HIST 106 1st Edition Lecture 5 Outline of Last Lecture The Great Railroad Strike of 1877 The Second Industrial Revolution America s Growth The Expansion of the Railroads Cornelius Vanderbilt and the railroads Andrew Carnegie and Vertical Integration John D Rockefeller and Horizontal Integration Gilded Age Ideas of Wealth Survival of the Fittest Laissez faire Capitalism Conspicuous Consumption Labor in the Gilded Age Changes between Employers and Employees Knights of Labor Haymarket Square Bombing American Federation of Labor Outline of Current Lecture 1 The Plight of the Farmers a 19th c Farmers Worldview b Growth of Sharecropping and Tenant Farming c Problems in the Agricultural System i Crop lien System ii One Crop Agriculture d Problems for Agriculture in an Industrial Society i Railroads Shorter routes cost more Taxation System Agricultural Trusts Deflation The Currency Problem 2 Building a Movement a The Grange b The Farmers Alliance c Ocala Meeting Demands d The Populist Party i The Omaha Platform 3 The Election of 1896 a William McKinley vs William Jennings Bryan 4 Frank Baum Land of Oz Current Lecture 1 The Plight of the Farmers a 19th c Farmers Worldview i Working for wages similar to slavery ii Called working for waging and private industry public work or paid slavery iii Leaving farm to go work for wages was loss of self sufficiency and independence b Growth of Sharecropping and Tenant Farming i Slaves start working family plots on old plantation ii Tenant Farming white farmers mainly brought own supplies would pay for land or crop freedom to market own crops iii Both replace as primary form of agriculture all over US 1 Many farmers mostly whites were losing their land c Problems in the Agricultural System i Crop lien System 1 Because of lack of cash and banks for loans farmers would go to local merchants or furnishing merchant land owner for tenant or share cropping to start season of 2 Legal document entitling holder lender to whatever part of borrowers crop to pay of the loan plus interest a Interest rates high because agriculture is dangerous thing to invest in ii One Crop Agriculture 1 Local merchant wanted to be sure to get money back 2 Best way to ensure is that farmer plants cash crop wheat west cotton south a Too much of one crop lower price b Lower price more farmers needing loans bigger debt with no way to pay d Problems for Agriculture in an Industrial Society i Railroads 1 Shorter routes cost more 2 Taxation System a At the time no income tax b Primary form was property tax i Hit farmers hardest ii Paid 82 of country s taxes 3 Agricultural Trusts a Corporations bought up things needed for farming and charged high rates i Bat Guano 4 Deflation a Bad for producers and borrowers b Never ending cycle of debt 5 The Currency Problem a Gold standard every monetary bill coin had to be backed by a piece of gold b Government could only print as much money as the amount of gold they had c Massive population growth d Credit wasn t existent or incredibly tight and hard to get e Messed everyone up 2 Building a Movement a The Grange i Organization ii Minnesota in 1867 iii Scientific farming habits iv Supported land grants school that supported new farming techniques v Wanted government regulation of RR vi Established cooperatives 1 Cut out middle man to save money vii Women participated as equals 1 Advocated for women sufrage viii Recognized farming as family work not just men b The Farmers Alliance i Founders were frustrated that farmers were blaming themselves for the economic downfall 1 Wanted farmers to see that the system was the problem as it was rigged against them 2 Taught them about manipulating trusts railroads etc ii Farmer education as the first step to political change iii Also formed cooperatives 1 Farmers could sell crops in bulk for higher prices iv Hired buyers to buy in bulk so farmers got more money v Farmer s across nation began to develop class consciousness vi Spreads throughout all of country vii All white viii 1886 allied color alliance started in Texas c Ocala Meeting Demands 1890 i Free coinage of silver 1 Using silver to back up money along with gold to get more money ii Government regulation of RR 1 Not nationalize though 2 Basic government oversight to keep costs under control iii Sub treasury 1 Most creative and radical idea 2 Federal government to build warehouses where farmers would store non perishable crops in exchange for loans a Made it where farmers could wait to sell and get best deal for crops b Cut out middle man iv Getting candidates elected at local and national levels 1 Represented both parties 2 After election most didn t keep promise to farmers alliance and instead kept allegiance to their specific parties d The Populist Party i Peoples party ii Farmers realized they all shared common problem and needs along with miners and industrial workers 1 Desire for government takeover of RR 2 Income tax rich would pay more 3 1886 Knights of labor call for more RR protest a Farmers Alliance join i First directly political action 4 Farmers and labors realize an alliance between them could upset balance of democrats and republicans among them and tip scales iii The Omaha Platform 1892 1 Nominates former unionist for president and confederate for vice president 2 Added to Ocala Demands a 8 hour workday b Abolition of Private Police forces c Immigration restriction i Argued they crowded out native workers from jobs who really deserved them d Graduated income tax i Make more money pay higher percentage in taxes 3 Didn t get presidency but did put many high ranking legislatures in offices a Most successful in west as south was still too divided in race 4 When Cleveland took office determined to stick to gold standard iv 1893 Depression 1 20 of nations labor force loses jobs 2 Country almost goes bankrupt 3 Gold reserves go so low that serious concerns about paying of nations debt v 1894 Populist Coxey s Army 1 1 of 40 armies of unemployed that headed to capital 2 March on the capital 3 Wanted government to hire them to work on public projects 4 Leaders arrested for walking on grass in front of capital a Armies disperse after losing leaders 5 Illustrate harsh financial problems facing the nation after panic of 1893 6 Through these marches populist parties gain supports a Cleveland first democrat to be elected after civil war begins to lose support from southern democrats i Felt unlike Cleveland monetary system had to be restructured 3 The