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History 2, Unit 3

Cultural Trends-"new era"

roaring 20s.

• "Red Scare"

denotes two distinct periods of strong Anti-Communism in the United States: the First Red Scare, from 1919 to 1921, and the Second Red Scare,

Labor opposed the concept of "open shop"


American Federation of Labor

was one of the first federations of labor unions in the United States. It was founded in Columbus, Ohio in December 1886 by an alliance of craft unions disaffected from the Knights of Labor, a national labor association. Samuel Gompers of the Cigar Makers' International Union was elected president of the Federation at its founding convention and was reelected every year except one until his death in 1924.

The AFL was the largest union grouping in the United States for the first half of the 20th century, even after the creation of the Congress of Industrial Organizations (CIO) by unions that were expelled by the AFL in 1935 over its opposition to industrial unionism. While the Federation was founded and dominated by craft unions throughout the first fifty years of its existence, many of its craft union affiliates turned to organizing on an industrial union basis to meet the challenge from the CIO in the 1940s.

In 1955, the AFL merged with its longtime rival, the Congress of Industrial Organizations, to form the AFL-CIO, a federation which remains in place to this day. Together with its offspring, the AFL has comprised the longest lasting and most influential labor federation in the United States.

Boston police strike, 1919-Governor Calvin Coolidge

the Boston police rank and file went out on strike on September 9, 1919, in order to achieve recognition for their trade union and improvements in wages and working conditions. They faced an implacable opponent in Police Commissioner Edwin Upton Curtis, who denied that police officers had any right to form a union, much less one affiliated with a larger organization like the American Federation of Labor (AFL). Attempts at reconciliation between the Commissioner and the police officers, particularly on the part of Boston's Mayor Andrew James Peters, failed.
During the strike, Boston experienced several nights of lawlessness, although property damage was not extensive. Several thousand members of the State Guard, supported by volunteers, restored order. Press reaction both locally and nationally described the strike as Bolshevik-inspired and directed at the destruction of civil society. The strikers were called "deserters" and "agents of Lenin."[1]
Samuel Gompers of the AFL recognized that the strike was damaging the cause of labor in the public mind and advised the strikers to return to work. The Police Commissioner remained adamant and refused to re-hire the striking policemen. He was supported by Massachusetts Governor Calvin Coolidge, whose rebuke of Gompers earned him a national reputation. The strike proved a setback for labor, and the AFL reversed its attempts to organize police officers for another two decades. Coolidge won the Republican nomination for vice-president of the US in the 1920 presidential election.

International Workers of the World (IWW) "Wobblies"

is an international union. At its peak in 1923, the organization claimed some 100,000 members in good standing and could marshal the support of perhaps 300,000 workers. Its membership declined dramatically after severe government repression as part of the first Red Scare and a 1924 split brought on by internal conflict. IWW membership does not require that one work in a represented workplace,[3] nor does it exclude membership in another labor union.[4]

The IWW contends that all workers should be united as a class and that the wage system should be abolished.[5] They are known for the Wobbly Shop model of workplace democracy, in which workers elect their managers[6] and other forms of grassroots democracy (self-management) are implemented.

In 2012 the IWW moved its General Headquarters offices to 2036 West Montrose, Chicago.[7]

The origin of the nickname "Wobblies" is uncertain.[8]

"Red Scare"


A. Mitchell Palmer

was Attorney General of the United States from 1919 to 1921. He directed the controversial Palmer Raids.
Contents [hide]
1 Congressional career
2 Alien Property Custodian
3 Attorney general
3.1 Palmer Raids
3.2 Labor and Business
3.2.1 Coal strike
3.3 May Day warnings
4 Later years
5 Notes
6 References
7 Sources
8 External links

Nicola Sacco and Bartolomeo Vanzetti

(June 11, 1888 - August 23, 1927) were anarchists who were convicted of murdering two men during a 1920 armed robbery in South Braintree, Massachusetts, United States. After a controversial trial and a series of appeals, the two Italian immigrants were executed on August 23, 1927.[1]
There is a highly politicized dispute over their guilt or innocence, as well as whether or not the trials were fair.[2][3] The dispute focuses on contradictory evidence. As a result, historians have not reached a consensus.

1920 urban population greater than rural for the first time


• Prohibition

is the legal act of prohibiting the manufacture, transportation and sale of alcohol and alcoholic beverages. The term can also apply to the periods in the histories of the countries during which the prohibition of alcohol was enforced. Use of the term as applicable to a historical period is typically applied to countries of European culture.

eighteenth amendment

of the United States Constitution established prohibition in the United States. The separate Volstead Act set down methods of enforcing the Eighteenth Amendment, and defined which "intoxicating liquors" were prohibited, and which were excluded from prohibition (e.g., for medical and religious purposes). The Amendment was unique in setting a time delay before it would take effect following ratification, and in setting a time limit for its ratification by the states. Its ratification was certified on January 16, 1919, with the law taking effect on January 17, 1920.

Demand for liquor continued, and the law resulted in the criminalization of producers, suppliers, transporters and consumers. The police, courts and prisons were overwhelmed with new cases; organized crime increased in power, and corruption extended among law enforcement officials. The amendment was repealed in 1933 by ratification of the Twenty-first Amendment, the only instance in United States history of repeal of a constitutional amendment.

Volstead Act, 1919

was the enabling legislation for the Eighteenth Amendment which established prohibition in the United States. The Anti-Saloon League's Wayne Wheeler conceived and drafted the bill, which was named for Andrew Volstead, Chairman of the House Judiciary Committee, who managed the legislation.

Wickersham Commission, 1931

U.S. President Herbert Hoover established this Commission, officially called the National Commission on Law Observance and Enforcement, on May 20, 1929. Former Attorney General George W. Wickersham (1858-1936) headed the 11-member group charged with identifying the causes of criminal activity and to make recommendations for appropriate public policy.
During the 1928 presidential campaign Herbert Hoover supported the Eighteenth Amendment to the United States Constitution but recognized that evasion was widespread and that prohibition had fueled the growth of organized crime.

