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History Of The Farmers Alliance

298 Words2 Pages

The exports of cotton during the Civil War led to several other countries producing their own cotton, such as India or Brazil. This resulted in a large decline in demand for cotton, which sent a vast quantity of farmers into debt. Many farmers attempted to mortgage or sell large proportions of their property. Several farmers also tried to receive loans from banks as a way to accommodate themselves. However, due to the excessive interest rates proposed by banks and merchants, this resulted in several farmers lacking the sufficient amount of money in order to pay their bank the loans they borrowed. Additionally, railroad companies demanded high freight rates from farmers who wished to ship their products and the government raised policies which declined the amount of money supplied to the agricultural industry. Therefore, as a solution to their extensive misfortune, several farmers in the South created the Farmers Alliance, in the late 1870’s, this was the main precedent for the People 's Party. The Farmers Alliance main purpose was to relieve the excessive tax regulations and policies, created by major business monopolies, that installed pressure and the agricultural industry. However, the farmers could not afford such plan. …show more content…

Therefore, the major implication of the Farmers Alliance, the “subtreasury plan”, was their proposal to establish several warehouses in which they would store their crops as “collateral”, or as a secure product to

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