WWI through the Depression

Review

World War I

• 28. Wilson, 1913-1921• New Freedom- Favored small business, shunned social

welfare, fragmented trusts– Was against Bull Moose TR’s new nationalism which was more

progressive, borderline socialistic

• Underwood Tariff, 1913– President Wilson called for an all-out war on what he called

"the triple wall of privilege":  the tariff, the banks, and the trusts.

– He convinced Congress to pass the Underwood Tariff Bill, which significantly reduced the tariff rates.  Under authority from the 16th Amendment, Congress also enacted a graduated income tax. (revenue from income tax decreased needs for tariffs)

World War I

• 28. Wilson, 1913-1921• Important Women

– Jeanette Rankin- » First women in US HOR / “First Lady of the House”» Life long pacifist, voted against entry into WWI and

WWII– Margaret Sanger

» American birth control activist, and advocate of negative eugenics (improvement of the genetic makeup of a population by preventing the reproduction of the obviously unfit) , and the founder of the American Birth Control League

World War I

• 28. Wilson, 1913-1921• 16th Amendment-1913

– Allows Congress to collect income tax.

• 17th Amendment-– Direct Election of Senators 1913

• 18th Amendment-– Volstead Act- Prohibition, 1918

• 19th Amendment – Women’s suffrage– Led to liberalized divorce laws and Shepphard-Townher

Act- maternity research and Funding

World War I

• 28. Wilson, 1913-1921• Federal Reserve System, 1913

– The new Federal Reserve Board, appointed by the president, oversaw a nationwide system of 12 regional Federal Reserve banks. 

– Each reserve bank was the central bank for its region.  – The board was empowered to issue paper

money, Federal Reserve Notes, backed by commercial paper. 

– Thus, the amount of money in circulation could be increased as needed for the requirements of business. 

World War I

• 28. Wilson, 1913-1921• Glass-owen Act, 1913- Creation of Federal Reserve

Board– Unlike the Aldrich plan, which gave controlling interest to

private bankers with only a small public presence, the new plan gave an important role to a public entity, the Federal Reserve Board, while establishing a substantial measure of autonomy for the (regional) Reserve Banks which, at that time, were allowed to set their own discount rates.

– Also, instead of the proposed currency being an obligation of the private banks, the new Federal Reserve note was to be an obligation of the U.S. Treasury.

– In addition, membership by nationally chartered banks was mandatory, not optional.

World War I

• 28. Wilson, 1913-1921• Federal Trade Commission, 1914

– This law authorized a presidentially-appointed commission to oversee industries engaged in interstate commerce, such as the meatpackers. 

– The commissioners were expected to crush monopolies at the source

• Clayton Anti-Trust Act, 1914– lengthened the Sherman Act's list of business practices that

were deemed objectionable.  It also sought to exempt labor and agricultural organizations from antitrust prosecution, while legalizing strikes and peaceful picketing. 

– Union leader Samuel Gompers praised the act.

World War I

• 28. Wilson, 1913-1921• Troops to Nicaragua, Dominican Republic,

Haiti, Virgin Islands, Mexico• Lusitania, May 1915, Sussex Ultimatum• Zimmerman Note• World Safe for Democracy• War to End all Wars• Creel Committee• “Fourteen Points”• War Industries Board (Bernard Baruch)

World War I

• 28. Wilson, 1913-192128. Wilson, 1913-1921• Conscription• Bond Drives• Hoover Voluntary Compliance

– Food Administration– Fuel Administration

• Dissent– Strikes– Espionage Act (1918) and Sedition Act

» reflected fears about Germans and antiwar Americans.  Kingpin Socialist Eugene V. Debsand the Industrial Workers of the World (IWW) leader William D. Haywood were convicted under the Espionage Act. 

» At this time, nearly any criticism of the government could be censored and punished.

World War I• 28. Wilson, 1913-192128. Wilson, 1913-1921

• Conscription• Bond Drives• Hoover Voluntary Compliance

– Food Administration– Fuel Administration

• Dissent– Strikes– Espionage Act (1918) and Sedition Act

» reflected fears about Germans and antiwar Americans.  Kingpin Socialist Eugene V. Debsand the Industrial Workers of the World (IWW) leader William D. Haywood were convicted under the Espionage Act. 

» At this time, nearly any criticism of the government could be censored and punished.

