Why were farmers in favor of monetary inflation?
Farmers sought inflation of the money supply so that more money would be available to them for credit, prices for their crops would rise, and debts would become easier to repay.
Why did farmers support backing money with silver?
An 1896 cartoon of William Jennings Bryan supporting “Free Silver.” What exactly did he mean that money did not need to be “backed” by gold? Bryan wanted the United States to use silver to back the dollar at a value that would inflate the prices farmers received for their crops, easing their debt burden.
Why did farmers support backing money with silver quizlet?
-restored silver as legal money in U.S. Farmers would benefit from higher prices for crops, and wanted silver. The silver Vs. gold issue was a central point in the elections of 1896 and 1900.
What was the main reason Western farmers wanted the nation to adopt a silver standard for currency production in the late 1800s?
Supporters of free silver included owners of silver mines in the West, farmers who believed that an expanded currency would increase the price of their crops, and debtors who hoped it would enable them to pay their debts more easily.
Do farmers gain from inflation?
Inflation in retail prices has not been accompanied by an increase in farm-gate prices for farmers. Since a majority of agricultural items, including cash crops such as cotton, have shown negative WPI inflation, the earnings of farmers must have been worsening.
Why did farmers oppose the gold standard?
Gold Standard- Money in circulation is backed by gold. Amount of money in circulation is restricted by amount of gold to back it. Farmers were opposed to the gold standard because it restricted the amount of money in circulation.
Why did farmers want bimetallism?
Bimetallism was intended to increase the supply of money, stabilize prices, and facilitate setting exchange rates. Some scholars argued that bimetallism was inherently unstable owing to Gresham’s law, and that its replacement by a monometallic standard was inevitable.
Why did business not like bimetallism?
Arguments advanced against bimetallism are: (1) it is practically impossible for a single nation to use such a standard without having international cooperation; (2) such a system is wasteful in that the mining, handling, and coinage of two metals is more costly; (3) because price stability is dependent on more than …
Why is bimetallism bad?
This instability can be traced to Gresham’s Law, which colloquially states that “bad money drives out good.” Because the prices of two commodities such as gold and silver will invariably fluctuate relative to each other, there will be a tendency for people to hoard money minted from or backed by the relatively more …
What is bimetallism And why did farmers want it?
Who will suffer most from the inflation?
Inflation means the value of money will fall and purchase relatively fewer goods than previously. In summary: Inflation will hurt those who keep cash savings and workers with fixed wages. Inflation will benefit those with large debts who, with rising prices, find it easier to pay back their debts.
What did farmers do when they went into debt?
As farmers fell deeper into debt, whether it be to the local stores where they bought supplies or to the railroads that shipped their produce, their response was to increase crop production each year in the hope of earning more money with which to pay back their debt. The more they produced, the lower prices dropped.
Why did farmers want a new political party?
Why did farmers think that a new political party was needed to bring about reform? The major parties didn’t represent farmers’ interests. Farmers wanted a voice in government. be a Populist alternative to the Democratic and Republican Parties.
What did the federal government do for farmers?
Under this plan, the federal government would store farmers’ crops in government warehouses for a brief period of time, during which the government would provide loans to farmers worth 80 percent of the current crop prices.
How did farmers make money in the populist era?
When market prices rose sufficiently high enough, the farmer could withdraw his crops, sell at the higher price, repay the government loan, and still have profit remaining.
As farmers fell deeper into debt, whether it be to the local stores where they bought supplies or to the railroads that shipped their produce, their response was to increase crop production each year in the hope of earning more money with which to pay back their debt. The more they produced, the lower prices dropped.
Under this plan, the federal government would store farmers’ crops in government warehouses for a brief period of time, during which the government would provide loans to farmers worth 80 percent of the current crop prices.
Why was the New Deal important to farmers?
By February 1935, more than 20 percent of rural families in the Great Plains were receiving this help. FDR believed farming was an essential part of the American way of life as well as key to the recovery of its economy. LOC The Great Depression pummeled farmers and rural America.
When market prices rose sufficiently high enough, the farmer could withdraw his crops, sell at the higher price, repay the government loan, and still have profit remaining.
