Return to Normalcy (1920 - 1932) Flashcards

1
Q

List the Presidents from this era

A

Harding: 1921-1923
Coolidge: 1923-1929
Hoover: 1929-1933

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Describe Harding’s achievements

A
  • Number of effective appointments
  • Sheppard-Towner Maternity Act
  • Successful cuts to government spending
  • Reduced federal government intervention, achieving ‘return to normalcy’
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Describe Harding’s effective appointments

A

Andrew Mellon as Treasury and Hoover as Secretary of Commerce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Describe the Sheppard-Towner Maternity Aid Act

A
  • 1921
  • Provided federal aid to states to encourage the building of infant and maternity health centres
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Describe how Harding cut government spending

A
  • Budget and Accounting Act made departments present budgets for presidential approval
  • Government spending down from $5,000 million in 1920 to $3,333 million by 1922
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Describe Harding’s limitations

A
  • Traditional policies and values
  • Return to before the war
  • Isolationism and conservatism
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

List the controversies under Harding

A
  • Teapot Dome Scandal
  • ‘Ohio Gang’
  • Harding’s behaviour
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Describe the Teapot Dome Scandal

A
  • An oil reserve, originally reserved for the Navy, was put under the control of the Secretary of the Interior, Albert Fall
  • Fall was later accused of leasing oil drilling rights in return for bribes
  • Assistant Attorney General committed suicide in 1923 during investigations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Describe the ‘Ohio Gang’

A

Harding’s close friends became notorious for their poker parties in the White House, and boozy meetings at a private house on K Street

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Describe Harding’s scandalous behaviour

A

Renowned for drinking during prohibition and having affairs with many women, some of whom were married

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Describe the 1927 Immigration Act

A

Under Coolidge

  • Implemented a literacy test that require immigrants over the age of 16 to demonstrate basic reading comprehension in at least one language
  • Increased the tax paid by new immigrants upon arrival
  • Excluded entry for anyone born in the ‘Asiatic barred zone’ except for Japanese and Filipinos
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Describe the initial immigration quota introduced by Dillingham

A
  • Set at 3% of the total population of the foreign-born of each nationality in the US as recorded in 1910 census
  • Total number of new immigrant visas each year = 350,000
  • Initially vetoed by President Wilson but later passed by President Harding
  • 1922, the act was renewed for another two years
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Describe how the immigration quota changed in 1924

A
  • The existing quota was lowered from 3% to 2%
  • The year on which the quota calculations were based was pushed back from 1910 to 1890
  • The % of visas available to the British Isles and Western Europe increased, but visas to Southern and Eastern Europe were limited.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Describe the impact of the immigration quotas on international relations

A

The Japanese were particularly offended by the Act:
- The Japanese government protested but the law remained
- Tensions between the two countries increased

Relations with Europe remained positive despite the restrictions:
- The global depression of the 30’s and WW2 limited European immigration anyway

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Describe the strengths of Coolidge’s presidency

A
  • Made more speeches and met more people than any of his predecessors
  • He excluded confidence and appeared calm and unflappable
  • He was honest and incorruptible (he did not smoke, drink or chase women)
  • He extended Republican pro-business policies, including low taxation, low interest rates and minimal government spending
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Describe the weaknesses of Coolidge’s Presidency

A
  • Was criticised for doing very little during his presidency
  • Slept a lot and said very little, nicknamed ‘Silent Cal’
  • Some believe he suffered a severe depression in 1924 following the death of his son
  • He appeared to have a superiority complex
  • Coolidge refused to stand as president in 1928 due to health concerns
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Describe the aims of foreign policy during this period

A
  • Avoid involvement in any future European conflict
  • Fear of communism following October 1917 Bolshevik revolution in Russia
  • Maintain the most powerful navy in the world
  • Protect trade interests and maintain ‘Open Door’ policy
  • Maintain Monroe Doctrine and political and economic interests in Latin America
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Describe the Washington Conference

A
  • Peace conference
  • November 1921
  • Attended by the US, Great Britain, Japan, France and Italy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Describe the achievements of the Washington Conference

A
  • 1921
  • Disarmament Agreement signed by US, GB, Japan and France with Italy signing in 1922
  • Four key countries signed Four Power Treaty, agreeing to respect each others interests in the Far East
  • Japan promised to remove troops from Chinese province Shantung and US agreed not to strengthen military presence in Guam
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why did the US attend the 1921 Washington conference?

