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REVISION BOOKLET
Unit 2: 20th Century Depth Studies, 37.5% of
GCSE

SECTION A: TOPIC 3: The Roaring 20s: USA, 1919-

1929
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SECTION A: TOPIC 3: The Roaring 20s: USA, 1919-1929

KEY QUESTIONS

3.1 How and why did the USA achieve prosperity in the 1920s?

3.2 How far was the USA a divided society in the 1920s?

3.3 Why did the US Stock Exchange collapse in 1929?

Section A: Exam answer structure

a) What does Source X suggest about. (4 marks) 5 mins

Source X suggests. .emphasises.represents.tone. (make 4 suggestions/inferences

from the source about the impression it gives. Inference = not stated in the source but can
be worked out by reading in between the lines. DO NOT COPY THE SOURCE AND YOU GET NO
EXTRA MARKS FOR KNOWLEDGE).

b) Explain the causes/consequences/effects of(6 marks) 10 mins

First a cause/consequence of was.SecondThird.

c) How useful is Source X is helping us to learn/study the.. (10 marks + 3

marks SPaG)20 mins

Paragraph 1 SOURCE X EVALUATION (5Ws)

Source A is a.. (e.g. cartoon/photograph/statistical table/map) and its purpose iswhich is

useful/less useful in telling us about [words of q e.g. the USAs failure to join the LON]
because.It was produced bywhich is useful/less useful because [e.g. unbalanced and
only tells us the perspective of.]

Paragraph 2 SOURCE X ANALYSIS

(what information the source tells/shows us AND does not show/tell us using own
knowledge)

Source X shows.which is useful/less useful in telling us about the [words of q e.g. USAs
failure to join the LON] becauseHowever, Source X does not tell us about.because. [own
knowledge]
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KEY TIMELINE
1920 US rejects joining LON; Volstead Act brought Prohibition into force in USA

1921 Republican President Harding; Immigration Quota System 3% of 1910

immigrant groups- reduce non-WASP immigrants

1922 Fordney-McCumber Tariff (tax on foreign exports)

1923 Republican President Coolidge took over

1924 National Origins Act 2% of 1890 immigrant groups further reduction non-
WASP immigrants

1925 Ford Model T affordable for ordinary Americans

1928 First talkies made for cinema

1929 St Valentines Massacre Al Capones gang vs. Bugs Moran gang

Oct 1929 Wall Street Crash in New York

1933 Prohibition ends 21st Amendment

What does the Source tell you? - 4 mark questions

What does source X tell us about Republican attitudes towards the League of Nations?
(4 marks)
What does source X tell us about the effects of the boom in the USA? (4 marks)
What does Source A suggest about the effectiveness (success/failure) of Prohibition? (4
marks)
What does Source X tell us about the growth of the entertainment industry during the
1920s? (4 marks)
What does Source X tell us about the actions and activities of the Ku Klux Klan during
the 1920s? (4 marks
What can you learn from Source X about immigration into the USA in the 1920s (4
marks)
What does Source X tell us about why Prohibition failed in the 1920s? (4 marks)
What does Source X tell us about speculation in America during the 1920s? (4 marks)
What does Source X tell us about what consumer items were available during the
1920s? (4 marks)

Explain questions- 6 marks

Explain the arguments for why the USA did not join the League of Nations in 1920? (6
marks)
Explain the arguments for Prohibition in the USA in the 1920s. (6 marks)
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Explain the consequences of Prohibition for the USA in the 1920s. (6 marks)
Explain attitudes to immigrants in the USA in the 1920s.(6 marks)
Explain the actions and activities of the Ku Klux Klan in the 1920s. (6 marks)
Explain the role of women in the USA during the 1920s. (6 marks)
Explain how the USA how the stock market grew during the 1920s. (6 marks)
Explain what people during their leisure time in 1920s America. (6 marks)

How useful is the Source? 10 marks

How useful is Source X to a historian who is studying the reason why the USA did not
join the League of Nations in 1920? (10 marks)
How useful is Source X to a historian who is studying American attitudes towards
immigrants during the 1920s? (10 marks)
How useful is Source X to a historian who is studying what happened to share prices in
the USA in the late 1929? (10 marks)
How useful is Source X to an historian studying attitudes towards the stock market in
the USA in 1920s. (10 marks)
How useful is Source B to a historian for understanding the reasons why Prohibition
ended in 1933? (10 Marks)
How useful is Source X to a historian who is studying the growth of consumer products
and changing attitudes? (10 marks)

