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106-673: The Ocala convention was part of a trend in the Farmers' movement of moving from its fraternal and mutual benefit roots towards an increasingly political and radical position. Earlier in the year the Farmers' Alliance had successfully backed a number of candidates for state and Federal office, and the convention delegates hoped that future political gains would lead to major economic and political reforms. In 1873 The Grange arrived in Florida. It grew to 100 lodges. The local lodges eventually agreed to form

212-445: A "domestic manufacture has attained to perfection… it invariably becomes cheaper. In this report, Hamilton also proposed export bans on major raw materials, tariff reductions on industrial inputs, pricing and patenting of inventions, regulation of product standards and development of financial and transportation infrastructure. The U.S. Congress adopted the tariffs but refused to grant subsidies to manufactures. Hamilton's arguments shaped

318-461: A Government official from the North, he must have received a generally hostile reception, but he was a Mason, and ended by founding his organization on the structure of that order. In addition to farming practices, it was to provide insurance and benevolent aid to members. Kelley and other leaders promoted the equal status of women. The women formed active auxiliaries. The Grange grew remarkably during

424-520: A common myth about United States trade policy is that low tariffs harmed American manufacturers in the early 19th century and then that high tariffs made the United States into a great industrial power in the late 19th century. A review by the Economist of Irwin's 2017 book Clashing over Commerce: A History of US Trade Policy notes: Political dynamics would lead people to see a link between tariffs and

530-433: A declaration of principles in 1874 Grangers were declared not to be enemies of railroads, and their cause to stand for no communism nor agrarianism . To conservatives, however, cooperation seemed communism, and Grange laws agrarianism; thus, in 1873-1874, the growth of the movement aroused extraordinary interest and much uneasiness. In 1874, the order was reorganized, membership being limited to persons directly interested in

636-679: A meeting held in Gainesville on October 11. During the convention there would be 1,700 members of 35 clubs would end up coming. Charles Macune , who had founded the National Farmer's Alliance, sent organizers for the Alliance to several states, including Florida, in the spring of 1887. Two organizers arrived in Florida in June and began organizing in Marianna and Citrus County . The Florida Farmer's Alliance

742-520: A negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth . Although trade liberalisation can sometimes result in large and unequally distributed losses and gains, and can, in the short run , cause significant economic dislocation of workers in import-competing sectors, free trade has advantages of lowering costs of goods and services for both producers and consumers. The economic burden of tariffs falls on

848-503: A notion believed by some to offer lessons for developing countries today. As its share of global manufacturing powered from 23% in 1870 to 36% in 1913, the admittedly high tariffs of the time came with a cost, estimated at around 0.5% of GDP in the mid-1870s. In some industries, they might have sped up development by a few years. But American growth during its protectionist period was more to do with its abundant resources and openness to people and ideas. The Economist Ha-Joon Chang argues, on

954-475: A percentage of the price) or variable (the amount varies according to the price). Tariffs on imports are designed to raise the price of imported goods and services to discourage consumption. The intention is for citizens to buy local products instead, thereby stimulating their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products. Tariffs are meant to reduce pressure from foreign competition and reduce

1060-501: A protective tariff, and we will have the greatest nation on earth" . Once elected, Lincoln implemented a 44-percent tariff during the Civil War —in part to pay for railroad subsidies and for the war effort, and to protect favored industries. After the war, tariffs remained at or above wartime levels. High tariffs were a policy designed to encourage rapid industrialisation and protect the high American wage rates. The policy from 1860 to 1933

1166-589: A role in the subsequent contraction." As of 2011, Milton Friedman held the opinion that the tariffs of 1930 caused harm but were not responsible by themselves for the Great Depression, which instead he blamed the lack of sufficient action on the part of the Federal Reserve. Peter Temin , an economist at the Massachusetts Institute of Technology, agrees that the contractionary effect of the tariff

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1272-437: A source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism , along with import quotas and export quotas and other non-tariff barriers to trade . Tariffs can be fixed (a constant sum per unit of imported goods or

1378-532: A speech in the House of Lords in which he defended fiscal retaliation against countries that applied high tariffs and whose governments subsidised products sold in Britain (known as "premium products", later called " dumping "). The retaliation was to take the form of threats to impose duties in response to goods from that country. Liberal unionists had split from the liberals , who advocated free trade, and this speech marked

1484-577: A state level lodge meeting in Monticello, Florida with B. F. Wardlaw serving as the State Master. The Florida Agriculturist was established bu The Grange. A variety of campaigns by The Grange occurred with some being successful. One successful campaign started in 1874 against those who were stealing produce and livestock eventually resulted in the Florida legislature prohibiting the sale of cotton from sunset to sunrise. An ambitious campaign launched in 1875