Twenty-first Amendment

to the United States Constitution repealed the Eighteenth Amendment to the United States Constitution, which had mandated nationwide Prohibition on alcohol on January 17, 1920. The Twenty-first amendment was ratified on December 5, 1933. It is unique among the 27 Amendments of the U.S. Constitution for being the only one to repeal a previous Amendment, and for being the only one to have been ratified by the method of the state ratifying convention.

• Religion-"Monkey Trial"


John T. Scopes


Clarence Darrow

(defense attorney)

William Jennings Bryan

(special prosecutor)

Overturned in appeal-fine was too great ($100)


• Immigration


Emergency Quota Act, 1921

also known as the Emergency Immigration Act of 1921, the Immigration Restriction Act of 1921, the Per Centum Law, and the Johnson Quota Act (ch. 8, 42 Stat. 5 of May 19, 1921) restricted immigration into the United States. Although intended as temporary legislation, the Act "proved in the long run the most important turning-point in American immigration policy"[1] because it added 2 new features to American immigration law: numerical limits on immigration from Europe and the use of a quota system for establishing those limits.

The Act restricted the number of immigrants admitted from any country annually to 3% of the number of residents from that same country living in the United States as of the U.S. Census of 1910.[2] Based on that formula, the number of new immigrants admitted fell from 805,228 in 1920 to 309,556 in 1921-22.[3]

The act meant that only people of Northern Europe who had similar cultures to that of America were likely to get in. The excuse was the American government wanted to protect its culture when this act was introduced, however some[who?] felt it was mainly in response to the millions of Jews who begun fleeing the terrible persecution they were facing in Western Europe starting in 1890.[citation needed] The fact that the quotas were to be based on the 1890 census, immediately prior to the influx of those Jews, rather then the 1920 census, lends credence to that accusation.

National Origins Act, 1924


National Origins Plan, 1927


Ku Klux Klan,1915

is the name of three distinct past and present far-right[5][6][7][8] organizations in the United States, which have advocated extremist reactionary currents such as white supremacy, white nationalism, and anti-immigration, historically expressed through terrorism.[9] Since the mid-20th century, the KKK has also been anti-communist.[9] The current manifestation is splintered into several chapters with no connections between each other; it is classified as a hate group by the Anti-Defamation League and the Southern Poverty Law Center.[10] It is estimated to have between 3,000 and 5,000 members as of 2012.[11]

The first Klan flourished in the Southern United States in the late 1860s, then died out by the early 1870s. Members adopted white costumes: robes, masks, and conical hats, designed to be outlandish and terrifying, and to hide their identities.[12] The second KKK flourished nationwide in the early and mid 1920s, and adopted the same costumes and code words as the first Klan, while introducing cross burnings.[13] The third KKK emerged after World War II and was associated with opposing the Civil Rights Movement and progress among minorities. The second and third incarnations of the Ku Klux Klan made frequent reference to the USA's "Anglo-Saxon" and "Celtic" blood, harking back to 19th-century nativism and claiming descent from the original 18th-century British colonial revolutionaries.[14] The first and third incarnations of the Klan have well-established records of engaging in terrorism and political violence, though historians debate whether or not the tactic was supported by the second KKK.

Marcus Garvey

(Universal Negro Improvement Association

• "The Lost Generation"

is a term used to refer to the generation, actually a cohort, that came of age during World War I. The term was popularized by Ernest Hemingway who used it as one of two contrasting epigraphs for his novel, The Sun Also Rises. In that volume Hemingway credits the phrase to Gertrude Stein, who was then his mentor and patron.

In A Moveable Feast, which was published after both Hemingway and Stein were dead and after a literary feud that lasted much of their life, Hemingway reveals that the phrase was actually originated by the garage owner who serviced Stein's car. When a young mechanic failed to repair the car in a way satisfactory to Stein, the garage owner shouted at the boy, "You are all a "génération perdue."[1]:29 Stein, in telling Hemingway the story, added, "That is what you are. That's what you all are ... all of you young people who served in the war. You are a lost generation."[1]:29 This generation included distinguished artists such as F. Scott Fitzgerald, T. S. Eliot, John Dos Passos, Waldo Peirce, Isadora Duncan, Abraham Walkowitz, Alan Seeger, and Erich Maria Remarque.

Gertrude Stein-

"you are all a lost generation"

Sinclair Lewis-Main Street, Babbitt, Arrowsmith, Elmer Gantry

Main Street, Babbitt, Arrowsmith, Elmer Gantry

Ernest Hemingway-

The Sun Also Rises, A Farewell to Arms

F. Scott Fitzgerald-

This Side of Paradise, The Great Gatsby

H. L. Mencken-

-The Smart Set and The American Mercury

Charles and Mary Beard

-The Rise of American Civilization

Charles A. Lindbergh and the Spirit of St. Louis


Political Trends


• "Return to normalcy" and Warren G. Harding

Warren Harding's main campaign slogan was a "return to normalcy", playing upon the weariness of the American public after the social upheaval of the Progressive Era. Additionally, World War I and the Treaty of Versailles proved deeply unpopular, causing a reaction against Wilson, who had pushed especially hard for the latter.

• "Ohio Gang"

was a good ol' boy network of politicians and industry leaders closely surrounding Warren G. Harding, the 29th President of the United States of America. Many of these individuals came into Harding's personal orbit during his tenure as a state-level politician in Ohio, thus the name.
During the Harding administration several of the so-called Ohio Gang became involved in financial scandals, including the Teapot Dome scandal and apparent malfeasance at the U.S. Department of Justice, ending in prison terms and suicides. Following Harding's sudden death of a heart attack in 1923, the Ohio Gang were effectively removed from the corridors of power by Harding's Vice President and successor, Calvin Coolidge.

Charles R. Forbes

(February 14, 1878 - April 10, 1952) was appointed the first Director of the Veterans' Bureau by President Warren G. Harding on August 9, 1921 and served until February 28, 1923. Caught for Army desertion in 1900, he went on to serve in the military and was a decorated World War I veteran. He first became active in politics in the Pacific Northwest. In 1912, Forbes moved to Hawaii and served as chairman on various federal commissions. While Senator Warren G. Harding was on vacation in Hawaii the two met by chance and became friends. After the 1920 U.S. Presidential election, President Harding appointed Forbes director to the newly created Veterans Bureau, a powerful position in charge of millions of dollars in government expenditures and supplies.
His tenure as the first Veterans Bureau Director was characterized by corruption and scandal. Forbes was considered the "dashing playboy" of Washington and a favorite of President Harding.[1] Having returned to the United States after fleeing to Europe in 1923, he was convicted of conspiracy to defraud the U.S. Government and sent to federal prison in 1926, where he was cell mates with Frederick Cook, the person who is often credited with being the first to reach the North Pole. Forbes was released 8 months later in 1927. He died in 1952.

