The Roaring TwentiesClarence Darrow & William Jennings Bryan at the Scopes Trial

(Dayton, Tennessee 1925)

I. Postwar American AttitudesA. Disillusionment following World War I, particularly among veterans,

artists & intellectuals (Gertrude Stein’s the Lost Generation)---Ernest Hemingway, F. Scott Fitzgerald (The Great Gatsby), etc.1. society was lacking in idealism & vision2. sense of personal alienation3. Americans were obsessed with materialism & outmoded moral

values B. Fear of Bolshevism

1. success of Russian Revolution combined with epidemic of strikes frightened Americans into "Red Scare" mentality of 1919-19202. Attorney General A. Mitchell Palmer arrested 6,000 suspected radicals & deported many following several bombings (Palmer Raids through the use of the FBI)

Gertrude Stein’s “Lost Generation”

C. Fear of foreigners1. over 800,000 immigrants came to America in 1920-21, with 2/3 coming from Southern & Eastern Europe2. to preserve the northern European racial composition of America, quotas were set up to restrict new immigration in a series of acts, including the National Origins Act of 1924 which cut immigration to 2% of each nationality from the 1890 Census3. Sacco & Vanzetti, two Italian anarchists, were executed in 1927 for murder despite protests from within & outside the U.S. that anti-immigrant attitudes prejudiced their trial

D. Rise of the nativist Ku Klux Klan1. reconstituted partly after the success of the movie Birth of a Nation (D.W. Griffith), the new KKK was more anti-foreign than anti-black. its strength was in the Midwest & South

a) targets: foreigners, Jews, Catholics, pacifists, communists & evolutionists (…technically anyone not a WASP: White Anglo-Saxon Protestants)

b) by 1925, 5 million members had joined to march in parades, burn crosses & hold secret meetings2. movement lost strength, particularly after it was exposed as a money-making scheme by organizers

II. Movements of the 1920sA. prohibition: authorized by passage of the 18th Amendment in

19191. strong demand for alcohol & weak enforcement led to

widespread hypocrisy2. saloons were replaced by illegal "speakeasies" serving high-

proof alcohol3. home-made alcohol (bathtub gin) sometimes resulted in

blindness & death4. organized crime stepped in, most famously in Chicago, to

meet consumers' needs to drink (Al Capone)a) over 500 murders in Chicago in the 1920s by competing

gangsb) gangsters used prohibition profits to move into

prostitution, gambling & narcotics sales

B. Fundamentalism vs. Modernism1. fundamentalist Christians, stressing literal biblical interpretation,

opposed any scientific teaching that cast doubt on veracity of scripture, particularly the book of Genesis

2. modernist Christians, mainly urban & better educated, attempted to adapt religion to the teachings of modern science & a changing world

3. Scopes Trial: Dayton, Tennessee, 1925a) John Scopes purposely violated Butler Act forbidding the

teaching of evolutionb) William Jennings Bryan assisted prosecution while Clarence

Darrow defended Scopesc) Scopes found guilty (conviction later overturned), but Darrow's

cross-examination of Bryan exposed narrowness of fundamentalist position as anti-science & anti-progress

C. Prosperity & Consumerism (THE ROARING TWENTIES)1. tremendous performance of American economy in early 1920s. from 1920-1929:

a) manufacturing output rose more than 60%b) gross national product (total of goods and services) rose 5% a yearc) industrial output per worker grew 33%d) per capita income grew 30% with virtually no inflation

2. causes of economic boom: (the influx of credit)a) destruction of European economies during World War I left the U.S. as the

only major industrial nation (Dawes Plan with Germany’s reparations)b) technology allowed for expansion, particularly in the auto industry

i) 1.5 million cars sold in 1920; 5 million cars sold in 1929 ii) assembly line methods used by Henry Ford & others made cars affordable to many American families (Ford paid workers $5 a day)

c) radio & motion picture industry grew as a result of technological innovations (the rise of jazz, as an American form of music)

d) cheap, readily available energy sources (coal, oil) made expansion affordable e) scientific management techniques promoted by Frederick Taylor were

adopted widely in an attempt to improve efficiency 3. consumerism fostered growth of advertising which benefited from expansion of national mass-circulation magazines, such as Time, Reader's Digest & The Saturday Evening Post