– Schenk vs. United States- » Upheld the E&S Acts/ it argued that freedom of speech could be

revoked when such speech posed a danger to the nation. » “CLEAR AND PRESENT DANGER”

World War I

• 28. Wilson, 1913-192128. Wilson, 1913-1921• Treaty of Versailles, 1919-1920 / League of

Nations• Henry Cabot Lodge – 14 Reservations

(opposed Article 10 of treaty)

World War I• SOCIAL IMPACT- War Time to Peace Time Adjustments

– Women- earned the right to vote (played a major role in the war effort)– Prohibition (sacrifice during the war made drinking during the war

unpatriotic) – “Great Migration” – millions of A.A’s migrate to north out of the south– Inflation - during war triggers huge strikes after the war: Seattle, Boston

Police Strike, US Steel 1919– “Red Scare”-resulted from Bolshevik Revolution in 1917 (Palmer Raids) – “Red Summer”- race riots occur when returning white vets compete with

blacks for Jobs– Increased Nativism- results in immigration acts of 1921 and 1924 – Farmer’s Prosperity- led to Overfarming when Europe recovered– US emberges as world’s #1 creditor nation, growth leads to Roaring

20’s– Democrats and Wilson suffer major defeat in 1920 (Harding talks of

“Normalcy”• Americans grow tired of progressivism and are sick of sacrifice• 1920’s emerge as most conservative political era of the 20th century

American Postwar Issues

• The American public was exhausted from World War I. Public debate over the League of Nations had divided America. An economic downturn meant many faced unemployment. A wave of nativism swept the nation.

Isolationism

• Many Americans adopted a belief in isolationism. This meant pulling away from involvement in world affairs.

ROARING TWENTIES

• “Americanism” White Anglo-Saxon Protestant (WASP) values– Red Scare 1919-1920- Palmer Raids against

Russians and suspected communists• Strong Anti-Union sentiment

– Anti-Immigration/ Anti-Foreignism• Immigration Act of 1921: Reduced European Immigration• National Origins Act of 1924- Significantly reduced E.

European immigration; banned Asians• Sacco and Vanzetti• KKK

Fear of Communism• One perceived threat to

American life was the spread of Communism—an economic and political system based on a single government party, equal distribution of resources, the prohibition of private property, and rule by a dictatorship.

Communism in theSoviet Union

• In 1917, a revolution in Russia transformed the nation into a Communist state, the Soviet Union. Vladimir Lenin led the Bolsheviks and overthrew the Czarist regime. He was inspired by Marxism, a radical form of socialism that advocates violence. A Communist party was formed in America too.

Lenin

Congress Limits Immigration

• In response to nativist pressure, Congress decided to limit immigration from southern and eastern Europe. The Emergency Quota Act of 1921 established a quota system to control and restrict immigration.

America changed its formally permissive immigration policy.

Sacco & Vanzetti

• Fear of Communism took the form of a Red Scare (anti-communist hysteria) and fed nativism in America. Italian anarchists Sacco & Vanzetti, a shoemaker and a fish peddler, were convicted of robbery and murder, despite flimsy evidence. Their execution was symbolic of discrimination against radical beliefs during the Red Scare.

The Klan Rises Again

• As the Red Scare and anti-immigrant attitudes reached a peak, the KKK was more popular than ever. By 1924, the Klan had 4.5 million members.

ROARING TWENTIES

• “Americanism” White Anglo-Saxon Protestant (WASP) values– Anti-Modernism

• Creationism vs evolution (Scopes Trial)• Popular Evangelism:

– Billy Sunday- Prohibition- revivalism – Aimee Semple PcPherson- McPherson has been noted as

a pioneer in the use of modern media, especially radio, and was the second woman to be granted a broadcast license. She used radio to draw on the growing appeal of popular entertainment in North America

– PROHIBITION

ROARING 20’s

• Economic Boom “Roaring 20s”– Business like a religion (Bruce Barton: The Man Nobody Knows)

• was an American author, advertising executive, and politician • Jesus as “the Founder of Modern Business," in an effort to make

the Christian story accessible to businessmen of the time • In this book, Barton paints a picture of a strong Jesus, who worked

with his hands, slept outdoors, and travelled on foot. • This is very different from what he saw as the "Sunday School

Jesus" — a physically weak, moralistic man, and the "lamb of God".•  Barton describes Jesus as "the world's greatest business

executive", and according to one of the chapter headings, "The Founder of Modern Business", who created a world-conquering organization with a group of twelve men hand-picked from the bottom ranks of business

• Glorified business and prosperity

Roaring 1920’s

• Economic Boom “Roaring 20s” – Henry Ford– Buying on Credit/ Margin

• Mass Society: Consumerism, Media– Chain Store- Macy’s, Kaufmann’s, Horne’s

• Supermarkets mass consumption of similar products

– New Industries: Movies, radio, automobile, airplanes, synthetics, electric appliances, sports