Jesse Smith

(1871 - May 30, 1923)[1] was a member of President Warren G. Harding's Ohio Gang. He was born and raised in Washington Court House, Ohio, where he became a friend of Harry M. Daugherty.[2] There, Daugherty helped him to become the successful owner of a department store. Smith became Daugherty's gofer during the 1920 campaign.[2]

Thomas W. Miller

(June 26, 1886 - May 5, 1973) was an American businessman, lawyer and politician, from Wilmington, Delaware, and Reno, Nevada. He was a veteran of World War I and a member of the Republican Party, who served as U. S. Representative from Delaware.

Albert B. Fall-Teapot Dome Affair

(November 26, 1861 - November 30, 1944) was a United States Senator from New Mexico and the Secretary of the Interior under President Warren G. Harding, infamous for his involvement in the Teapot Dome scandal.

• Washington Naval Conference, 1921

also called the Washington Arms Conference, was a military conference called by President Warren G. Harding and held in Washington from 12 November 1921 to 6 February 1922. Conducted outside the auspices of the League of Nations, it was attended by nine nations, the United States, Japan, China, France, Britain, Italy, Belgium, Netherlands, and Portugal,[1] having interests in the Pacific Ocean and East Asia. Soviet Russia was not invited to the conference. It was the first international conference held in the United States and the first disarmament conference in history, and as Kaufman, 1990 shows, it is studied by political scientists as a model for a successful disarmament movement.
Held at Memorial Continental Hall in downtown Washington,[2] it resulted in three major treaties: Four-Power Treaty, Five-Power Treaty (more commonly known as the Washington Naval Treaty), the Nine-Power Treaty, and a number of smaller agreements. These treaties preserved peace during the 1920s but are also credited with enabling the rise of the Japanese Empire as a naval power leading up to World War II.

Four-Power Naval Treat

was a treaty signed by the United States, Great Britain, France and Japan at the Washington Naval Conference on 13 December 1921. It was partly a follow-on to the Lansing-Ishii Treaty, signed between the U.S. and Japan.
By the Four-Power Treaty, all parties agreement to maintain the status quo in the Pacific, by respecting the Pacific holdings of the other countries signing the agreement, not seeking further territorial expansion, and mutual consultation with each other in the event of a dispute over territorial possessions. However, the main result of the Four-Power Treaty was the termination of the Anglo-Japanese Alliance of 1902.

Five-Power Naval Treaty

was a treaty to limit naval construction and prevent an arms race among the victorious powers in the wake of World War I. The treaty was negotiated at the Washington Naval Conference, which was held in Washington, D.C. from November 1921 to February 1922, and signed by Britain, the US, Japan, France and Italy. It limited the construction of battleships, battlecruisers and aircraft carriers by the signatories. The numbers of other categories of warships, including cruisers, destroyers and submarines, were not limited by the treaty but were limited to 10,000 tons displacement.
The treaty was followed by a number of other naval arms limitation conferences, which sought to extend or tighten limitations on warship building. The terms of the treaty were modified by the London Naval Treaty of 1930 and the Second London Naval Treaty of 1936. However, by the mid-1930s, Japan and Italy had indicated their withdrawal from the Treaties, and naval arms limitation increasingly became a dead letter.

Nine-Power Naval Treaty

was a treaty affirming the sovereignty and territorial integrity of China as per the Open Door Policy, signed by all of the attendees to the Washington Naval Conference on 6 February 1922.
United States Secretary of State John Hay had issued the "Open Door Notes" of September-November 1899, followed by a diplomatic circular in July 1900, asking that all of the major world powers with vested interests in China declare formally that they would maintain an 'open door' to allow all nations equal rights and equal access to the treaty ports within their spheres of influence in China. Fearing that the European powers and Japan were preparing to carve China up into colonies, Hay also added provisions that Chinese territorial and administrative integrity should be maintained.
Although no nation specifically affirmed Hay's proposal, Hay announced that each of the powers had granted consent in principle and treaties made after 1900 make reference to the Open Door Policy. Nonetheless, competition between the various powers for special concessions within China for railroad rights, mining rights, loans, foreign trade ports, etc. continued unabated.
The United States was especially leery of Japanese designs on China after the Russo-Japanese War (1904-1905) and the Twenty-One Demands (1915) and repeatedly signed agreements with the Japanese government pledging to maintain a policy of equality in Manchuria and China. These agreements concluded with Lansing-Ishii Agreement in 1917, which was soon shown to be completely ineffective.
During the Washington Naval Conference of 1921-1922, the United States government again raised the Open Door Policy as an international issue, and had all of the attendees (United States, Japan, China, France, Great Britain, Italy, Belgium, Netherlands, and Portugal) sign a new treaty which intended to make the Open Door Policy international law.
However, the Nine-Power Treaty lacked any enforcement regulations, and when violated by Japan during its invasion of Manchuria in 1931 and creation of Manchukuo, the United States could do little more than issue protests and impose economic sanctions.
World War II effectively nullified the Nine-Power Treaty.
The Nine-Power Treaty was one of several treaties concluded at the Washington Naval Conference. Other major agreements included the Four-Power Treaty and the Five-Power Treaty.

Economic Trends


• "Keep cool with Coolidge"

Coolidge's campaign slogan

• Prosperity of the 1920s- USA became-creditor nation-had a pro-business government-developed new technologies


• Automobile Industry-Model T and Henry Ford


• Economic Problems


Revenue Act of 1921

was the first Republican tax reduction following their landslide victory in the 1920 federal elections. New Secretary of the Treasury Andrew Mellon argued that significant tax reduction was necessary in order to spur economic expansion and restore prosperity.
Mellon obtained repeal of the wartime excess profits tax. The top marginal rate on individuals fell from 73 to 58 percent by 1922, and preferential treatment for capital gains was introduced at a rate of 12.5 percent. Mellon had hoped for more significant tax reduction.