A
  • The US wanted to prevent the renewal of the Anglo-Japanese Alliance as they feared the spread of Japanese influence
  • Secretary of State was a keen supporter of disarmament
  • Wanted to maintain current relations with China
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Describe the limitations of the 1921 Washington Conference

A
  • Disarmament Agreement only applied to naval battleships and aircraft carriers
  • DA had no method of enforcement
  • Japan broke the DA by the 1930’s
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Describe the Kellogg-Briand Pact

A
  • 1928
  • The pact was signed by 15 countries which agreed not to wage war except in self-defence and to seek peaceful means to resolve disputes
  • Not enforced and no sanctions for countries that broke the treaty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Why did the US sign the 1928 Kellogg-Briand Pact?

A
  • Placate the French, who wanted a much stronger alliance with the US than they were willing to offer
  • Increasing peace movements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Describe US loans to Europe

A
  • US was prepared to lend money to post-war countries to restore prosperity and prevent the spread of Communism
  • Insisted all war debts had to be repaid and even used this to threaten Europe
  • Britain tried to force up the price of rubber by restricting exports but was forced to back down when the US threatened harsher repayments for war debts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Describe the Dawes Plan

A
  • 1924
  • Reduced German payments to $250 million a year, increasing over the next five years as the economy recovered
  • Immediate loan of 800 million marks, half of which came from US bankers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Describe the Young Plan

A
  • 1929
  • Scaled down reparations to $26 billion over 59 years
  • US loaning money to Germany, Germany repaid Europe, Europe repaid US
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Describe US economic involvement in Latin America during this period

A
  • US investment in LA doubled 1924-29, from $1.5 billion to $3 billion
  • US companies dominated movies and radio
  • The Kemmer Plans helped to stabilise and develop economies by offering advice on currencies and bank systems
  • Necessary intervention to prevent US loans being spent by corrupt officials
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Describe US intervention in Colombia

A

US gave Colombia $25 million in compensation for its support for the independence of Panama in 1903

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Describe US intervention in Mexico

A
  • Ongoing dispute with Mexico after it defaulted on its international loans in 1914
  • In 1922, Mexican gov agreed to repay $500,000
  • 1923, the Bucareli Accords provided compensation for damage caused to foreign property during the Mexican Revolution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Describe US intervention in Nicaragua

A
  • 1925, US troops withdrew from Nicaragua
  • 1926, 5,000 troops sent back in following the outbreak of civil war
  • US diplomat Stimson organised Peace Treaty of Tipitapa
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Describe how WW1 contributed to the 1920’s economic boom in the US

A

European countries bought supplies and loans from the US. New technology was developed.

  • The US overtook Germany as the world leading producer of fertilisers and chemicals
  • By 1920, the US produced and consumed 70% of the world’s oil and was its leading producer of coal and steel
  • On the Great Planes, farms supplied the rest of the world with 1/3rd of its wheat and over 2/3rd of its corn

However, wealth was unevenly distributed and small farms particularly struggled

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Describe how Republican policies contributed to the 1920’s economic boom in the US

A
  • Laissez-faire
  • Rugged individualism
  • Protectionism
  • The Fordney-McCumber Tariff 1922 raised import duties on goods coming into the US to their highest ever levels
  • Mellon handed out tax reductions totalling $3.5 billion to large-scale industrialists and corporations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Describe why consumerism rose during the 1920’s

