America 1919-1941 Revision Sheet Part 1: The growth of Isolation, 1919-1922
How did the USA react to the end of World War I?
Rejection of the Treaty of Versailles
1918 Republicans won a majority in the Senate/ Republican opposition to Wilson led by Senator Henry Cabot Lodge - proposed 14 changes (‘reservations’)
Wilson set off on a nation-wide tour, but had a stroke. ToV and LoN rejected by the Senate in March 1920.
Reasons[IMAGE]: Isolationism (led by Senator Borah)/ Money – not wanting to spend money on wars/ American soldiers – 100,000 had died in WWI/ Germans – German immigrants hated the ToV/ Empire –Americans hated the British Empire PLUS WILSON (80% of Americans wanted the League, only 12 Senators were isolationists; the rest would have accepted Lodge’s 14 reservations. But Wilson would not accept any compromise and his 23 supporters voted against the Treaty.)
How did the policies of the American Government encourage isolation?
American Isolationism in the 1920s
In 1920 Warren Harding became President under the slogan ‘return to normalcy’.
Fordney-McCumber Act (1922) – highest tariffs in history (up to 400%) set according to Scientific tariff (the wages in the country of origin) and American selling price (the cost of production in America).
Reasons [WAIF]: Wartime boom: American businessmen wanted this to continue/ American wages: were rising, and American businessmen feared low wages in Europe/ Isolationists wanted America to be self-sufficient/ Farmers wanted protection because overproduction was causing prices to fall
1917 Immigration Law (immigrants must be able to read English/ banned immigrants from China & Japan),
1921 Emergency Quota Act (maximum number 357,000 / reduced immigration from eastern and southern Europe by only allowing each country to send 3% of immigrants already in America in 1910)
1924 Reed-Johnson Act (maximum number 154,000 / reduced immigration from eastern and southern Europe by only allowing each country to send 2% of immigrants already in America in 1890)
Sacco and Vanzetti - two anarchist immigrants from Italy found guilty of armed robbery and murder (1920) and executed (1927), despite 107 witnesses, and in 1925 the murderer gave himself up.
Reasons [PRT]: Prejudice against Japanese and Chinese, and poor Catholics and Jews from eastern Europe – claims America was turning into 'a race of mongrels'/ Red scare over communists and anarchists (e.g. Sacco and Vanzetti)/ Trade Unions feared that immigrants would take their jobs.
Part 2: The Promised Land? The USA in the 1920s
How far did the USA achieve prosperity in the 1920s?
The 1920s Economy
1920-1929: Gross National Product rose 40% and income per person 27% – mass production (e.g. Ford motor cars), a consumer boom (including buying things on hire purchase) and a stock market boom.
Boom [ACCESS]: Automobiles: 1920-1929 rose from 8m to 23m; by 1925 one Ford car every 10 seconds/ Cycle of prosperity: more sales = more production = more wages = more spending/ Consumer durables (e.g. fridges) and electrical goods (telephones x2, radios 60,000 to 10 million) PLUS (the first plastic), cellophane and nylon/ Entertainment Industry: boomed (Hollywood, cinemas, jazz clubs and speakeasies)/ Stock Exchange: a ‘Bull market’ on Wall Street/ Skyscrapers
But many Americans did not share the prosperity, esp. farmers, coal and textiles workers, and Black Americans.
Poverty [FLOP]: Farming - 1929 farmers’ wages 40% of national average, ½m farmers go bankrupt pa/ Low wages: top 5% of the population earned a third of the income, but 40% were below the poverty line/ Old Industries textiles and coal a coal miners’ wages a third of the national average. There were 2 million employed throughout the 1920s/ Poor Black Americans – 1m black farm workers lost their jobs in the 1920s – Blacks stuck in low-pay, menial jobs – New York's black Harlem district: sleeping in shifts, ‘Rent parties’.
Reasons [PAT GOT CASH]: Population growing rapidly/ Abundant raw materials – esp. coal, iron and oil/ Tariffs protected American industry/ Government relaxed regulations and low taxes (laissez faire)/ Opportunities of New Technology (e.g. electrical, radio, film, nylon)/ Techniques of production – Ford’s Assembly line, and Frederick Taylor’s time and motion/ Cycle of prosperity – increased prosperity increased prosperity/ Advertising (billboards, radio commercials,)/ Sales methods (commercial travellers, mail order, chain stores such as Woolworths)/ Hire Purchase – instalments.
‘The Roaring Twenties’. Is this a good description of the USA in the 1920s?
