Explanation:
In 1867, the first such national organization was formed. Led by OLIVER KELLEY, the PATRONS OF HUSBANDRY, also known as the GRANGE, organized to address the social isolation of farm life. Like other SECRET SOCIETIES, such as the MASONS, GRANGERS had local chapters with secret passwords and rituals.
The local Grange sponsored dances and gatherings to attack the doldrums of daily life. It was only natural that politics and economics were discussed in these settings, and the Grangers soon realized that their individual problems were common.
Identifying the railroads as the chief villains, Grangers lobbied state legislatures for regulation of the industry. By 1874, several states passed the GRANGER LAWS, establishing maximum shipping rates. Grangers also pooled their resources to buy grain elevators of their own so that members could enjoy a break on grain storage.
Morgan dollar
Morgan dollar (1878-1891)
FARMERS' ALLIANCES went one step further. Beginning in 1889, NORTHERN AND SOUTHERN FARMERS' ALLIANCES championed the same issues as the Grangers, but also entered the political arena. Members of these alliances won seats in state legislatures across the Great Plains to strengthen the agrarian voice in politics.
Creating Inflation
What did all the farmers seem to have in common? The answer was simple: debt. Looking for solutions to this condition, farmers began to attack the nation's monetary system. As of 1873, Congress declared that all federal money must be backed by gold. This limited the nation's money supply and benefited the wealthy.
The farmers wanted to create INFLATION. Inflation actually helps debtors. If a farmer owes $3,000 and can earn $1 for every bushel of wheat sold at harvest, he needs to sell 3,000 bushels to pay off the debt. If inflation could push the price of a bushel of wheat up to $3, he needs to sell only 1,000 bushels. The economics are simple.
To create inflation, farmers suggested that the money supply be expanded to include dollars not backed by gold. The first strategy farmers attempted was to encourage Congress to print GREENBACK DOLLARS like the ones issued during the Civil War. Since the greenbacks were not backed by gold, more dollars could be printed, creating an inflationary effect.