A

The growth of electricity:
- 1912 to 1927, the no of americans living in electrically lit homes 16% to 63%
- The amount of oil used doubled and gas quadrupled

Female employment
- Increased the need for labour saving devices under hire purchase schemes

  • The popularity of entertainment meant more americans brought gramophones
  • 1923 to 1929, the average wage rose by 8%
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Describe the rise of advertising in the 1920’s

A
  • Companies began to hire psychologists to design campaigns and target specific groups
  • Increasing focus on slogans, brand names, celebrity endorsements and consumer aspirations
  • Lucky Strike encouraged young women to smoke by branding their cigarettes ‘torches of freedom’
  • By 1929, companies were spending $3 billion annually on advertising, five times more than in 1914
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Describe the growth of the car industry

A
  • 4.5 million cars were on the road by the end of the 1920’s
  • This became the largest industry in the US
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Describe the benefits of the car industry

A
  • It used many materials that generated jobs for 5 million people
  • Around 90% of petrol, 80% of of rubber and 75% of plate glass made in the US was used by the car industry
  • It promoted road building, travel and hospitality industry
  • The production of automobiles rose from 1.9 million in 1920 to 4.5 million in 1929
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Describe road building

A
  • The Federal Highway Act of 1921 gave responsibility for road building to central government
  • Highways were being constructed at the rate of 10,000 miles a year by 1929
  • In 1936, the Bureau for Public Roads reported that between 25 and 50% of the roads built over the previous 20 years were unfit for use as traffic was wearing them out
  • Created service industries such as motels and petrol stations
  • In 1929, 15 billion gallons of petrol were used and 4.5 million new cars sold
38
Q

Describe technological change

A
  • Electricity provided a cheaper and more reliable energy source and stimulated other electrical goods like fridges and vacuums
  • Conveyor belt and mass production techniques were developed by the car industry and increased productivity and products
  • Plastics like Bakelite were developed and used in household goods
  • Other innovations included glass tubing, automatic switch boards and concrete mixers
  • Skyscrapers started being built
39
Q

Describe new business methods

A
  • By 1929, the largest 200 corporations possessed 20% of the nation’s wealth
  • They operated cartels to fix prices and the government turned a blind eye
  • Some corporations were so big that they were able to dictate output and price level throughout the industry
  • They also created holding companies (e.g Samuel Insull bought up 111 electrical companies)
  • There was significant growth in business schools with 89 by 1928, training 67,000 students
40
Q

Describe credit

A
  • This meant people could buy goods even if they did not have enough cash to pay for them immediately
  • This was due to the development of hire-purchase where goods were paid for in instalments
  • About half the goods bought in the 1920s were paid for by hire purchase
41
Q

Describe confidence

A
  • Stocks and shares rose steadily throughout the decade and then rose dramatically in 1928 to 1929
  • Even ordinary people became involved in buying and selling shares
  • The number of shares traded in 1926 was 451 million, increasing to 577 million in 1927
  • In 1929 there were more than 1.1 billion shares sold
  • Up to 25 million Americans became involved in shares in 1929
42
Q

Describe the employment of women

A
  • 1930, 2 million more women were employed than there had been 10 years earlier
  • These tended to be unskilled low-paid jobs
  • Medical schools only allocated 5% of places to women
  • The number of female doctors in the 1920’s actually decreased
  • Still massive pay inequality
  • Supreme court banned all attempts to set minimum wage for women
  • 1927, women’s textile workers in Tennessee went on strike for better wages but were arrested by the local police
43
Q

Describe progress for women’s rights

A
  • Women were given the vote in 1920
  • Nellie Taylor Ross of Wyoming became the first woman to be elected governor of a state in 1924
  • Bertha Knight Landes became the first female mayor of a city, Seattle
44
Q

