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Modern History: Option I

USA 1919-1941

Background Information:

Industrial Growth:

The growth of railways paralleled the growth of heavy industry, coal mining, steel works
and engineering
USA was making over twice as many manufactured goods as Britain by end of the 19th
century, due to:
Large supply of raw materials/natural resources (coal, iron, copper)
Rise in population from migration, essentially a mobile labour force
New inventions in communications and production (e.g. telephone, typewriters)
Govt policies encouraged maximum profits which increased investment
This led to a need for further infrastructure, which stimulated further industrial and
agricultural development

Immigration:

Prior to 1850, most migrants came from north and wet Europe (Britain, Germany) and their
descendants were largely WASPs (White Anglo-Saxon Protestants) who dominated political
and social scene
Mass migration began in the 1850s
Most migrants came from southern and eastern Europe (Russia, Poland, Italy, Greece)
escaping persecution and poverty
Between 1860-1930 total immigration was over 30 million
This led to movement from older east coast to new frontier in west
USA was called the melting pot
Most immigrants congregated in ghettoes- each new wave of immigrants treated with
contempt
Most went to work in coal mines and factories in the great industrial cities of the east and
mid-west
By 1900. of Chicagos population was foreign born. New York was even higher

The Progressive Era:

By the end of the 19th century there was a large gap between the rich and poor in America
and there was much corruption. The govt employed a policy of laissez faire (no interference
in business affairs)
In 1901 Theodore Roosevelt became president
He was a republican but progressive in outlook. He made laws to:
Control railway road prices
Protect consumers
Conserve natural resources
The Sherman Act forced some trusts to break into smaller companies
However these reforms were not enough
In 1912 Woodrow Wilson was elected president
He was a democrat and a progressive
He had promised to keep USA out of the war, however in April 1917 USA declared war
The countrys attention diverted to external/foreign affairs and progressive reforms
were forgotten

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The Committee on Public Information:

Told citizens to report on suspicious neighbours
Financed propaganda films
Demonstrations of patriotism included:
Hatred of everything German
Calling socialists and trade union organisers un-American and traitors
The Sedition Act:
Gave the govt the power to punish anyone who laughed at military uniforms
Progressive reforms were forgotten and govt agencies were set up to make the economy
support the war effort
The govt allowed trusts to grow so that the govt could get the help of big businesses; this
allowed companies to make enormous profits and there was corruption
At the end of the war, President Wilson spent much time in Paris, where his health
diminished
Wilson and congress fought bitterly over peace treaties; Americans wanted isolationism
There were rising prices, unemployment and strikes
Americans blamed Wilson and the Democrats for their end of war troubles
1920: Republican Warren G. Harding won the presidency easily

1919:

Returned Soldiers:

Soldiers returned home to a depressed economy

Govt assumed industries being supported during the war would cope without them after
war (not the case)
Cost of living soared 77% above pre-war levels
Many soldiers were unable to return to their jobs; if they did, massive dislocation among
workers would occur
Soldier brought back Spanish Influenza; leading to 500,000 deaths

Strikes:

In a nation at war, workers demanded less hours and higher pay- strikes ensued
In many instances, management has programs to associate unions with radicals, in order to
garner public support
In Seattle there was a general strike, where troops were used to end the strike
In Boston, the police went on strike, Calvin Coolidge, Governor of Boston at the time said,
there is no right to strike against the public safety by anybody, anywhere, anytime.

Race Riots:

The demand for labour during war led to an increasing number of blacks moving into
industrial centres of the north-east
Poorer whites were concerned by competition for jobs (black working for lower wages); led
to a series of race riots and resurgence of lynching
By end of war, the blacks demanded increased rights, equal protection by the law, right to
vote and increased participation in politics

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Politics in the 1920s + USA Society:

Warren Harding (1921-23):

Hardings Nomination for the Presidency:

He favoured:
Higher tariffs
Lower taxes on business and private income
Fewer immigrants
More farm aid
Rejection of the League of Nations

Success in the 1920 Presidential Elections:

Harding won 60.3% of votes

His slogan was: let us return to normalcy
Harding favoured a return to laissez-faire politics and a reduction in govt intervention

Hardings Presidency:

He delegated much of his presidential authority to the leaders of his govt departments
He was an advocator to limit the long working hours in the American steel industry
Approved a bill limiting immigration in 1921 to 3% of the population of the
respective ethnic groups in 1910 called the Quota Act
He introduced high protectionism and proved the basis of US economic prosperity in the
1920s (Republican view)
1921- miners strike in W. Virginia led to violence, and Harding sent in troops
Harding introduced the Fordney McCumber Act in 1922- act raised tariffs on a number
of goods

Controversy:

Rumours arose that Harding was using his presidency to further the interests of his friends,
cynically known as The Ohio Gang
Harding gave the top jobs to his friends e.g. his pal was made governor of the Federal
Reserve Bank
The Teapot Dome involved 2 of Hardings friends and associates extracting the govts
money. Names were Albert Fall and Harry Sinclair, Fall took bribes from a big oil company
that Sinclair was an executive of.

Calvin Coolidge (1923-29):

Early Life and Career:

He was born in Plymouth, Vermont in 1872

Coolidge studied law
He managed to remain undamaged by the various scandals surrounding the end of
Hardings presidency
In November 1924, Coolidge was easily re-elected president

Coolidge as President:

He believed that the only roles for the govt was to balance the budget, reduce debt, cut taxes
and make easy credit available- minimal govt
His slogan, the business of America is business was based on the conviction that, by
allowing big businesses a free rein within a wall of economic protection, prosperity would
be created

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In February 1925 (Revenue Act of 1926), Coolidge halved the estate tax and the maximum
surtax payable and abolished the gift tax; this increased consumer spending power,
encouraged business investment
He was against migration, Asians werent allowed to migrate, Eastern Europeans were very
restricted (2% of existing population only). 1924- The National Origins Act
Failed to help the farmers, Europe responded to American protectionism with retaliation on
agriculture
He was popularly known as Silent Cal

Herbert Clark Hoover (1929-33):

Hoovers Political Career:

He believed it was not the role of the govt to interfere automatically in peoples lives
The concept of rugged individualism went on to underpin much of his later work
He headed the Ford Administration in 1917; they aimed to curb profiteering in food
supplies
After the war, he was in charge of an American Relief Administration that distributed food,
clothing to refugees in Eastern Europe and Soviet Union

Hoovers Ideas on Govt Intervention:

He believed neither in a traditional laissez-faire approach nor in economic planning and

state direction
He favoured the idea of voluntary co-operation by private Americans with the support of
govt; -weak policy, support rather than control

Hoover as President:

In presidential election of 1928, Hoover polled over 21 million votes, easily won
Inaugurated in March 1929, but his presidency was doomed to failure; Wall Street Crash of
October 1929 plunged the USA into an economic depression
Major challenge of Hoovers presidency was to lead America through crisis
He increased tariffs in to the Smoot-Hawley Act 1930 to prevent foreign goods from
competing with American goodsincreased farm goods by 70% and industrial goods by
40%

Wall Street Crash:

Hoover urged business leaders to maintain production levels and not to cut
wages led to oversupply of goods, exacerbates situation
He was forced to:
Increase federal intervention
Increase govt expenditure on public works
Provide govt loans to business firms
These initiatives, coupled with direct federal spending on welfare provision, came too late
to save Hoover
Political opponents branded him a Republican reactionary, doing nothing to help the
growing millions of unemployed, hungry and homeless Americans
Hoovers defeat by Franklin D. Roosevelt in 1932 ended his political career
His efforts to find a middle way between a laissez-faire approach and direct state
intervention were dismissed as being ineffective and inadequate
Defeat of Hoover marked end of Republican ascendancy

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The American Boom 1921-29:

The Policies of the Republican Presidents:

They lowered taxes on income and company profits, giving the wealthy more money to
invest in American industry and buildings, and people more money to spend on US goods
They put tariffs on imported goods. This made imports more expensive compared with
American-made goods, thereby helping American producers
They didnt interfere in business or put any controls on financial institutionsbanking
Refer to Fordney McCumber Act 1921, Revenue Act 1925, Smoot Hawley Act 1930

Credit:

The growth of credit made it much easier for people to buy goods even though they did not
have enough cash to pay for them on the spot, included shares and cars
Firms arranged for customers to pay by instalment or hire purchase
Many people began to live on credit, owing money to banks and finance companies
Department stores from 310 to 1395 from 1921-29

Confidence:

Confidence amongst Americans was sky high

People were investing in companies, buying goods and trying out new ideas
Vital to any economic boom

Resources:

The USA had a great store of natural resources such as wood, iron, coal, minerals, oil and
land
These helped America become a great industrial power by beginning of 20th century, and
provided a sound basis for further expansion in 1920s- allowed for building of
infrastructure and capital

New Technology:

Development of electricity provided a cheaper, more efficient source of power for factories;
also led to production of consumer goods e.g. refrigerators, vacuum cleaners, radios
The start of radio broadcasting in 1921, created demand for radios
The chemical industry created new cheap materials such as rayon, bakelite and cellophane

Mass-Production & Car Industry:

New techniques meant that goods could be produced for cheaper on a greater scale
introduced assembly lines called taylorism
Henry Ford pioneered mass-production in the car industry; he made cars so cheaply that
ordinary Americans were buying them
Reduced production time of cars by 11 hours
His ideas were applied throughout industry, particularly to new consumer products
Henry Ford (1926): the operations are sub-divided so that each man and each machine do
only one thing. The thing is to keep everything in motion and take the work to the man, not the
man to the work.
By mid 1920s, car industry was using:
o 96% of nations oil
o 75% of nations plate glass
o 65% of nations leather
o 80% of nations rubber
o 20% of nations steel
In 1914, Model Ts cost $850; in 1926 the price was $295
Ford produced 1 million Model Ts a year

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There were 8 million cars on the road in 1920; there were 26 million by 1930
Ford doubled workers daily wage, and reduced length of working day to 8 hrs to counteract
unpleasant working conditions
Such rapid progress led to increased road construction, more fuel stations

Wage Rises and Stable Prices:

During the 1920s, the average wage of industrial workers doubled

At the same time, prices were steady, or in cases of consumer goods, prices were falling
Sharecroppers, blacks, miners struggled, didnt have high wages

Shares:

As companies made profits, their shares rose

Many ordinary people bought company shares on a hire purchase basis
They hoped a rise in the share price would mean they could pay for the purchase and also
make a profit
Millions became shareholders; this boosted industry and increased many peoples
prosperity and willingness to spend on goods
Share dividends paid out to investors rose by 65%

American Conservatism:

F Scott Fitzgerald, the buildings were higher, the parties were bigger and the morals
were looser on the 1920s
AJP Taylor says the Roaring 20s title was a superficial oversimplification,
conveniently hiding the disillusion and intolerance of the decade

Prohibition:

Power to ban production, export, import, transportation or sale of alcoholic beverages was
given by the 18th Amendment to the Constitution
Gradually adopted by state govts across America, and followed up by National Prohibition
or Volstead Act that defined liquor as drink containing 0.5% of alcohol and prescribed
penalties for breaking the law
By 1919, of states of US approved Prohibition, by 1920 everyone approved
Amazing law- legal liquor industry was 7th largest industry in America
Was a violation of rights and freedom of the bill or rights and US constitution
Prohibition originated in rural, small town America
Liquor was perceived to produce misery, poverty, depravity and violence
Anti-Saloon League was a group whose membership was drawn from the middle-class
who were critical of crime in big cities e.g. New York
John D. Rockefeller gave both his personal support and large sums of money to the league
A large proportion of Americas brewers were of German origin; anti-German feeling was
growing in US
Once the National Prohibition Act became law nationally, John F. Kramer was appointed
the first Prohibition Commissioner-his task was to drain America dry of alcohol
He had 1,500 agents on his books at the start; by 1930 there were around 3,000; task was
impossible as they were poorly paidopen to bribery; they were undoubtedly
overwhelmed by the criminal forces that prohibition unleashed
Sociologist Harry Pratt: most of the bootleggersappear to be foreigners
Herbert Hoover described prohibition as a noble experiment
S Rigge labelled prohibition as an exercise in Protestant religious fundamentalism

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The Impact of Prohibition:

Crime:
Crime increased catastrophically; increased consumption of alcohol
Amongst Americans who did not support Prohibition, engendered a sense of injustice,
resentment and rebellion

Growth of Soft Drinks:
Prohibition gave a significant boost to the American soft drinks industry
Coca Cola: output went from 17 million cases in 1880s to 113 million in 1920. During
prohibition (1920-1933) this rose to 182 million
By time of repeal of prohibition laws, Coca Cola and Pepsi Cola were household names

The Illegal Liquor Business:
Effects of Prohibition were entirely contrary to intention of the law; people found other
sources of alcohol
There was medical whiskey which could be obtained legally on prescription; however
these proscriptions were dubiously obtained
However, its clear that vast numbers of people, especially in big cities, were prepared to
defy the law and buy illegal drink wherever it could be obtained
Many people made their own, often with bad effects on health and wellbeing
Moonshinefarmers made money from corn crop of little value by selling it to people who
would then ferment the corn into beer; it was also distilled and boiled to produce whiskey
Speakeasies (illegal bars) multiplied rapidly in big cities; outnumbering their legal
counterparts before prohibition
Nightclubs, restaurants and shops sold bootleg (illegally trafficked) whiskey
Arrests for drunkenness trebled; deaths from alcoholism rose by 600%
Speakeasies owned and operated by gangs, they obtained illegal liquor by people
smuggling it in from Canada, Mexico and the Caribbean (bootlegging)
Bribery of politicians, judges, law enforcement officials was widespread
The Congressional Committee 1931: it is evident that, taking the country as a whole,
people of wealth, business men and professional men and their families, and, perhaps, the
higher paid workingmen and their families are drinking in large numbers in quite
frank disregard of the declared policy of the National Prohibition Act

Gangs, Gangsters and Organised Crime:
Prohibition transferred sale of alcoholic drinks from legitimate businesses to criminal
organisations
Chicago, New York most prevalent- they were almost exclusively of immigrant origin
John Torrio and Al Capone flourished in Chicago due to prohibition
Torrio was leader of an Italian-American gang with Mafia links- he organised Chicago into
gang territories; he bought protection of Mayor Bill Thompson; retired to Italy in 1925
Al Capone was the nations most famous criminal
He used violence to assert his authority
In 1929 the St. Valentines Day Massacre occurred; 4 men of Capones killed seven of the
rival Bugs Moran gang, no convictions resulted
He reportedly got $60 million a year
He was never punished for the 400 murders he was alleged to have ordered
Through bribery and violence he ensured rival gangsters, politicians and police kept their
distance
He said, Everybody calls me a racketeer. I call myself a businessman. When I sell liquor, its
called bootlegging. When my patrons serve it on a silver tray on Lake Shore Drive, its called
hospitality- reflects double standards of the time

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Religious Fundamentalism- The Scopes Trial:
Religious fundamentalism was the belief that Americas problems in the 1920s were
created by the abandonment of the fundamental teachings of Christianity
Social Darwinists were an offshoot of Darwins writings; they believed that the lower

classes deserved to be poor because they had not equipped themselves for the rigours of
capitalism, while the upper class deserved to be rich because they had
Editor of liberal newspaper Christian century wrote, two worlds have crashed, the world of
tradition and the world of modernism
USA led the world in the development of science and technology throughout much of the
20th century; however in 1925, an American science teacher named John Scopes was put
on trial in the state of Tennessee for teaching part of his subject
Tennessee, along with 15 other states had passed laws declaring that Charles Darwins
theory of evolution could not be taught in their schools and universities; they wanted
only the biblical version of creation
One of the great campaigners in defence of the creationist view was William Jennings
Bryan- he was an unsuccessful Democratic Party candidate for the presidency in 1896,
1900 and 1904
At the time of the Scopes trial, Bryan, who appeared for the prosecution, was working
towards another constitutional amendment to ban the teaching of Darwin from any
school or university in the country
In some parts of the USA in the 1920s fundamentalist religion which is the belief of
everything in the bible, was highly influential
John Scopes was arrested and found guilty
The contradiction was evident in that America based much of its greatness on
science and technology, yet at the same time, in some states, attacked science and
education through their own laws
Scopes was subsequently fined $100- Butler Act was reserved

The Ku Klux Klan (KKK)- also for social tensions:

The KKK was a secret organisation that was formed in Tennessee in 1865
The Klan was forced to disband in the 1870s, however was re-formed in Georgia in 1915
Its purpose was to maintain the supremacy of while Protestant Americans
Was re-formed as a reaction to mass immigration
The targets were Catholics and Jews as well as African-Americans, trade union-members
and anyone else that was subversive
By mid 1920s Klan claimed a membership of between 2-5 million people
In some areas- Oklahoma and Oregon, it had significant political power
Hooded figures marched in the street and burned crosses in the night; people were beaten
and mutilated and intimidated by Klan members
Between 1919-1929, there were 357 reported incidents of lynchings of black Americans;
numbers began to drop off around 1929
Much of the KKKs message resonated throughout society

Women in the 1920s:

F. Scott Fitzgerald on wife Zelda: flirting, kissing, viewing life lightly, saying damn
without a blush, playing along the danger line in an immature way- a sort of mental
baby vamp
A flapper: a fashionable young women intent on enjoying herself and flouting
conventional standards of behaviour (in the 20s)
Women continued on their quest for emancipation in the early 1900s-however there
was no national suffrage movement (right to vote)
In 1919, Congress passed the 19th Amendment to the constitution giving women the
right to vote

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During the 1920s and in spite of the flapper image, feminist movement weakened
Right to vote made very little difference to majority of women
Women working only represented 24% of populations in 1920s
Medical schools only allowed 5% of places towards women
Discrimination in wages continued
For women, freedom was the right to wear, say and do whatever you want

The Jazz, Rag and the Boogie Woogie- also for social tensions:

Jazz was the distinctive sound of the 20s Jazz age

Causal spontaneous music of negro slaves
Social scene of the 20s sparked moral outrage particularly amongst right-wing middle
class critics
Female singers and dancers were compromised for having to perform this immoral
music
Louis Armstrong Duke Ellington George Gershwin Al Jolson
Jazz was the attraction of the nightclubs

Cinema:

Uncomfortable wooden benches were replaced by luxurious seats, hollow piano by a

mighty organ
By end of the decade talkies had been established as a mass form of media
Jewish immigrants were particularly active in the rapidly expanding entertainment
industry
Availability of cheap real estate and low electricity created a boom industry

What was the Influence of Mass Media:

Mass media created a mass culture

Development of radio technology in the 1920s was also significant
News, sports, entertainment and advertising were easily accessible for millions of
homes
Wild and rebellious lifestyle was restricted to a relatively small percentage of the
population

Social Tensions:

Anti-Immigration:

By rejecting U.S values and customs, immigrants supposedly threatened democracy and
social order
J Briggs suggests the American conservatives wanted no more foreign wars and
therefore no more foreigners
Refer to 1921 Quota Act where immigration was restricted to 3% of 1910 ethnic levels and
National Origins Act (1924) where immigration was decreased to 2% and Asians werent
allowed to migrate
Immigrants were essentially associated with revolutionary ideals
By early 20th century, there were 105 different nationalities in US
Anti-immigration encouraged by policies of Republican presidents

Anti-Communism:
Bolshevik Revolution of 1917 and its potential to spread communism abroad caused fear
and alarm in the democratic states of the western world; nowhere more so than America
The activities of communist groups in Russia and Germany in the years following the war
were widely reported in the US newspapers

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General Mitchell Palmer wanted to purge the land of what he called foreign born
subversives and agitators (Palmer Raids)- arrested 6000 suspected foreign born
subversives and agitators without warrant, of which 500 were deported
Palmer tried to pass laws on immigration and encouraged prejudice
J. Patterson described the Palmer Raids as the most evident depravation of civil
liberties in US history

African-American Migration:

WW1 boosted US economy, wheat fields produced for war

Munitions factories created jobs for women and immigrants and African Americans who
were being drawn into Urban areas
Mass black urbanization caused race riots in 1917 and 1919- Chicago race riot 1919- black
boy went on to white beach, drowned after a white boater threw rocks at him; white boater
wasnt arrested, 75 deaths in Chicago riots
Hatred and intolerance grew post-war as Blacks and immigrants were employed due
to low wage demands over white Americans

The Case of Sacco and Vanzetti:

On 15th April 1920, 2 men were robbed and murdered, this was common in years of
hardship
However this received national attention- 2 men convicted were known anarchists who had
opposed the war
The judge was a conservative Republican who was clearly prejudiced against the 2 men
because they were Italian immigrants and political activists
On flimsy, circumstantial evidence, the men were convicted and sentenced to death
What followed was a 7 year struggle to prove their innocence-convictions and sentences
were upheld; killed in electric chair in 1927
Their executions prompted riots in Paris, Geneva, Berlin, Hamburg and Stuttgart; by 1927,
they had become martyrs in a huge left-wing, propaganda exercise
o They were the victims of racial discrimination
o Victims of political mood of the time
o Evidence was highly circumstantial
o This tells us about American society at the time; also convinced politicians that
immigration had to be controlled
o Led Coolidge to say, America must be kept American

National Association for the Advancement of Coloured People (NAACP):

NAACP was formed in an effort to encourage black Americans to stand up for

themselves against white persecution and injustice
The organisation tried to combat discrimination and racism by using political and legal
channels
It claimed to have a membership of about 91,000 in 1919

Marcus Garvey and the Garvey Movement:

Garvey came originally from Jamaica

He formed the Universal Negro Improvement Association
He believed that all black people were one people and that Africa was their natural home
Africa still belonged to its European colonial rulers; he wanted it to be returned to its own
black people so they could return to Africa from wherever they were living
Garvey also encouraged black people to be aware and proud of themselves
His plans failed but he did succeed in raising the self-esteem of many black Americans

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Scottsboro Boys:

The Scottsboro Boys were 9 black teenagers accused of rape in Alabama in 1931
The case includes a frame up, all white jury, rushed trials, an attempted lynching, angry mob
and miscarriage of justice
A fight began between a group of white boys on the train and the black boys; the white boys
were subsequently kicked off, however the train was searched by a posse where they were
ordered to capture every Negro on the train
2 girls alleged to have been raped by the black boys
Still to this day, there is uncertainty about their convictions

Long Term Causes of the Great Depression:

The End of Poverty?

Not everyone shared in affluence of 1920s

Automobile, radio were beyond means of many families who purchased them
The policy of rugged individualism meant little or no welfare support for the poor
and a laissez-faire approach to such issues as safety at work
Many strikes occurred from low pay and dangerous working conditions; govt backed the
employers against the workers in industrial disputes
Americas farmers did well in WW1, supplying food to war effort; however as Europe
recovered American farming slumped
As demand fell after the war, wartime production levels were maintained, resulting in an
oversupply and falling prices for the food produced
Between 1919 and 1921, total farm income fell from $10 billion to $4 billion from war
Farmers were unable to pay off their loans

What were the causes of the Wall Street Crash?

Overproduction:
New-mass production methods and mechanisation meant that production of consumer
goods had expanded enormously
Too many goods were reaching the market, and there were not enough people who could
afford to buy them

Trade:
The USA was not able to sell its surplus products to other countries, particularly to
Europe
European countries could not afford American goods because:
o They owed the USA huge amounts of money in war loans and were struggling to pay
these back
o The US govt had put high tariffs on imported goods; American business was so strong
that European companies could not sell their products to America to earn the dollars
to buy American goods
o Also, Europe responded with retaliation, particularly in agriculture

Poverty:
The new found wealth of the 1920s was not shared by everyone
Almost 50% of American families had an income of less than $2000 a year- a level
which purchased the bare necessities of life
Farmers and farm workers:
o Most of people working in farming just scraped a living
New Immigrants:
o They were given the lowest paid jobs

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Workers:
o Wages for workers in the old industries remained very low
o Smashing of trade unions= little power to bargain for better wages
Blacks:
o Blacks were discriminated against; many lived in poverty, both in rural areas of the
South and in northern cities

Problems on the Stock Market:
From 1921 onwards, stock market did extremely well as American businesses were so
successful
From mid 1920s speculation began to increase
People were investing in companies in the hope that the price (shares) would rise; this
caused share prices to rise out of proportion to their real value (D>S)
People who could not afford shares became involved in speculation-bought with credit
These small investors would not be able to pay back loans to the banks if prices fell
In Autumn of 1929, some experts started to sell shares heavily because they were worried
about the weaknesses in the economy and the high share prices->caused small investors to
panic
They saw the fall in price and rushed to sell their own shares; led to a complete collapse of
prices and thousands of investors lost millions of dollars
Wall street crashed occurred 24th October, known as Black Wednesday

The Great Depression and its Impact:

What were the causes of the Depression?

The Banks:
Wall street crash did not cause the great depression, it was the trigger for economic
collapse
In 1920s, American banks used money deposited by their customers and lent it out liberally
to enable speculators to make quick profits for themselves on the stock market
Banks offered easy terms for loans-encouraged high levels of borrowing
In immediate aftermath, those who had savings deposited in the banks, rushed to withdraw

their savings; banks were unable to recover loans from bankrupt speculators, and many
were forced to close; consequently many savers also lost their money
660 banks closed in 1929, 1350 in 1930, 2300 in 1931

Business Collapse:

Businesses were unable to obtain necessary bank loans for survival forced to close
Workers who saved for a rainy day had nothing, no dole to help people out
US industries were largely producing consumer goods, but no one could buy them
Fall in demand shorter working week, unemployment, reduced consumer spending
power
In 1929 3.2% of labour force unemployed; 1930-8.7%; 1931-15.9%; 1932-23.6%;
1933-24.9% People working faced wage cuts and shorter working hours

Main Features of Great Depression:

Gross National Product slumped from $104 billion to $59 billion in 1932
Farm prices fell 60% between 1929-32
5,500 banks closed by 1933
20,000 companies went bankrupt
National income halved; $80 billion in 1929-$40 billion in 1932

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Unemployment and its consequences:

Unemployment made individuals and families destitute

Average weekly earnings fell from $25 in 1929-$17 in 1932
In Chicago there was a 40% rate of unemployment
Immigrant communities, black and Mexican Americans badly affected
Homelessness was a big problem; shanty towns developed in cities and became known as
Hoovervilles after Hoover who did little to deal with the crisis
Drop out rate in high schools escalated
Suicide rate had risen, families were breaking up

The Impact Abroad:

American banks lent money to aid post-war recovery and development in many countries
e.g. Germany
When US economy collapsed, banks called in these loans; sudden loss of financial support
from America led to economic collapse abroad
As many countries also sank into depression, they couldnt repay the loans, US banks unable
to recover the money they had loaned

Herbert Hoover and the Great Depression:

Voluntarism:

Business leaders summoned to White House- pledged to maintain wages and employment
Hoover called on municipal and state govts to create public works projects to sustain
employment
In October 1930, Hoover established the Emergency Committee for Employment to
coordinate voluntary relief agencies- didnt make huge impact
He persuaded nations largest bankers to lend money to smaller banks to make loans to
businesses
He cut taxes at home, and increased govt spending to $2.2 billion in 1931

The Failure of Voluntarism:

Unemployment continued to rise

In 1931, US steel, GM and other large businesses broke their pledges and cut wages
Public charities and local welfare agencies failed
In 1932, Hoover changed his tactics-election on the rise. More decisive intervention vital
In January 1932, congress provided $2 billion in funding a new agency, the
Reconstruction Finance Corporation made loans to large economic organisations e.g.
railroads and businesses

The Failure of Intervention:

Intervention failed to stop rapid rise in unemployment

Hoover was too little, too late
Created the Farm Board in 1930 to keep farm prices steady by buying surplus farm
produce at commercial rate- budget of $500 m ran out in 1932, price of grain slumped
again
Congress voted $423mn (1932) for a govt building programme to provide new jobs e.g.
Hoover Dam- budget wasnt big enough to create enough jobs
For economy to recover:
o State govts would need to keep up their spending to support economy at local level
o Famers would need to cut production
o Employers would need to keep their workers on the payroll
o Reform of the banking system and general economic regulation was needed

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None of these needs met American people had lost confidence in their economy and
republican politicians
Hoover also raised interest rates in 1931=wrong move

Franklin Roosevelt and the Launch of the New Deal:

The Presidential Election of 1932:
Most American voters blamed the Republicans for the Depression
His election campaign promised:
o Increase in relief for those suffering hardship, and work creation programs
o In favour of conservation, old-age pensions, unemployment insurance and the repeal of
prohibition
o Balancing the budget
o More regulation of the economy
Roosevelt was ready to experiment with policies to bring down unemployment unlike
Hoover
Roosevelt unlike Hoover, was optimistic that things could get better
Roosevelt ended up winning easily; in both houses of congress the democrats achieved large
majorities, ensuring any measures introduced by Roosevelt would become law
1934- FDR decreased tariffs by 50% in Reciprocal Trade Agreements Act of 1934

The Lame Duck Months:

Hoover continued to govern for 4 months after Roosevelt had been elected; known as the
lame duck months
In these 4 months Hoover cut taxes and promised to reduce govt spending by $800 million,
reorganise banking system, reduce spending on weapons, and make loans available for
businesses- all these policies failed
Unemployment reached 15 million in these months
February 1933 banks throughout US started to close as customers were taking out their
savings, banks did not have enough cash to pay them all
By beginning of March 1933 every bank in America was closed
At Roosevelts inauguration he said hed use Wilsons Trading with the Enemy Act
(power to take action without asking for congressional ratification)

The Hundred Days:

Period from 4 March-16 June 1933 is known as The Hundred Days
Roosevelt used all his powers with the Trading with the Enemy Act to deal with the crisis
Dennett and Dixon: the New Deal was not a grand plan; rather it was a series of specific and
often experimental solutions to particular social and economic problems
D. Nasaw said the New Deal ushered in the birth of the American welfare state

The Banks and Banking:
On his 2nd day in office (6th March), Roosevelt ordered all banks to close
On 9 March, Congress accepted his request and passed an Emergency Banking Act
Accounts of all banks were inspected and only those managed well with adequate cash
reserves would be allowed to reopen
On 12th March, in his fireside chat, he assured the people of the security of the banks
On the 13th March, more money was deposited than had previously been withdrawn

Pay Cuts:
On 15th March, Roosevelt passed the Economy Act
The pay of all those working for the govt and armed forces was cut by 15%, whilst the
budgets of all govt departments were cut by 25%

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Nearly $1 billion was saved, and available to spend on other areas

The end of Prohibition:
On 20th March, Roosevelt passed the Beer Act
This made him very popular; many new jobs were created and govt would gain money from
tax on alcohol

The New Deal:

The New Deal was a collection of policies to make the 3 Rs work (relief, recovery,
reform)
Roosevelt realised for these policies to work, the federal govt would have to be involved in

the economy, and it must be accepted that taxes must rise to finance schemes to create jobs
David Kennedy, the country was in measurable degree, remade
Hofstadters, the New Deal was a drastic new departurein the history of American
reformism
Roosevelt set up alphabet agencies agencies intended to help those suffering from
depression
FDR said, take a method and try itif it fails try another. But above all, try something

Harry Hopkins and the CWA:
Hopkins believed unemployed should be given work, not dole- gave unemployed self
respect
Created 4.2 million jobs, involved light construction maintenance jobs, road work and
unskilled jobs
People who opposed the idea argued:
o Work relief was more costly than paying the dole, believed it was a waste of money
o The PWA already existed to create jobs
o Some thought the jobs were created for the sake of jobs
The CWA spent $1 billion on short-term projects
Some wondered whether some of the jobs actually existed- these jobs named boondoggles
When at the end of winter, the CWA was disbanded, 4 million Americans found themselves
once again, out of work
They were able to survive the winter however-wouldnt have been able to with Republicans

Harold Ickes and the PWA:
Harold Ickes was very careful with the govts money
Believed the money should have a lasting effect on the nation
Was seen as slow and indecisive, least popular of the New Dealers
There was rivalry between Ickes and Hopkins
Between 1933-1939, the PWA:
o Built 70% of nationss schools, 35% of its hospitals
o Constructed 4 big river dams
o Constructed 50 airports
o Responsible for the electrification of the railway from NY to Washington
o Employed over 4 million people
Ickes was so concerned about giving tax payers value for money, that he subjected all
proposals to the closest of scrutiny money was slow to trickle through the economy
Problem of the nations unskilled workers wasnt fixed

The Works Progress Administration (WPA):
Set up by Harry Hopkins in 1935 to help millions of unskilled workers
Between 1935-39 it became the countrys biggest employer, giving work to an
average 2 million people each year

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This gave workers confidence, self respect and more importantly money to spend on goods
which would in turn create more jobs
WPA was assigned the derogatory label, we piddle around, as a result of creating
jobs which according to the opposition didnt exist

Federal Emergency Relief Agency (FERA):

$1 was given to the state govt for every $3 FERA spent on relief
Gave $500 million to the hungry and homeless

A New Deal for Industry:
In early 20th century, workers found it difficult to improve their pay/conditions
Results were employers prospered and workers struggled
In 1929, as the demands for goods dropped, factory owners cut their production and sacked
workers
Conflict between worker and employer increased; strikes were ever-present
The National Recovery Administration (NRA) dealed with working conditions and
insurance, pensions and child labour
Frances Perkins started the NRA while General Hugh Samuel Johnson ran it
Perkins was seen as the driving force behind the new deal- also first woman in American
history to hold a cabinet post
NRA developed agreed codes of practice about production limits, wage levels,
working hours, prices and trade union rights
Set minimum wage between $12-$15 weekly for 40 hour working week
Henry Ford refused to sign the NRA code of practice, undermined NRA
By 1935, the codes were seen as too restricted as business confidence had re-emerged
Small businesses couldnt afford to pay the minimum wages, too costly
In 1935, the Supreme Court ruled that the NRA damaged the very idea of federalism;
there needed to be a balance between federal and state govts and this balance wasnt
being achieved

Women, The Depression and The New Deal:

The 1920s saw a trend towards more women (esp. married) in the workplace
As unemployment levels rose after 1929, there was increased resentment towards women
taking jobs that might otherwise have been filled by men, esp. married women
In a poll taken in 1936, 82% said that women should not work
Discrimination against married women at work continued throughout the 1930s and some
states even imposed legal restrictions on women working
By end of the 1930s number of married women in workforce had risen from 11.7%
15.6%
1
Women were mostly taking up clerical occupations through 1930s- by 1940s, white
3
American women were working in the clerical sector
African-American women worked in domestic service, 1.3% were white collar (ie. clerical)
There was a big gap between male-female earnings-trade union membership for women

increased from 256,000-800,000 in this period, women were active in defence of their
rights

What did the New Deal do for Women?
Eleanor Roosevelt to all women: get into the game and stay in it. Throwing mud from
the outside wont help. Building up from the inside will
New Deal focused on stimulating jobs, not on womens rights
The minimum wage:

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NRA (1933) and Fair Standards Act (1938) helped some women whose level of pay was
below the new minimum- however women were still payed less than men
o In 1939, a female school teacher was paid 20% less than her male colleagues
Social and welfare reform:
o The New Deal attempted to alleviate family stress through introduction of welfare
benefits, especially to old and poor families though the Social Security Act (1935)
o In some places, welfare was only payed to white families, leaving African-American
women struggling to survive
o Provision of welfare support was opposed by many politicians in Congress
The plight of minorities:
o There was large scale discrimination against African and Mexican-American men in the
workplace; this had an impact on wives + families; white men were given preference for
jobs
o The agricultural policies of the New Deal resulted in the eviction of large numbers of
Mexican and African-American farmers; these people moved to citiesracial tensions
rose
o Lynchings and serious miscarriages of justice increased. African-Americans resisted, and
women became active in this cause- they formed the Association of Southern Women
for the Prevention of Lynching and received support from Eleanor Roosevelt.
Attempts to make lynching a federal crime failed
Native Americans:
o The Indian Reorganisation Act gave Native American women formal political rights
o Also provided them with opportunities for training as domestic workers and
seamstresses; small number had the opportunity for education
o Also protected land rights of Native Americans and in doing so, reinforced male
dominance in Indian tribal communities
Women in Public Service:
o Roosevelt administration provided opportunities for individual women to hold office
o Roosevelt was the first US president to appoint a woman to a position in his cabinet,
Francis Perkins- also appointed the first woman ambassador
o

A New Deal for the Farmers and the Land:

The Plight of the Farmers:

The farmers suffered the effects of the depression the most

WW1 badly damaged European agriculture, so American was able to sell their agriculture
on global markets, however as Europe recovered American farmers found it increasingly
difficult to find markets for their produce so they were left with an oversupply of farming
goods
They were a victim of their own productivity and lack of regulation in agriculture before ND
By 1933, average farm incomes, which in 1929 were $13, 938 had plummeted to $7, 107
In 1933, one farmer in every 20 was evicted from his land for not keeping up with mortgage
repayments
Ed ONeal (farmers union leader) 1933: unless something is done to help, we will
have a revolution in the countryside within less than 12 months