1590-529: A total of 12,036,089), and elected 22 presidential electors, the first chosen by any third party since 1856. In 1896, the People's Party fused with the Democratic Party in the presidential campaign, and again in 1900. During this period, the greatest part of the People's Party was reabsorbed into the two great parties from which its membership had originally been drawn; in some northern states apparently largely into

1696-533: A turning point in the group's slide toward protectionism . Lansdowne argued that the threat of retaliatory tariffs was similar to gaining respect in a room of gunmen by pointing a big gun (his exact words were "a gun a little bigger than everyone else's"). The "Big Revolver" became a slogan of the time, often used in speeches and cartoons. In response to the Great Depression , Britain abandoned free trade in 1932, recognizing that it had lost production capacity to

1802-425: Is actually used and needed by them be reclaimed by the government and held for actual settlers only. 7: Believing in the doctrine of equal rights to all and special privileges to none, we demand— a: That our national legislation shall be so framed in the future as not to build up one industry at the expense of another. b: We further demand a removal of the existing heavy tariff tax from the necessities of life that

1908-401: Is declining...faster than international trade is declining." If this decrease (in international trade) had been the cause of the depression that the countries have experienced, we would have seen the opposite". "Finally, the chronology of events does not correspond to the thesis of the free traders... The bulk of the contraction of trade occurred between January 1930 and July 1932, that is, before

2014-757: The French : tarif , lit.   'set price' which is itself a descendant of the Italian : tariffa , lit.   'mandated price; schedule of taxes and customs' which derives from Medieval Latin : tariffe , lit.   'set price'. This term was introduced to the Latin-speaking world through contact with the Turks and derives from the Ottoman Turkish : تعرفه , romanized :  taʿrife , lit.   'list of prices; table of

2120-636: The National Bureau of Economic Research highlights the predominant influence of currency instability (which led to the international liquidity crisis ) and the sudden rise in transportation costs in the decline of trade during the 1930s. Other economists believe that the record tariffs of the 1920s and early 1930s adopted by the Republicans exacerbated the Great Depresssion in the U.S., in part because of retaliatory tariffs imposed by other countries on

2226-550: The Whig Party under the name " American System " which consisted of protecting industries and developing infrastructure in explicit opposition to the "British system" of free trade. Before 1860 they were always defeated by the low-tariff Democrats. From 1846 to 1861, American tariffs were lowered but this was followed by a series of recessions and the 1857 panic, which eventually led to higher demands for tariffs than President James Buchanan signed in 1861 (Morrill Tariff). During

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2332-605: The repeal of the Corn Laws in 1846, which was equivalent to free trade in grain. The Corn Acts had been passed in 1815 to restrict wheat imports and to guarantee the incomes of British farmers; their repeal devastated Britain's old rural economy, but began to mitigate the effects of the Great Famine in Ireland. Tariffs on many manufactured goods were also abolished. But while free-trade was progressing in Britain, protectionism continued on

2438-642: The American Civil War (1861–65), agrarian interests in the South were opposed to any protection, while manufacturing interests in the North wanted to maintain it. The war marked the triumph of the protectionists of the industrial states of the North over the free traders of the South. Abraham Lincoln was a protectionist like Henry Clay of the Whig Party, who advocated the "American system" based on infrastructure development and protectionism. In 1847, he declared: "Give us

2544-643: The American producer. It upholds the American standard of wages for the American workingman". In 1913, following the electoral victory of the Democrats in 1912, there was a significant reduction in the average tariff on manufactured goods from 44% to 25%. However, the First World War rendered this bill ineffective, and new "emergency" tariff legislation was introduced in 1922 after the Republicans returned to power in 1921. According to economic historian Douglas Irwin,

2650-686: The Civil War even more explicitly protectionist than before, Germany under Bismarck rejected free trade, and the rest of Europe followed suit. After the 1870s, the British economy continued to grow, but inexorably lagged behind the protectionist United States and Germany: from 1870 to 1913, industrial production grew at an average annual rate of 4.7% in the USA, 4.1% in Germany and only 2.1% in Great Britain. Thus, Britain

2756-768: The Depression, partly as a consequence of deflation." According the historian Paul Bairoch , the years 1920 to 1929 are generally misdescribed as years in which protectionism increased in Europe. In fact, from a general point of view, the crisis was preceded in Europe by trade liberalisation. The weighted average of tariffs remained tendentially the same as in the years preceding the First World War: 24.6% in 1913, as against 24.9% in 1927. In 1928 and 1929, tariffs were lowered in almost all developed countries. Douglas A. Irwin says most economists "doubt that Smoot–Hawley played much of

