The Roaring Twenties
Clarence Darrow & William Jennings Bryan at the Scopes Trial
(Dayton, Tennessee 1925)
I. Postwar American Attitudes
A. 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 & vision
2. sense of personal alienation
3. 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 1919-1920
2. 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 foreigners
1. over 800,000 immigrants came to America in 1920-21, with 2/3 coming from
Southern & Eastern Europe
2. 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 Census
3. 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 Klan
1. 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 meetings
2. movement lost strength, particularly after it was exposed as a money-making
scheme by organizers
II. Movements of the 1920s
A. prohibition: authorized by passage of the 18th Amendment in
1919
1. strong demand for alcohol & weak enforcement led to
widespread hypocrisy
2. saloons were replaced by illegal "speakeasies" serving highproof alcohol
3. home-made alcohol (bathtub gin) sometimes resulted in
blindness & death
4. 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
gangs
b) gangsters used prohibition profits to move into
prostitution, gambling & narcotics sales
B. Fundamentalism vs. Modernism
1. 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, 1925
a) John Scopes purposely violated Butler Act forbidding the
teaching of evolution
b) William Jennings Bryan assisted prosecution while Clarence
Darrow defended Scopes
c) 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 year
c) 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 Government
A.
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 businessmen
b. Harding, largely unaware of the corruption that was riddling his
administration, died in August 1923 on a trip to the West
2. 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 Depression
A.
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 1929
3. 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 growth
3. 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 growth
bear 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 I
2. some nations, particularly Germany, were so beset by financial crises & inflation that they could
not afford to purchase American goods
3. 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, 1929
A.
B.
by October 1929, margin buying had reached $8.5 billion in loans to stock purchasers
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 confidence
E.
economic downturn accelerated by “Market Crash”:
1.
between 1929 & 1933, 100,000 businesses failed
2.
corporate profits fell from $10 billion to $1 billon
3.
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
underemployed
5.
malnutrition increased, as did tuberculosis, typhoid & dysentery
a)
in 1932, 95 people died in New York City from starvation
b)
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 Response
A.
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 & strikes
2. 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" manner
4. 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 1932
A.
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 & communists
1. 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 Senate
E. following long lame-duck period for Hoover & Republicans (November 1932-March 1933), FDR launched the Hundred
Days of legislative & administrative changes
1. Relief
2. Recovery
3. 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 Agencies
Act or Program
Acronym Year
Agricultural Adjustment Act AAA
1933
/Administration
Civil Works Administration
CWA
1933
Civilian Conservation Corps CCC
1933
Federal Emergency Relief Act FERA
1933
Glass-Steagall Act
FDIC
1933
Federal Deposit Insurance Corporation
National Industrial Recovery Act NIRA 1933
National Recovery Administration NRA
National Youth Administration NYA
1935
Enacted Significance
protected farmers from price drops by
providing crop subsidies to reduce production,
educational programs to teach methods of
preventing soil erosion (“plow their fields, kill
their pigs” = combating overproduction)
provided public works jobs at $15/week to four
million workers in 1934
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)
distributed millions of dollars of direct aid to
unemployed workers
created federally insured bank deposits ($2500
per investor at first) to prevent bank failures
created NRA to enforce codes of fair
competition, minimum wages & to permit
collective bargaining of workers (“blue eagle”)
provided part-time employment to more than
2 million college & high school students
Public Works Administration
PWA
1933
Rural Electrification Administration
REA
1935
Securities & Exchange Commission
SEC
1934
Social Security Act/Administration
SSA
1935
Tennessee Valley Authority
TVA
1933
Wagner Act
NLRB
1935
Works Progress Administration
WPA
1935
received $3.3 billion
appropriation from Congress
for public works projects
encouraged farmers to join
cooperatives to bring electricity
to farms. despite its efforts, by
1940 only 40% of American
farms were electrified
regulated stock market &
restricted margin buying
response to critics (Dr. Francis
Townsend & Governor Huey Long),
it provided pensions,
unemployment insurance & aid to
blind, deaf, disabled & dependent
children
federal government built series of
dams to prevent flooding & sell
electricity. first public competition
with private power industries
(“hydroelectric power”)
allowed workers to join unions &
outlawed union-busting tactics by
management
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’s
Supporters & 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)