• RESULTS- Shared Culture/Identity (Jokes, sports, movies, entertainment

Roaring 1920’s

• Economic Boom “Roaring 20s” – White collar jobs: sales, advertising,

management– “Welfare Capitalism”

• Businesses taking better care of their workers, unions will no longer be necessary

Roaring 1920’s

• Sexual Revolution– Margaret Sanger- Birth Control– Flappers– Women in speakeasies– Increase of women in the workplace– Cars-dating-taboo!– Liberalized divorce laws for women

Roaring 1920’s

• Culture– Jazz Age: Louis Armstrong, Duke Ellington– Harlem Renaissance:

• Marcus Garvey-– founds the Universal Negro Improvement Association, and its

Black Star shipping line.

– Garvey promotes pride in African heritage, and black nationalism: a very different approach to black civil rights in America.

• Langston Hughes- an African-American poet, social activist, novelist, playwright, and columnist. He was one of the earliest innovators of the then-new literary art form of Jazz Poetry

Roaring 1920’s

• Culture– Jazz Age: Louis Armstrong, Duke Ellington– Harlem Renaissance:

• Claude McKay- AA novelist

– “Lost Generation”- criticized the materialism of the 1920’s

• F. Scott Fitzgerald- Great Gatsby• T.S. Eliot- “Wasteland”• Sinclair Lewis- Nobel peace prize novelist,• William Faulkner- • Gertrude Stein-born in Pittsburgh, Poet

Roaring 1920’s

• Culture– ICONS: Sports figures

• Babe Ruth etc. / Wheaties• Chuck Lindberg

Roaring 1920’s

• Culture– ICONS: Sports figures

• Babe Ruth etc. / Wheaties• Chuck Lindberg• Sports writer –Grantland Rice

– ND Football “Knute Rockne” – Four Horseman of the Apocalypse– Red Grange “The Galloping Ghost” – Bobby Jones – GOLF

Roaring 1920’s

• Conservative Politics under Harding, Coolidge and Hoover; 1920-1932– Belief that purpose of government is to make

business more profitable– Conservative “Old Guard” idea of laissez faire– To get out of the economic slump of 1918-1921

• Prominent business men in cabinet positions– Andrew Mellon (“trickle down” theory)

» Cut Taxes» Raised Tariff (Fordney-McCumber Tariff)» Anti Trust laws not enforced » Balanced budget

Roaring 1920’s

• Conservative Politics under Harding, Coolidge and Hoover; 1920-1932– Federal Government not responsible for

helping ordinary citizens and local govt. responsibility

Roaring 1920’s

• 29 Warren G. Harding, 1921-1923– “Dark Horse” Candidate / Ohio– Washington Conference 1921-1922

• The Washington Naval Conference, also called the Washington Arms Conference or the Washington Disarmament Conference

• 9 Nations regarding interests in the Pacific (excluded Commy Russia)

• First International Conference held in US and the first International Disarmament treaty in history

• Preserved peace in the 20’s, but allowed Japan to expand its Empire in Asia

– Fordney-McCumber Tariff, 1922 • raised American tariffs in order to protect factories and farms• Ended Depression of 1920-21

Scandal Hits Harding

• The president’s main problem was that he didn’t understand the issues. Several of Harding’s appointee’s were caught illegally selling government supplies to private companies.

Teapot Dome Scandal

• The worst case of corruption was the Teapot Dome Scandal. The government set aside oil-rich public land in Teapot, Wyoming. Secretary of Interior Albert Fall secretly leased the land to two oil companies. Fall received $400,000 from the oil companies and a felony conviction from the courts

30. Coolidge, 1923-1929

• VP-Dawes• Sec of State: Frank

Kellogg• The new president, Calvin

Coolidge, fit the pro-business spirit of the 1920s very well. His famous quote: “The chief business of the American people is business . . .the man who builds a factory builds a temple – the man who works there worships there”

President Calvin Coolidge 1924-1928

Kellogg-Briand Pact 1928

• Warren G. Harding’s modest successes include the Kellogg-Briand Pact which renounced war as a means of national policy (signed by fifteen nations, but difficult to enforce), and the Dawes Plan which solved the problem of post-war debt by providing loans to Germany to pay France/Britain who then paid the U.S. Harding 1920-1924

American Business Flourishes

• Both Coolidge and his Republican successor Herbert Hoover, favored governmental policies that kept taxes down and business profits up. Tariffs were high, which helped American manufacturers. Government interference in business was minimal. Wages were increasing.