Describe limitations in women’s rights

A
  • Only a handful of female politicians
  • The women’s movement failed to get the Equal Rights Amendment Act passed
  • Disenfranchisement of Native American and African American women
45
Q

Describe women’s birth control

A
  • Back street abortions killed up to 50,000 women per year

Margaret Sanger wrote articles on contraception:

  • The Comstock Act of 1873 banned the distribution of article on contraception and items through the US mail
  • She was arrested in 1916 for opening the first contraception clinic in the US
  • 1921, she founded the American Birth Control League
  • She began to promote sterilisation for mentally handicapped people
  • Supporters of eugenics often also supported birth control as a method of maintaining racial purity
46
Q

Describe ‘flappers’

A
  • Women who opposed traditional attitudes to and appearance of women
  • They were often seen as too extreme and disapproved of by religious groups
  • Formation of the Anti-Flirt League
  • In reality, there was little change for women during this period
47
Q

Describe how religion was a cause of prohibition

A
  • Women’s Christian Temperance Union (WCTU) campaigned hard for prohibition
  • Female reformers argued → clear links between the consumption of alcohol and wife beating and child abuse
  • Many religious groups saw alcohol as the root of the sin and evil values of American people
  • Some religious groups, such as the Methodists and Baptists, joined the crusade
  • Fundamentalist preachers, such as Billy Sunday, persuaded many conservatives that alcohol was evil
48
Q

Describe how politics was a cause of prohibition

A
  • The Anti-Saloon League campaigned against the devastating effects of excessive drinking.
  • Introduction of Income tax made up for the lost revenue from alcohol →alcohol had accounted for 30-40% of government revenue from alcohol tax
49
Q

Describe how big business was a cause of prohibition

A
  • Big business was told that alcohol was causing their workers to massively decrease in productivity
  • Workers were told that alcohol was being used to suppress them
50
Q

Describe how patriotism was a cause of prohibition

A
  • A lot of brewers were immigrants, particularly Germans
  • With the outbreak of WW1, drinking alcohol was likened to supporting Germany
  • The argument was presented that immigrants brought over alcohol and it was harming the true American lifestyle
51
Q

Describe how tensions between brewers and distillers was a cause of prohibition

A
  • Brewers argued that beer was healthy and spirits were harmful
  • This was in hope of deflecting criticism from themselves
  • This meant the alcohol industry did not present a united front against prohibition and any resistance was weak
52
Q

Describe the rise of speakeasies

A
  • Illegal bars
  • More speakeasies in NY than there had been bars
53
Q

Describe ‘moonshine’

A
  • Home-made liquor
  • It was easier to produce illegal spirits than beer so people were drinking stronger alcohol

This was very dangerous to make:
- Stills sometimes exploded
- The liquor produced was incredibly strong and unregulated so could be deadly

54
Q

Describe the rise in organised crime

A
  • Linked to prohibition
  • Al Capone
  • St Valentine’s day massacre
54
Q

Describe the rise in organised crime

A
  • Linked to prohibition
  • St Valentine’s day massacre
  • ‘Big Bill’ Thompson, the Mayor of Chicago, did almost nothing to control the gangsters in the city
  • By the time Al Capone went to jail in 1932, it was estimated his gang had made over $70 million in illegal business
55
Q

Describe how prohibition led to a rise in corruption

A
  • Bootleggers made huge amounts of money so were able to easily bribe the police
  • Policemen didn’t believe in the law they were policing
  • Policemen made very limited money and were often from the same backgrounds as the gangsters
56
Q

Describe how prohibition affected the economy

A
  • Brewing industry suffered badly. St Louis had 22 breweries before but only 9 re-opened after 1933
  • Breweries, distilleries and saloons closed which led to a loss of thousands of jobs and lead to some dereliction of property
  • In New York, almost 75% of the state’s revenue was from liquor lax - this was lost
  • Prohibition cost the government $11 billion in loss of tax revenue
  • Prohibition cost the government $300 million to enforce
57
Q