III. Republican GovernmentA. 3 conservative presidents (Harding, Coolidge & Hoover) encouraged a warm

relationship between business & government (laissez faire economic principles)1. Warren G. Harding 1921-1923: ("I am a man of limited talents from a small town") delegated much of his responsibility to subordinates & friends, with whom he partied regularly (“return to normalcy”)

a. Teapot Dome Scandal: Secretary of Interior Albert Fall was jailed for a year for accepting bribes to provide oil leases in Wyoming & California to

wealthy businessmenb. Harding, largely unaware of the corruption that was riddling his

administration, died in August 1923 on a trip to the West2. Calvin Coolidge 1923-1929: ("The business of America is business") was the least active president in history, taking daily afternoon naps & proposing no new legislation (former Governor of Massachusetts, who broke up the Boston Police Strike)3. Herbert Hoover 1929-1933: was much more progressive than his predecessors & actively ran the Department of Commerce in the 1920s (Food Administration: WWI)

B. major goal of government in the 1920s: help business & industry to operate with maximum efficiency & productivity

→ laissez faire = no government intervention in the economy

Highlights of the Roaring Twenties• Harlem Renaissance = literary & cultural movement out of Harlem (NYC)

that showcased African-American contributions & heritage– Langston Hughes: poetry & literature– Duke Ellington: musical composition (“the Jazz Age”)– Louis Armstrong: musical artistry

• the emergence of “flappers”– young women who adopted an original style of dress & challenged

traditional societal values (riskier women = “vamps”)• Charles Lindbergh: 1st man to fly across the Atlantic Ocean solo &

nonstop (NYC → Paris in 33.5 hours for “Lucky Lindy”)• George Herman Ruth, “the Babe”: American obsession with “the

national pastime,” baseball…thanks to “the Sultan of Swat”• Jack Dempsey: the king of the boxing ring!• The Jazz Singer (1927): the 1st “talkie” motion picture…begins the end of

silent pictures at the movie theaters

WARMUP #1

These 3 statements describe the American economy in the 1920s. For each statement, explain why this factor helped lead to the Great Depression that began with the stock market crash of 1929.(1) Many Americans in the 1920s thought prosperity would

continue. They bought household appliances & cars on credit.(2) As the American economy grew in the early 1900s, it became

concentrated in the hands of fewer corporations.(3) In the mid-1920s, the smallest & richest group of Americans

invested heavily in high-risk ventures.

The Great Depression“We in America today are nearer to the final triumph over poverty than ever before in the

history of any land. The poorhouse is vanishing from among us.”---Herbert Hoover, 1928“...[A] host of unemployed citizens face the grim problem of existence, and an equally great

number toil with little return. Only a foolish optimist can deny the dark realities of the moment.”---Franklin D. Roosevelt, March 1933

I. Causes of the Great DepressionA. massive business inventories (up 300% from 1928 to 1929) (#1: overproduction

= S↑ D↓ P↓ especially among farmers, who were hit hard by a great drought & famine called “The Dust Bowl”…John Steinbeck’s The Grapes of Wrath chronicles a family of “Okies” moving to the promised land of California)

B. lack of diversification in American economy: prosperity of 1920s largely a result of expansion of construction & automobile industries (#2: too many monopolies = when they fail, economy fails!)

C. poor distribution of purchasing power among consumers (#3: disparity of wealth: ↑ rich, ↓ poor)

1. many farmers and factory workers were unable to purchase cars & houses and thus maintain economic growth

2. farm income declined 66% from 1920 to 19293. by 1929, the top 10% of the nation's population received 40% of the

nation's disposable income

D. huge credit problems (#4: risky investments = credit, installment plans, the Stock Market “Wall Street”)1. steady stream of bank failures in late 1920s as customers (many of them farmers) were unable to pay mortgages (…too many “runs” on the banks)2. many bankers had small reserves as they attempted to capitalize on stock market growth3. low margins encouraged speculative investment on the part of banks, corporations & individual investors∆ speculation: investment in stocks, property or other ventures in the hope of gain but with the risk of loss (“going fishing”---buy low, sell high)

business cycle: the fluctuations in economic activity that an economy experiences over a period of time (“boom” to “bust” to “boom” etc.)bull market: a period of economic growthbear market: a period of economic decline

