Affect Of The Civil War Essay, Research Paper
Northern and Western husbandmans experienced heavy demand for groceries for the Union armed forces and for the booming industrial metropoliss. Farmers brought increased land area under cultivation, employed more machines, and enjoyed comparatively high agricultural monetary values. There were a figure of ailments that followed after the Civil War. After the Civil War the demand for agricultural green goods declined and monetary values fell. Besides, American husbandmans faced increased competition in universe markets from freshly plowed lands in Argentina, Australia, and Canada. Nevertheless, American husbandmans continued to spread out their end product. Wheat husbandmans, who in 1866 received more than $ 1.50 per bushel of wheat, and in 1894 received less than $ .70. Corn and cotton husbandmans suffered similar crisp diminutions in monetary values. With such low monetary values, husbandmans had great trouble gaining a life. Another ailment was the insufficient and expensive recognition husbandmans had driven up. Since husbandmans were considered hapless recognition hazards, Bankss were loath to allow them loans. Despite province Torahs forbiding vigorish, husbandmans frequently had to pay inordinate involvement rates, every bit high as 25 per centum per twelvemonth. Farmers unable to run into their mortgage payments, therefore lost their places and farms in the procedure. This was followed by high rates charged by Middlemen. Farmers complained that they received merely about half the monetary value that metropolis consumers paid for agricultural green goods. Farmers blamed this state of affairs on the high rates charged by jobbers. Once they secure control of a given line of concern, they are maestro of the state of affairs and can order to the two great categories with which they deal & # 8211 ; the manufacturer of the natural stuff and the consumer of the finished merchandise. & # 8230 ; Doc.F. For illustration, grain storage lifts, packinghouses, insurance companies, sweeping distributers, and particularly the railwaies. Since each railway had a practical monopoly over the transit of harvests from the little farm towns along its paths, husbandmans endured hapless service and extortionate rates. Railroads manipulated transportation costs, the new rates ruined many husbandmans. Ironically, the regulation that guided the railway companies in finding their rates was what the traffic will bear. The rate is five cents. Why, what do you intend? You promised me a rate of two cents and I went in front with my concern with that understanding & # 8230 ; . Doc. H and Doc. G. Lastly, high industrial monetary values besides contributed to the ailments of husbandmans. While husbandmans received low agricultural monetary values, they paid in a heartfelt way for manufactured goods. The husbandmans blamed high industrial monetary values upon the high duty rates, which kept out many foreign goods and therefore protected American makers from foreign competition, and the growing of concern monopoly, which curtailed domestic competition. To see to the betterment of their economic conditions, husbandmans joined in organisations such as, the Grange, the Greenback-Labor party, and the Populist party. The beginning of the Populist party had came from husbandmans who had believed that Eastern industrialists and bankers controlled both the Democratic and Republican parties. This was illustrated in the political sketch in Doc. D. One of their most prized talkers was William Jennings Bryan. husbandmans and Ag involvements gained control of Democratic nominating convention and in bend, was nominated under both the Democratic and Populist ballot. In order to collar the downward tendency in agricultural monetary value
s after the Civil War, farmers demanded cheap money, or otherwise known as inflation. Cheapening the value of money would in crease and ease the repayment of debts. True, the farmer would have to pay more for his manufactured goods, but he would benefit in the end. In document C, it shows a graph of the United States population and money in circulation between, 1865-1895. As the population doubled between 1865 and 95, but the money in circulation, apparently stayed the same, not accommodating for the growth and expansion that was needed for the economy to flourish. This growth mainly came from the increased number of immigrants coming in. One of the many stressed points, in which the Populist party wanted to slow down. It is proposed by one wing of the Democratic party and its allies, the People s and Silver parties, to inaugurate action on the part of the United States at a ratio of 16 ounces of silver to one ounce of gold…. Doc. B. For years the federal government used two metals, silver and gold, for coinage. This was called bimetallism. The government set the ratio between silver and gold at 16:1. The 16:1 ratio meant the government considered 16 ounces of silver to be equivalent to 1 ounce of gold. Since private silversmiths needed silver commercially and offered a slightly higher price, the government received very little silver for coinage. So in effect, Congress passed the Coinage Act in 1873, ending the coinage of silver money, that is, demonetizing silver. Shortly afterwards, when miners discovered rich deposits of silver in Nevada and Colorado, the market price of silver fell sharply. Silver interests, which now wanted to sell their silver to the government, vigorously denounced the demonetization of silver as the Crime of 73. The farmers reasoned that the coinage of silver would increase the amount of money in circulation and thus cheapen the value of money. The political alliance of farmers and silver interests mustered sufficient strength in Congress to pass the Bland-Allison Act of 1878. This law required the government to purchase and coin silver in limited quantities. The law did little to relieve the money shortage, and farmers and silver interests agitated for a further expansion of silver coinage. Congress responded again, as Populist party wanted under their claims for a responsive government, in 1890 by passing the Sherman Silver Purchase Act, which increased the amount of silver that the government was required to buy. Like the Bland-Allison Act, it did not halt the steady decline of any agricultural prices. Though the farmers reasoned that the coinage of silver would increase the amount of money in circulation and would, in turn, cheapen the value of money was partially correct, but ill flawed…. Doc. B and Doc.E. In fact, so much silver was now being mined that its value rapidly declined. It was now advantageous to redeem silver coin and paper money for gold. By 1893 these redemption s reduced the government s gold reserves to bare minimum. Many people that the Treasury would soon be unable to redeem silver currency for gold and that the country would have to go off the gold standard. The farmers ultimately were shooting themselves in the foot without even knowing it. In addition, shortly after the election of 1896, the Populist party later disappeared. However, though the People s party had disappeared some of their goals would emerge later on in the progressive movement, so in retrospect, all was not lost.