Social: Cinema: by 1930, 100 million Americans went to the movies every week., Charlie Chaplin and Clara Bow (the ‘It’ girl); the first ‘talkie’ (The Jazz Singer with Al Jolson); colour films; Disney cartoons(Mickey Mouse)/ Jazz: The first jazz record the Dixieland Jazz Band, 1917, Louis Armstrong and Jelly Roll Morton./ Dances: Charleston and ‘Black Bottom’ (by Jelly Roll Morton, named after a Black Detroit neighbourhood).
Women: Workng women increased 25%, esp. teachers and secretaries/ Vote: In 1920 the 19th Amendment/ Flappers: short skirts and hair, flat-chested 'garconne' look, men's clothes, smoked, drank, used make-up, danced wildly in jazz clubs and were sexually active.
Black Americans: Famous Black Americans such as the sprinter Jesse Owens, the baseball player Jackie Robinson, the dancer Josephine Baker./ Harlem Renaissance of jazz musicians, Black architects, novelists, poets and painters who believed in 'Artistic Action'./ NAACP campaigned for Black Rights.
Racism: Immigration laws (Quotas, the Red Scare and the Sacco-Vanzetti case)/ Ku Klux Klan: 5m by 1925, white sheets and hoods, burning crosses, 'Klonversations', lynched Black Americans, but also Jews, Catholics, alcoholics etc./‘Jim Crow Laws’ in the southern states enforced segregation and denied the vote.
Prohibition: 19th Amendment (1919), the Volstead Act declared any drink more than 5% proof 'alcoholic'/ In 1929, 50m litres of illegal alcohol discovered and destroyed/ 200,000 speakeasies (illegal bars), moonshine (illegally-made alcohol), bootlegging (smuggling alcohol to sell). Reasons:[A CRIME]: Anti-Saloon League/ Christian Temperance Union/ Rural Americans were shocked by flappers and speakeasies/ Isolationists hated buying German beer/ Madness, crime, poverty and illness were seen as caused by alcohol – ‘signing the pledge’./ Easy Street, a comic film by Charlie Chaplin, showed how drink damaged people.
Organised Crime: Gangsters ran speakeasies, bootlegging, protection rackets, prostitution and drug-running, and bribed police, judges and Senators./ Al Capone had an army of 700 mobsters, and murdered more than 200 opponents – the most famous incident was the St Valentine’s Day massacre of 1929, when 'torpedoes' from Capone's gang shot dead 7 members of Bugs Moran's gang/ Eliot Ness and his ‘Untouchables’.
Causes of the Great Crash: Bull market: 1924-29 the value of shares rose 500% – beyond what the firms were worth/ Speculation: by 1929 600,000 speculators had borrowed $9bn to buy shares 'on the margin' even in firms which did not exist/ Corruption and 'insider-trading'/ Panic: Thurs 24th October 1929, 13m shares sold. The banks failed to shore up the market by buying shares. Tues 29th October 16m shares sold.
Causes of the Great Depression: Great Crash: when the Stock Market collapsed many banks and big firms went bankrupt/ The Fed: (the US Federal Reserve) raised interest rates – which led to a reduction in the money supply and reduced spending./ Tariffs: in 1930, the Smoot-Hawley Tariff led 60 countries to pass retaliatory tariffs and world trade slumped/ Maldistribution of wealth: main cause – money wasn’t in the hands of the people who would spend it/ Weaknesses in the economy: Coal, Iron and Textiles/ Cycle of Depression: bankruptcies = unemployment = less spending = more bankruptcies etc.
What were the effects of the Depression on the American people?
Statistics: International trade fell $10bn to $3bn 1929-32/ 5000 banks went bankrupt 1929-32, inc. Bank of America/ In 1932 a quarter of a million Americans lost their homes, a fifth of all farmers lost their farms, 20,000 companies went out of business and 23,000 people committed suicide/ By 1933, Industrial production had fallen by 40%, Prices 50%, Wages 60% and a quarter of Americans were unemployed.
Farmers: (made worse by the ‘dust bowl’) – ‘Okies’ (from Oklahoma) and ‘Arkies’ (from Arkansas) abandoned their farms to go fruit-picking in California.
Hobos: no Welfare State – unemployed Americans picked over rubbish dumps/ begged (‘Buddy, can you spare a dime’)/ became hobos = Salvation Army soup kitchens and charity hand-outs – ‘on the breadline’.
Hoovervilles: ‘Hoovervilles’ also Hoover ‘leather’ & ‘blankets’. ‘In Hoover we trusted, now we are busted’.