2862-518: The East Asian countries, he argues that the longest periods of rapid growth in these countries do not coincide with extended phases of free trade, but rather with phases of industrial protection and promotion. He believes infant industry protection policy has generated much better growth performance in the developing world than free trade policies since the 1980s. In the second half of the 20th century, Nicholas Kaldor takes up similar arguments to allow

2968-558: The European mainland and in the United States. Customs duties on many manufactured goods were also abolished. The Navigation Acts were abolished in 1849 when free traders won the public debate in the UK. But while free trade progressed in the UK, protectionism continued on the Continent. The UK practiced free trade unilaterally in the vain hope that other countries would follow, but the USA emerged from

3074-501: The Middle States and New England; this revival was marked by a recurrence to the original social and educational objects. The national Grange and state Granges (in all, or nearly all, of the states) were still active in 1909, especially in the old cultural movement and in such economic movements, notably the improvement of highways as most directly concern the farmers. The initiative and referendum, and other proposals of reform politics in

3180-538: The North, agricultural labor forces opposed a wide range of capitalistic legislation in solidarity with other industries, notably legislation sought by railway owners. Practically all the great organizations demanded the abolition of national banks, the free coinage of silver, a sufficient issue of government paper money, tariff revision, and a secret ballot (the last was soon realized). Only less commonly demanded were an income tax, taxation of evidence of debt, and government loans on lands. All of these were principles of

3286-494: The Northern Alliance demanded restriction of the liquor traffic and for (a short time) woman suffrage. Still other issues were a modification of the patent laws (e.g., to prevent the purchase of patents to stifle competition), postal currency exchange, the eight-hour day , inequitable taxation, the single tax on land, trusts, educational qualification for suffrage, direct popular election of federal judges, of senators, and of

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3392-520: The Populist Party), which had its beginnings in Kansas in 1890, and received national organization in 1892. The People's Party emphasized free silver, the income tax, eight-hour day, reclamation of land grants, government ownership of railways, telephones and telegraphs, popular election of federal senators, and the initiative and referendum. In the presidential election of 1892, it cast 1,041,021 votes (in

3498-519: The Republican Party which most of them were part of because they had been voting for the party for many years but not getting anything out of it. However, African Americans did not want to vote for the Democratic party because they would not let them hold office. A second reason behind its formation would be that a small amount of white voters who were members of the Republican Party were not happy with

3604-528: The Republican ranks, but mainly into the Democratic Party, to which it gave a powerful radical impulse. The Farmers' movement was much misunderstood, abused and ridiculed by the societal forces it challenged. However, it accomplished a vast amount of good. The movement—and especially the Grange, for on most important points the latter movements only followed where it had led—contributed the initial impulse and prepared

3710-821: The Second World War. In Report on Manufactures , considered the first text to express modern protectionist theory, Alexander Hamilton argued that if a country wished to develop a new activity on its soil, it would have to temporarily protect it. According to him, this protection against foreign producers could take the form of import duties or, in rare cases, prohibition of imports. He called for customs barriers to allow American industrial development and to help protect infant industries, including bounties (subsidies) derived in part from those tariffs. He also believed that duties on raw materials should be generally low. Hamilton argued that despite an initial "increase of price" caused by regulations that control foreign competition, once

3816-471: The South and West. All its work in the South was accomplished within the old-party organizations, but, in 1890, the demand became strong for an independent third party, for which various consolidations since 1887 had prepared the way. By 1892, a large part of the strength of the farmers organizations, with that of various industrial and radical orders, was united in the People's Party (perhaps more generally known as

3922-511: The South denounced it as a " Tariff of Abominations " and it almost caused a rebellion in South Carolina until it was lowered. Between 1816 and the end of the Second World War, the United States had one of the highest average tariff rates on manufactured imports in the world. According to Paul Bairoch, the United States was "the homeland and bastion of modern protectionism" during this period. Many American intellectuals and politicians during

4028-414: The UK's technological advance was achieved “behind high and durable tariff barriers”. In 1846, the rate of industrialization per capita was more than double that of its closest competitors. Even after adopting free trade for most goods, Britain continued to closely regulate trade in strategic capital goods, such as machinery for the mass production of textiles. Free trade in Britain began in earnest with

4134-543: The United States and Germany, which remained protectionist. The country reintroduced large-scale tariffs, but it was too late to re-establish the nation's position as a dominant economic power. In 1932, the level of industrialization in the United States was 50% higher than in the United Kingdom. Before the new Constitution took effect in 1788, the Congress could not levy taxes – it sold land or begged money from

4240-426: The United States to achieve the fastest economic growth in the world throughout the 19th century and into the 1920s. Paul Krugman writes that protectionism does not lead to recessions. According to him, the decrease in imports (which can be obtained by introducing tariffs) has an expansive effect, that is, it is favourable to growth. Thus, in a trade war, since exports and imports will decrease equally, for everyone,

