Recording-2025-01-29T14_38_25.475Z

Background of Farmers Alliance

• Economic difficulties for farmers in the late 19th century, including high railroad rates

• Many farmers lost property rights due to inability to pay debts

• Formation of the Farmers Alliance in the late 1870s as a response

Structure of the Farmers Alliance

• Local Level: Started at the county level, where farmers would form alliances

• State Level: County alliances organized into state alliances

• Regional Alliances: Formation of Southern and Western Farmers Alliances

• By 1890, alliances had spread to 43 states, primarily in the Midwest and South

Objectives and Activities of the Alliance

• Legislation Lobbying: Advocated for state regulation of railroads and lowering rates

• Challenges: Many efforts were ineffective due to:

  • Regulation difficulties across state lines

  • Regulatory bodies often captured by the railroads through lobbying and bribery

Cooperative Principles

• Negotiation Power: Individual farmers had little power to negotiate with grain mills

• Grain Exchanges: The Alliance set up exchanges to help farmers sell crops directly to grain mills, reducing reliance on middlemen

• Supply Acquisition: Alliances aimed to buy supplies like fertilizers directly from manufacturers to lower costs for farmers

• Cooperative Loans: Farmers could obtain loans from exchanges instead of private retailers, aiming for lower interest rates

Economic Crises in the Late 1880s

• Crop prices plummeted, leading to financial crises within the alliances

• Many exchanges went bankrupt after making loans to members who could not repay them

• Farmers sought federal intervention for grain warehouses to store crops and stabilize prices

Political Mobilization of Farmers

• Formation of distinct political parties began in 1890 as alliances tried to increase political influence

• Creation of various parties at the state level; many had success in local and state elections

• Increased assertiveness in politics, leading to a push for a national party

Formation of the People’s Party

• In 1892, the national movement led to the establishment of the People’s Party, also known as the Populist Party

• Support Base: Farmers, particularly in hard-hit regions, aimed to unite across racial lines (black and white farmers) for common interests

• Production Class Theory: Defined political coalitions based on shared economic interests of those engaged in physical labor

Key Preamble to People’s Party Platform

• Income Tax: Proposed a federal income tax targeted at wealthy individuals to redistribute wealth more equitably

• Transportation and Warehouses: Advocated for federally funded grain warehouses and potentially nationalized railroads

• Political Reform: Called for direct election of U.S. senators to address issues of representation and accountability to the public

• Advocating for Common Interest: Attempted to unite various classes of producers against economic elites and capitalists who profited off their labor

Conclusion

• Farmers Alliance and the Populist Party represented a significant political shift in the late 19th century, as agrarian movements sought to address economic inequalities and assert political power.