Subtreasury Plan

Definition

The Subtreasury Plan was a proposal put forth by the Populist Party in the late 19th century as a means to address the economic challenges faced by farmers. It called for the federal government to establish a network of regional subtreasuries where farmers could store their crops and receive loans against the value of their stored goods, helping them avoid the exploitative practices of private banks and grain elevators.

5 Must Know Facts For Your Next Test

1. The Subtreasury Plan was intended to provide farmers with a stable and reliable source of credit, allowing them to hold onto their crops until prices were more favorable.
2. The plan called for the government to establish a network of regional subtreasuries, where farmers could deposit their crops and receive loans against the value of the stored goods.
3. The Subtreasury Plan was seen as a way to reduce the power and influence of private grain elevators and banks, which were often accused of exploiting farmers through unfair pricing and lending practices.
4. The Populist Party's support for the Subtreasury Plan was part of a broader effort to challenge the economic and political dominance of big business and financial elites, known as the 'Farmers' Revolt' or 'Populist Revolt'.
5. While the Subtreasury Plan was never fully implemented, it helped to shape the political discourse of the time and influenced the development of later agricultural policies, such as the establishment of the Federal Farm Loan Act in 1916.

Review Questions

• Explain the key features and goals of the Subtreasury Plan proposed by the Populist Party.
  • The Subtreasury Plan was a proposal put forth by the Populist Party in the late 19th century to address the economic challenges faced by farmers. The plan called for the federal government to establish a network of regional subtreasuries where farmers could store their crops and receive loans against the value of their stored goods. This was intended to provide farmers with a stable and reliable source of credit, allowing them to hold onto their crops until prices were more favorable and reducing their dependence on private banks and grain elevators, which were often accused of exploiting farmers through unfair pricing and lending practices. The Subtreasury Plan was part of the broader 'Farmers' Revolt' or 'Populist Revolt' against the economic and political dominance of big business and financial elites.
• Analyze how the Subtreasury Plan was connected to the broader Populist movement and its goals.
  • The Subtreasury Plan was a key policy proposal of the Populist Party, which was a political movement in the late 19th century that advocated for the interests of farmers, workers, and other common people in opposition to the perceived power of big business and financial elites. The Subtreasury Plan was seen as a way to challenge the economic dominance of private grain elevators and banks, which were often accused of exploiting farmers through unfair pricing and lending practices. By providing farmers with a stable and reliable source of credit, the Subtreasury Plan was intended to reduce the power and influence of these private entities and empower the agricultural class. The Subtreasury Plan was thus a central component of the Populist movement's broader efforts to reshape the economic and political landscape in favor of the common people, known as the 'Farmers' Revolt' or 'Populist Revolt.'
• Evaluate the long-term impact and legacy of the Subtreasury Plan, even though it was never fully implemented.
  • While the Subtreasury Plan was never fully implemented, it had a significant impact on the political discourse and policy landscape of the time. The plan helped to shape the development of later agricultural policies, such as the establishment of the Federal Farm Loan Act in 1916, which provided farmers with access to credit and financial services. Additionally, the Subtreasury Plan's focus on challenging the power of private grain elevators and banks, and empowering the agricultural class, was a central part of the broader Populist movement. Even though the plan was not enacted, it contributed to a shift in the political and economic landscape, with increased attention being paid to the needs and concerns of farmers and other working-class Americans. The legacy of the Subtreasury Plan can be seen in the continued efforts to support and protect the interests of the agricultural sector, which remains an important part of the US economy and political landscape.

Related terms

Populist Party:

A political movement in the late 19th century that advocated for the interests of farmers, workers, and other common people, in opposition to the perceived power of big business and financial elites.

Grain Elevators: Large storage facilities owned by private companies that bought and stored farmers' crops, often at unfavorable prices, exerting significant control over the agricultural market.

Free Silver:

A key policy proposal of the Populist Party, calling for the free and unlimited coinage of silver at a fixed ratio to gold, in order to increase the money supply and provide relief for indebted farmers.