KEY CONTENT

3.1 How and why did the USA achieve prosperity in the 1920s?

1920s USA prosperity (wealth) roaring 20s Ford motor car, jazz, cinema, stock
market boom, consumerism (shopping/buying items)
BUT divided society - only half population experienced prosperity as it excluded poor
workers, most black people, farmers
Violence KKK, gangsters during Prohibition 1920-33 when alcohol was banned in
USA
Oct 1929 so-called roaring 20s ended Wall Street Crash and Great Depression -
mass unemployment

1.Isolationism and its effects

Isolationism = America wanted to keep out of foreign affairs and be

isolated/separate from the rest of the world, e.g. during WW1. Americans did not
want to concern themselves with Europe's affairs - Policy of isolating your country from
the affairs of other nations and declining to enter into alliances, trade agreements and
international agreements with other countries. Focusing efforts on own countries
advancement by avoiding foreign entanglements
1914 WW1 began USA neutral (not fighting either side) nothing to do with USA
and distant 3,000 miles away from Europe
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Late 19th century USA melting-pot multicultural immigrants from Europe from
France, Russia, Britain and Germany, Austria-Hungary, Italy, etc.
Potential problem during WW1 German US immigrants would support one side
whereas French US immigrants would support the other side
USA Democrat President Woodrow Wilson hated idea of war visionary/idealist
1917 Germany in desperation started policy of unrestricted submarine warfare in the
Atlantic
1917 3 years after WW1 began USA finally joined in WW1 only because USA forced
to enter WW1 to defend its own ships - over 100,000 US soldiers killed US soldiers
returned home to USA in 1919 greeted as heroes

2.America refused to join the League of Nations

1.Isolationism

2.Money American businessmen were worried about the cost of the league on the USA

3.American Soldiers 100,000 had been killed in WW1 and American's did not want to lose
any more to defend peace in Europe

4.German immigrants Many European immigrants in USA, especially Germans who hated
Treaty of Versailles

5.Empires The USA had been part of the British Empire and therefore was anti-empire, and
as the Treaty of Versailles upheld the British Empire the USA did not want to support it

6.ISOLATIONISM - American people had not wanted to go into WW1 - America did
not join in until 1917 - and when the war ended they rejected the Treaty of
Versailles and the League of Nations

After WW1 Democratic President Wilson wanted USA to play key role in a League of
Nations (LON) to ensure Germany followed the Treaty of Versailles peace agreement
and prevent any future wars
BUT most Americans not interested in being peace keepers instead wanted USA not
to join LON and return to policy of isolationism no foreign entanglements/not getting
involved with Europe
President Wilson exhausting tour across USA giving speeches in lots of towns trying
to persuade Americans to join LON
BUT day after speech in Colorado exhausted suffered a stroke after semi-invalid
weakened his pro-LON campaign - BUT Republicans anti-LON campaign winning anyway
Republican Senator Henry Cabot Lodge against USA joining the LON 1919 he stated:
I must think of the United States firstEurope will destroy her power for good.
March 1920 USA did not join Treaty of Versailles as it was not formally passed
(ratified) as a law in the Senate (Congress- USA parliament) - since Treaty of Versailles
was linked to LON it meant the USA did not join the LON either

Republicans One of the two American political parties. Associated with tax cuts, strong
national defence and conservative social values. Believes in limited
government intervention in trade.
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Democrats One of the two main American political parties. Associated with more
liberal values, a concern with social injustice and civil rights. Believes
government should have a limited role in monitoring trade

Congress The US representative assembly, equivalent of British parliament. Upper

house is the Senate, lower is the House of Representatives

League of International peace organisation set up after WW1 to solve disputes

Nations (LON) between countries to prevent war (later called UN)

Treaty of Peace agreement signed after WW1

Versailles

Isolationism America wanted to keep out of foreign affairs and be isolated/separate

from the rest of the world, e.g. during WW1. Americans did not want to
concern themselves with Europe's affairs - Policy of isolating your country
from the affairs of other nations and declining to enter into alliances,
trade agreements and international agreements with other countries.
Focusing efforts on own countries advancement by avoiding foreign
entanglements