Bonus Army: In 1932, 20,000 unemployed ex-soldiers set up a Hooverville in Washington to ask for their war pension (‘bonus’) paid early; Hoover set the army on them, who drive them away with guns and tear-gas.
Not all industries or places suffered: 'New' industries (e.g. electronics, airplanes)/ people with jobs were BETTER off, because prices were lower/ Empire State Building 1931, Golden Gate Bridge 1932.
Was Hoover to blame? NO: 1930 cut taxes and formed the Committee for Unemployment Relief/ 1931-2 he gave $6,000m for work-schemes (e.g. the Hoover Dam), unemployment pay and loans/ laws encouraging high wages, protecting trade unions and making it easier for banks to borrow from the federal reserve = exactly what Roosevelt copied for the ‘New Deal’.
Part 4: Recovery from Depression 1933-1941
What measures did Roosevelt introduce to deal with the Depression?
1. First New Deal
Bank holiday: The Emergency Banking Act closed the banks for four days to check their accounts, and they reopened with the backing of the Federal Reserve/
Stock Exchange: The Securities and Exchange Commission introduced rules for the Stock Exchange to prevent another Crash like 1929
Fireside Chats: (‘like a father discussing public affairs with his family in the living room”). Everyone who sent him a letter got a reply (restored confidence in the government.)
b. Finance and Economy:
Bankruptcies: The Farm Loan Act and the Bankruptcy Act stopped banks closing on going businesses. The Home Loan Act and the Home Owners Loan Corporation protected ordinary home owners.
Prices: The Agricultural Adjustment Act (AAA) paid farmers to take fields out of production.
Wages: The NRA (National Recovery Administration) set up; blue eagle symbol if firms cut production and paid good wages – 2.5 million firms, employing 22 million people, joined the scheme.
Money: Roosevelt borrowed huge amounts of money to finance the New Deal.
c. Alphabet Agencies:
CCC (Civilian Conservation Corps): paid conservation work for (by 1941) 2.5m unemployed young men.
FERA (Federal Emergency Relief Administration): matched funding to help states give unemployment pay.
WPA (Works Progress Administration): work for the unemployed on airports, schools, hospitals or bridges.
TVA (Tennessee Valley Authority): built 21 dams in 10 years – stopped flooding, cheap electricity and work.
Second New Deal
a. National Labour Relations Act (1935 – also known as the Wagner Act) replaced the NRA/ the National Labour Relations Board (NLRB) protected workers' right to join a trade union and from victimisation.
b. Soil Conservation Act (1935): replaced the banned AAA./ allowed the government to subsidise farmers.
c. Social Security Act (1935): America's first system of social welfare – unemployment insurance and old-age pensions, and gave help to the disabled and children in need
d. National Housing Act (1937): provided loans to buy houses/ reduced excessive rents.
e. Fair Labour Standards Act (1938): set hours and conditions of work/ fixed a minimum wage.
How far was the New Deal successful in ending the Depression in the USA?
How successful was the New Deal?
Successes [the 5 Rs]: Relief from the alphabet agencies./ Roads and buildings: from the PWA and the TVA/ Reform: new laws about social security/ minimum wage/ labour relations and trade unions/ Roosevelt: was elected four times/ Repercussions: Democracy survived in America (unlike Italy and Germany). The New Deal became a model for the British Welfare State of 1948 and New Labour’s ‘New Deal’ of 1998.
Failures [the 3Ds]: Didn’t end the Depression: by 1935 unemployment still 10.6 million, and – although it fell to 7.7 million in 1937 – when Roosevelt cut expenditure in 1938, it rose to 10.4 million./ Damaged Blacks: workers rights and minimum wage meant many firms sacked workers – and Black Americans were always the first to be sacked/ Drew opposition: esp. Republicans, business and Supreme Court.
Who opposed the New Deal [BRASS]?
a Businessmen because it interfered with their businesses and gave workers rights.
b Republicans: after 1938, Republicans took over the Senate, and Roosevelt was unable to get any more New Deal legislation through.
c Activists like Huey Long (Senator for Louisiana/ ‘Share the Wealth’ campaign to confiscate fortunes over $3m) and Francis Townsend (campaigned for a pension of $200 a month) said it did not go far enough.
d State governments said that the Federal government was taking their powers.
e The Supreme Court ruled the NRA and the AAA illegal because they took away the States’ powers. (In 1937, Roosevelt threatened to force old Supreme Court judges to retire and to create new ones = constitutional crisis.)