Describe the loopholes people used to get around prohibition

A
  • Alcohol for medicinal purposes was not illegal
  • Alcohol for industrial use was not illegal (Poison was put in this alcohol and lead to many deaths)
  • Legal to drink in international waters (Drinking parties on boats)
  • Alcohol for religious purposes was not illegal
58
Q

Describe the trial of Sacco and Vanzetti

A
  • 2 italian immigrants put on trial and eventually executed for anarchy
  • Symbolised anti-immigrant ideas
59
Q

Describe the revival of the KKK in the first half of the 1920’s

A
  • The Birth of a Nation film, released 1915, showed the Klan saving white families from violent African-Americans
  • White war veterans were increasingly militant
  • Increasing industrialisation and urbanisation brought people together
  • Black migration to the North increased tensions
  • Southern whites also resented the arming of African-Americans during the war
  • 1920, 100,000 members
  • 1925, claimed to have over 5 million members
  • Lynchings and racially motivated attacks increased
60
Q

Describe the suppression of African Americans

A
  • Rumours that AA were turning pro-German during the war
  • Black Press strongly investigated
61
Q

Describe the decline of the KKK in the second half of the 1920’s

A
  • 1925, one of its leader, Grand Wizard David Stephenson, was convicted of a sexually motivated murder
  • Stephenson produced evidence of the Klan’s illegal business in hope of a shorter sentence
  • Discredited the Klan and led to a decline in membership
  • Public opinion began to turn against the KKK
62
Q

Describe the patriotism of African Americans

A
  • 200,000 AA served abroad
  • Returned with stronger black conscience and renewed energy for civil rights protest
63
Q

Describe the Black Press

A
  • 200 weekly papers and six monthly magazines representing AA views
  • NAACP periodical, The Crisis, 1917-1918, circulation increased 41,000 to 74,000
64
Q

Describe the Monkey Trial

A
  • 1925
  • Six states decided to ban the teaching of evolution in their schools
  • A Tennessee biology teacher called John Scopes deliberately taught evolution in class and was arrested and put on trial
  • Scopes lost the trial and was convicted of breaking the law
  • However, the trial was a disaster for Fundamentalist public image and they were mocked in the media
65
Q

Describe the events of the Wall Street Crash

A

24th October 1929 - ‘Black Thursday’. Panic and prices falling, 13 million shares sold.

25th October 1929 - Bankers meet at midday and pour money into the markets in an attempt to support them. Prices steadied.

26th October 1929 - Hoover claims the panic is over and that banking would soon recover

29th October 1929 - ‘Black Tuesday’. The worst day ever with 16.5 million shares traded. Shares lost all value and many lost everything. Suicides reported.

66
Q

Describe how the banking system was a cause of the 1929 Wall Street Crash

A
  • Banks to regulate themselves without government interference
  • The Reserve Banks acted in the interest of bankers rather than the country as a whole
  • In the 1920’s there were over 30,000 banks in the US and most of them were small and unstable.
  • The Federal Reserve Board favoured low interest rates and in 1927 it lowered them from 4% to 3.5%. This encouraged easy credit and the ‘bull market’
67
Q

Describe how overspeculation on the stock market was a cause of the 1929 Wall Street Crash

A
  • More and more Americans were gambling their money on shares, with the presumption that prices would continue to rise
  • Lack of government regulation allowed speculation to continue
  • The stock market value of shares increased from $27 billion in 1925 to $87 billion by October 1929
  • By summer 1929, there were 20 million shareholders in the US
68
Q

Describe how the availability of easy credit was a cause of the Wall Street Crash

A
  • This allowed people to buy with money they didn’t have
  • Firms allowed customers to pay in instalments in hire purchase
  • ‘Buying on the margin’ was the practice of buying shares on credit
  • As prices started to slow down and then fall problems began
  • Over 75% of the purchase price of shares was borrowed and this had created artificially high prices
69
Q