Signs of unrest:
In April 1933, angry farmers in Iowa, masked with blue handkerchiefs, broke into a court
house where a Judge was signing orders for the eviction of farmers from their land; they
dragged him onto the street and attempted to hang him; he refused to be intimidated so
they abandoned
Iowa was placed under martial law as a result

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Henry A. Wallace and Agricultural Adjustment:

Roosevelt appointed Henry A. Wallace as Secretary of Agriculture

Wallace was faced with issue of farm surpluses
Govt dealt with this by dumping. Govt bought the surpluses from farmers and sold them
cheaply on world markets
This damaged trade relations with other countries
Wallace believed best way to deal with it was to raise prices by cutting production
On 12 May 1933, with 100 days, Congress passed the Agricultural Adjustment Act, which set
up the Agricultural Adjustment Administration

Agricultural Adjustment Administration (AAA):
The aims of the AAA were to raise commodity prices to pre-1914 levels by adjusting.
If smaller amounts of farm produce were sold at market, the prices would rise
To encourage farmers to decrease production, compensation was offered
Cotton farmers were encouraged to plough 10 million acres of their crop back into
the ground and received generous compensation for doing so
The decision to slaughter 6 million piglets to boost pork prices prompted public
outcry
Some of the meat was used to supplement the diet of the unemployed in the cities
Wallace on the issue: to hear them talk, you would have thought that pigs were raised for
pets
Criticisms of the AAA:
o Many Americans were asking why crops were being destroyed and animals slaughtered
when millions were starving throughout the country
o Roosevelt and Wallace argued it was impossible to distribute the surplus; they believed
for distribution to take place there would need to be a dramatic change in the structure
of the American economy
o Overall farm incomes doubled from period of 1932-1936
o The AAA was cancelled in 1936 by the Supreme Court
o Family run businesses were more severely affected
o Commercial farms benefitted the most from it
Assessing the achievements of the AAA:
o Financial compensation was paid on the basis of acres left uncultivated and not to
individual farmers on the basis of their need
o The system was voluntary and depended on farmers themselves meeting together to
decide how many acres should be taken out of production
o They supervised each other- ensured promised drops in production actually occurred
o As production decreased, crops were destroyedfarmers needer fewer workers
o Sharecroppers were the biggest losers in this; 3 million (half black) had to leave
the land and seek work elsewhere
o AAA had limited success in dealing with problems faced by farmers; those who owned
the larger, well-established farms gained large amounts of money in compensation for
cutting production, but AAA did little to improve lives of millions of farm workers, many
of whom were black, who continued existed in poverty and starvation
o Jim Powell said the AAA both destroyed jobs and forced prices higher

The Dust Bowl:

Suffering of the farmers was made much worse by the climatic disaster of 1934/35 on the
Great Plains, which resulted in The Dust Bowl

The effects of the dust storm:
Once winds had ceased and dust had settled, farmers were able to assess damage

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The land was dead, with deep cracks running through it and surrounding hills badly eroded;
there were no signs of bird or animal life, a grim omen of troubles to come
Tens of thousands of farming families packed their belongings and joined in the migration to
the charity camps of California, seeking a new beginning to their lives
They were labelled Orkies and Arkies, terms used for all such migrants, not just those from
Oklahoma and Arkansas
Between 1935 and 1940, 350,000 refugees arrived in California from stricken areas of the
Midwest; in many cases they received a hostile welcome
Presence was seen as a threat to Californian farmers who themselves were struggling to
survive
They were thought to have too many children and were branded as lazy, irresponsible and
untrustworthy
Help for Orkies and Arkies were restricted to alphabet agencies
Food prices doubled between 1932-37; good news for those that survived in farming
Govt programmes to promote soil conservation and electrification were welcomed
Farmers, through their involvement in the running of the AAA, were becoming more
important politically; however these benefits were not shared by sharecroppers

The Tennessee Valley Authority (TVA):

Problem:
Every spring, the River Tennessee flooded, washing away tons of topsoil and destroying
farms in its path
Hardly any water in the river in summer, land was parched
Soil erosion, deforestation and overgrazing of animals were big problems
Tennessee valley covered 40,000 sq miles, population of 2.5 million half on the dole
Only 2% of farms had electricity
Roosevelt: the valley was the nations number one economic problem
Intended for areas of long established poverty

The Solution:
Build dams to stop flooding and provide cheap electricity for people
On 18th May, Congress passed the Tennessee valley act which created the Tennessee Valley
Authority (TVA)- one of the most successful agencies of the New Deal
Munitions factories were converted to chemical plants and hydro-electricity plants which
produced electricity for 7 states
Building and maintaining the dams created thousands of jobs
Industrialists, realising cheap electricity was available were encouraged to build new
factories, stimulating employment more
Ideal water transport to carry coal, steel and commodities
Overall, TVA created thousands of jobs and cheap electricity
Fostered soil conservation
Built 9 dams

The Civilian Conservation Corps (CCC):

CCC was the first alphabet agency, formed on 31st March

Part of the WPA, designed to tackle problem of young unemployed men (18-25 yrs of age)
Paid $1 a day
People were only given 9 months work
Blacks and white were separate, contributing to racial polarities of decade
Set up on army lines throughout country to conserve/improve environment:
o Planting thousands of trees
o Building public parks

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o Draining swamps to fight malaria

o Restocking rivers with fish
o Working on flood control projects
o Building forest trails
o Clearing up beaches and camping grounds
o Restoring historic battlefields
Army veterans joined first; followed by 300,000 young Americans
3 million served in CCC from 1933-41
Was it successful?
o Questionable to solving unemployment, unions developed in camp due to cheap labour
Experience of members:
o Wildly differing experiences, some in beautiful surroundings and discipline involved
with the scheme

The Second New Deal and the Presidential Election of 1936:

Roosevelts Plans:

Roosevelt wanted to broaden the work of the New Deal:

o Enlarge the scope of federal relief
o Give assistance to rural poor
o Support trade unions
o Provide welfare benefits
o Introduce stricter regulation over business
o Tax the rich more heavily
Roosevelt had to revive agencies that had been opposed by the Supreme Court
Second New Deal placed a greater emphasis on welfare than the first
Roosevelt was not a deficit spender (Keynesian)
Foreign debt rose $22 billion in period from 1933-1940
He cut WPA expenditure in 1937
1938, re-embraced deficit spending to reduce severe hardships
1940- economic prosperity levels of 1929 had not returned, however WW2 boosted levels

The Second New Deal:

The Resettlement Administration set up in May 1935-offered loans to small farmers to buy
their own land
The Rural Electrification Administration set up in Spring 1935, gave low-interest loans to
companies to extend 90% rural electricity
Jan 1936, AAA declared unconstitutional, the Conservation and Domestic Allotment Act set
up, paid farmers to reduce production of crops
The Banking Act of Aug 1935, increased control of Federal Reserve board over banks and
money supply
The Public Utilities Holding Company of Aug 1935, restricted gas and electric companies to
one geographical region
The Revenue Act increased personal taxes at higher income levels, raised corporate
taxes and boosted levies on gifts and estates goal of income redistribution

The National Labour Relations Act:
On 5 July 1935, Congress passed the National Labour Relations Act- also known as the
Wagner Act- Robert Wagner set up the National Labour Relations Act
It made joining trade unions legal and bargain collectively through representatives
Improved workers conditions at expense of employers
Union membership went from 3.3 million in 1933-9 million in 1939

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John L. Lewis, leader of the United Mine Workers said, Labour gained more under
President Roosevelt than any president in memory

The Social Security Act, 1935:
Francis Perkins and Harry Hopkins pressed Roosevelt to implement a social security system
The Act introduced a compulsory system of old-age pensions and unemployment insurance
To finance the scheme, employers + employees paid a 3% payroll tax
Unemployment benefits tended to be quite low
Weaknesses of the scheme:
o No sickness benefits
o Pensions, benefits did not extend to farm labourers, casual workers and domestic
servants
Despite weaknesses, act was important, for 1st time pensions, unemployment benefits
paid through govt
D. Nasaw said the New Deal ushered in the birth of the American welfare state

The Presidential Election of 1936:
In June 1936, Roosevelt was renominated by Democrats; Republican Alfred Landon
criticised him for wasting money and not balancing the budget
Many businessmen were angered by National Labour Relations Act, felt too much
power was given to trade unions
Roosevelt sided with ordinary Americans against forces of big businesses
Democrats easily won election- dominated senate and house of representatives
Roosevelt promised much more reform, very little was achieved in first year

Opposition to the New Deal:

His battles with the Supreme Court slowed down reform, major factor in end of the New
Deal- not everyone benefited from it
Attacks on New Deal came from:
o Conservative politicians from Republican/democratic parties and businessmen
o Individuals, e.g. Huey Long, Father Charles Coughlin, Dr Frances Townsend
o The supreme court

Opposition from Conservative Politicians and Businessmen:

Republicans were strong opponents of the New Deal; they represented the interests of
Americas rich families and large businesses
They attacked the New Deal for its huge govt expenditure
Complained money was being wasted, lasting jobs werent being created
Attacked Roosevelt for raising personal taxes on higher income earners
Critical of high budget deficits
Critical of govt intervention in the economy, e.g. production targets and wage levels.
Roosevelts economic regulation threatened their profits
New Deal was perceived as a threat to capitalism and individual liberty
In 1934, there were still 11 million Americans unemployed
In 1934, the American Liberty League was established to preserve individual liberty,
threatened the New Dealbacked by wealthy businessmen
Conservative wing within Democrat party were worried about the direction Roosevelt was
taking the party
As New Deal policies in 1935 became more radical, Democrats found it more difficult to
support them, causing splits within the party

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Opposition from Individuals:

Huey Long and the Share Our Wealth Movement:
Long joined the US senate in 1932 and became a supporter of Roosevelts New Deal policies
He formed the view that now enough was being done to help the poor
Began the Share our Wealth movement, a very radical programme, if elected president he
would:
o Confiscate all personal wealth over $3 million
o Money would be used to give every family between $4,000-$5,000
o Promised free education, minimum wage, pensions, houses for war veterans and cheap
food for the poor
Long was a colourful, populist politician known for exaggeration, was a strong vocal critic of
Roosevelt

Father Charles Coughlin:
In 1933, Father Coughlin supported Roosevelt with the slogan, The New Deal is Christs Deal
1934- one Coughlins main backers was accused of profiteering from illegal foreign
exchange operations
1935- formed the National Union for Social Justice, promising work and fair wages for all
and used the union as a platform to attack Roosevelt, labelled him Anti-God
40 million Americans listened to his weekly broadcasts
He especially appealed to urban, lower middle-class Americans, his attacks on the New Deal
caused serious problems for Roosevelt

Dr Francis Townsend:
Was a Californian doctor; appealed to the old
Formed organisation called Old Age Revolving Pensions, Limited
Proposed to pay $200 a month to every citizen over 60, provided that it would all be spent
within a month
This could be financed by a 2% tax on business transactions

Opposition From the Supreme Court:

Clashes with the most supreme court was Roosevelts most serious opposition
Supreme court dominated by Republicans, judges opposed policies
Sick chickens case:
o May 1935, 4 Jewish brothers (the Schechters) convicted of selling diseased chickens
o They had signed the NRA codes for fair prices, wages and competition
o They appealed, 27th May, Supreme Court declared NRA code illegal on basis of
protecting federalism in constitution
o 750 NRA codes scrapped
The United States v. Butler:
o 1936, Supreme Court angered Roosevelt further by declaring AAA illegal
o Payments to farmers ceased from fed govt
Of 16 Supreme Court cases on alphabet agencies, 11 were deemed unconstitutional
Roosevelt used new laws to get around these judgements and decided to act against the
Supreme Court after election victory in 1936

Reform of the Supreme Court:
5th Feb 1937; Roosevelt proposed that if a judge did not resign 6 months after his 70th
birthday, the President would be allowed to elect extra judgesnot passed by congress
This was seen as a deliberate attempt to pack the court with judges that would
support him
He failed to consult with senior members of his party before launching the bill

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In March/April 1937, the Supreme Court reversed the Schechter decision, in May declared
old-age pension unemployment insurance legal
Reform had slowed down, because Roosevelt was too busy fighting the Supreme Court

Tough Opposition:

Roosevelt re-election was the signal for many trade unionists to increase their efforts to
form single unions for each major industry and pressurise for higher wages and better
working conditions
1937- the Union of Auto Workers forced GM to shut down due to a sit down strike which was
highly publicised
Employers were angered that Roosevelt took sides with workers, whilst at the same time
opposed the Supreme Court
1937, Roosevelt cut govt spending, WPA and PWA hit badly
Unemployment rose from 14.3%-19.1% in 9 months (1937-38)
1938, Roosevelt changed mind, request of $1bn for PWA and $1.4bn for WPA granted
by congress
Important acts of 1937-1938:
o In 1937, the Wagner-Steagall Act made money available for low-cost housing
o 1937, the Farm Tenancy Act made loans available to farm tenants and sharecroppers
o 1938, a new AAA granted subsidies for food products and soil conservation
o 1938, the Fair Labour Standards Act introduced maximum hours and minimum wages
Attention of many Americans was moving towards the worsening situation in Europe

An Assessment of Roosevelt and the New Deal:

New Deal policies were seen as an attack on individual freedom and liberty and
threatened to turn the US into a communist state. Others saw it as potentially developing
into national socialism
Ordinary Americans worshipped him as a god
Time Magazine 1936: regardless of party and regardless of religion, today, with few
exceptions, members of the so-called upper class frankly hate Franklin Roosevelt
Ordinary American to Roosevelt, We dont amount to much, but we are joined with those
millions of other in praying for you every night. God bless you, Mr Roosevelt

What did Roosevelt Achieve?

Employment- did not end unemployment but brought partial economic recovery. Roosevelt
showed initiative in attempting to eradicate unemployment. On the other hand Jim Powell
says the New Deal failed to resolve the most important problem of the era; chronic
unemployment-10 million Americans out of work in 1939 (17% of workforce)
The role of govt- Under Roosevelt, govt had the responsibility to look after its citizens,
regulate capitalism and ensure economic prosperity. William Leuchtenburg said FDR had
become the first modern president
The bureaucracy- Roosevelt created a large modern bureaucracy needed for a modern
national govt
The constitution- economic regulation was no longer considered unconstitutional
Compassion- Roosevelt showed compassion, set an example of care for all people in US
Welfare- the ND began basic welfare provisions, turned the idea of welfare into law
The role of the President- Roosevelt had a practical approach to countrys problems. Image
of him in partnership with the people in a crusade to restore the nations greatness was a
strong one
Morale- Roosevelt restored the morale of the nation, fireside chats a great example. David
Kennedy, Roosevelt had given the American people renewed faith in their country and
its way of life

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Broadus Mitchell says the economic recovery was like watching blood drain back into
a blanched face

Criticisms of Roosevelt:

NRA- the ND did not fundamentally redistribute income, some alphabet agencies did little,
NRA did more harm than good. The US income profile in 1940 resembled that of 1930. FDR
was reluctant to engage in massive deficit spending
Housing- no solution found to housing shortage caused by the Depression
Discrimination- nothing done to improve the civil rights and the working and living
conditions of black people. Immigration quotas halted German Jews entry to US. George
Shuyler maintains that African Americans had been in depression all the time. TVA
and CCC racially segregated their workers, while the entire ethnicity was excluded from
social security benefits
Women- not much done to encourage the changing role of women in ND period. The New
Deal was too focused on the interests of the male breadwinner to appropriately offer the
female professional anything in the way of economic independence; gender inequities in the
workforce not addressed, social security officers were discriminatory in giving payments to
women
Right Wing Critics- claimed FDR had gone too far in terms of govt intervention by setting up
too many overlapping and inefficient agencies, agencies simply got in the way of recovery,
created administrative anarchy in Washington
Left Wing Critics- claim FDR had not gone far enough, stress that many New Deal policies
benefitted many privileged groups (like large farmers), not the weak and dispossessed
(sharecroppers)
David Kennedy: The war got us out of it, not the New Deal policies
Jim Powell says increased business taxes fundamentally discouraged employers from hiring
and indeed keeping staff, while the AAA both destroyed jobs and forced prices higher
still
Joseph Alsop: essence of his achievementis derived from the combined impact of all his
domestic reforms. On a very wide front and in the truest possible sense, Franklin Delano
Roosevelt included the excluded
A Badger, the ultimate constraint that circumscribed the New Deals achievements: the
underlying conservative response of the people themselves to the Depression
J.M. Burns: Economically the New Deal had been opportunistic in the grand manner

American Foreign Policy:

US Foreign Policy in the 1920s:

Isolationism:

1921 Warren Harding in his inaugural speech outlined the view that if Americas vital
interests in the Americas or Pacific were at stake, then the USA would intervene
Harding- We dont mean to be entangled, his determination for there to be no alliances
or commitments that would infringe American sovereignty
He was happy to be involved in disarmament and setting up International Court of Justice
However didnt want to be involved in world affairs particularly in Europe
Republican approach isolationist and the main reason they didnt join the League of Nations
had the support of most Americans
Harding must have realized there was no going back to the old world of 1914 and a new
international system would have to be established post WW1
Appointed Secretary of State, Charles Evans Hughes and Secretary of Commerce Herbert
Hoover to look after foreign policy

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Charles Evans Hughes and Herbert Hoover:

Hughes and Hoover agreed that America couldnt be completely isolated from world affairs
Hughes believed in the importance of the American influence in the world
Hoover stressed the US must remain free to act in its own interests
Believed that individual enterprise, should be extended to other countries
US Foreign Policy during the 1920s aims:
o Believed in diplomatic involvement to maintain peace
o Economic involvement to support and encourage the development of European
economies which would provide opportunities for American investment

Diplomatic Involvement:

Washington Treaty System 1924:

The issue was disarmament (demilitarisation)

1921, US was becoming increasingly concerned about the growing naval power of
Japan; also concerned with the financial cost of trying to keep up with Japanese naval
expansion
Late in 1921 Hughes invited 9 leading world powers and demanded significant
proportionate reductions in naval power
Limits were finally agreed of 525,000 tons of shipping for Britain and America, 315,000 tons
for Japan and 175,000 tons for France and Italy
Also brought to an end the Anglo-Japanese Alliance of 1902 which could have resulted in
Britain being dragged into war with Japan against the US

