History Notes #4 Second Semester

Boom Bust
1920’s

Ÿ Moral decline after WWI

Ÿ Disillument {Leadership
{Society
{Moral Codes
Ÿ Reaction---| war discipline
Ÿ “Future shock of 20th century” {continual change
{faith in technology
{traditional
-Reformers
-Immigration Laws 1921-1924
-restricted immigration from southern and eastern Europe
-0 immigration from Asia
-18th Amendmentprohibation0 manufacturing competition
-Social costs of alcohol {industry accident ^
{domestic violence ^
-Anti-Saloon league ^
|{press for legislation during war
{grain needed for food/feed/export
{Brewers (GR)=“disloyal”
-0 effective enforcement
| {treason
-legal product  profit ^
contraband illegal substanceprofit
Ÿ Organized crime ^
-Law abiding citizens customers
-0 citizen consent
- “everybody calls me a racketeer, I call me a business man” -Al
Capone
-Rural vs. Cities
-probition ^ |profit
 History Notes #4 Second Semester

|criminal establishment
-Legal Alcohol
|quality enforced
Taxes ^
-illegal alcohol
|qualify v
0 tax revenue
0 import regulation
0 tariffs
-impossibleenforce morality by law
|define
Ku Klux Klan
Ÿ “reform” group founded during reconstruction
-WASP supremacy
- no /\ }
RC } ~~~~~
Mex } LLLL
Asians }
IT }
-3m male members
-5m female

Control State Legislature

OK
OR
TX
IA
-South
-IN (33% female members)
-OR (children MUST attend private school)
CO } influence ^
36 states total }
Ÿ Prohibition ^
 History Notes #4 Second Semester

Ÿ Undone by sex scandal and financial corruption

-Still active

[insert hand written notes here]

Election of 1928
Ÿ Al Smith (Dem.) {1st catholic candidate
|white southerners won’t vote for him
Ÿ NYC mayor (which states are west of Mississippi
-VS-
Ÿ Herbert Hoover (Rep. Candidate)
|cicialian hero of WWI
-Lead relief (food, medicine, fuel)Europe
-1st Western candidate (CA)Pres.
Economic Growth
Ÿ Prosperity ^ {US industry base unharmed by war
{European competition v {capital v
{Population ^demand v {labor v
{Productivity ^ {factories v
|consumer goods ^
Avg. Mortality Income
1921 1928
$522 $716
-Automobiles ^ 5.5M/yr 5 out of 6 autos owned
 History Notes #4 Second Semester

{Steel
{Rubber ^
{Wood |
{Copper |
{Textiles |
{Fuel/oil
{RR
-Film industry ^
|export vs. cultureworldwide
19th Amendment
-Women’s suffrage nationwide
-“purity elections”?
-Married women vote with husbands/daughters vote fathers
-More votes but no change
Lindbergh-May 20-21 1927
Ÿ Charles Lindbergh
Ÿ Son of Swedish immigrant/congress
Ÿ “Loner” and analytical personality
Ÿ Airmail pilot {1st ChicagoSt. Louis
{3 times he had to evacuate his plane
{ (75% KIA)
Ÿ Barnstormer and wing walker
Ÿ Orteig prize
-$25,000 1st nonstop flight NYParis
-St. Louis businessman backs Lindbergh  $10K for air craft
-Several aviators KIA previously
-Ryan Aeronautical Company of SD custom builds aircraft
-“2 ton fan flying gas tank”
|400 gallons {0 parachute
{0 radio
{0 brakes
{0 heater
{0 window
 History Notes #4 Second Semester

{0 satellite navigation
 2K miles rand more gas than
airframe can handle
-20 May 1927
Ÿ 3,610 nautical miles by dead reckoning over water by moonlight
Ÿ NYParis 33 hours, 30 minutes  solo (0 sleep since San
Diego take off)
-Worldwide hero
-4M in NYC parade
-0 commercial interest
-Commercial Aviation ^
-$ for R & D ^-catch up to Luftwaffe
-”Authentic” American ^
-Immigrants v

Florida ^ v effects entire economy

Ÿ Florida land boombust
-N.FL=Agriculture
-S.FL=Tourism ^ (RR, Mosquito control))

Ÿ Land boom
1920-MIAMI-1925
30K 75K
-Real Estate ^
“Miami daily news”504 pages of Real Estate ads for 1 Sunday
edition
-Demand ^ throughout U.S.
|Profits ^ |{RR Cement Appliances
{Lumber , Steel, Furniture
{Bldg. supplies, Road-making, insurance
{Transport, Utilities, Tools
{Banking, Copper, Earth Moving equip.
Ÿ 1926-2 hurricanes cause {400KIA
 History Notes #4 Second Semester

{50K homeless
-housing demand v
-land values v
Building industry vnational economy v
Employment v
Mortgage values v  banks v
Tourism v {RR v
{hospitality industry v
NYSE crash-Oct 1929
Ÿ New York Stock Exchange (NYSE) ^
-NYSE Average Gain 40% yearly
Ÿ NYSE stock prices exceed real value of securities
-MAR (per share) SEP
RCA $100 _____________________________ $500
GE $128 _____________________________ $400
US STEEL $138 __________________________$279
ANA CONDA
COPPER $54______________________________$162
Ÿ Investment in products/future growth v (price not determined
by
{demand ^
{New markets ^
{product improvement ^
{profit margin ^
{Manufacturing costs v
Ÿ Reckless speculation ^
| {-only 1% of public in market
|richest 1% =influential
{-Buying on margin
|10% of stock trading price
{-0 restaurant from federal reserve
|false confidence by consumer
in FR
 History Notes #4 Second Semester

