Was the Crop-Lien System Successful? Why or Why Not

question 86

Multiple Choice

Was the crop-lien system successful? Why or why not?

• A) Yes, it was an effective system because landowners tended to encourage sharecroppers and tenants to grow their own vegetable gardens, thereby allowing them to feed themselves.
• B) Yes, it was an effective system because due to the availability of fertile land, the farms were large and generated considerable amounts of income for both landlord and sharecropper.
• C) Yes, it was an effective system because it developed close and trusting bonds between those who worked the farms and their landlords, as they received a consistent share of the proceeds.
• D) No, it was self-destructive because overplanting tobacco and cotton led to the terrible erosion of farmland and was a post-Civil War version of economic slavery for poor white and black people.
• E) No, it was self-destructive because most farmers owned the land on which they worked and, thus, took good care of it to meet their own needs, rather than paying back the former landlord.

---

Definitions:

Corporate Charter

A corporate charter is a legal document that establishes a corporation, setting forth its structure, powers, and objectives as granted by the state.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or the holders.

Cash Dividend

A payment of profits by a company to its shareholders in the form of cash, typically issued on a quarterly basis.

Liability

A financial obligation or debt owed by a business to another entity.