The consequences of not joining the LON for the USA

1920 Presidential election: Republican Warren Harding vs. Democrat James Cox
Republican President Harding won 1920 election with 61% of vote largest majority at
that time in US history
Return to normalcy Hardings election campaign appealed to most Americans who
wanted things to return to normal as they were before WW1 - isolationism, not to be
part of LON
1920S relations with most European countries not good e.g. resented the fact that
USA did not help in WW1 until 1917 (3 years after WW1 began)
During WW1 US businesses benefited as sold weapons and food to Britain and France
and captured trade markets of other countries who were more focused on WW1 than
trade
By end WW1 1918 USA overtaken Germany in supply of chemical products
US businesses developed new materials plastics

3.Tariff policy: 1922 Fordney-McCumber Tariff

Former President Wilsons policy of free trade meant that countries did not have to
pay tariffs taxes when buying and/or selling goods to each other
This free trade ended in 1922
1922 Fordney-McCumber Tariff put high tariff taxes on all foreign-made goods sold in
the USA aim to deter Americans from buying foreign goods as expensive with added
tax
Tariff taxes= protectionist policy protecting American goods/industries as aim for
Americans to buy cheaper American goods made in America help American
industries to grow included farm products
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European countries retaliated by putting tariffs on American-made goods entering

Europe thus American goods more expensive for Europeans to buy which means
Europeans less likely to buy American goods and more likely to buy European goods
which did not have a tariff tax

4.Mass production

By 1909 Henry Ford was producing the Model T Ford by 1914 assembly line
each worker had their own task to do over and over again as the conveyor belt
delivered the next car in the production line car could be produced in 93 minutes
rather than 14 hours (Henry Ford built first motor car 1896, 1903 founded Ford
Motor Company)
1920s over 1 million Model T Fords produced each year cheaper prices,
wages rose for production-line workers modern production techniques more
efficient
Henry Ford said - So long as its black before the assembly line, Model Ts
available in lots of colours after only black as dried quickly
Mass production made goods cheaper stimulated US economy/jobs
Car price revolution Model T Fords became cheaper and more affordable.
1909 Model T cost 950 dollars by 1928 cost 290 dollars 1925 price of a car
less than 3 months wages for an average-paid worker
Impact on American economy and peoples lives jobs of 4 million people depended on
motor industry
1920s industrial production doubled without any increase in the size of the workforce
efficient production techniques/machines. E.g. Number of telephones, canned
fruit/vegetables doubled and synthetic industries expanded rayon transformed
textiles industry
Local electric light and power companies prospered small firms merged into large
companies (monopolies) e.g. by 1930 10 large company groups controlled 72% of
countrys electric power
Construction industry boomed visible sign of prosperity e.g. New York 20 storey
skyscrapers replaced by 60+ storeys Empire State Building 86 storeys completed
1931

5.Consumer industries and advertising

Mass production techniques to produce vacuum cleaners, washing machines, cookers,

typewriters, etc.
Explosion in advertising techniques billboards, mail-order catalogues (shopping made
easier from home not just in a store), newspapers, radio, chain stores such as
Woolworths with branches in most town/cities
End 1920s largest 200 corporations (companies) owned 20% nations wealth big
businesses bought small businesses (monopolies)

6.Hire Purchase

Hire purchase getting goods now and paying later - meant more people could afford
products as they spread payment over instalments every month this increased the
demand for goods
Buy goods on hire purchase pay a deposit (e.g. 10% of total price) and then pay rest
in monthly instalments - with low interest rates (remember businesses/banks do not
lend money to people for nothing!)
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Easy to borrow money from banks low interest rates

Led to boom in sales (expansion/increase) which increased demand in the factories
produced more jobs and higher wages
As long as wages increased people could afford to pay back what they owed
BUT POTENTIAL DANGER - if wages decreased danger was people could not afford to
pay back what they owed!!