Describe how loss of confidence was a cause of the 1929 Wall Street Crash

A
  • The market was only maintained by peoples financial confidence
  • In autumn 1929, experts started to sell their shares before prices fell further and small investors panicked
  • This led to a rush to sell shares and prices fell
  • Thousands of investors lost millions of dollars
  • This was partly caused by rumours that the Federal Reserve Banks was about to make credit less available and experts were starting to sell their shares
70
Q

Describe the effects of the 1929 Wall Street Crash

A
  • The collapse of businesses with individuals losing billions
  • Reduced consumerism and investment
  • Job losses
  • The collapse of credit with loans called in and new ones refused
  • Confidence in the American economy tanked

The President of Union Cigar died after falling from a New York hotel when stock in his company fell from $113.15 to $4 in a single day

71
Q

Describe how falling demand for consumer goods was a cause of the Great Depression

A
  • The construction boom came to an end in 1928
  • Industrial production fell in the two months before the Wall Street Crash
  • Unequal distribution of wealth meant that almost 50% of American families had an income of less than $2,000 a year (the minimum needed to survive)
  • The market became oversaturated
  • The US could not sell its market surplus abroad as Europe was still recovering from the war and had responded to America’s high tariffs with similar
72
Q

Describe how the instability of ‘get rich quick’ schemes caused the Great Depression

A
  • There was huge over speculation and gambling on the markets
  • In the early 1920’s Charles Ponzi conned thousands into investing in his ventures, promising 50% profit within 90 days
73
Q

Describe the Florida Land Boom and how it was a cause of the Great Depression

A
  • Between 1920 and 1925, the population of Florida increased from 968,000 to 1.2 million
  • Parcels of land were being sold to wealthy northerners and people began to invest in developments
  • There were scandals of land being falsely advertised
  • Demand tailed off in 1926
  • Hurricanes in 1926 killed 400 people and left 50,000 homeless
  • The Florida land boom collapsed leaving the state strewn with half-finished, storm-battered developments
74
Q

Describe how problems with agriculture was a cause of the Great Depression

A
  • Post-war, demand fell and prices dropped
  • Demand for natural fibres (such as cotton) dropped as they were replaced by cheaper artificial fibres
  • Prohibition cut demand of crops used for alcohol production
  • Farmers went into debt trying to mechanise
  • There was a big divide between urban Northerners and rural Southerners
  • By 1928, half of all US farmers were living in poverty
75
Q

Describe how problems with old industries was a cause of the Great Depression

A

Coal:
- Coal mining was in decline as gas and electricity were used more commonly
- US coal prices were undercut by cheap polish coal
- This led to many mine closures and unemployment.

Textiles:
- Lowering of tariffs on wool and cotton in 1913, increased competition from abroad
- The development of the artificial fibre ‘rayon’ undercut wool, cotton and silk
- Many textile mills in the North closed down or moved south for cheaper labour.

76
Q

What work did Hoover do to assist farmers in the Great Depression?

A
  • Grain Stabilisation Corporation set up 1930
  • $47 million in federal loans to farmers
  • Federal Farm Board designed to help farmers and maintain agriculture

Many of these measures did not go far enough:
By 1932, 25% of farmer had lost their land and they blockaded roads to demand more support

77
Q

What did Hoover do to assist banks in the Great Depression?

A
  • Gave $2 billion to rescue banks
  • Home Loan Bank Act of 1932
78
Q

What did Hoover do for infrastructure during the Great Depression?

A
  • Construction of the Hoover Dam on the Colorado river
  • Emergency Relief Act gave $300 million to state governments
  • Reconstruction Finance Corporation, set up 1932, spent $1.5 billion on roads, bridges and buildings
79
Q

What did Hoover do about tax during the Great Depression?

