Safety Valve
06/12/2010 07:59
Danhof, Clarence H. "Farm-Making Costs and The "Safety Valve": 1850-60." The Journal of Political Economy 49, no. 3 (1941): 317-359.
Danhof argues that the idea that western migration represented a safety-valve for eastern wage-based industry, keeping wages high with the threat of massive migration, is complicated by the expense of actually starting a farm on the frontier. Using contemporary accounts and estimates provided in guidebooks, Danhof argues that it was not only true that a settler needed a minimum of $1,000 (“to equip and 80-acre farm, exclusive of land.” 325), but also that it was well-known. A wage worker in industry or agriculture was doing well in 1850 if he managed to save a dollar a week. Thus, a couple of people could hope to save a thousand dollars in about ten years.
Quotes many useful contemporary sources, including an 1852 address by Horatio Seymour to the NY Ag Society that “distinguished between the ‘old’ self-sufficient type of agriculture and the ‘new’ agriculture of the 1850s, focused on profits and markets.” (318) And: “No error is more common that to suppose that the farmer does not require Capital,” says the Working Farmer to its readers in 1859. (319) Even so, according to the Western Farm Journal there were “three hundred thousand men who, it was estimated, would emigrate in 1857 [and] would take $20,000,000 with them.” (322)
Contrary to some accounts that talk about the denigration of “wage-slavery,” by agriculturalists, Danhof says “Wage employment in the rapidly growing western towns and cities was frequently pictured to eastern mechanics as providing excellent opportunities to share in the growth of the West, since labor was in demand and wages were high.” (323-4) Perhaps this urban labor demand, more than farm-making, was the safety valve and the force that helped keep eastern wages high.
Government land sales to individuals totaled nearly fifty million acres from 1850-60, Danhof says. (329) And “Under the military land-grant acts of 1847 and subsequent years, the government presented, to more than half a million individuals, tracts of land varying from 40 to 160 acres each and totaling more than 57,000,000 acres. These lands came on the [secondary] market after the warrants granting them were made assignable in 1852, and an active market was conducted in them with prices substantially below the [$1.25 per acre] federal minimum.” (330) The federal government assigned to individuals by...sale and grant--about 57 per cent of its total land transfers made during the decade. the remaining land conveyances were made as grants to the states...and to canal and railroad companies.” (331) Many of these lands came back on the market in the 1850s; most notably those owned by the Illinois Central Railroad, of which by 1860 “1,279,382 acres had been sold at an average price of $11.50 per acre on terms of up to six years’ credit.” Land office officials downplayed the role of speculators, but President Buchanan warned that “large portions of ‘the public lands] have become the property of individuals and companies, and thus the price is greatly enhanced to those who desire to purchase for actual settlement.” (quoting 1857 Annual Message, 332)
Danhof mentions that many farmers were able to raise “farm-making” money by selling existing property in the east, where growth had dramatically pushed up values. He suggests on this basis that the majority of new western farmers were old eastern farmers, which can no doubt be verified demographically. And he notes in passing in his conclusion that there were a lot of other things you could do beside farming, if you ran away to the west. These other activities would have been resorted to by adventurous or desperate single people; families would (hopefully) have made more solid preparations and thought things through.
Based on my primary reading, I’d suggest that the BIG issue Danhof doesn’t directly address is extended family. Serial migration, financed by extended families. Both people who had gone before, and those who (temporarily or permanently) stayed behind, contributed to the migrating family’s expenses; with the expectation that when the time came, the previous migrants would contribute to the next. People also seem to have lived with relatives for what we would consider ridiculously extended periods.
Danhof argues that the idea that western migration represented a safety-valve for eastern wage-based industry, keeping wages high with the threat of massive migration, is complicated by the expense of actually starting a farm on the frontier. Using contemporary accounts and estimates provided in guidebooks, Danhof argues that it was not only true that a settler needed a minimum of $1,000 (“to equip and 80-acre farm, exclusive of land.” 325), but also that it was well-known. A wage worker in industry or agriculture was doing well in 1850 if he managed to save a dollar a week. Thus, a couple of people could hope to save a thousand dollars in about ten years.
Quotes many useful contemporary sources, including an 1852 address by Horatio Seymour to the NY Ag Society that “distinguished between the ‘old’ self-sufficient type of agriculture and the ‘new’ agriculture of the 1850s, focused on profits and markets.” (318) And: “No error is more common that to suppose that the farmer does not require Capital,” says the Working Farmer to its readers in 1859. (319) Even so, according to the Western Farm Journal there were “three hundred thousand men who, it was estimated, would emigrate in 1857 [and] would take $20,000,000 with them.” (322)
Contrary to some accounts that talk about the denigration of “wage-slavery,” by agriculturalists, Danhof says “Wage employment in the rapidly growing western towns and cities was frequently pictured to eastern mechanics as providing excellent opportunities to share in the growth of the West, since labor was in demand and wages were high.” (323-4) Perhaps this urban labor demand, more than farm-making, was the safety valve and the force that helped keep eastern wages high.
Government land sales to individuals totaled nearly fifty million acres from 1850-60, Danhof says. (329) And “Under the military land-grant acts of 1847 and subsequent years, the government presented, to more than half a million individuals, tracts of land varying from 40 to 160 acres each and totaling more than 57,000,000 acres. These lands came on the [secondary] market after the warrants granting them were made assignable in 1852, and an active market was conducted in them with prices substantially below the [$1.25 per acre] federal minimum.” (330) The federal government assigned to individuals by...sale and grant--about 57 per cent of its total land transfers made during the decade. the remaining land conveyances were made as grants to the states...and to canal and railroad companies.” (331) Many of these lands came back on the market in the 1850s; most notably those owned by the Illinois Central Railroad, of which by 1860 “1,279,382 acres had been sold at an average price of $11.50 per acre on terms of up to six years’ credit.” Land office officials downplayed the role of speculators, but President Buchanan warned that “large portions of ‘the public lands] have become the property of individuals and companies, and thus the price is greatly enhanced to those who desire to purchase for actual settlement.” (quoting 1857 Annual Message, 332)
Danhof mentions that many farmers were able to raise “farm-making” money by selling existing property in the east, where growth had dramatically pushed up values. He suggests on this basis that the majority of new western farmers were old eastern farmers, which can no doubt be verified demographically. And he notes in passing in his conclusion that there were a lot of other things you could do beside farming, if you ran away to the west. These other activities would have been resorted to by adventurous or desperate single people; families would (hopefully) have made more solid preparations and thought things through.
Based on my primary reading, I’d suggest that the BIG issue Danhof doesn’t directly address is extended family. Serial migration, financed by extended families. Both people who had gone before, and those who (temporarily or permanently) stayed behind, contributed to the migrating family’s expenses; with the expectation that when the time came, the previous migrants would contribute to the next. People also seem to have lived with relatives for what we would consider ridiculously extended periods.












