The growth of the railroad was one of the most significant components in economic growth. However, the railroads hurt small shippers and farmers. Competition between railroad companies required some way to win business. Many railroads offered rebates and drawbacks to larger shippers who used their railroads. However, this practice hurt smaller shippers, including farmers, for often times railroad companies would charge more to ship products short distances.
The railroads regularly used rebates and drawbacks to help win the business of large shippers, and made up this loss in profit by increasing the cost to smaller shippers such as farmers. However, in many ways, the railroads hurt small shippers and farmers because in some cases the railroad company has promised the farmer a set amount of price. Like in Frank Norris' The Octopus, a farmer is promised a two-cent rate for shipping and then is demanded to give five cents (Doc. H). This is not a justified action because the farmer was lied to and taken advantage of.
The growth of the railroad was one of the most significant elements in American economic growth, yet it hurt small shippers and farmers in many ways. Extreme competition between rail companies necessitated some way to win business. To do this, railroads would offer rebates and drawbacks to larger shippers who used their rails. This practice hurt smaller shippers, including farmers, because often times railroad companies would charge more to ship products short distances than they would for long trips. This was known as the “long haul, short haul evil”.
The growth of the railroad was one of the most significant elements in American economic growth. However, in many ways, the railroads hurt small shippers and farmers. Extreme competition between rail companies necessitated some way to win business. To do this, many railroads offered rebates and drawbacks to larger shippers who used their rails. However, this practice hurt smaller shippers, including farmers, for often times railroad companies would charge more to ship products short distances than they would for long trips.
The boom was leading people away from basic farming food and to other chains available to them. Another important reason was the lack of demand from the European market. During the war, tons of grain had been shipped by America to Europe, which made Europe, America's biggest customer of grain. But, because of the devastation in the war, many European countries had been vastly bankrupt and very few countries could afford to buy farming goods anymore. To add to this, the republicans made it worse by the high tarrifs put up to protect America industries.
Farmers felt threatened by monopolization, especially with railroads, because the lack of competition would leave profit driven corporations to raise rates, and put a strangle hold on farmers profits. As the presidential nominee of the Populist Party in the 1892 election, James B. Weaver spoke for the American farmer in his work, A Call to Action: An Interpretation of the Great Uprising [Document F]. His message may have been an accurate portrayal of the farmers woes, however, the fear that the monopolies would raise prices unreasonably never came to fruition. The late 19th century actually saw prices drop, spawning an era of consumerism. Therefore, farmers lost validity because monopolies inflicted little harm to the agrarian lifestyle in the late 19th century.
It was also getting more and more expensive to ship their goods to markets to be sold so they could make a profit. The large railroad corporations didn’t think twice about making outrageous, and unfair prices for short or long hauls even though the farmers couldn’t afford the high prices. Also, the European markets were going through a tough depression at the time, and as a result, the American farmers were struggling from the loss of foreign business. Farmers were constantly in debt and they had no power over the prices of the equipmen... ... middle of paper ... ...ncome tax, unlimited coinage of silver, immigration restriction direct election of US senators, end of absentee ownership of land, and other reforms that would give the people more power in controlling the political process. The populist movement wanted to do away with the laissez-faire attitude which the farmers felt was responsible for their current economic situation.
These businesses and corporations found ways to manipulate the government ridding of competition for farmers. Farmers feared for their production and consumer production. With the lack of competition and prices of their products through the roof, consumer will not be able to purchase items and farmers will not make a profit from what th... ... middle of paper ... ...ng silver coins to benefit from their unpaid debts. This idea was called Bimetallism(Doc A) The money supply was vacillating as the population would increase(Doc C). Higher powers such as Presidents, would only help those who would keep them as Presidents, this idea drowns in political corruption and patronage.
They now faced numerous new issues that negatively impacted their lives, and they wanted to change that. Agrarian discontent included high taxes, tariffs that increased the cost of manufacturing, a currency shortage, expensive middlemen and decreasing cotton prices . On the political and social side the power and influence held by corporations and businesses grew at an exceptional rate, creating a huge divide between the rich and poor. The lower class saw the gap grow and needed a platform to try to change their situation and the... ... middle of paper ... ...l and economic grievances and changes experienced by the working class in America leading up to the 1890s. Farmers were assimilated into the national economy but the transition was not a smooth one as businesses started controlling the flow of resources and goods and therefore the farmer’s profits.
There was also an overproduction of products. This led to lower prices and less money for the farmers. Document E gives a clear example of the results of overproduction and no demand. The low prices and deflated currency frustrated the farmers greatly, and the price of interest was so high so they had to carefully watch their debt. Monopolies formed all over the country in steel, oil, and railroad companies.