American Standard Of Living Soars

• The years 1920-1929 were prosperous ones for the U.S. Americans owned 40% of the world’s wealth. The average annual income rose 35% during the 1920s ($522 to $705). Discretionary income increased

A Superficial Prosperity• Many during the

1920s believed the prosperity would go on forever. Wages, production, GNP, and the stock market all rose significantly

• But. . . .

Problems on the Horizon?

• Businesses expanded recklessly. Iron & railroad industries faded. Farms nationwide suffered losses due to overproduction. Too much was bought on credit including stocks.

GREAT DEPRESSION

• Long Term Causes:– Weak Industries: farming, railroads,

cotton– Overproduction/under-consumption– Unstable Banking (loans, buying on

margin)– Uneven distribution of wealth– Weak international economy: high

tariffs, debt problems from WWI

GREAT DEPRESSION

• Short Term Causes :– Stock Market Crash of

1929

GREAT DEPRESSION

• RESULTS– 25% Unemployment

(33% including farmers)

• 50% in Chicago– Blacks, blue collar

workers most affected

– “Hoovervilles”, hoboes, families broke up; marriages delayed

Great Depression

• Results– 25% banks failed– Thousands of businesses failed– 25% farms went under

• “Dust Bowl” esp. Ok and Ark

The South Was Buried

• Crops turned to dust=No food to be sent out

• Homes buried

• Fields blown away

• South in state of emergency

• Dust Bowl the #1 weather crisis of the 20th century

31. Herbert Hoover, 1929-1932

• Hoover’s Response– Agricultural Marketing Act

• established the Federal Farm Board with a revolving fund of half a billion dollars.

• The original act was sponsored by Hoover in an attempt to stop the downward spiral of crop prices by seeking to buy, sell and store agricultural surpluses or by generously lending money to farm organizations.

• Money was loaned out to the farmers in order to buy seed and food for the livestock

• Didn’t work/ There was no production limit and deflation couldn’t be stopped

31. Herbert Hoover, 1929-1932

• Hoover’s Response– Volunteerism and Charity, “Rugged

Individualism”• Hands off approach---Hands off approach---the economy, business

and individuals will fix themselves eventually without the government’s interference.

VolunteerismVolunteerismHeads of industry agreed to stop

cutting wages and keep business open.

Public works-Public works- gov’t financed building projects.

Hoover Dam: Watch Video Clip from America: The Story of Us

VolunteerismVolunteerismWhy it didn’t work:

Business leaders did not honor their promises.

Hoover didn’t want to raise taxes or borrow money from banks

for gov’t works projects.

Money in the EconomyMoney in the EconomyReconstruction Finance Corporation Reconstruction Finance Corporation

(1932)

Lent $238 million to banks and railroads. / Viewed as helping the rich and not the “forgotten man” / not enough money

Emergency Relief and Construction Emergency Relief and Construction Act (1932) Act (1932) 1.5 billion in public works and $300 million in loans to states to provide relief. – given to the states not people

Bonus March• In 1924, Congress awarded $1,000 Bonus to all

veterans in 1945• May 1932 Bill to Pay Early• 15,000 veterans lobbied Congress to pass the

bill-camped out in Hoovervilles• Bill did not pass, some veterans camped out in

empty buildings• 2 veterans killed while building were being

cleared out• Camps were cleared by the U.S. military with

tear gas and fire---bad PR for Hoover

World War I veterans block the steps of the Capitol World War I veterans block the steps of the Capitol during the Bonus March, July 5, 1932. (Underwood during the Bonus March, July 5, 1932. (Underwood and Underwood)and Underwood)

Shacks, put up by the Bonus Army on the Anacostia flats, Shacks, put up by the Bonus Army on the Anacostia flats, Washington, D.C., burning after the battle with the military. Washington, D.C., burning after the battle with the military. The Capitol in the background. 1932.The Capitol in the background. 1932.

31. Herbert Hoover, 1929-1932

• National Origins Immigration Act, 1929– Only 150,000 immigrants per year were allowed in to

the U.S.A. There were to be no Asians at all. – Northern and western Europeans were to be allocated

85% of all places. – The intention of the nationality based quotas was to

restrict the number of people from southern and eastern Europe, Japan and china. By 1930, immigration from these areas had virtually stopped

31. Herbert Hoover, 1929-1932

• Hawley Smoot Tariff- 1930- – highest protective tariff in peacetime history– Duties raised from 32% to 60%– Canada, Britain, Germany, France and other

industrial countries retaliated with their own tariffs

– US imports and exports went into a tailspin