Kellogg-Briand Pact 1928:

Briand French Foreign Minister wanted an agreement to outlaw war and draw America into
security should Germany attack France
Kellogg secretary of state wanted to promote peace and cleverly invited most of the world
powers to produce a multilateral agreement for peace

American Money and Financial Considerations:

America realized they needed foreign policy to provide necessary support for American
investment

Post-war loans;

1914 US owe $3 billion when war ended US owed $3 billion

WW1 changed US into a wealthy country that would create a peaceful and prosperous world
New world order would be created by private banking
Government support by creating a set of rules for business to follow
No US loans to communist Soviet Union
War debts would have to be repaid but debt repayments were used as political threats to
European countries if they threatened US interests

Germany:

1920s represented a serious problem for America

Creation of a stable, peaceful Germany was very much in American interests
Crisis talks in 1924 over German reparation payments led to the Dawes Plan:
o Reduction in German reparations payments to $250 million
o Rise in those payments over 5 years
o Immediate loan of $800 million to reinvigorate German economy
o US bankers provide half, the rest from foreign bankers
This led to a dangerous reliance on American money

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Young Plan 1929:

o Reduced reparations to $8 billion payable of 58 years
o $1.25 billion loaned to the country + the $800 million from Dawes Plan
1931, Hoover placed moratorium (suspension) on war debts owed to the USA

Other examples of US action:

Many bankers approved of Mussolini

Political stability could be followed by economic recovery based on American investment
Red Line Agreement of 1928 gave American oil companies access to Middle East oilfields

Latin America:

Latin America was a major area of US influence

20 Latin American nations all but 6 influenced by America
Investment grew from $1.5 billion in 1924 to $3.5 billion in 1929
American economic and political interests were threatened, then the US would intervene
Attempted to reorganize Latin America for US gain

Foreign Policy and The Coming of War:

Roosevelts foreign policy wasnt straight forward

Early political career favoured internationalism
On election he embraced isolationism
1932 focused on economic rather then international policies
Roosevelt didnt want to repeat Wilsons idealist international errors

Entered into friendly agreement with Latin America significantly reducing American
influence
Withdrew troops from Haiti and Dominican republican and Cuba as well as nationalizing
Mexican oilfields

Good Neighbour Policy:

Trade Agreements:

Roosevelt didnt recognize protectionisms effect in influencing the crash

Cordell Hull Secretary of State, was a firm believer in free trade convinced that
world trade would revive the world economic depression
Roosevelt would not support any measures that would effect his New Deal
1934 the value of the $US was at a more competitive level and Roosevelt supported
Hull in passing the Reciprocal Trade Agreement Act (1934)- this lowered tariffs by
50% with 18 countries
Generally this helped US exports rather then increase imports

Made it impossible for Roosevelt to give any kind of aid to warring states
First Act (1935) removed distinction between aggressor and victim
Second Act (1937) stopped loans to countries engaged in war including trade

Roosevelt failed to make any gesture that might have prevented war in Europe
Failed to enforce the Treaty of Versailles on Hitler
Unsympathetic to the plight of the Jews and immigrants
Damage had been done before he decided to ease US immigration laws
Passed trade agreement with Britain in 1938 which became basis for their alliance

Neutrality Act:

War on the European Horizon:

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Japanese Aggression in China:

USA took particular interest in Japan especially the concern with Japan attacking
China
USA responded by placing an embargo on goods going to Japan

Outbreak of WWII:

Roosevelt realised that the USA would not be able to remain neutral
1940 he knew he would have to enter the war
Selective Service Act allowed young men to be conscripted and produce 50,000 planes a
year
End of Neutrality:
o 1940 destroyers for bases deal with Britain
o Lend Lease Act send aid to countries
o Atlantic Conference in 1941 with Churchill
o US sanctions on Japan
1940 only 7.7% favoured voluntary entry into war
After Pearl Harbour it was the end of isolationism
On American entry into war, Roosevelt unleashed Americas power:
o Alphabet Agencies replaced by wartime production
o Government spending increased to $250 million a day
o Methods of production used for wartime production
o Raw materials rose significantly
o Produced 80% of its needs
o Reversed the fortunes of the farmers with higher wages
o Unemployment and redistribution moved positively
o Raised standard of living, purchasing power rose by 50%

Women in Wartime America:

Women operated cranes, weld up ships, worked in munitions, factories, drove taxis, busses
and trains, became electricians
6 million women entered the workforce between 1942-45
Earned about 65% of what men did
Women entered the armed forces300,000 of them
Divorce rates in USA doubled
Delinquency (crime) rates amongst teenagers rose alarmingly
82% of public believed women shouldnt work

QUOTES

USA 1919-1941 Quotes:

Politics in the 1920s/Policies:

Calvin Coolidge, said, there is no right to strike against the public safety by
anybody, anywhere, anytime
Harding let us return to normalcy
Harding We dont mean to be entangled- in relation to foreign policy
Coolidge, the chief business of the American people is business
Coolidge, America must be kept American
Coolidges declaration less government in business.
Willoughby concludes The net effect of tariffs in the 1930s was to exacerbate
the Depression by hampering world trade

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Dennett and Dixon state that Hoovers ultimate failure in regards to the
Depression was his incapacity to experiment with the economy and spend more
Catchings and Foster claimed that The economy produced more than it
consumed, because the consumers did not have enough income. Thus the unequal
distribution of wealth throughout the 1920s caused the Great Depression
Mellon (secretary of treasury), a decrease in taxes causes an inspiration to trade
and commerce
Saloutos and Hicks believe the decline of foreign markets due to protection was
the main reason for the slump in farming in the 1920s
Ferrell said only the richest 2% of taxpayers paid any federal income tax

Impacts of Industrialisation and Consumerism on Society:

Coolidge, the chief business of the American people is business

According to Mellon, the era was defined by an unequal distribution of income
and wealth, where the upper class prospered
Calder states, most Americans had experimented with instalment buying.
According to Eric Miller, instalment packages allowed the middle class to
purchase something new that will speak of their place in the tradition of
affluence, thus the consumption of expensive products acted as a mechanism to
blur the social stratifications of the 1920s
Sinclair Lewis describes the conformity, materialism and hollowness of the
middle class, as he believed young people with automobiles spent more time in
entertainment outlets than with their families
Hirschhorn contends that the assembly line meant that experiences and
potentials are lost forever, as intelligent people are robbed of their ability to
think, puzzle out and discover
George Schuyler African-Americans had been in depression since the 1920s
Mencken claimed that a corollary of consumerism was the fomentation of women
who would revolt against the against the precepts and admonitions of her
elders
F Scott Fitzgeralds said women in the 1920s were lovely and expensive
Madeleine Levine criticised the impact of consumerism on US society, stating
that it represented a shift away from the values of community, spirituality and
integrity towards competition, materialism and disconnection
F Scott Fitzgerald claimed the parties were bigger and the morals were
looser, in the 1920s as a corollary of consumerism

American Conservatism and Social Tensions:

F Scott Fitzgerald, the buildings were higher, the parties were bigger and
the morals were looser on the 1920s
S Rigge labelled prohibition as an exercise in Protestant religious
fundamentalism
Richard Hofstadter wrote that prohibition, "was a pseudo-reform, a pinched,
parochial substitute for reform" that "was carried about America by the ruralevangelical virus"
Herbert Hoover described prohibition as a noble experiment
The Congressional Committee 1931 the higher paid workingmen and their
families are drinking in large numbers in quite frank disregard of the declared
policy of the National Prohibition Act

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Author David Goetz claimed that the majority of Christians denounced

evolution in the 1920s
Prendergast said the KKKs support for prohibition represented the single
most important bond between Klansmen throughout the nation
The Klan opposed bootleggers, sometimes with violence, sociologist Harry
Pratt, most of the bootleggersappear to be foreigners
F. Scott Fitzgerald, flirting, kissing, viewing life lightly, saying damn without a
blush
J Briggs suggests the American conservatives wanted no more foreign wars
and therefore no more foreigners
General Mitchell Palmer wanted to purge the land of what he called foreign
born subversives and agitators
J. Patterson described the Palmer Raids as the most evident depravation of civil
liberties in US history

The Depression and New Deal:

D. Nasaw said the New Deal ushered in the birth of the American welfare state
Hofstadter, the New Deal was a drastic new departurein the history of
American reformism
David Kennedy, the country was in measurable degree, remade
FDR said, take a method and try itif it fails try another. But above all, try
something
WPA was assigned the derogatory label, we piddle around
Eleanor Roosevelt to all women: get into the game and stay in it
Ed ONeal (farmers union leader) 1933: unless something is done to help the
farmers, we will have a revolution in the countryside within less than 12
months
Henry Wallace, to hear them talk, you would have thought that pigs were raised
for pets
Jim Powell says increased business taxes fundamentally discouraged employers
from hiring and indeed keeping staff, while the AAA both destroyed jobs and
forced prices higher still
Roosevelt: the Tennessee valley was the nations number one economic
problem
John L. Lewis, Labour gained more under President Roosevelt than any
president in memory
Time Magazine 1936: few exceptions, members of the so-called upper class
frankly hate Franklin Roosevelt
Jim Powell says the New Deal failed to resolve the most important problem
of the era; chronic unemployment
Republican Alfred Landon criticised Roosevelt for wasting money and not
balancing the budget
William Leuchtenburg said FDR had become the first modern president
David Kennedy, Roosevelt had given the American people renewed faith in
their country and its way of life
Broadus Mitchell says the economic recovery was like watching blood drain
back into a blanched face
George Shuyler maintains that African Americans had been in depression
all the time
David Kennedy: The war got us out of it, not the New Deal policies

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Joseph Alsop, Franklin Delano Roosevelt included the excluded

J.M. Burns: Economically the New Deal had been opportunistic in the grand
manner
A Badger, the ultimate constraint that circumscribed the New Deals
achievements: the underlying conservative response of the people themselves to
the Depression

ESSAY

To what extent was American society conservative between 1919 and the
early 1930s?