Ÿ 21 Oct 1929 stock prices v

Ÿ 24 Oct 1929 stock prices v v 11 financiers commit suicide
Ÿ 29 Oct 1929 (“black Friday”) stock prices v freefall 16M
shares traded (usually <1M daily)

The Great Depression

Ÿ Causes {-Overproduction-farmers & industry making more
than demand
{-$ distribution {5% of US population=33% of personal income
| {spreading incomespreading buying power
| liability/negative impact v
|producers must be consumers =prosperity ^
|wages too low0 purchasing economy v
{-tariffs
| {farmers 0 export  “tariff wars”
{Europe near financial collapse (WWI)0 purchase of
U.S. goods
{-treaty of VersaillesGR must pay reparations
|0 purchase of U.S. goods
Ÿ Unemployment
{30% worldwide
{25% Americans (about 3% normal)
| 25% 0 relief on welfare
Ÿ 1932 {33% Pennsylvanians on relief
{40% Chicago unemployed
| {50% Cleveland unemployed
| {80% Toledo unemployed (every bank
closed)
| 5K banks closed nationally
| |savings cost0 purchasing
| {33% (3.5M) farms foreclosed & farmers
homeless
| {2M Americans homeless and wandering
 History Notes #4 Second Semester

| {Emigration out of US >immigration into

U.S.
| {Marriages v 25% desertion ^
| {mental illness ^
--------------- {suicide ^
{reading #1 form of entertainmentmovie box
office v
{petty theft, prostitution, & begging} ^
DROUGHT
Ÿ Causes agricultural failure in prairie states
Ÿ Dust storms {prairie high winds & 0 grass on tilled soil  dust
Ÿ {millions of tons of dust jet stream
{muddy rain in NY, Boston
{muddy rain in 300 NM at sea
{fish suffocated in eastern
rivers
Ÿ Land values v
Ÿ Bankruptcy ^ farmer cannot  $ for mortgages foreclosures ^
banks v
Ÿ Food prices so low, farmers burnt corn for fuel
Ÿ {{{{{{{INSERTR DIAGRAMMMMMMM}}}}

Hoover
Ÿ Potus
-Competent but doesn’t instill confidence
| |USA attacks bonus marchers
| | “Hoovervilles”
| {Lower interest rates
{Public works (roads, bridges, public parks) ^ J
{Raise taxes 63% L
{Tariffs ^
-Top income tax rate 1929 1935
24% 79%
 History Notes #4 Second Semester

-Top income tax revenue $1.1B $527M

-Excise taxes{Cigarettes
{liquor
{cars
{cias
{telephone calls
{movie tickets
New Deal-1932
Ÿ Potus Election {Hoover (Rep.), F.D. Roosevelt (Dem.)
| |
Ÿ V V
Dems Reps
Solid south Small town
Urban Small business
Ethnic/Black
segregation ^
Ÿ Goals{Emergency relief for jobless
{Fed spending ^economy ^
{Pay farmers Produce less
|{6M pigs slaughtered
{10M acres cotton destroyed
-1935 crop shortages ^price ^
Import 36.4M lbs. of cotton
34.8M bushels of corn
New Deal
Ÿ Civilian Conservation Corps
-CCC Workforce recruited/paid by U.S. gov.t public works
-outdoors/unskilled projects {Roads,
{Forestry-Appalachian Trail
{Parks-Nat’l battlefields parklands
-single 18-25 (males)
-quasi-military (sortta military)barracks/mess halls
Ÿ Social Security Act (1935)
 History Notes #4 Second Semester

-SSA supplement retirement

-Basically is a Payroll Taxpensions at 65+
Ÿ Tennessee Valley Authority (1933)
-TVARural electrification in southern Appalachians
|Dams/Hydroelectric
Ÿ Home Loans
-Underwrite Mortgage borrowing
Ÿ Securities Exchange Commission (1934)
-SEC oversee NYSE. Stock fraud v margin buying v
Ÿ Farm Subsides
-Prevent foreclosures
-Pay for non-production  prices ^
Ÿ Federal Deposit Insurance Corporation
-FDIC back bank deposits$100K
Ÿ Relief
-Foodunemployed
Ÿ Fed. Gov.t Jobs
Ÿ Unemployment insurance
-payroll tax $$ back if laid-off
Ÿ Western H2O managementHoover Dam
Ÿ Govt. Spending ^^ {49% GDP (1929-32 (Pre-FDR)
{40% GDP 1932-34 (ND)
Ÿ GDP
V v
1929 1940
$104B $101B

Govt. spending ^
GDP v

Ÿ ND shift power from statesFed govt.

-Fed govt. ^
-States Rights v
 History Notes #4 Second Semester

Ÿ FDR pragmatist in age of ideologues (Fascists SP/IT/Nazis &

dictators)
|willingtry anything that might work
|instill confidence in public
|activity=accomplishment?
Ÿ ND 1st 100 days in office
-Dem. HR moes quickly in emergency
Ÿ -National industrial Recovery Act (NRA) organize u.S>
industryeliminate “cut throat” competition
Ÿ Price}
Ÿ Wages}”Supported fixed
Public projects{Skyline drive in blue ridge MTNS
-Agricultural adjustment administration (AAA)
Induce farm scarcitiesDo NOT plant crops  PRICE ^
-Emergency farm mortgage act
$$  farmerspay past due mortgages
-Federal deposit insurance Corporation (FDIC)
-TVA
-Supsend Prohibitions  {Breweries ^
{Distillers ^
{Retail ^ and saloons ^
{transportation ^
{warehousing ^
{tax revenue ^
{trucking ^
{RR ^
{bottling ^
{Paper ^
{printing ^
{lumber
{copper
{importers
{maritime ^
 History Notes #4 Second Semester

{Distributors ^
{Steel ^
{glass ^
{Advertising ^
{Baseball games ^