4346-677: The United States. States resorting to protectionism invoke unfair competition or dumping practices: According to the economists in favour of protecting industries, free trade would condemn developing countries to being nothing more than exporters of raw materials and importers of manufactured goods. The application of the theory of comparative advantage would lead them to specialise in the production of raw materials and extractive products and prevent them from acquiring an industrial base. Protection of infant industries (e.g., through tariffs on imported products) may be needed for some developing countries to industrialise and escape their dependence on

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4452-418: The abolition of export duties on most manufactured goods. Thus, the UK was the first country to pursue a strategy of large-scale infant-industry development. These policies were similar to those used by countries such as Japan, Korea and Taiwan after the Second World War. Outlining his policy, Walpole declared: Nothing contributes as much to the promotion of public welfare as the export of manufactured goods and

4558-485: The alliance become more political as time went on. The "Demands" adopted by the Ocala convention called for the abolition of national banks ; the establishment of sub-treasuries or depositories in every state, which would make low interest direct loans to farmers and property owners; the increase of money in circulation to not less than $ 50 per capita; the abolishment of futures of all agricultural and mechanical productions;

4664-557: The average tariff level remained around 12.5%, which was too low to encourage consumers to buy domestic products and thus support emerging American industries. When the Anglo-American War of 1812 broke out, all rates doubled to an average of 25% to account for increased government spending. The war paved the way for new industries by disrupting manufacturing imports from the UK and the rest of Europe. A major policy shift occurred in 1816, when American manufacturers who had benefited from

4770-528: The beginning of that century, the average tariff on British manufactured goods was about 50%, the highest of all major European countries. Despite its growing technological lead over other nations, the UK continued its policy of industrial promotion until the mid-19th century, maintaining very high tariffs on manufactured goods until the 1820s, two generations after the start of the Industrial Revolution . Thus, according to economic historian Paul Bairoch ,

4876-520: The city state of Athens , the port of Piraeus enforced a system of levies to raise taxes for the Athenian government. Grain was a key commodity that was imported through the port, and Piraeus was one of the main ports in the east Mediterranean . A levy of two percent was placed on goods arriving in the market through the docks of Piraeus. The Athenian government also placed restrictions on the lending of money and transport of grain to only be allowed through

4982-429: The colonists stuck to the production of raw materials and never became a competitor to British manufacturers. Policies were established to encourage the production of raw materials in the colonies. Walpole granted export subsidies (on the American side) and abolished import taxes (on the British side) on raw materials produced in the American colonies. The colonies were thus forced to leave the most profitable industries in

5088-435: The contrary, that the United States developed and rose to the top of the global economic hierarchy by adopting protectionism. In his view, the protectionist period corresponded to the golden age of American industry, when US economic performance outstripped that of the rest of the world. The U.S. adopted an interventionist policy to promote and protect their industries through tariffs. It was this protectionist policy that enabled

5194-450: The country did not want to see developed. Walpole forced Americans to specialize in low-value-added products. The UK also banned exports from its colonies that competed with its own products at home and abroad. The country banned imports of cotton textiles from India, which at the time were superior to British products. It banned the export of woollen fabrics from its colonies to other countries (Wool Act). Finally, Britain wanted to ensure that

5300-534: The country's catching-up period felt that the free trade theory advocated by British classical economists was not suited to their country. They argued that the country should develop manufacturing industries and use government protection and subsidies for this purpose, as Britain had done before them. Many of the great American economists of the time, until the last quarter of the 19th century, were strong advocates of industrial protection: Daniel Raymond who influenced Friedrich List , Mathew Carey and his son Henry, who

5406-656: The dealing in futures of all agricultural and mechanical productions; providing a stringent system of procedure in trials that will secure the prompt conviction, and imposing such penalties as shall secure the most perfect compliance with the law. 5: We condemn the silver bill recently passed by Congress, and demand in lieu thereof the free and unlimited coinage of silver. 6: We demand the passage of laws prohibiting alien ownership of land, and that Congress take prompt action to devise some plan to obtain all lands now owned by aliens and foreign syndicates; and that all lands now held by railroads and other corporations in excess of such as

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5512-478: The direction of a democratic advance, also enter in a measure into their propaganda. Defunct The Alliance carried the movement further into economics. The National Farmers Alliance and Industrial Union , formed in 1889, embraced several originally independent organizations (including The Agricultural Wheel ) formed from 1873 onwards; it was largely confined to the South and was secret. The National Farmers Alliance , formed in 1880, went back similarly to 1877,

5618-529: The directors of the Florida Farmers' Alliance had learned that Ocala would have more financial incentive. The Florida Alliance was hoping that the convention would be able to be used as a way to persuade people to join their cause. There would also be the added component of an exposition called the "Semi-Tropical Exposition" that was held to display Florida positively. This exposition was divided into four sections depicting cultural and agricultural products from