Budget and Accounting Act of 1921

was landmark legislation that established the framework for the modern federal budget. The act was approved by President Warren G. Harding to provide a national budget system and an independent audit of government accounts. The official title of this act is "The General Accounting Act of 1921," but is frequently referred to as "the budget act," or "the Budget and Accounting Act."[1] This act meant that for the first time, the president would be required to submit an annual budget for the entire federal government to Congress.[2] The object of the budget bill was to consolidate the spending agencies in both the executive and legislative branches of the government.[1]The act created the Bureau of the Budget, now called the Office of Management and Budget (OMB), to review funding requests from government departments and to assist the president in formulating the budget. The OMB mandates that all government estimates, receipts, and expenditures be cleared by the director of the budget. From the director, the estimates go directly to the president and from the president, directly to Congress.[1] In addition, the act created the General Accounting Office, now known as the Government Accountability Office (GAO), the non-partisan audit, evaluation, and investigative arm of Congress, and an agency in the legislative branch of the United States Government.
The act required the head of the GAO, to "investigate, at the seat of government or elsewhere, all matters in relation to the receipt, disbursement, and application of public funds, and shall make to the President ... and to Congress ... reports [and] recommendations looking to greater economy or efficiency in public expenditures".[3] The name of the General Accounting Office was changed to Government Accountability Office in 2004 to better reflects the mission of the office.[4]

Fordney-McCumber Act

of 1922 raised American tariffs in order to protect factories and farms. Congress displayed a pro-business attitude in passing the ad valorem tariff and in promoting foreign trade through providing huge loans to Europe, which in turn bought more American goods.[1] The Roaring Twenties brought a period of sustained economic prosperity with an end to the Depression of 1920-21.
As a result of the war, Americans had two main concerns. First, they wanted to ensure economic self-sufficiency so that no future enemy could manipulate the American economy. Second, many industries wanted to preserve the benefits of the increased wartime demand.

McNary-Haugen Bill (1927 and 1928)

which never became law, was a highly controversial plan in the 1920s to subsidize American agriculture by raising the domestic prices of farm products. The plan was for the government to buy the wheat, and either store it or export it at a loss. It was co-authored by Charles L. McNary (R-Oregon) and Gilbert N. Haugen (R-Iowa). Despite attempts in 1924, 1926, 1927, and 1928 to pass the bill — it was vetoed by President Calvin Coolidge, and never approved. It was supported by then-Secretary of Agriculture Henry C. Wallace.
According to the bill, a federal agency would be created to support and protect domestic farm prices by attempting to maintain price levels that existed before the First World War. By purchasing surpluses and selling them overseas, the federal government would take losses that would be paid for through fees against farm producers.

World War I debt-Coolidge quote

"They hired the money didn't they?"

World War Foreign Debt Commission

of February 9, 1922 authorized the creation of a commission, working under Secretary of the Treasury Andrew Mellon, to negotiate repayment agreements with Great Britain and France in the aftermath of World War I.

The Commission placed the Allied debt principal to the United States at $11 billion; payments were to be made in graduated 62 annual installments; however, the accrued interest on these payments over a period of 62 years would have increased the debt to approximately $22 billion, although the U.S. did agree to lowered interest rates. Great Britain's debt was reduced 19.7% to $4.6 billion with the interest rate reduced from 5% to 3% for the first ten years of payment to be raised to 3½% thereafter. France's debt was reduced by 52.8% to $4 billion, without any interest for the first five years of payment. It was then to be increased gradually to 3½%.

Dawes Plan

(as proposed by the Dawes Committee, chaired by Charles G. Dawes) was an attempt in 1924 to solve the reparations problem, which had bedeviled international politics, in the wake of the Ruhr occupation and the hyperinflation crisis. It provided for the Allies to collect war reparations debt from Germany. Intended as an interim measure, the Young Plan was adopted in 1929 to replace it.

Kellogg-Briand Pact (Pact of Paris)

was an international agreement in which signatory states promised not to use war to resolve "disputes or conflicts of whatever nature or of whatever origin they may be, which may arise among them".[1] Parties failing to abide by this promise "should be denied the benefits furnished by this treaty". It was signed by Germany, France and the United States on August 27, 1928.

The Kellogg-Briand Pact is named after its authors: Frank B. Kellogg and French foreign minister Aristide Briand.

Young Plan

was a program for settlement of German reparations debts after World War I written in 1929 and formally adopted in 1930. It was presented by the committee headed (1929-30) by American Owen D. Young. The reparations, set in January 1921 by an Inter-Allied Reparations Commission at 269 billion gold marks (the equivalent of around 100,000 tonnes of pure gold) were deliberately crushing. This 100,000 tonnes of gold is equivalent to more than 50% of all the gold ever mined in history (est. 165000 tonnes), which many economists at the time including John Maynard Keynes deemed to be irrational and excessive. After the Dawes Plan was put into operation (1924), it became apparent that Germany could not meet the annual payments, especially over an indefinite period of time. The Young Plan reduced further payments to 112 billion Gold Marks, US $8 billion in 1929 (US$ 108 billion in 2012) over a period of 59 years (1988).[1] In addition, the Young Plan divided the annual payment, set at two billion Gold Marks, US $473 million, into two components, one unconditional part equal to one third of the sum and a postponable part, incurring interest and financed by a consortium of American investment banks coordinated by the Morgan Guaranty Trust Company, for the remaining two-thirds.

"Brown Derby Campaign of 1928"-

Herbert Hoover (R) and Alfred E. Smith (D)-"the happy warrior"

Stock Market Crash-The Great Crash, 1929-John Kenneth Galbraith (i) "The bad distribution of income." (ii) "The bad corporate structure." (iii) "The bad banking structure." (iv) "The dubious state of the foreign balance." (v) "The poor state of economic intelligence."