A
  • International Revenue Service and Justice Department prosecuted gangsters, including Al Capone, for tax evasion
  • Closed tax loopholes
  • Revenue Act increased taxes on businesess and corporations
80
Q

Describe the Smoot-Hawley Tariff under Hoover

A
  • Set very high tariffs on imports and exports
  • This removed the US from world trade and made the depression worse both at home and abroad
  • Other countries retaliated with tariffs of their own and US imports and exports fell by 60%
81
Q

Describe the March on Washington

A
  • 1932
  • WW1 war veterans asking to be allowed access to their war pensions, which were not supposed to be available till 1946
  • Hoover ordered General Douglas MacArthur to deal with it
  • The General dispersed them with tear gas, machine guns and tanks
82
Q

Why did Hoover take so longer to respond to the Great Depression?

A
  • It was not immediately apparent to anyone how severe the crisis was going to be
  • Current economic theory suggested it would sort itself out
  • Rugged Individualism
  • He believed in a hands off government and instead empowered voluntarism (whereby people and charities supported the poor)
  • He did not wish to overstep his constitutional boundaries
83
Q

Describe how the Great Depression affected unemployment

A
  • Unemployment increased from 3% in 1929 to 25% in 1933
  • There were 12,830,000 registered unemployed but the Labour Research Association estimated the reality was closer to 17 million

Unemployment was unevenly distributed:
- New York State had 1 million unemployed
- Toledo was at 80% unemployment
- Unemployment was 4 to 6 times greater among African Americans
- There was much higher unemployment amongst working class women

84
Q

Describe how the Great Depression affected the economy

A
  • The growth rate went from 6.7% in 1929 to (-14.7%) in 1932
  • Production of coal was the lowest since 1904 with 300,000 unemployed in the industry
  • Iron and steel production fell by 59%
85
Q

Describe how the Great Depression affected the cities

A
  • Factories began to close down
  • Rapid rise in industrial unemployment meaning by 1933 alomst 1/3rd workforce out of work
  • In 1932, estimated 2 million homeless
  • Slums made from tin, wood and cardboard became known as ‘Hoovervilles’
86
Q

Describe how the Great Depression affected agriculture

A
  • Long-term agricultural decline started in the early twenties
  • 1928-32, heat waves, drought and wind-erosion created the ‘Dust Bowl’
  • Demand for crops was low due to poverty so prices fell
  • Oklahoma, Colorado, New Mexico and Kansas were the worst affected
  • Dust storms affected 20 million hectares
  • More than 1 million people left their homes to seek seasonal work in fruit-picking in the West
87
Q

Describe sport in this period

A
  • ‘Golden Age of Sport’
  • 1924, 67,000 watched the football game between Illinois and Michigan that took place in Baltimore
  • 1926, 145,000 saw the bocking match between Jack Dempsey and Gene Tunney
88
Q

Describe baseball

A
  • Star players were Babe Ruth and Lou Gehrig
  • New stadiums such as West Side Grounds in Chicago
  • The development of the cork-centred ball
  • 1920, the Negro National Baseball League founded
89
Q

Describe radio

A
  • First commercial station (KDKA) founded in Pittsburgh, 1920
  • There were 500 stations by 1922
  • First national network (NBC), founded 1926
  • Between 1923 and 1930, 60% of families bought a radio
  • By 1929, sales were worth $842 million
90
Q

Describe cinema

A
  • By the 1920s, it was the 4th largest industry in terms of capital investment
  • 10 million people visited 20,000 cinemas everyday
  • Starred actors like Clara Bow, Theda Bara and Douglas Fairbanks
  • 1927, the first sound film, ‘The Jazz Singer’
91
Q

Describe jazz

A
  • ‘Jazz Age’
  • Originated with black slaves
  • Became popular with white, middle-class youth
  • Ladies Home Journal publishes ‘Does Jazz put the Sin in Syncopation?’
  • Some cities, including New York and Cleveland, prohibited public performances of jazz