5724-562: The early 1860s, Europe and the United States pursued completely different trade policies. The 1860s were a period of growing protectionism in the United States, while the European free trade phase lasted from 1860 to 1892. The tariff average rate on imports of manufactured goods in 1875 was from 40% to 50% in the United States, against 9% to 12% in continental Europe at the height of free trade. From 1871 to 1913, "the average U.S. tariff on dutiable imports never fell below 38 percent [and] gross national product (GNP) grew 4.3 percent annually, twice

5830-737: The early years: at its peak, its membership rose to 1.5 million. The causes of its growth were much broader than just the financial crisis of 1873; a high tariff, railway freight rates and other grievances were mingled with agricultural troubles like the fall of wheat prices and the increase of mortgages. The condition of the farmer seemed desperate. The original objects of the Grange were primarily educational, but these were soon overborne by an anti-middleman, co-operative movement. Grange agents bought everything from farm machinery to women's dresses; hundreds of grain elevators and cotton and tobacco warehouses were bought, and even steamboat lines; mutual insurance companies were formed and joint-stock stores. Nor

5936-419: The economic cycle that was not there. A boom would generate enough revenue for tariffs to fall, and when the bust came pressure would build to raise them again. By the time that happened, the economy would be recovering, giving the impression that tariff cuts caused the crash and the reverse generated the recovery. Mr Irwin also methodically debunks the idea that protectionism made America a great industrial power,

6042-488: The farmers' cause (there had been a millionaire manufacturers Grange on Broadway), and after this there were constant quarrels in the order; moreover, in 1875, the National Grange largely lost control of the state Granges, which discredited the organization by their disastrous co-operation ventures. Thus, by 1876, it had already ceased to be of national political importance. About 1880, a renaissance began, particularly in

6148-407: The frontier the United States has always been "at once a developed country and a primitive one. The same political questions have been put to a society advanced in some regions and undeveloped in others. ... On specific political questions each economic area has reflected its peculiar interests" (Prof. F.J. Turner). That this idea must not, however, be over-emphasized, is admirably enforced by observing

6254-527: The general name for a movement between 1867 and 1896. In this movement, there were three periods, popularly known as the Grange , Alliance and Populist movements. The Grange , or Order of the Patrons of Husbandry (the latter official name of the national organization, while the former was the name of local chapters, including a supervisory National Grange at Washington), was a secret order founded in 1867 to advance

6360-514: The government shall establish sub-treasuries or depositories in the several states, which shall loan money direct to the people at a low rate of interest, not to exceed two per cent per annum, on non-perishable farm products, and also upon real estate, with proper limitations upon the quantity of land and amount of money. 3: We demand that the amount of the circulating medium be speedily increased to not less than $ 50 per capita. 4: We demand that Congress shall pass such laws as will effectually prevent

6466-453: The great Bureau of Commerce-and-Labor law of 1903, and the Anti-trust laws of 1903 and later. The Alliance and Populist movements were bottomed on the idea of "ethical gains through legislation." In its local manifestations the whole movement was often marked by eccentric ideas, narrow prejudices and weaknesses in economic reasoning. It is not to be forgotten that owing to the movement of

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6572-444: The great mass of farmer radicalism that has, since about 1896, become an accepted Democratic and Republican principle over the whole country. The Farmers movement was the beginning of widespread, effective protest against "the menace of privilege" in the United States. Tariff A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being

6678-405: The hands of the United Kingdom. In 1800, Britain, with about 10% of Europe's population, supplied 29% of all pig iron produced in Europe, a proportion that had risen to 45% by 1830. Per capita industrial production was even higher: in 1830 it was 250% higher than in the rest of Europe, up from 110% in 1800. Protectionist policies of industrial promotion continued until the mid-19th century. At

6784-457: The import of all kinds of manufactured imports, resulting in a huge drop in US trade and protests from all regions of the country. However, the embargo also had the effect of launching new, emerging US domestic industries across the board, particularly the textile industry, and marked the beginning of the manufacturing system in the United States. An attempt at imposing a high tariff occurred in 1828, but

6890-442: The import of foreign raw materials. Walpole's protectionist policies continued over the next century, helping British manufacturing catch up with and then leapfrog its continental counterparts. Britain remained a highly protectionist country until the mid-19th century. By 1820, the UK's average tariff rate on manufactured imports was 45-55%. Moreover, in its colonies, the UK imposed a total ban on advanced manufacturing activities that

6996-444: The importer, the exporter, and the consumer. Often intended to protect specific industries, tariffs can end up backfiring and harming the industries they were intended to protect through rising input costs and retaliatory tariffs. The notion that bilateral trade deficits are per se detrimental to the respective national economies is overwhelmingly rejected by trade experts and economists. The English term tariff derives from

