Question

Which of the following describes many of the bonanza farms of the late 1800s?

Answer 1

The history of the bonanza farm started with the arrival of the railroad, as with the history of America’s westward expansion. A group of entrepreneurs dreamed of building a railroad across the northern territory to the Pacific Ocean during the mid-1860s. The newly-formed Northern Pacific Railroad began construction with financing from Jay Cooke and his banking institution, as well as the millions of acres in government land grants. Entering present-day North Dakota., the NP has traversed the Red River by 1872.

 

The NP and the entire country was in a financial panic since Jay Cooke went bankrupt a year later. The NP allowed stockholders, who were holding deflated stock, to purchase huge tracts of land at a cost comparable with land sold by the government, in order to raise money that was needed to continue the railroads construction.