Farming Problems In the late 19th Century

Farm Problems: North, South, and West By end of 1800s- farmers were a minority in American society Number of U.S. farms actually doubled between 1865 and 1900 People working on farms declined from 60% to 37% in that same time span What would explain that?

Changes in Agriculture Farming became increasingly commercialized More dependent on large, expensive machines vs. human labor Larger farms were run like factories Small, marginal farms could not compete or many had to begin specializing Concentrated on raising one or a few cash crops

Falling Prices Increased global production drove prices down for wheat, cotton, and other cash crops As prices fell, farmers could only produce more to pay off mortgages and credit Increased production only lowered prices more More debts, foreclosures = more independent farmers forced into tenant farming/sharecropping Wheat and Corn Prices per Bushel, 1867 and 1889 Year Wheat Corn 1867 $2.01 $0.78 1889 $0.70 $0.28

Rising Costs Industrial corporations kept prices high on manufactured goods Wholesalers and retailers took their cut before selling to the farmers Railroads and warehouses charged high rates for shipment and storage of grain Would even charge more for short trips on lines with no competition Local and state governments taxed property and land heavily but not income from stocks and bonds Protective tariffs meant northern manufacturers could keep prices high on the equipment, tools, etc. they sold to southern farmers

Fighting Back- National Grange Movement Organized in 1868 by Oliver H. Kelley as a social, educational organization for farmers and their families Became active in economics and politics to defend farmers against unfair business practices Established cooperatives- businesses owned and run by farmers to save the costs charged by manufacturers or retailers Also lobbied for laws regulating the rates charged by railroads and warehouses

Fighting Back- Interstate Commerce Act (1886) States laws regulating railroad rates ran into legal problems Especially with railroads that crossed state lines States could only regulate local or short-haul trips, so railroads adapted by raising their long- haul (interstate) rates Wabash v. Illinois (1886) ruled that individual states could not regulate interstate commerce Nullified many of the state regulations achieved by the Grangers

Fighting Back- Interstate Commerce Act (1886) Interstate Commerce Act of 1886 first federal effort to regulate the railroads Required railroad rates to be “reasonable and just” Also set up the Interstate Commerce Commission (ICC) First federal regulatory agency ICC had the power to investigate and prosecute discriminatory business practices ICC ironically helped the railroads more than the farmers Lost many of its cases in federal courts in 1890s, while the cases it did win only helped railroads stabilize rates and curtail destructive competition

Fighting Back- Farmers’ Alliances Farmers formed state and regional groups known as farmers’ alliances Educated farmers about scientific methods and always had the goal of economical and political action Serious potential for creating an independent national political party 1890- 1 million farmers belonged to farmers’ alliances Both poor white and black farmers joined the movement

Fighting Back- The Ocala Platform National Alliance met in Ocala, Florida to address problems of rural America Created a platform that supported the following: Direct election of U.S. senators Lower tariff rates on imported goods Graduated (progressive) income tax New banking system regulated by the federal government

Fighting Back- The Ocala Platform Also demanded Treasury notes and silver be used to increase the amount of money in circulation Could cause inflation and raise crop prices Proposed federal storage for farmers’ crops and federal loans Would free them from dependency on manufacturers and creditors Stopped short of becoming a political party but their backing of local and state candidates who supported their goals proved decisive in 1890 elections Many reform ideas of the Grange and farmers’ alliances would become part of the Populist movement later on in the decade…

? What was the main reason why even though the number of farms in the U.S. doubled between 1865- 1900, the number of workers on farms declined during that same time period? What did farmers do to try and make more money in the face of global overproduction? What happened as a result? What unfair business practices did farmers have to compete against? How did the ruling in Wabash v. Illinois (1886) lead to the Interstate Commerce Act of 1886? What was the major objective of farmers’ alliances?