7.Share purchase: the stock market boom

Shareholder = investor who owns a share (big/small part) of a company. E.g. 100
shareholders each own a different percentage of the company. Investors aim is to sell
share at a higher price so they can make a profit. BUT this is gambling/speculating as
price of share can rise/fall daily basis.
1920s share prices however continued to increase by about 300%!! Hugh increase
shareholders who sold shares could make a huge profit
Many ordinary Americans started to invest in shares seemed easy way to make
money
More and more people bought shares demand increased prices of shares also
increased
Investors often bought shares on the margin they paid 10% of the total value of
the share and borrowed the rest of the money (e.g. share cost 100, they would pay
10 and borrow 90) they were confident they could pay money back as value of
shares increased
Banks loan money to people (and charge interest rates for lending) and also keep
savers money (savers earn some interest for saving)
Often banks loaned money by using the borrowers house as a guarantee- if the
borrower could not pay back the loan to the bank their house would be repossessed
(taken) by the bank!
Problem was banks loaned more money than they actually had in their deposits they
were confident loans would be paid back before customers wanted to withdraw their
savings
Republican gov of 1920s encouraged policies low taxes, laissez-faire little gov
interference in business activities, rugged individualism making individuals
responsible for their own lives and not expecting the State to do this for them
BOOM US ECONOMY 1920S/CYCLE OF PROSPERITY due to mass production; cheaper
prices; high demand for goods; more jobs/higher wages; cheap loans/hire purchase;
share purchase stock market boom; advertising
If one aspect was removed from the cycle of prosperity other aspects would suffer
economy would decline/go bust rather than boom/expand

8.Developments in entertainment industries

Roaring 1920s many people, especially white people more leisure time and money
spent money on entertainment this stimulated industry and business
Jazz became popular developed out of blues music among black people in southern
states of USA Jazz spread throughout USA in 1920s especially due to radio and early
gramophone records
Jazz clubs young people who are abandoning old traditions e.g. Cotton Club New
York. Famous black musicians Duke Ellington and Louis Armstrong - provided black
musicians with way of gaining self-respect and admiration
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Development of electric lighting social entertainment after dark dance halls and live
music
By 1929 over 10 million homes had a radio local and national commercial stations
set up
Radio stations helped to increase popularity of jazz and sports baseball (Babe Ruth),
boxing (Jack Dempsey), American football
Increased ownership of cars possibility to travel to watch matches (1910 468K cars;
1920 9.2m; 1930 26.8m)
Dance The Charleston, tango, Black Bottom popular among young sexually
provocative frowned on by many of older generation
New crazes dance marathons, stunts e.g. a man named Shipwreck Kelly sat on top
of a flagpole for 23 days and 7 hours; climbing up outside of tall building; 1927 Charles
Lindbergh first man to fly solo across the Atlantic

9.The cinema

Roaring 20s glamorous cinema

1929 going to movies national habit 110 million people going cinema ach week
Before 1927 films were silent with captions to tell the story outlines (romance, comedy)
Actors had to keep the audiences interest without speaking - they conveyed emotions
through visual body language e.g. sad faces of Charlie Chaplin, Rudolf Valentino
(gained many female fans died 1926 aged 31 of appendicitis thousands attended
his funeral) Buster Keaton and Harold Lloyd piano players in each cinema playing
appropriate background music for each scene of film
Most film studios in Hollywood (Los Angeles, California) dry, sunny climate both
mountain and desert scenery perfect film location!
Big film companies developed Warner Brothers, Paramount and MGM large publicity
departments star actors and actresses
1927 first talkie film with talking Al Jolson starred in The Jazz Singer after this
silent screen stars tried to adapt their skills to new talkie film era BUT many failed to
make a successful transition unattractive voices and did not match their existing
silent reputation
First Oscars 1929 Charlie Chaplin awarded for his film The Circus. The Jazz Singer also
awarded

3.2 How far was the USA a divided society in the 1920s?
1.Rich versus poor

Massive national income in USA bigger than combined economies of UK, Germany,
Japan, France and 18 other countries!!
1920s not roaring for all Americans! Decade of contrasts extreme wealth
and extreme poverty
Wealth unequal distribution (wealth not shared equally across nation)- early 1929
5% of population owned one-third of nations wealth - most wealth owned by
only a few
1929 71% of American families had annual incomes under $2,500 which was
below the poverty line of the minimum needed for a decent standard of living

Groups NOT benefiting from the boom and wealth/prosperity

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1.African Americans

10% of US population poor living conditions (originally brought to America as

enslaved people on slave ships from around 1619-1807) most lived in squalor and
misery seen as inferior race suffered discrimination e.g. from KKK
Many African Americans still lived in southern states e.g. Mississippi and South
Carolina black people outnumbered white people

