WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
AMERICAN INDUSTRY DEVELOPMENT IN THE GILDED AGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It mandated what kind of crops should be planted, and when.
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It could lock them into a cycle of debt that was difficult to break free from.
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It prevented them from trying out new crops or new tools.
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It did not allow them to take out loans on credit from any lender.
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Detailed explanation-1: -Abuses in the crop lien system reduced many tenant farmers to a state of economic slavery, as their debts to landlords and merchants carried over from one year to the next. Many landowners joined the ranks of farm tenants when excessive indebtedness led to foreclosure.
Detailed explanation-2: -Simply too many people were producing crops like cotton which caused prices to drop. Thus, furthering the vicious cycle of the crop-lien system. These low prices meant sharecroppers and tenant farmers were pushed further into debt.
Detailed explanation-3: -The small farmers often borrow money from money lenders. In return they are often forced to sell their produce to the money lenders at a price which is less than market price. Moreover small farmers find it difficult to avail bank loans. These reasons cause the farmers to fall into debt trap.
Detailed explanation-4: -In the post-Civil War South, the crop lien system allowed farmers to obtain supplies, such as food and seed, on credit from merchants; the debt was to be repaid after the crop was harvested and brought to market.