History of American Business

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Granger Movement

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History of American Business

Definition

The Granger Movement was a social and political movement that emerged in the United States during the late 19th century, primarily aimed at addressing the issues faced by farmers due to railroad monopolies and unfair practices. This movement advocated for cooperative buying and selling among farmers, as well as for the regulation of railroad rates and grain elevator fees, leading to significant political action and the establishment of the Populist Party. The Granger Movement highlighted the growing tensions between agrarian interests and corporate power in a rapidly industrializing economy.

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5 Must Know Facts For Your Next Test

  1. The Granger Movement began in the early 1860s as a response to economic hardship faced by farmers, particularly due to high shipping costs imposed by railroads.
  2. The movement organized local chapters known as Granges, which provided educational resources, social gatherings, and collective bargaining power for farmers.
  3. Grangers played a significant role in advocating for state legislation that regulated railroad rates, leading to successful reforms in several states.
  4. As the Granger Movement evolved, it inspired the formation of other agrarian movements, such as the Farmers' Alliances and ultimately contributed to the creation of the Populist Party in the 1890s.
  5. The legacy of the Granger Movement can be seen in later agricultural policies and regulations that aimed to protect farmers from exploitation by large corporations.

Review Questions

  • How did the Granger Movement respond to the challenges faced by farmers in the late 19th century?
    • The Granger Movement responded to farmers' challenges by organizing local chapters where members could come together to share resources and support one another against economic difficulties. The movement focused on collective buying and selling strategies, which helped farmers secure better prices. Additionally, it campaigned for regulation of railroad rates and grain elevator fees, aiming to alleviate some of the financial burdens imposed on farmers by monopolistic practices.
  • In what ways did the Granger Movement influence state legislation regarding railroad regulation during its peak?
    • The Granger Movement had a profound impact on state legislation concerning railroad regulation. Through their advocacy, Grangers successfully lobbied for laws that limited railroad rates and established oversight mechanisms. This led to the creation of regulatory commissions in several states that aimed to ensure fair pricing practices. The efforts of Grangers laid the groundwork for later federal regulation through acts like the Interstate Commerce Act.
  • Evaluate the long-term significance of the Granger Movement on American politics and agricultural policy into the 20th century.
    • The long-term significance of the Granger Movement on American politics is evident in its role as a catalyst for broader populist movements and its influence on agricultural policy. It helped create awareness about the struggles of farmers, leading to ongoing political engagement and advocacy for farmer rights. The principles established during this movement set precedents for future regulations and government interventions in agriculture, shaping policies that would address corporate power and promote fair practices for decades to come.

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