7102-406: The introduction of free silver ; the prohibition of alien ownership of land, the reclamation of all lands held by railroads and other corporations in excess of what was actually used and needed by them, held for actual settlers only; legislation to ensure that one industry would not be built up at the expense of another; removal of the tariff tax on necessities of life; a graduated income tax ;

7208-430: The introduction of protectionist measures, even self-sufficient, in some countries, with the exception of those applied in the United States in the summer of 1930, but with very limited negative effects. He noted that "the credit crunch is one of the main causes of the trade crunch." "In fact, international liquidity is the cause of the trade contraction. This liquidity collapsed in 1930 (-35.7%) and 1931 (-26.7%). A study by

7314-534: The limitation of all national and state revenues to the necessary expenses of the government economically and honestly administered; strict regulation or ownership of the means of public communication and transportation; and an amendment of the United States Constitution providing for the direct election of United States senators . Originally the convention was going to be held in Jacksonville before

7420-553: The means of public communication and transportation, and if this control and supervision does not remove the abuse now existing, we demand the government ownership of such means of communication and transportation. f: We demand that the Congress of the United States submit an amendment to the Constitution providing for the election of United States senators by direct vote of the people of each state. Farmers%27 movement The farmers' movement was, in American political history,

7526-458: The motto: In things essential, unity; in all things, charity. (4) To develop a better state, mentally, morally, socially and financially - - - (6) To suppress personal, local, sectional and national prejudices. For the Southern farmer a chief concrete evil was the crop-lien system , mortgages on their future crops for furnished supplies by which cotton farmers fell into debt to country merchants. In

7632-454: The negative effect of a decrease in exports will be offset by the expansionary effect of a decrease in imports. Therefore, a trade war does not cause a recession. Furthermore, he points out that the Smoot-Hawley tariff did not cause the Great Depression. The decline in trade between 1929 and 1933 "was almost entirely a consequence of the Depression, not a cause. Trade barriers were a response to

7738-467: The one at Ocala, Florida , and that of 1889 at St Louis, Missouri , in conjunction with the Knights of Labor ) declared its principles to be: (1) To labour for the education of the agricultural classes in the science of economical government in a strictly non-partisan way, and to bring about a more perfect union of such classes. (2) To demand equal rights to all, and special privileges to none. (3) To endorse

7844-512: The organization did not attack them, the Grangers, through political farmers clubs and the like, did. In 1867, the Grange began efforts to establish regulation of the railways as common-carriers, by the states. Such laws were known as Granger Laws, and their general principles, endorsed in 1876 by the Supreme Court of the United States , have become an important chapter in the laws of the land. In

7950-463: The pace in free trade Britain and well above the U.S. average in the 20th century," notes Alfred Eckes Jr, chairman of the U.S. International Trade Commission under President Reagan. After the United States caught up with European industries in the 1890s, the Mckinley Tariff 's argument was no longer to protect “infant industries”, but to maintain workers' wages, support agricultural protection and

8056-580: The party but didn't want to vote for the Democrats and saw the Independents as a solution. The independents ended up having a meeting on June 18 in Live Oak . A slate of candidates would be selected along with a platform. In the platform it supported making education better, creating a railroad commission, free ballot and local option laws . It denounced the Bourbon Democrats (whom they thought were favoring

8162-427: The pattern of American economic policy until the end of World War II, and his program created the conditions for rapid industrial development. Alexander Hamilton and Daniel Raymond were among the first theorists to present the infant industry argument . Hamilton was the first to use the term "infant industries" and to introduce it to the forefront of economic thinking. Hamilton believed that political independence

8268-482: The poor of our land must have. c: We further demand a just and equitable system of graduated tax on incomes. d: We believe that the money of the country should be kept as much as possible in the hands of the people, and hence we demand that all national and state revenues shall be limited to the necessary expenses of the government economically and honestly administered. e: We demand the most rigid, honest and just state and national government control and supervision of

8374-492: The port of Piraeus. In the 14th century, Edward III took interventionist measures, such as banning the import of woollen cloth in an attempt to develop local manufacturing. Beginning in 1489, Henry VII took actions such as increasing export duties on raw wool. The Tudor monarchs, especially Henry VIII and Elizabeth I , used protectionism, subsidies, distribution of monopoly rights, government-sponsored industrial espionage and other means of government intervention to develop

8480-514: The president, special-interest lobbying. In 1889-1890, with the rapid growth in membership, the political (non-partisan) movement developed astonishing strength; it captured the Republican stronghold of Kansas , brought the Democratic Party to vassalage in South Carolina , revolutionized legislatures even in conservative states like Massachusetts , and seemed likely completely to dominate

