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Progressive Movement
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In the 1800s, many inventions made farming and ranching more
productive, but it also made them more expensive. Farmers went
deeper into debt as railroad shipping and storing rates soared,
and many farmers started political organizations. These
organizations, like the Grange and the People's Party, called for
the federal regulation of the railroad industry, a graduated income
tax, and changes in U.S. monetary policy.
Important Farming Innovations
Water-pumping Windmill: built in the Great Plains in the 1800s. Windmills were
an effective way to draw up water from underground since the plains did not get
much rain. Windmills allowed farming to take place in areas that were otherwise
too dry for growing crops.
Steel Plow: invented in 1837 by John Deere. The steel plow significantly
increased agricultural production in the U.S. in the 1800s.
Barbed Wire: invented in 1874 by Joseph Glidden. It is strong material made of
heavy wire with smaller pieces of wire twisted into "barbs." Barbed wire was an
affordable and effective way to fence off large areas, and it was strong enough to
keep cattle in an enclosed space.
Refrigerator Cars: invented in 1877 by Gustavus Swift. These cooled railroad
cars allowed cattle to be slaughtered in one location and sent as frozen beef to a
different location. Before refrigerator cars, cattle had to be shipped live, which was
very expensive.
Farmers and Politics
In the late 1800s, farming changed in many ways. Due to the increasing
mechanization of farming, the U.S. became a leading producer of agricultural
goods. Mechanization also decreased the number of workers needed to farm,
which caused people to move to the cities to find work. Many farmers went into
debt due as costs for machinery and shipping were increasing while at the same
time prices for crops were decreasing. An organization known as the National
Grange of the Patrons of Husbandry, also called The Grange, was formed in
1867 to address the economic and political interests of farmers.
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As farmers became more involved in politics through
organizations like the Grange, they argued for the federal
government to regulate the rates railroads charged for
storing and shipping crops. The only way most farmers
could ship their crops to market was through the railroads,
and many farmers thought the rates the railroads charged
were unfair. Railroads also owned many of the
warehouses and grain elevators used by farmers. In 1877,
the Supreme Court ruled on a case concerning the
regulation of railroads. In Munn v. Illinois, the Supreme
Court ruled that states had the right to regulate certain
businesses within their borders, including the railroad. The Supreme Court upheld
an Illinois state law that regulated the rates railroads could charge for storing crops
in grain elevators. Less than ten years later, in the 1886 case Wabash v. Illinois,
the Supreme Court ruled that states cannot regulate railroad rates because the
railroads went across state lines. The Supreme Court stated that only Congress
had the power regulate rates for interstate railroads. In 1887, Congress passed
the Interstate Commerce Act. This act allowed the federal government to
regulate the railroad industry. Farmers welcomed the federal regulation of
railroads.
Farmers' Alliances were formed in the 1880s to help farmers have a voice in
politics. Some of these alliances included the Southern Alliance for the southern
states and the Colored Farmers Alliance for African American farmers. These
groups eventually resulted in the formation of the People's Party, also known as
the Populists, in the 1890s. The People's Party was made up of mostly farmers
and some city workers who felt that the federal government policies favored big
business. In 1892, Populists met in Omaha, Nebraska, and created a platform that
included ten points. The platform was known as the Omaha Platform. Populists
called for an eight-hour workday, the direct election of U.S. senators, a graduated
income tax based on salary, the elimination of the tariff, and limits on immigration.
U.S. Monetary Policy
Both the Panic of 1873 and the Panic of 1893 started because of the failures
of companies involved in the railroad industry. In the mid-1800s, railroads in the
United States had expanded tremendously, and many railroad companies had
been quite profitable during the boom in railroad construction. Some companies,
however, had overextended themselves during this time. In 1873, Jay Cooke and
Company, an investment bank that had invested heavily in the Northern Pacific
Railroad, collapsed. This started a depression that lasted until 1879. In 1893, the
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Philadelphia and Reading Railroad declared bankruptcy. This was the start of the
Panic of 1893.
In the late 1800s, argument ensued in the United States over what the U.S.
currency should be backed by—gold, silver, or paper. Some believed the U.S.
currency should be backed only by gold. This was known as the gold standard.
Others believed that the currency should be backed by gold and silver. In the 1896
presidential election, William Jennings Bryan was the nominee for both the
Democratic Party and the Populist Party. Bryan believed that the U.S. currency
should be backed by silver and gold, which he said would lead to a more stable
economy. Bryan voiced his opposition to the gold standard in his famous "Cross
of Gold" speech at the Democratic National Convention in 1896.
$100 gold certificate note
Yet another group, called the Greenback Party, was formed in 1874 and
supported paper notes. During the Civil War, Congress had issued paper money
that was not backed by silver or gold, called greenbacks. The greenbacks had
caused inflation and cut the value of the dollar in half. Congress started taking
greenbacks out of circulation after the Civil War, but the Greenback Party wanted
to continue the issuance of greenbacks. Many members of this party were farmers
who had large amounts of debt and were having a hard time repaying those debts.
$5 greenback note from 1861
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