2.Famers

Overproduction efficient machinery meant that farmers were producing a large

amount of food this success however caused them problems as too much food
which they could not sell!
Debt/lost farmland - struggled due to overproduction (over-producing food so that
there was too much) which meant that it was difficult to sell and its value decreased -
low prices (value decreased if there is too much produce which they are unable to sell
they have to then lower prices and lose money)
Foreign trading position of the USA unhealthy with the effects of the 1922
Fordney-McCumber Tariff policy caused problems for industry and also for
farmer 1922 tariff led Europe to retaliate in revenge with their own tariffs on
American exports into Europe which meant the American food exports to Europe
became too expensive for Europeans to buy
Before Tariff policy- during WW1 1914-1918 there had been high demand for food
exports to Europe!
New synthetic fibres such as rayon reduced demand for cotton many farmers
experienced Great Depression several years before the Oct 1929 Wall Street Crash

3.Poor non-WASP immigrants

Seen as inferior e.g. tanned skin, Catholic from areas such as Italy/Spain/Eastern
Europe who were not WASPs. WASP immigrants seen as superior - white, Anglo-Saxon,
Protestant from North Europe Germany, UK, etc. seen as a threat to the American
way of life

4.White workers in old industries in northern states

Did not benefit from the roaring 20s boom they were exploited with bad working
conditions and low wages e.g. shipbuilding, textiles and coal mining
Children exploited in textile mills and agricultural work 2m 14-15 year olds worked
up to 11 hours per day for very low wages

5.Native Americans

Original people of America granted citizenship in 1924 BUT mostly lived on

reservations in various parts of USA suffered discrimination/racism

2.Race: immigration controls

ISOLATIONISM 1920s controlling immigration reflective of mood of isolationism

discouraging immigration into USA - separating USA from other countries due to racial
prejudice and economic reasons protected American workers jobs from foreigners
competition
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Before WW1 USA had no restrictions on immigrants USA became melting-pot of

races and nationalities multiple cultures, religions and languages
Late 1890s- mostly non-WASP immigrants from Southern and Eastern seen as inferior
and less educated racial prejudice
Fear that non-WASP immigrants seen in increasing numbers in cities were threat to
WASP American way of life
1917 Literacy test on immigrants favoured WASP immigrants
1921 Emergency Quotas Act - again aimed to limit number of non-WASPs
entering USA through immigration controls. 3% of each national group who
lived in USA in 1910 allowed to enter USA in a year since there were more
WASPS entering USA in 1910 than non-WASPs this meant that more WASPs
could enter USA but fewer non-WASPs could enter from 1921
This was a response to white fear of non-WASPs. Favoured those from Northern and
Western Europe mostly whites and mostly Protestant
1924 National Origins Act further non-WASP immigration restrictions. 2% of
number resident in USA in 1890 and overall number of European immigrants
restricted to 150,000 again reduced number of non-WASP immigrants from
countries such as Italy, Russia, Greece and Turkey

3.Race: the Ku Klux Klan

Black Americans in the early 20th century

Despite abolition of slavery in 1865, free black people suffered racial discrimination and
racism particularly in south states where segregation was legal - Jim Crow laws
racial separation
After 1865 many free black people in south sharecropped which meant their
previous slave masters (or planters plantation owners) lent black people plots of land
to work in return for a share of their crops
Black people treated inhumanely as inferior people second-class citizens 0 usually
had worst jobs, houses, could not eat and travel with white people unfair treatment in
courts
Due to white fear that their way of life was threatened particularly in south were black
people often outnumbered white
1896 Plessy vs. Ferguson separate but equal US Supreme Court given legal
approval for Jim Crow laws
Black voting rights restricted in south poll taxes and literacy tests which meant black
people could not often cote (loopholes for white people who could not pay the tax or
pass the test)
1920s industrial expansion in USA nearly 1 million black people left south of USA to
migrate to north as jobs available in expanding cities e.g. factories still racism and
discrimination but not as bad since no Jim Crow laws in northern states
Black people lowest paid northern cities black ghettoes e.g. the Bronx in New York

The activities of the KKK

KKK formed 1866 just after US Civil War/abolition of slavery

Racist whites - intolerance of non-WASPs (White, Anglo-Saxon, Protestant) joined KKK
as they believed were protecting traditional American values, excitement, fear of not
supporting their white neighbours
Spread fear among black people suffered acts of violence, beating, rape, lynching
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Reformed in 1915 no opposed to Catholics, Jewish people and all foreigners as well as
black people
1925 5 million KKK members included judges, policemen, local politicians
Klansmen met in secret at night paraded during day wore white sheets/hoods
flags and night-time meetings lit burning crosses spoke in code Klonversations
book of rules Kloran
1925 KKK scandal which led to it membership decline (it rose again during Civil Rights
Movement 1950s/60s) Klan leader David Stephenson found guilty of kidnapping,
murder and rape of a woman on a Chicago train sentenced to life in prison
Although KKK membership declined and number of lynchings racism still strong

