Section One:
Farm life remains laborious, but simple.

Federal census (every ten years):  1870 census showed that the nation's urban population was growing more rapidly than rural population.

Manual labor and a few simple hand tools characterized work on most 1870 farms.

Horses, mules, and oxen supply power on early farms.

Three centers of social activity were:
a] the nearest town
b] church
c] school

Farm life in 1870 was mainly hard and lonely.

Immigrant pioneers had to adjust to a new physical environment plus a different social environment.

Section Two:  Farmers face problems of Industrial Age

Fundamental cause of agricultural discontent:
1]  overproduction
2]  falling prices

Increase in food surplus was caused by:
a]  Land in prairies and plains was put into production
b]  development of new farm machinery and improved methods of farming
c]  surplus on world open market as well

OPEN MARKET ECONOMY: HIGHLY COMPETITIVE ECONOMIC SYSTEM
GOVERNED BY SUPPLY AND DEMAND

Staple crop:  Major agricultural product grown in large quantities such as wheat or corn.

Other causes of agricultural discontent were high cost of personal and household goods.
     (cost of living)

The 1880's were often called "the decade of mortgages"(43% of farms were mortgaged)
 
Bankers charged high interest rates on farm loans because of risk. (8% to 20%)

MEDIUM OF EXCHANGE: SOMETHING OF VALUE GIVEN FOR GOODS OR SERVICES.

Falling farm prices between 1870-1900 made value of money high.

Many farmers wanted the government to print more money to cheapen it.

Middle men take a bigger share of farm products (Example: transportation)

Railroads charge low rates on some long-haul shipments, (shipments going great distances) and made up for it by charging more on short-haul shipments. (local shipments made on local lines where there was no competition)

Hardships farmers faced in the late 1800's were:
a] overproduction
b] falling prices
c] "tight money"
d] high interest rates
e] middle men
f] shipping costs

SECTION THREE:
FARM ORGANIZATIONS JOIN EFFORTS TO REGULATE RAILROADS

Grange or Patrons of Husbandry: (founder, Hudson Kelley) national farm organization started in 1867, had local chapters where farm families could meet to learn better ways of farming.

Cooperatives:  Association of Farmers organized to bypass distributors by selling directly to urban markets and by purchasing machinery and necessities for farmers in large quantities.
 

FARMERS AND SMALL BUSINESSMEN FIGHT UNFAIR BUSINESS TACTICS
                      (Granger cases)

Munn vs. Illinois:  Supreme Court ruled that state legislatures had the right to regulate businesses that affect the public.

1886 Supreme Court qualified its decision in the "Granger cases" and rules that state legislatures have no power to regulate traffic that moves across state lines.

Interstate Commerce Act (1887): farmers, business people, and the public force the government to regulate railroads that pass through more than one state.

ICC Act (1887)

The act made it illegal for such railroads to:
a] make pooling arrangements
b]  give special favors in the form of lower rate
      or rebates
c]  charge more for a short haul than for a
      long haul over the same line.
d]  charge unjust rates
e]  the act also created an Interstate Commerce
      Commission.
THIS IS THE FIRST ATTEMPT BY FEDERAL GOVERNMENT TO REGULATE 

SECTION FOUR:  FARM ORGANIZATIONS PUT INCREASING PRESSURE ON GOVERNMENT

With some experience with railroads  and government farmers take on fiscal policy.

Greenback Party:  political party that want to increase the supply of currency.{1875}

The Greenback Party took its name from the paper money, known as greenbacks, issued by the government during the Civil War.

Cheap money policy:  monetary program, included in the 1868 democratic platform, calling for the issuing of more "greenbacks" to increase the money supply.  Such a policy was seen as beneficial to the farmers and the poor.

Greenback party helps get Bland-Allison Act through requiring the treasury to buy and mint between two and four million worth of silver monthly.  (puts more money into circulation-goal cheap money 1877)

"Crime of 73":  Removal of silver coins from circulation.

Greenback party reached its greatest power in 1878 when it polled one million votes and elected 14 members to congress.

Greenback movement and Grange movement taught farmers the value of organization.

Alliances: another farm organization made up of more than one state alliance, {loose federation}
were similar to Grange in cooperative buying and selling. Also had political side and tried to protect farmers from exploitation (by 1890 3 million white voters).
(1886-1896 drought years-many farmers sell out and go back east)

(1889 and 1890 six new states enter union)

Sherman Silver Purchase Act:  required the US Treasury to purchase 4.5 million ounces of silver each month at market price and to pay for this silver with paper money that could be redeemed in gold or silver.
 

Ignatius Donnelly: Minnesota political leader, helped organize the Populist Party.  Vice. Pres, candidate, for Populist Party, 1900.

SECTION FOUR: FARMERS FAIL TO WIN CONTROL OF NATIONAL GOVERNMENT

Populist Party or People's Party:  a reformist third party made up of farmers (expressed discontent with powerful interests of industry and banking).

Populists nominated James B. Weaver for President in 1892.

Populist party known for its great speakers like Sara Emery, Mary Lease, and Donnelly.

          Election of 1892
Harrison, Republican vs Cleveland, Democrat vs Weaver, Populist.

1893 began a serious economic depression Cleveland believed uncertainty over the value of money was reason.

Bimetallism: monetary policy of furnishing security for the nation's currency with 2 metals gold and silver.

Value of silver falls and people began to exchange their silver bank notes for gold coins and the country's gold reserve shrunk!

If the gold reserves completely disappeared, the government would not be able to keep its promise to exchange gold coins for paper.

The shrinkage in gold reserves headed the country for economic disaster.

President Cleveland stopped the run on gold by repealing the Sherman Silver Purchase Act, and borrowing gold from a group of bankers headed by J.P. Morgan.

     Election of 1896
Republicans"sound money" gold standard-Wm. McKinley
vs
Democrats"Cheap money" silver people-Wm J. Bryan