American society in the period between 1919 to the early 1930s was
conservative to a considerable extent however there were also sectors of society
who opposed conservatism. Such conservatism was evident in societys attitudes
to the consumption of alcohol and the subsequent push for prohibition, the belief
in religious fundamentalism, the rise of the KKK and the growing social tensions
of the time. Conversely, the changing attitudes of women in the 1920s and the
jazz age opposed conservatism.

Conservatism in society was evident in the push for prohibition. The push for
prohibition originated in rural, small town America and spread to the larger
cities.. It was a crusade against liquor inspired by the misery, poverty, depravity
and violence that alcohol was perceived to produce as well as the efficiency lost
in the production process from anti-sober workers. Sections of American society
played a key role in securing prohibition with the main push coming from the
Anti-Saloon League, whose membership was drawn from middle-class,
Protestant, church-going Americans who were critical of the crime that resulted
from alcohol. Its conservative nature is evident in Rigges statement of
prohibition as being an exercise in Protestant Religious fundamentalism. To
function, the Anti-Saloon League had the backing of wealthy businessmen such
as John. D Rockefeller, who gave both his personal support and large sums of
money to the League. In 1919, the National Prohibition Act, commonly known as
the Volstead Act was introduced which defined liquor as drink containing 0.5%
of alcohol and prescribed penalties for the consumption, purchase and sale of
alcohol. The Womens Christian Temperance Union (WCTU) opposed the sale of
liquor in the 1920s. At the time, the WCTU stated wine contained the narcotic
poison, alcohol, which cannot truly represent the blood of Christ. This
demonstrates that the conservative attitudes that instigated prohibition were
supported by some sections of society.

Despite this, there were large numbers of people opposed to the conservative
attitudes that led to prohibition. Such opposition was highlighted in the
Congressional Committees statement in 1931, it is evident thathigher paid
working men are drinking in large numbers in quite frank disregard of the
declared policy of the National Prohibition Act, thus the Volstead Act was
opposed by many American . This could be largely seen in the increase in crime.
Crime can be attributed to the Mafia, who flourished in this period by creating
additional business for themselves through the importation and sale of alcoholic

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drinks and the running of speakeasies. Arrests for drunkenness trebled and
deaths from alcoholism rose by 600%. This demonstrated that large portions of
society opposed the conservative nature of prohibition. Therefore, conservative
attitudes in instigating prohibition illustrated societys conservative nature,
whilst resistance against prohibition also demonstrated that large sections of
society did not agree with conservatism.

Racism was endemic across the whole of the US in the period of the 1920s,
largely as a result of conservative attitudes. However, it tended to take on a more
antagonistic and violent form in the southern states such as Georgia, Missisippi
and Louisiana, where the KKK was particularly active. The 1919 Chicago race
riots foregrounded the antagonism that was to come to the fore in the 1920s.
The re-emergence of the Ku Klux Klan in Georgia in 1915 demonstrated the
conservative nature of different groups in society. Prendergast claimed the
KKKs support for prohibition represented the single most important bond
between Klansmen throughout the nation, thus demonstrating how members of
the Southern population were wholly conservative in support of the KKK and
prohibition. The KKK opposed bootleggers, often using violence, and sociologist
Harry Pratt acknowledged, most of the bootleggers appear to be foreigners. The
KKKs purpose to maintain the supremacy of white Protestant Americans was
largely formed as a reaction to mass African-American migration. The Klans
targets were anyone considered subversive such as Catholics, Jews and chiefly
African-Americans. They used intimidation, arson and physical violence
including lynching. The Scottsboro Boys trial was an example of the
conservatism and bigotry present in society, as nine black teenagers were
accused of rape on questionable evidence, including a frame up and an all white
jury. The KKKs march in Washington in 1925 further evidenced conservative
attitudes against African-Americans. Thus, racism was prevalent in the 1920s
demonstrating the conservative attitudes amongst different factions of society.

On the contrary, conservatism was not present in all parts of America and was
largely dominant in the south. While it is true the KKKs message resonated
throughout society, the KKK, itself, was mainly followed by a minority of the
population and therefore did not accumulate widespread conservative support.
This was corroborated through Reverend Powell Norton who stated at the time,
The Americanism of the Klan is not necessarily the Americanism desired by the
rest of us. Despite only limited support for the extremism of the Klan, racism
was a prevalent problem in the 1920s, demonstrating the conservative nature of
society.

American conservatism could be seen in the underlying belief of religious
fundamentalism in many communities. Religious fundamentalists believed that
Americas problems in the 1920s were created by the abandonment of the
fundamental teachings of Christianity. This view was particularly present among
rural families who looked for simple solutions to their complex problems.
Religious fundamentalism led to the banning of Charles Darwins theory of
evolution in Tennessee and other states. The unanimous guilty verdict against
John Scopes confirms the conservatism inherent in society in the 1920s. David
Goetzs claim that the majority of Christians denounced evolution in the 1920s

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reinforces the idea that many Americans supported this extremist
interpretation. Religious fundamentalists were predominantly Southerners, and
as such, their beliefs were not shared by all parts of society. Therefore, it can be
seen that religious fundamentalism was a conservative movement condoned by
some parts of society especially in the South, whilst many people opposed the
conservative ideas espoused by religious fundamentalists.

Social tensions between 1919 and 1930 were often symptomatic to the anti-
communist and anti-immigrant conservative outlook on society. Radical unrest
was evident in all parts of America. Anti-communism and anti-radicalism was
particularly present in the South, while it was evident in the cities as this was
where most migrants lived. Attorney General, Mitchell Palmer was a high-
profile conservative member of American society who devoted himself to
rounding up anyone he believed to be in his words foreign born subversives and
agitators. In a single night in January 1920, police detained 6,000 people whom
they suspected of being subversive and communists. Ultimately 556 people were
deported. Such was the conservative nature of society at the time, that many
were not prepared to accept differences of opinion and specifically people who
did not conform to the white, protestant values of the time.

Social tensions resulted from the clash between those who held conservative
views and those who were more progressive. Republican policies reflected the
conservative views of society at the time. In 1921, Harding limited European
immigrants to 3% of the 1910 immigrant population, whilst the 1924 National
Origins Act limited immigration by a further 2% and even banned Asian
immigration. Evidence of bias against migrants was corroborated through the
case of Sacco and Vanzetti. Their case was a clear indication of the conservative
state of American society at the time, as they were arrested for being migrants.
President Calvin Coolidge undoubtedly spoke for the public when he said that
America must be kept American and the judge called Sacco and Vanzetti, those
anarchist bastards in court thus reflecting societys unwillingness to accept what
they perceived to be as revolutionary views, but in actuality were often
progressive ideals. The fact that Coolidge and the judge could express
themselves in this way reflects the large extent to which conservatism was
evident in society

Urban society, especially in the north, generally tended to be less conservative
than rural areas and the south. This allowed the role of women, mostly in urban
areas, to change rapidly in the 1920s. This was embodied by author F. Scott
Fitzgerald, as he described women in the 1920s as, flirting, kissing, viewing life
lightly, saying damn without a blush. It illustrated the emancipation of mostly
the middle and upper class urban women in the 1920s, for whom, freedom was
the right to wear, say and do whatever you wanted, such as attend nightclubs,
dress promiscuously and smoke. In this time, the flapper image became
popular, thus demonstrating the inherent opposition of upper and middle class
women to conservatism in society. Fitzgeralds assessment of the 1920s, the
buildings were higher, the parties were bigger and the morals were looser,
signified how some members of society saw the decade as unencumbered by
traditionalist views. Conservative women particularly from the older generation

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regarded flappers as brazen. Therefore, the changed values and behaviours of
largely young middle class and upper class women reflected the divisions of
society and the extent to which conservatism was upheld in the US at this time .

The Jazz movement of the 1920s signified non-conservative attitudes in US
society. When jazz appeared on the social scene in the 1920s, Faulkner stated
conservative members of society in urban cities considered the music immoral
and threatening to old cultural values. Jazz was played at nightclubs and African-
American musicians played in front of white audiences, thus demonstrating how
not all of society shared the same right-wing conservative attitudes. Hence, the
Jazz age demonstrated that not all sectors of society were conservative as the
Jazz movement thrived in this period in cities such as Chicago and New York.

In conclusion, American society in the period between 1919 to the early 1930s
was conservative to a considerable extent however there were also sectors of
society who opposed conservatism. Conservatism was often dependent on the
geography and age of the population. The South was instrumental in the push for
prohibition, was heavily involved in racial discrimination and the KKK, practised
religious fundamentalism and had an anti-immigration attitude. The older
generation were particularly critical of non-conservative aspects of society such
as the changing role of women and the Jazz age. However, For these reasons,
American society was conservative to a large extent in the 1920 and early 1930s.

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