∆ buying on margin: the buying of securities with cash borrowed from a broker, using other securities as collateral, with the effect of magnifying any profit or loss (“a down payment” on stocks)

E. decline in demand for American goods in international trade (#5: European debt)1. some European industry & agriculture gradually recovered from World War I2. some nations, particularly Germany, were so beset by financial crises & inflation that they could not afford to purchase American goods3. unable to pay wartime debts, many European nations borrowed from American banks, further increasing indebtedness (Dawes Plan to help Germany pay back World War I reparations to the Allied Powers)4. high American protective tariffs discouraged trade

II. Stock Market Crash, 1929A. by October 1929, margin buying had reached $8.5 billion in loans to stock purchasersB. stock prices began to fall in September 1929. On October 24 (Black Thursday) & October 29

(Black Tuesday), prices fell drastically as sellers panicked. By December, $40 billion in stock value had been lost (“run” on the Stock Market = October 29th, 1929 “Black Tuesday”)

C. President Herbert Hoover & business leaders attempted to calm Americans by assuring them that the country's economy was fundamentally sound

D. J.P. Morgan & other bankers bought $20 million of U.S. Steel to try to restore confidenceE. economic downturn accelerated by “Market Crash”:

1. between 1929 & 1933, 100,000 businesses failed2. corporate profits fell from $10 billion to $1 billon3. between 1929 & 1933, over 6,000 banks failed with over 9 million savings accounts lost

($2.5 billion)4. by 1933, 13 million workers were unemployed (25% of the work force) & many were

underemployed5. malnutrition increased, as did tuberculosis, typhoid & dysentery

a) in 1932, 95 people died in New York City from starvationb) many turned to soup kitchens & breadlines for food

6. large numbers of homeless workers roamed the U.S., particularly the Southwest, seeking work (“Okies” in The Grapes of Wrath → Hoovervilles)

III. Herbert Hoover's ResponseA. rejected direct relief (the dole) as undermining to character & rugged individualism

(Republican belief in business cycles…)B. urged Americans to turn to community & church resources (Salvation Army,

Community Chest, Red Cross) to meet needs of the poor…& not look to government!C. gradually used federal agencies to address issues

1. met with business & labor leaders to reduce layoffs & strikes2. financed federal work projects, such as massive dams in the West (Boulder,

Hoover & Grand Coulee)3. setup RFC (Reconstruction Finance Corporation) in 1932 to make loans to

stimulate economy in a "trickle-down" manner4. raised tariffs 33% by signing the Hawley-Smoot Tariff in attempt to keep foreign

goods off the U.S. market→ did not change American people’s opinion of Hoover• “Hoovervilles”: shantytowns of unemployed men• “Hoover blankets”: newspapers that were used against the cold winters…&

covered the bad news!• “Hoover flags”: empty pockets, signaling that the Great Depression was still

around

IV. Election of 1932A. President Hoover refused to accept any responsibility for the economic downturn ("No president must ever

admit he has been wrong") & was booed & jeered when he made his few campaign appearances outside Washington (1932 Bonus Army strike on Washington, D.C. = World War I veterans who had not been paid yet)1. campaign slogans: "The Worst Is Past" & "Prosperity Is Just Around The Corner“2. accused FDR of seeking the destruction of capitalism

B. Franklin Delano Roosevelt preached a brand of cautious liberalism, rejecting Hoover's conservatism & the radical approach of socialists & communists1. offered a New Deal for the "forgotten man" & promised a balanced budget along with economic reforms (Keynesian economics = governmental deficit spending…British economist, John Maynard Keynes)2. campaign slogan: "Happy Days Are Here Again" signaled Democratic optimism in face of economic problems

C. though party platforms were remarkably similar, Democrats supported repeal of prohibition & an increase in federal relief (21st Amendment overthrows 18th Amendment)

D. FDR won 57% of the popular vote & Democrats took control of both the House of Representatives & the SenateE. following long lame-duck period for Hoover & Republicans (November 1932-March 1933), FDR launched the

Hundred Days of legislative & administrative changes1. Relief2. Recovery3. Reform

1st Step in 100 Days: National Bank Holiday!---close the banks & flood them with new revenue, sparking a desire to increase deposits---

2nd Step(s) in 100 Days: New Deal Alphabet Agencies…as needed by Keynesian economics!