4.Prohibition in the 1920s

Groups FOR Prohibition want alcohol to be illegal to drink/buy/sell

Late nineteenth century people in USA (Britain and elsewhere) wanted to ban alcohol
as many poor homes suffered from alcoholic abuse of the father of the house
Womens Christian Temperance Union and Anti-Saloon League had campaigned
against alcohol for many years
1914-1918 during WW1 evils of alcohol stressed e.g. cause people to be absent
from work (hangovers!) and two of leading beer companies were German which was
seen as unpatriotic as Germany the enemy during WW1
FOR - 1914, 12 states of USA were dry alcohol banned and by end of
WW1 1918 75% dry
Thus, only a small step to spread prohibition to all 48 states in 1920
17 Jan 1920 Volstead Act Alcohol drinking prohibited (banned/illegal)
noble experiment lasted 13 years up to 1933
Weeks before Volstead Act huge quantities of alcohol bought from liquor stores for
those who wished to carry on drinking alcohol after the deadline
Law came into force without major protests - most of American public was either
happy with the new law, or resigned to it - more support for anti-prohibition in
north rather than the conservative south
Churches celebrated prohibition held thanksgiving prayer meetings long
campaign against the demon drink this successful Volstead Act would help to cut
down social abuses which arose from drunkenness and led to the neglect of
families and people being absent from work
William Jennings Bryan- ex-Democrat presidential candidate argued large sums
of government money spent on alcohol is better spent on education - leading
prohibition campaigner stated 2.5 billion dollars are spent annually in this country on
whisky and liquor. This is three times as much as is spent for education.
Many womens groups supported prohibition in revenge as most likely as some
Brewers (alcohol) associations had funded campaigns to stop women from voting!

Groups AGAINST prohibition want to buy/sell/drink alcohol

Prohibition supporters better organised than anti-prohibition alcohol supporters e.g.

Association against the Prohibition Amendment (AAPA) founded 1918
Anti-prohibition alcohol supporters argued benefits of alcohol for medical reasons!!
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Problems of enforcing Volstead Act from 1920 to 1933

Prohibition agents (slang term prohi) Volstead law enforcers but they were
outnumbered by masses of people selling/drinking illegal alcohol and many prohibition
agents were corrupt they took bribes and helped the illegal trade to continue
BUT Successful prohibition agents - Izzy Einstein and Moe Smith - only a few to
try and catch illegal alcohol selling/drinking by wearing disguises as footballers, truck
drivers etc. Raided 3,000 speakeasies, arrested 4,900 people and confiscated
3 million bottles of spirit in the first 5.5 years of Prohibition
Speakeasies (an old Irish word for illegal bars) appeared in saloons or In basements
sometimes disguised as jazz clubs - end 1920s 30,000 speakeasies in New York
alone, 200,000 across USA
Dangerous moonshine - smugglers often worked at night to avoid arrest for
producing illegal liquor each year 5,000 people died from drinking dangerous
homemade moonshine (alcohol content too high) - quality of alcohol varied
Bootleggers (so-called because they sometimes carried alcohol inside their knee-
length boots) brought in the alcohol and sold it at high prices - alcohol smuggled in
across the USAs long borders with Mexico and Canada

Organised crime

Gangsters benefited from selling illegal alcohol in cities big business/money supplied
booze, set up speakeasies, ran protection rackets (blackmail) which meant that
gangsters bribed/blackmailed to get what they wanted e.g. threatened to damage
property unless they received money to protect it
Alphonse Scarface Capone Al Capone most famous gangster
Al Capone gained control of Chicago by bribing officials, politicians and the police
therefore he was not worried about being arrested and operated as a gangster openly
Employed 1,000 men private army worth $60m to $100m a year!
Violence: 227 murders in 4 years BUT no one arrested
1929 St Valentines Day Massacre Al Capones gang versus Bugs Moran gang - some
of Al Capones gang, disguised as policemen gunned down 6 members of rival Bugs
Moran gang outraged general public
Gangsters/violence/crime - clear prohibition not working
After Wall St Crash Oct 1929 and onset of the Great Depression millions unemployed
easy to argue to end Prohibition as alcohol industry would provide jobs for some of
the unemployed
1932 Presidential Election Franklin D Roosevelt (FDR) promised to repeal (end) the
Prohibition laws this involved another amendment to the constitution the 21 st
Amendment of 1933
Al Capone never convicted for breaking Prohibition law of for murderous activities
BUT 1931 arrested for income tax evasion sentenced to 11 years in Alcatraz prison
released earlier in 1939 and died 1947 after a stroke
Al Capone: I made my money by supplying public demandmy customersare as
guilty as I am. The only difference is I sell and they buy. Everybody calls me a
racketeer. I call myself a businessman