• Reconstruction Finance Corporation (RFC)

was an independent agency of the United States government, established and chartered by the US Congress in 1932, Act of January 22, 1932, c. 8, 47 Stat. 5, during the administration of President Herbert Hoover. It was modeled after the War Finance Corporation of World War I. The agency gave $2 billion in aid to state and local governments and made loans to banks, railroads, mortgage associations and other businesses. The loans were nearly all repaid. It was continued by the New Deal and played a major role in handling the Great Depression in the United States and setting up the relief programs that were taken over by the New Deal in 1933.[1]

$1.5 billion-banks, insurance companies, and railroads


$1.5 billion local relief projects


$300 million local relief projects


Hawley-Smoot Tariff (1930)

otherwise known as the Smoot-Hawley Tariff or Hawley-Smoot Tariff,[1] was an act, sponsored by Senator Reed Smoot and Representative Willis C. Hawley, and signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels.[2]
The overall level tariffs under the Tariff were the second-highest in U.S. history, exceeded by a small margin only by the Tariff of 1828.[3] The act, and the ensuing retaliatory tariffs by U.S. trading partners, reduced American exports and imports by more than half.

• Glass-Steagall Act (1932)

was a law enacted by the United States Congress in 1932. It was the first time that currency (non-specie, paper currency etc.) was permitted to be allocated for the Federal Reserve System. It was passed in February 1932 in an effort to stop deflation and expanded the Federal Reserve's ability to offer rediscounts[clarification needed] on more types of assets such as government bonds as well as commercial paper.[1]
The "Glass-Steagall Act" is not the official title of the law; it is a colloquialism that refers to its legislative sponsors, Carter Glass, a US Senator from Virginia and Henry B. Steagall, the Congressman from Alabama's 3rd congressional district.

• Farm Holiday Movement-Milo Reno


• "Bonus Army" (15,000 World War I veterans)


Election of 1932

FRD vs. Hoover
took place in the midst of the Great Depression that had ruined the promises of incumbent President Herbert Hoover to bring about a new era of prosperity. Economics was dominant, and the sort of cultural issues that had dominated previous elections including Catholicism and the Ku Klux Klan (KKK) were dormant. Prohibition was a favorite Democratic target, as few Republicans tried to defend it. There was a mounting demand to end prohibition and bring back beer, liquor, and the resulting tax revenues.[1] The Democratic nomination went to the well known governor of the largest state, New York's Franklin D. Roosevelt (FDR). He had been reelected governor in a landslide in 1930. People still remembered his cousin, the first president Roosevelt, and FDR had been the losing vice presidential nominee in 1920. This time, Roosevelt united all wings of the party, avoided divisive cultural issues such as religion and the KKK, and brought in a leading southern conservative as his running mate, House Speaker John Nance Garner.
The theme of the campaign was an all-out attack on Hoover's economic failures, with the incumbent hard pressed to defend himself. Roosevelt blamed the Great Depression on Hoover, and his protectionist policies. Roosevelt lashed out at Hoover: "I accuse the present Administration of being the greatest spending Administration in peacetime in all our history."[2] Garner accused Hoover of "leading the country down the path of socialism."[3] Roosevelt himself did not have a clear idea of the New Deal at this point, so he promised no specific programs and tried to appeal to practically all groups of voters, even Republicans. Roosevelt won by a landslide, and this critical election marked the collapse of the Fourth Party System or Progressive Era. With another landslide in the 1934 off-year elections, the electorate was realigned into the Fifth Party System, dominated by Roosevelt's New Deal Coalition.

• Franklin D. Roosevelt (D) created the "Roosevelt Coalition"


• Herbert Hoover (R)


Congress set up the Reconstruction Finance Corporation to make loans to financially troubled businesses.


Harold Ickes organized liberal Democrats for FDR.


Secretary of Labor Frances Perkins was the first woman cabinet member.


The principal relief measure of the Hundred Days was the Federal Emergency Relief Act.


The most innovative program of the Hundred Days was the Tennessee Valley Authority.


The Works Progress Administration funneled assistance directly to the jobless.


The Social Security Act stands out for its failure to pass Congress in 1934.


The Fair Labor Standards Act of 1938 banned child labor and set a national minimum wage and a maximum workweek.


The Indian Reorganization of 1934 halted tribal land sales and allowed tribes to regain title to unallocated lands.


In 1937-1938 the "Roosevelt Recession" took the economy into a downturn.


In 1935-1937 a series of Neutrality Acts were passed by Congress.


The British Prime Minister Winston Churchill pleaded for American aid.


The Atlantic Charter was signed by the US and Russia.


The War Production Board allocated materials, limited production of civilian goods, and distributed contracts.


The Manhattan Project was the code name for the building of the atomic bomb.


The Battle of the Bulge called attention to the need for American soldiers to loose weight.


The image of "Rosie the Riveter" became the symbol of the woman war worker.


A. Philip Randolph was the president of the Brotherhood of Sleeping Car Porters.


Japanese internment reflected forty years of racial prejudice and econmic rivalry


The Potsdam Declaration warned the Japanese to surrender or face destruction.


Causes of the Great Depression


• Agricultural over expansion


• Overproduction of manufactured goods


• Technological unemployment


• Distribution of income


• Consumer credit


• Financial ethics


The New Deal-"a new deal for the American people"


First New Deal: 1933-1935


• "Relief, Reform, and Recovery"


• "New Nationalism" (Theodore Roosevelt-control and planning)


• "The only thing we have to fear is fear itself"-FDR


• "Hundred Days"


Emergency Banking Act of 1933


Agricultural Adjustment Act of 1933


Agricultural Adjustment Administration (AAA)

was a United States federal law of the New Deal era which restricted agricultural production by paying farmers subsidies not to plant part of their land (that is, to let a portion of their fields lie fallow) and to kill off excess livestock. Its purpose was to reduce crop surplus and therefore effectively raise the value of crops. The money for these subsidies was generated through an exclusive tax on companies which processed farm products. The Act created a new agency, the Agricultural Adjustment Administration, to oversee the distribution of the subsidies.[1] It is considered the first modern U.S. farm bill.[citation needed]