WARMUP #2

During the Great Depression, many people had to give up their homes because they could no longer pay the rent or the mortgage. Some ended up living on the streets. Some lived in settlements of houses made of scrap material on the fringes of cities. These areas were often called “Hoovervilles.” Newspapers were sometimes called “Hoover blankets.”Why were these names used? Was it fair to blame President Herbert Hoover for the Great Depression? Write 1 clear paragraph explaining your answer. Support your argument with historical facts.

New Deal Programs: Alphabet AgenciesAct or Program Acronym Year Enacted SignificanceAgricultural Adjustment Act AAA 1933 protected farmers from price drops by

/Administration providing crop subsidies to reduce production, educational programs to teach methods of preventing soil erosion (“plow their fields, kill their pigs” = combating overproduction)

Civil Works Administration CWA 1933 provided public works jobs at $15/week to four million workers in 1934

Civilian Conservation Corps CCC 1933 sent 250,000 young men to work camps to perform reforestation & conservation tasks. removed surplus of workers

from cities, provided healthy conditions for boys & provided money for families (unmarried men)

Federal Emergency Relief Act FERA 1933 distributed millions of dollars of direct aid to unemployed workers

Glass-Steagall Act FDIC 1933 created federally insured bank deposits ($2500 Federal Deposit Insurance Corporation per investor at first) to prevent bank failures

National Industrial Recovery Act NIRA 1933 created NRA to enforce codes of fairNational Recovery Administration NRA competition, minimum wages & to permit

collective bargaining of workers (“blue eagle”)National Youth Administration NYA 1935 provided part-time employment to more than

2 million college & high school students

Public Works Administration PWA 1933 received $3.3 billion appropriation from Congress for public works projects

Rural Electrification Administration REA 1935 encouraged farmers to join cooperatives to bring electricity to farms. despite

its efforts, by 1940 only 40% of American farms were electrified

Securities & Exchange Commission SEC 1934 regulated stock market & restricted margin buying

Social Security Act/Administration SSA 1935 response to critics (Dr. FrancisTownsend & Governor Huey Long), it provided

pensions, unemployment insurance & aid to blind, deaf, disabled & dependent children

Tennessee Valley Authority TVA 1933 federal government built series of dams to prevent flooding & sell electricity. first

public competition with private power industries (“hydroelectric power”)

Wagner Act NLRB 1935 allowed workers to join unions & outlawed union-busting tactics by management

Works Progress Administration WPA 1935 employed 8.5 million workers in construction & other jobs, but more importantly

provided work in arts, theater & literary projects (“artists, authors & actors”)

WARMUP #3

“A second-class intellect, but a first-class temperament.”Supreme Court Justice Oliver Wendell Holmes Jr. used these words to describe President Franklin Delano Roosevelt

What does this quotation mean? Do you think that intelligence is the most important characteristic of an effective president? Can other personal characteristics sometimes be more important? Write 1 clear paragraph explaining your answer. Support your argument with historical facts.

Franklin Delano Roosevelt’sSupporters & Opponents

Supporters:– Eleanor Roosevelt: First Lady of the United States

• instrumental in making FDR aware of the needs of minority groups & often traveled around the country on his behalf, spreading his message to the American public

– Frances Perkins: Secretary of Labor• 1st woman appointed to a Presidential Cabinet position

– “fireside chats”: FDR’s frequent use of the radio to speak directly to the American people!Opponents:

– Huey Long: Governor & Senator from Louisiana• “The Kingfish” pushed for a radical policy of redistributing private fortunes (“Share the Wealth”)• biggest threat to FDR but assassinated before presidential run

– Dr. Francis Townsend• publically pushed that everyone 60 years of age or older should get $200 a month as long as they spent

it within 30 days• his criticism → Social Security Administration

– Father Charles Coughlin• Catholic priest, who initially was an FDR supporter, but began to use radio broadcasts as a means to

denounce the New Deal– Republicans in Congress

• “Court packing” scandal: FDR denounced for trying to “pack the Supreme Court” with his supporters, increasing the number of justices from 9 to 15, in order to legitimize his “controversial” New Deal programs, like the National Recovery Administration (NRA)