8586-411: The principle of reciprocity. In 1896, the Republican Party platform pledged to "renew and emphasize our allegiance to the policy of protection, as the bulwark of American industrial independence, and the foundation of development and prosperity. This true American policy taxes foreign products and encourages home industry. It puts the burden of revenue on foreign goods; it secures the American market for

8692-436: The production of raw materials. Economist Ha-Joon Chang argued in 2001 that most of today's developed countries have developed through policies that are the opposite of free trade and laissez-faire such as interventionist trade and industrial policies to promote and protect infant industries. In his view, Britain and the United States have not reached the top of the global economic hierarchy by adopting free trade. As for

8798-555: The railroads) along with the Disston Land Sale . After the 1884 elections, the movement faded away but the grievances of many farmers still stayed the same. Another agricultural group that existed prior to the Farmer's Alliance would be a group of localized farmer's unions in northern Florida counties that started forming in March 1887. It would eventually end up becoming a state union during

8904-589: The rates of customs'. This Turkish term is a loanword of the Persian : تعرفه , romanized :  taʿrefe , lit.   'set price, receipt'. The Persian term derives from Arabic : تعريف , romanized :  taʿrīf , lit.   'notification; description; definition; announcement; assertion; inventory of fees to be paid' which is the verbal noun of Arabic : عرف , romanized :  ʿarafa , lit.   'to know; to be able; to recognise; to find out'. In

9010-482: The six leading ones alone probably had a membership of 5,000,000. Membership usually included males or females above 16 years of age. As with the Grange, so in the ends and declarations of the whole later movement, concrete remedial legislation for agricultural or economic ills was mingled with principles of vague radical tendency and with lofty idealism. Thus, the Southern Alliance in 1890 (the chief platforms were

9116-522: The social needs and combat the economic backwardness of farm life. It was founded by Oliver H. Kelley, at that time an official working in Washington DC for the Department of Agriculture. He had been sent to Virginia to assess Southern agricultural resources and practices. He found them to be generally poor, and became determined to found an organization of farmers for the dissemination of information. As

9222-504: The states. The new national government needed revenue and decided to depend upon a tax on imports with the Tariff of 1789 . The policy of the U.S. before 1860 was low tariffs "for revenue only" (since duties continued to fund the national government). The Embargo Act of 1807 was passed by the U.S. Congress in that year in response to British aggression. While not a tariff per se, the Act prohibited

9328-475: The tariffs lobbied to retain them. New legislation was introduced to keep tariffs at the same levels —especially protected were cotton, woolen, and iron goods. The American industrial interests that had blossomed because of the tariff lobbied to keep it, and had it raised to 35 percent in 1816. The public approved, and by 1820, America's average tariff was up to 40 percent. In the 19th century, statesmen such as Senator Henry Clay continued Hamilton's themes within

9434-475: The trade deficit. They have historically been justified as a means to protect infant industries and to allow import substitution industrialisation (industrializing a nation by replacing imported goods with domestic production). Tariffs may also be used to rectify artificially low prices for certain imported goods, due to 'dumping', export subsidies or currency manipulation. There is near unanimous consensus among economists that tariffs are self-defeating and have

9540-659: The two great Alliances (the Northern and the Southern), as were also pure food legislation, abolition of landholding by aliens, reclamation of unused or unearned land grants (to railways, e.g.), and either rigid federal regulation of railways and other means of communication or government ownership thereof. The Southern Alliance put in the forefront a subtreasury scheme according to which cheap loans should be made by government from local sub-treasuries on non-perishable farm products (such as grain and cotton) stored in government warehouses; while

9646-400: The way for the establishment of traveling and local rural libraries, reading courses, lyceums, farmers institutes (a steadily increasing influence) and rural free mail delivery (inaugurated experimentally in 1896 and adopted as part of the permanent postal system of the country in 1902); for agricultural exhibits and an improved agricultural press; for encouragement to and increased profit from

9752-525: The western, central and southern parts of Florida along with a department catering to women as well. In 1892 the Farmers' Alliance founded the People's (or Populist) Party, and the Ocala Demands were incorporated in the party's Omaha Platform . As the focus of the Farmers' Movement shifted into politics, the Farmer's Alliance faded away. Most of the Populist Party's platform would end up reflecting what

9858-433: The wool industry, leading to England became the largest wool-producing nation in the world. A protectionist turning point in British economic policy came in 1721, when policies to promote manufacturing industries were introduced by Robert Walpole . These included, for example, increased tariffs on imported foreign manufactured goods, export subsidies, reduced tariffs on imported raw materials used for manufactured goods and