Increase farmer's purchasing power


Reduce mortgage foreclosures


More credit from banks to farmers


Farm income up 50% from 1932-1936


National Industrial Recovery Act (NIRA)

was an American statute which purposed to authorize the President of the United States to regulate industry and permit cartels and monopolies in an attempt to stimulate economic recovery, and established a national public works program.[1][2]
The legislation was enacted in June 1933 during the Great Depression as part of President Franklin D. Roosevelt's New Deal legislative program. Section 7(a) of the bill, which protected collective bargaining rights for unions, proved contentious (especially in the Senate),[1][3] but both chambers eventually passed the legislation and President Roosevelt signed the bill into law on June 16, 1933.[1][4] The Act had two main sections (or "titles"). Title I was devoted to industrial recovery, and authorized the promulgation of industrial codes of fair competition, guaranteed trade union rights, permitted the regulation of working standards, and regulated the price of certain refined petroleum products and their transportation. Title II established the Public Works Administration, outlined the projects and funding opportunities it could engage in, and funded the Act.
The Act was implemented by the National Recovery Administration (NRA) and the Public Works Administration (PWA).[2][5] Very large numbers of regulations were generated under the authority granted to the NRA by the Act,[6][7] which led to a significant loss of political support for Roosevelt and the New Deal.[2] The NIRA was set to expire in June 1935, but in a major constitutional ruling the U.S. Supreme Court held Title I of the Act unconstitutional on May 27, 1935, in Schechter Poultry Corp. v. United States, 295 U.S. 495 (1935).[2] The National Industrial Recovery Act is widely considered a policy failure, both in the 1930s and by historians today.[1][8][9] Disputes over the reasons for this failure continue, however. Among the suggested causes are that the Act promoted economically harmful monopolies,[6] that the Act lacked critical support from the business community,[10] and that the Act was poorly administered.[10][11] The Act encouraged union organizing, which led to significant labor unrest.[12] The Act had no mechanisms for handling these problems, which led Congress to pass the National Labor Relations Act in 1935.[13] The Act was also a major force behind a major modification of the law criminalizing making false statements.[14]

National Recovery Administration (NRA)

was the primary New Deal agency established by U.S. president Franklin D. Roosevelt (FDR) in 1933. The goal was to eliminate "cut-throat competition" by bringing industry, labor and government together to create codes of "fair practices" and set prices. The NRA was created by the National Industrial Recovery Act (NIRA) and allowed industries to get together and write "codes of fair competition." The codes were intended to reduce "destructive competition" and to help workers by setting minimum wages and maximum weekly hours, as well as minimum prices at which products could be sold. The NRA also had a two year renewal charter and was set to expire in June 1935 if not renewed.[1]
In 1935, the U.S. Supreme Court unanimously declared that the NRA law was unconstitutional, ruling that it infringed the separation of powers under the United States Constitution. The NRA quickly stopped operations, but many of its labor provisions reappeared in the National Labor Relations Act (Wagner Act), passed later the same year. The long-term result was a surge in the growth and power of unions, which became a core of the New Deal Coalition that dominated national politics for the next three decades.
The NRA, symbolized by the Blue Eagle (a blue-colored representation of the American thunderbird) was popular with workers. Businesses that supported the NRA put the symbol in their shop windows and on their packages, though they did not always go along with the regulations entailed. Though membership to the NRA was voluntary, businesses that did not display the eagle were very often boycotted, making it seem mandatory for survival to many.

Wide reemployment


Reduced work week


Decent wages


No unfair competition and overproduction


"Blue Eagle"-"we do our part"


Section 7a of the NIRA

was an American statute which purposed to authorize the President of the United States to regulate industry and permit cartels and monopolies in an attempt to stimulate economic recovery, and established a national public works program.[1][2]

The legislation was enacted in June 1933 during the Great Depression as part of President Franklin D. Roosevelt's New Deal legislative program. Section 7(a) of the bill, which protected collective bargaining rights for unions, proved contentious (especially in the Senate),[1][3] but both chambers eventually passed the legislation and President Roosevelt signed the bill into law on June 16, 1933.[1][4] The Act had two main sections (or "titles"). Title I was devoted to industrial recovery, and authorized the promulgation of industrial codes of fair competition, guaranteed trade union rights, permitted the regulation of working standards, and regulated the price of certain refined petroleum products and their transportation. Title II established the Public Works Administration, outlined the projects and funding opportunities it could engage in, and funded the Act.

The Act was implemented by the National Recovery Administration (NRA) and the Public Works Administration (PWA).[2][5] Very large numbers of regulations were generated under the authority granted to the NRA by the Act,[6][7] which led to a significant loss of political support for Roosevelt and the New Deal.[2] The NIRA was set to expire in June 1935, but in a major constitutional ruling the U.S. Supreme Court held Title I of the Act unconstitutional on May 27, 1935, in Schechter Poultry Corp. v. United States, 295 U.S. 495 (1935).[2] The National Industrial Recovery Act is widely considered a policy failure, both in the 1930s and by historians today.[1][8][9] Disputes over the reasons for this failure continue, however. Among the suggested causes are that the Act promoted economically harmful monopolies,[6] that the Act lacked critical support from the business community,[10] and that the Act was poorly administered.[10][11] The Act encouraged union organizing, which led to significant labor unrest.[12] The Act had no mechanisms for handling these problems, which led Congress to pass the National Labor Relations Act in 1935.[13] The Act was also a major force behind a major modification of the law criminalizing making false statements.[14]

Public Works Administration (PWA)

part of the New Deal of 1933, was a large-scale public works construction agency in the United States headed by Secretary of the Interior Harold L. Ickes. It was created by the National Industrial Recovery Act in June 1933 in response to the Great Depression. It built large-scale public works such as dams, bridges, hospitals and schools. Its goals were to spend $3.3 billion in the first year, and $6 billion in all, to provide employment, stabilize purchasing power, and help revive the economy. Most of the spending came in two waves in 1933-35, and again in 1938. Originally called the Federal Emergency Administration of Public Works, it was renamed the Public Works Administration in 1939 and shut down in 1943.[1]

The PWA spent over $6 billion in contracts to private construction firms that did the actual work. It created an infrastructure that generated national and local pride in the 1930s and remains vital seven decades later. The PWA was much less controversial than its rival agency with a confusingly similar name, the Works Progress Administration (WPA), headed by Harry Hopkins, which focused on smaller projects and hired unemployed unskilled workers.[2]

Civilian Conservation Corps Act (CCC)

was a public work relief program that operated from 1933 to 1942 in the United States for unemployed, unmarried men from relief families, ages 17-23. A part of the New Deal of President Franklin D. Roosevelt, it provided unskilled manual labor jobs related to the conservation and development of natural resources in rural lands owned by federal, state and local governments. The CCC was designed to provide employment for young men in relief families who had difficulty finding jobs during the Great Depression while at the same time implementing a general natural resource conservation program in every state and territory. Maximum enrollment at any one time was 300,000; in nine years 2.5 million young men participated.

