Bellringer: What problems does the “New South” face?

Despite much progress, they face poverty, segregation, post-war economy tied up in cotton and

abolition of slavery.

The New South and New Troubles

Many changes are needed!Birmingham becomes a symbol of the New

South as a developing city.Cheap labor, Railroads, and industrial growth

all help the economyStill an agricultural based economy, still tied

up in cotton, still not self-sufficent

The New South

Grady, editor of newspaper urged the south to make the following changesEconomic diversityLaissez-faire capitalismEncourage modern, industrialism, & capitalist

valuesImproved growthImproved transportation

Grady-Constitution

Grady’s suggestions put into actionRapid industrial growthCheap labor was an incentive for business

relocation from the North

Richmond-tobacco industry/had to recover from being burnt down during Civil War

Memphis-lumber industryBirmingham-steel industrytremendous growth

to the point that it became the symbol of southern industrial growth

Industry in the New South

Still remained the majority of the Southern Economy because industrial development was primarily funded and owned by the North

Poverty-poor education, poor skills, not being self-sufficient all led to poverty

Overproduction, high interest rates and the deflation of goods are the prominent characteristics of Southern Farming

Agriculture

African American scientist/teacher @ Tuskegee Institute, Alabama

Urged people to diversity farmsGrow crops such as peanuts, sweet potatoes,

soybeans, etc.Essential to help the south shift to a

diversified agricultural based economyhttp://www.youtube.com/watch?v=sdz8XTNttdc

George Washington Carver

Even with all of the changes to the New South, small farmers struggle. Farmers’ Alliance: 1 Million MembersColored Farmers’ Alliance: 250,000 Members

Political Reforms to solved farmers’ economic problems

Being divided by race hurt themCould have been stronger

Small Farmers Struggle

Career of Farming declined 60%-1860 to <37% by 1900NOT PROFITABLE!

Commercialization of farming/more specializedProduce: Dependent on large, expensive machines

(steam engine, seeders, reapers, threshers, combines)Consume: Food from local stores/manufactured goods

from mail-order catalogsOverproduction

+Increased American production and global competitionDrove prices down for cotton, wheat, etc.Farmers faced high interest/need to overproduce to pay

the bills and make a profit

Farm Troubles

National Grange-1868, organized by Oliver H. Kelley Social and educational organization for farmers

and their families Attempts to make political change, but falls

short in many ways or is forced to take backward steps as business challenges their attempts at reform to protect farmers.

Granger Laws-regulated the rates charged by railroads and elevators, illegal for RR to “fix” prices.

Farm Troubles

Munn v. Illinois-1877 upheld the right of a state to regulate business of a public nature, such as the railroads

Interstate Commerce Act/CommissionWabash v Illinois- individual states could NOT

regulate interstate commerce, 1886 *nullified many state regulations that had been established by the Grangers

Farm Troubles

Alliances-1890 1 Million farmers allied-similar reasons they joined Granges*The Alliance Movement had serious potential for

turning into a political party

Ocala Platform1. Direct election of U.S. Senators2. Lower Tariff rates3. Graduated income tax4. New banking system regulation by the federal

government1890-National Alliance

Farm Troubles: Alliances