(INTERESTING FACT Where did Al Capone get his scars from? See-
http://www.myalcaponemuseum.com/id108.htm)
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5.Young People: fashion, flappers

1920s Flappers symbols of the boom and roaring 20s new attitude amongst some
middle-class young women which influenced many other women
Flapper image - fashion changed short haircuts (bob), short skirts/revealing outfits,
wore trousers (seen as masculine and daring), wore red lipstick, smoked in public (word
flapper came from popular movie The Flapper in 1920 starring Olive Thomas)
1920s many young women increased freedom/liberation more money more
leisure time stayed out late dancing, motor cycles/drove cars free from social
restraints and old traditions
Mocked uptight attitude of old traditionalists and dries (those who supported
Prohibition banning of alcohol)
Dance The Charleston, tango, Black Bottom popular among young sexually
provocative frowned on by many of older generation
Charleston dance upbeat, provocative origins in African American music and dance
danced this in the speakeasies (illegal alcohol on sale) (Bee Jackson world champion
Charleston dancer)

3.3 Why did the US Stock Exchange collapse in 1929?

1.The Wall Street Crash, October 1929

March 1929 Republican Herbert Hoover became president economy still booming
Despite prosperity for many during the 1920s seeds of the 1929 economic disaster
were being sown boom could not last forever too much expansion and
borrowing/spending money with most ordinary people could not afford
RISKS as if stock market prices fell and/or business sales decreased this would affect
the cycle of prosperity

Cycle of prosperity

Employment Economic gain Faster buying Speed up in industry Increase

in production CONFIDENCE

Hoover promised continuation of boom a chicken in every pot and boasted that,
We in America today are nearer to the final triumph over poverty than ever before.
The poor man is vanishing from among us.
BUT Hoover ignored all those who were not benefiting from the boom (e.g. farmers,
African Americans, etc.)
Within 6 months massive changes
June 1929 Effects of overproduction led to decrease in production - negative impact
on cycle of prosperity
Sept 1929 investors began to worry about prices and warned that a crash would
happen at some point led some people to sell their shares BUT during Sept stock
market recovered
Banks helped to restore stability by buying up vast numbers of shares

Share prices plummeted

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Black Thursday - 24 Oct 1929 PANIC set in, 13 million shares sold on Wall St Stock
Exchange in New York prices of shares dramatically decreased no one wanted to buy
E.g. Radio price of share Sept 1929, 505 cents , two months later share worth only 28
cents
Banks could no longer intervene by buying on this huge scale
29 Oct 1929 investors sold their shares for whatever price they could get
Republican Hoover gov taken by surprise Hoover assumed at first that prosperity
would soon return idealistically stated: Prosperity is just around the corner
He then tried to help by cutting taxes and providing soup kitchens for unemployed and
homeless
Great Depression set in and became worse in 1931 and 1932

Cycle of depression:

Unemployment Economic hardship Slower buying Slowdown in industry

Reduction in production PANIC

Dramatic effects

1. Investors share prices fell no longer massive profits but now massive losses -
small/big investors speculated on the market owed huge sums of money PANIC
2. Big investors lost massive amounts e.g. Vanderbilt family lost $40m (railroad/shipping
but still remain 7th richest family in history despite losing so much of their wealth)
3. Small investors (ordinary people) who had borrowed money from banks on the margin
with their homes as security lost their homes Banks had right to repossess and evict
them if they could not repay loans
4. Hoovervilles temporary homes/tents for homeless
5. Suicide/depression of investors
6. Unemployment 12 million 1932
7. 100,000 companies bankrupt 1929-33 and many could not repay their investors

Insufficient controls on banks and businesses due to Republican laissez-faire policy

had helped boom but ultimately led to bust was this the most important reason?