The American public made the CCC the most popular of all the New Deal programs.[1] Principal benefits of an individual's enrollment in the CCC included improved physical condition, heightened morale, and increased employability. Of their pay of $30 a month, $25 went to their parents.[2] Implicitly, the CCC also led to a greater public awareness and appreciation of the outdoors and the nation's natural resources; and the continued need for a carefully planned, comprehensive national program for the protection and development of natural resources.[3]

During the time of the CCC, volunteers planted nearly 3 billion trees to help reforest America, constructed more than 800 parks nationwide and upgraded most state parks, updated forest fire fighting methods, and built a network of service buildings and public roadways in remote areas.[4]

The CCC operated separate programs for veterans and Native Americans.

Despite its popular support, the CCC was never a permanent agency. It depended on emergency and temporary Congressional legislation for its existence. By 1942, with the war industries booming and the draft in operation, need declined and Congress voted to close the program.[6]

Glass-Steagall Act of 1933-

The Banking Act of 1933 (Pub.L. 73-66, 48 Stat. 162, enacted June 16, 1933) was a law that established the Federal Deposit Insurance Corporation (FDIC) in the United States and imposed banking reforms, several of which were intended to control speculation.[1] It is often referred to as the Glass-Steagall Act, after its Congressional sponsors, Senator Carter Glass (D) of Virginia, and Representative Henry B. Steagall (D) of Alabama.
The term Glass-Steagall Act, however, is most often used to refer to four provisions of the Banking Act of 1933 that limited commercial bank securities activities and affiliations between commercial banks and securities firms.[2] Starting in the early 1960s federal banking regulators interpreted these provisions to permit commercial banks and especially commercial bank affiliates to engage in an expanding list and volume of securities activities.[3] By the time the affiliation restrictions in the Glass-Steagall Act were repealed through the Gramm-Leach-Bliley Act in 1999 by President Bill Clinton, many commentators argued Glass-Steagall was already "dead."[4] Most notably, Citibank's 1998 affiliation with Salomon Smith Barney, one of the largest US securities firms, was permitted under the Federal Reserve Board's then existing interpretation of the Glass-Steagall Act.[5] Clinton publicly declared, "The Glass-Steagall Act is no longer relevant."[6]
Many commentators have stated that the Gramm-Leach-Bliley Act's repeal of the affiliation restrictions of the Glass-Steagall Act was an important cause of the late-2000s financial crisis.[7][8][9] Some critics of that repeal argue it permitted Wall Street investment banking firms to gamble with their depositors' money that was held in affiliated commercial banks.[10][11][12][13][14][15] Others have argued that the activities linked to the financial crisis were not prohibited (or, in most cases, even regulated) by the Glass-Steagall Act.[16] Commentators, including the American Bankers Association in January 2010, have also argued that the ability of commercial banking firms to acquire securities firms (and of securities firms to convert into bank holding companies) helped mitigate the financial crisis.[17]

Home Owners Refinancing Act (HOLC)

was an Act of Congress of the United States passed as part of Franklin Delano Roosevelt's New Deal during the Great Depression to help those in danger of losing their homes.[1] The act, which went into effect on June 13, 1933, provided mortgage assistance to homeowners or would-be homeowners by providing them money or refinancing mortgages.[2][3][4]

Sponsored by Senate Majority leader Joe Robinson of Arkansas, it also created the Home Owners' Loan Corporation (HOLC), building off of Herbert Hoover's Federal Loan Bank Board. The Corporation lent low-interest money to families in danger of losing their homes to foreclosure. By the mid 1930s, the HOLC had refinanced nearly 20% of urban homes in the country.[5][6]

Tennessee Valley Authority Act (TVA)

is a federally owned corporation in the United States created by congressional charter in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected by the Great Depression. The enterprise was a result of the efforts of Senator George W. Norris of Nebraska. TVA was envisioned not only as a provider, but also as a regional economic development agency that would use federal experts and electricity to rapidly modernize the region's economy and society.

TVA's service area covers most of Tennessee, portions of Alabama, Mississippi, and Kentucky, and small slices of Georgia, North Carolina, and Virginia. It was the first large regional planning agency of the federal government and remains the largest. Under the leadership of David Lilienthal ("Mr. TVA"), TVA became a model for America's governmental efforts to modernize Third World agrarian societies.[1]

• Opposition to the New Deal


Liberty League


Share the Wealth Society-

was a movement begun during the Great Depression by Huey Long, a governor and later United States Senator from Louisiana.

Old Age Revolving Pension Plan-Francis E. Townsend


National Union for Social Justice-Charles E. Coughlin


Schechter Poultry Corp. v. United States (1935)-NIRA and United States v. Butler (1936)-AAA-Supreme Court


Second New Deal: 1935-1938


• "New Freedom" (Woodrow Wilson-competition and reform)


• Wagner Labor Relations Act of 1935-(NLRB)


• Works Progress Administration (WPA)-$4.88B relief program


• Wheeler-Rayburn Act

(Public Utilities Holding Act)
, was a law that was passed by the United States Congress to facilitate regulation of electric utilities, by either limiting their operations to a single state, and thus subjecting them to effective state regulation, or forcing divestitures so that each became a single integrated system serving a limited geographic area. Another purpose of PUHCA was to keep utility holding companies engaged in regulated businesses from engaging in unregulated businesses.

