry/had to recover from being burnt down during Civil War Memphis-lumber industry Birmingham-steel industry  tremendous growth to the point that it became the symbol of southern industrial growth

5. Still remained the majority of the Southern Economy because industrial development was primarily funded and owned by the North Poverty-poor education, poor skills, not being self- sufficient all led to poverty Overproduction, high interest rates and the deflation of goods are the prominent characteristics of Southern Farming

6. African American scientist/teacher @ Tuskegee Institute, Alabama Urged people to diversity farms Grow crops such as peanuts, sweet potatoes, soybeans, etc. Essential to help the south shift to a diversified agricultural based economy http://www.youtube.com/watch?v=sdz8XTNttdc

7. Even with all of the changes to the New South, small farmers struggle. Farmers’ Alliance: 1 Million Members Colored Farmers’ Alliance: 250,000 Members Political Reforms to solved farmers’ economic problems Being divided by race hurt them Could have been stronger

8. Career of Farming declined 60%-1860 to <37% by 1900 NOT PROFITABLE! Commercialization of farming/more specialized Produce: Dependent on large, expensive machines (steam engine, seeders, reapers, threshers, combines) Consume: Food from local stores/manufactured goods from mail-order catalogs Overproduction +Increased American production and global competition Drove prices down for cotton, wheat, etc. Farmers faced high interest/need to overproduce to pay the bills and make a profit

9. National Grange-1868, organized by Oliver H. Kelley Social and educational organization for farmers and their families Attempts to make political change, but falls short in many ways or is forced to take backward steps as business challenges their attempts at reform to protect farmers. Granger Laws-regulated the rates charged by railroads and elevators, illegal for RR to “fix” prices.

10. Munn v. Illinois-1877 upheld the right of a state to regulate business of a public nature, such as the railroads Interstate Commerce Act/Commission Wabash v Illinois- individual states could NOT regulate interstate commerce, 1886 *nullified many state regulations that had been established by the Grangers

11. Alliances-1890 1 Million farmers allied-similar reasons they joined Granges *The Alliance Movement had serious potential for turning into a political party Ocala Platform 1. Direct election of U.S. Senators 2. Lower Tariff rates 3. Graduated income tax 4. New banking system regulation by the federal government 1890-National Alliance