9964-506: The work of agricultural colleges, the establishment (1885) and great services of the United States Department of Agriculture, -- in short, for an extraordinary lessening of rural isolation and the betterment of the farmers opportunities; for the irrigation of the semi-arid West, adopted as a national policy in 1902 , the pure-food laws of 1906, the interstate-commerce law of 1887 , the railway-rate laws of 1903 and 1906 , even

10070-600: Was co-operation limited to distributive processes; crop reports were circulated, co-operative dairies multiplied, flour mills were operated, and patents were purchased, that the Grange might manufacture farm machinery. The outcome in some states was ruin , and the name, Grange, became a reproach . Nevertheless, these efforts in co-operation were exceedingly important both for the results obtained and for their wider significance. Nor could politics be excluded, though officially taboo, for economics must be considered by social idealists, and economics everywhere ran into politics. Thus it

10176-520: Was denied the use of tariffs to protect its new industries. This explains why, after independence, the Tariff Act of 1789 was the second bill of the Republic signed by President Washington allowing Congress to impose a fixed tariff of 5% on all imports, with a few exceptions. The Congress passed a tariff act (1789), imposing a 5% flat rate tariff on all imports. Between 1792 and the war with Britain in 1812,

10282-459: Was finally overtaken economically by the United States around 1880. British leadership in fields such as steel and textiles was eroded, and the country fell behind as new, more technologically advanced industries emerged after 1870 in other countries still practicing protectionism. On June 15, 1903, the Secretary of State for Foreign Affairs, Henry Petty-Fitzmaurice, 5th Marquess of Lansdowne , made

10388-567: Was formed in Marianna on October 4 by 65 sub-Alliances which in total had a membership of 2,000. Oswald Wilson, one of the organizers, became its president. The Alliance grew rapidly, reaching 91 chapters in November. It absorbed the farmer's union in January 1888 with 1,700 members. By 1890 it had sub-alliances in all counties except Franklin, Lee, Dade and Monroe counties. Despite attempts to stay apolitical,

10494-573: Was much smaller, Northern and non-secret. The Colored Farmers' National Alliance and Cooperative Union (formed 1888, merged in the above Southern Alliance in 1890) was the second greatest organization. With these three were associated many others, state and national, including an annual, non-partisan, deliberative and advisory Farmers National Congress . The Alliance movement reached its greatest power about 1890, in which year twelve national farmers organizations were represented in conventions in St Louis, and

10600-458: Was one of Lincoln's economic advisers. The intellectual leader of this movement was Alexander Hamilton , the first Secretary of the Treasury of the United States (1789–95). The United States rejected David Ricardo 's theory of comparative advantage and protected its industry. The country pursued a protectionist policy from the beginning of the 19th century until the middle of the 20th century, after

10706-530: Was predicated upon economic independence. Increasing the domestic supply of manufactured goods, particularly war materials, was seen as an issue of national security. And he feared that Britain's policy towards the colonies would condemn the United States to be only producers of agricultural products and raw materials. Britain initially did not want to industrialise the American colonies, and implemented policies to that effect (for example, banning high value-added manufacturing activities). Under British rule, America

10812-522: Was small. According to William J. Bernstein , most economic historians now believe that only a fraction of the GDP loss worldwide and in the U.S. resulted from tariff wars. Bernstein argued that the decline "could not have exceeded 1 or 2% of world GDP, a far cry from the 17% recorded during the Great Depression." Jacques Sapir argues that the crisis has other causes than protectionism. He points out that "domestic production in major industrialized countries

10918-424: Was stated in the Ocala Demands. Although the Alliance did manage to merge along northern and southern lines, this did lead to the exclusion of African-Americans who were part of so called "Colored Alliances". Many white supremacists would end up abandoning the movement along with those who were economically conservative as well after the convention. 1: We demand the abolition of national banks. 2: We demand that

11024-574: Was to launch a cooperative, the Florida Cooperative Stock Company, but it end up being unsuccessful. The Grange started to decline in the late 1870s, similarly to the rest of the United States and The Grange had left Florida by 1880. A predecessor to the Populist Party would be the Independent movement in 1884. This would come as a result of several factors. The first being that African Americans in eastern Florida had grown less fond of

11130-401: Was usually high protective tariffs (apart from 1913 to 1921). After 1890, the tariff on wool did affect an important industry, but otherwise the tariffs were designed to keep American wages high. The conservative Republican tradition, typified by William McKinley was a high tariff, while the Democrats typically called for a lower tariff to help consumers but they always failed until 1913. In

11236-525: Was with the railway question. Railways had been extended into frontier states; there were heavy crops in sparsely settled regions where freight-rates were high, so that given the existing distributive system there were over production and waste; there was notorious stock manipulation and discrimination in rates; and the farmers regarded absentee ownership of railways by New York capitalists much as absentee ownership of land has been regarded in Ireland. The Grange officially disclaimed enmity to railways: Though

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