• Revenue Act of 1935

raised United States federal income tax on higher income levels, by introducing the "Wealth Tax". It was a progressive tax that took up to 75 percent on incomes over 5 million.[1]
It was signed into law by President Franklin D. Roosevelt.
The 1935 Act also was popularly known at the time as the "Soak the Rich" tax.[2] Many wealthy people used loopholes in the existing tax code to evade these taxes, and the Revenue Act of 1937[1] cracked down on this by revising tax laws and regulations.[1]

• Banking Act of 1935

During the 1930s, the U.S. and the rest of the world experienced a severe economic contraction that is now called the Great Depression. In the U.S. during the height of the Great Depression, the official unemployment rate was 25% and the stock market had declined 75% since 1929. Bank runs were common because there was not insurance on deposits at banks, banks kept only a fraction of deposits in reserve, and customers ran the risk of losing the money that they had deposited if their bank failed.[6]
On June 16, 1933, President Franklin D. Roosevelt signed the Banking Act of 1933. This legislation:[6]
Established the FDIC as a temporary government corporation
Gave the FDIC authority to provide deposit insurance to banks
Gave the FDIC the authority to regulate and supervise state non-member banks
Funded the FDIC with initial loans of $289 million through the U.S. Treasury and the Federal Reserve
Extended federal oversight to all commercial banks for the first time
Separated commercial and investment banking (Glass-Steagall Act)
Prohibited banks from paying interest on checking accounts
Allowed national banks to branch statewide, if allowed by state law.

• Social Security Act of 1935

refers to the Old-Age, Survivors, and Disability Insurance (OASDI) federal program.[1] The original Social Security Act (1935)[2] and the current version of the Act, as amended[3] encompass several social welfare and social insurance programs.
Social Security is primarily funded through dedicated payroll taxes called Federal Insurance Contributions Act tax (FICA). Tax deposits are formally entrusted to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the Federal Supplementary Medical Insurance Trust Fund which comprise the Social Security Trust Fund.[4]
By dollars paid, the U.S. Social Security program is the largest government program in the world and the single greatest expenditure in the federal budget, with 20.8% for Social Security, compared to 20.5% for discretionary defense and 20.1% for Medicare/Medicaid.[5] In 2003 the combined spending for all social insurance programs constituted 37% of government expenditure and 7% of the gross domestic product.[6] Social Security is currently estimated to keep roughly 40 percent of all Americans age 65 or older out of poverty.[7]
The Social Security Administration is headquartered in Woodlawn, Maryland, just to the west of Baltimore.
Proposals to privatize Social Security became part of the Social Security debate during the Bill Clinton and George W. Bush presidencies.

• Food, Drug, and Cosmetic Act of 1938

(Wheeler-Lea Act)

Election of 1936

• Alfred Landon (R) vs. • Franklin D. Roosevelt-"one third of the nation ill-housed, ill-clad and ill-nourished"

• Alfred Landon (R)


• Franklin D. Roosevelt

-"one third of the nation ill-housed, ill-clad and ill-nourished"

• Democrats and the Roosevelt swept the election


"Packing the Court"

-FDR's attempt to change the personnel

Congress of Industrial Organizations (CIO)


• John L. Lewis-

United Mine Workers

• "Sit down" strikes-auto industry (Ford Motor Co.)

is a form of civil disobedience in which an organized group of workers, usually employed at a factory or other centralized location, take possession of the workplace by "sitting down" at their stations, effectively preventing their employers from replacing them with strikebreakers or, in some cases, moving production to other locations.
Workers have used this technique since the beginning of the 20th century, not only in the United States, but also in Italy, Poland, Yugoslavia, and France.
The [Industrial Workers of the World] (IWW) were the first American union to use the sit-down strike. On December 10, 1906, at the General Electric Works in Schenectady, New York, 3,000 workers sat down on the job and stopped production to protest the dismissal of three fellow IWW members.[1][2] The United Auto Workers staged successful sit-down strikes in the 1930s, most famously in the Flint Sit-Down Strike of 1936-1937. In Flint, Michigan, strikers occupied several General Motors plants for more than forty days, and repelled the efforts of the police and National Guard to retake them. A wave of sit-down strikes followed, but diminished by the end of the decade as the courts and the National Labor Relations Board held that sit-down strikes were illegal and sit-down strikers could be fired. While some sit-down strikes still occur in the United States, they tend to be spontaneous and short-lived.
French workers engaged in a number of factory occupations in the wake of the French student revolt in May 1968. At one point more than twenty-five percent of French workers were on strike, many of them occupying their factories.
In 1973, the workers at the Triumph Motorcycles factory at Meriden, West Midlands locked the new owners, NVT, out following the announcement of their plan to close Meriden. The sit-in lasted over a year until the British government intervened, the result of which was the formation of the Meriden Motorcycle Co-operative which produced Triumphs until their closure in 1983.
The sit-down strike was the inspiration for the sit-in, where an organized group of protesters would occupy an area in which they are not wanted by sitting and refuse to l

• Memorial Day Massacre

-Republic Steel plant in Chicago, IL
the Chicago Police Department shot and killed ten unarmed demonstrators in Chicago, on May 30, 1937. The incident took place during the "Little Steel Strike" in the United States.
The incident arose after U.S. Steel signed a union contract but smaller steel manufacturers (called 'Little Steel'), including Republic Steel, refused to do so. In protest, the Steel Workers Organizing Committee (SWOC) of the Congress of Industrial Organizations (CIO) called a strike. On Memorial Day, hundreds of sympathizers gathered at Sam's Place, headquarters of SWOC. As the crowd marched across the prairie towards the Republic Steel mill, a line of Chicago policeman blocked their path. When the foremost protestors argued their right to continue, a tree branch was tossed at the police lines[1] and the police fired on the crowd. As the crowd fled, police bullets killed ten people and injured 30. Nine people were permanently disabled and another 28 had serious head injuries from police clubbing.
Years later, one of the protesters, Mollie West, recalled a policeman yelling to her that day to, "Get off the field or I'll put a bullet in your back." No police were ever prosecuted.
A Coroner's Jury declared the killings to be "justifable homicide". The press mostly called it a labor or Red riot. Roosevelt responded to a union plea "The majority of people are saying just one thing, ′A plague on both your houses′"[2]
Today, on the site of Sam's Place stands the union hall of the United Steelworkers and a memorial to the 10 people who died in 1937.
In the book Selected Writings by Dorothy Day (who was present), the events of the protest are summarized thus: 'On Memorial Day, May 30, 1937, police opened fire on a parade of striking steel workers and their families at the gate of the Republic Steel Company, in South Chicago. Fifty people were shot, of whom 10 later died; 100 others were beaten with clubs.

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