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History Notes #4 Second Semester

Boomà Bust

Ÿ Moral decline after WWI

Ÿ Disillument {Leadership
{Moral Codes
Ÿ Reaction---| war discipline
Ÿ “Future shock of 20th century” {continual change
{faith in technology
-Immigration Laws 1921-1924
-restricted immigration from southern and eastern Europe
-0 immigration from Asia
-18th Amendmentàprohibationà0 manufacturing competition
-Social costs of alcoholà {industry accident ^
{domestic violence ^
-Anti-Saloon league ^
|à{press for legislation during war
{grain needed for food/feed/export
{Brewers (GR)=“disloyal”
-0 effective enforcement
|à {treason
-legal product à profit ^
àcontraband illegal substanceàprofit
Ÿ Organized crime ^
-Law abiding citizens customers
-0 citizen consent
- “everybody calls me a racketeer, I call me a business man” -Al Capone
-Rural vs. Cities
-probition ^ |àprofit
|àcriminal establishment
-Legal Alcohol
History Notes #4 Second Semester

|àquality enforced
Taxes ^
-illegal alcohol
|àqualify v
0 tax revenue
0 import regulation
0 tariffs
-impossibleàenforce morality by law
Ku Klux Klan
Ÿ “reform” group founded during reconstruction
-WASP supremacy
- no /\ }
RC } ~~~~~
Mex } LLLL
Asians }
IT }
-3m male members
-5m female

Control State Legislature

-IN (33% female members)
-OR (children MUST attend private school)
CO } influence ^
36 states total }
Ÿ Prohibition ^
Ÿ Undone by sex scandal and financial corruption
-Still active

[insert hand written notes here]

History Notes #4 Second Semester

Election of 1928
Ÿ Al Smith (Dem.) {1 catholic candidate

|àwhite southerners won’t vote for him

Ÿ NYC mayor (which states are west of Mississippi
Ÿ Herbert Hoover (Rep. Candidate)
|àcicialian hero of WWI
-Lead relief (food, medicine, fuel)àEurope
-1st Western candidate (CA)àPres.
Economic Growth
Ÿ Prosperity ^ {US industry base unharmed by war
{European competition v {capital v
{Population ^àdemand v {labor v
{Productivity ^ {factories v
|àconsumer goods ^
Avg. Mortality Income
1921 1928
$522 $716
-Automobiles ^ 5.5M/yr à5 out of 6 autos owned
{Rubber ^
{Wood |
{Copper |
{Textiles |
-Film industry ^
|àexport vs. cultureàworldwide
19th Amendment
-Women’s suffrage nationwide
-“purity elections”?
-Married women vote with husbands/daughters vote fathers
-More votes but no change
Lindbergh-May 20-21 1927
Ÿ Charles Lindbergh
Ÿ Son of Swedish immigrant/congress
History Notes #4 Second Semester

Ÿ “Loner” and analytical personality

Ÿ Airmail pilot {1st ChicagoàSt. Louis
{3 times he had to evacuate his plane
{ (75% KIA)
Ÿ Barnstormer and wing walker
Ÿ Orteig prize
-$25,000 1st nonstop flight NYàParis
-St. Louis businessman backs Lindbergh à $10K for air craft
-Several aviators KIA previously
-Ryan Aeronautical Company of SD custom builds aircraft
-“2 ton fan flying gas tank”
|à400 gallons {0 parachute
{0 radio
{0 brakes
{0 heater
{0 window
{0 satellite navigation
à 2K miles rand more gas than airframe
can handle
-20 May 1927
Ÿ 3,610 nautical miles by dead reckoning over water by moonlight
Ÿ NYàParis 33 hours, 30 minutes à solo (0 sleep since San Diego take
-Worldwide hero
-4M in NYC parade
-0 commercial interest
-Commercial Aviation ^
-$ for R & D ^-àcatch up to Luftwaffe
-”Authentic” American ^
-Immigrants v

Florida ^ v effects entire economy

Ÿ Florida land boomàbust
-S.FL=Tourism ^ (RR, Mosquito control))

Ÿ Land boom
30K 75K
History Notes #4 Second Semester

-Real Estate ^
“Miami daily news”à504 pages of Real Estate ads for 1 Sunday edition
-Demand ^ throughout U.S.
|àProfits ^ |à{RR Cement Appliances
{Lumber Steel Furniture
{Bldg. supplies Road-making insurance
{Transport Utilities Tools
{Banking Copper Earth Moving equip.
Ÿ 1926-2 hurricanes cause à{400KIA
{50K homeless
-housing demand v
-land values v
Building industry vànational economy v
Employment v
Mortgage values v à banks v
Tourism v {RR v
{hospitality industry v
NYSE crash-Oct 1929
Ÿ New York Stock Exchange (NYSE) ^
-NYSE Average Gain 40% yearly
Ÿ NYSE stock prices exceed real value of securities
-MAR (per share) SEP
RCA $100 _____________________________ $500
GE $128 _____________________________ $400
US STEEL $138 __________________________$279
COPPER $54______________________________$162
Ÿ Investment in products/future growth v (price not determined by
{demand ^
{New markets ^
{product improvement ^
{profit margin ^
{Manufacturing costs v
Ÿ Reckless speculation ^
|ààààà {-only 1% of public in market
|àrichest 1% =influential
{-Buying on margin
|à10% of stock trading price
{-0 restaurant from federal reserve
History Notes #4 Second Semester

|àfalse confidence by consumer in

Ÿ 21 Oct 1929 stock prices v
Ÿ 24 Oct 1929 stock prices v v à11 financiers commit suicide
Ÿ 29 Oct 1929 (“black Friday”) stock prices v freefall à16M shares traded
(usually <1M daily)

The Great Depression

Ÿ Causes {-Overproduction-farmers & industry making more than
{-$ distribution {5% of US population=33% of personal
|à {spreading incomeàspreading buying power
|à liability/negative impact v
|àproducers must be consumers =prosperity ^
|àwages too lowà0 purchasing àeconomy v
|à {farmers 0 export à “tariff wars”
{Europe near financial collapse (WWI)--?0 purchase
of U.S. goods
{-treaty of VersaillesàGR must pay reparations
|à0 purchase of U.S.
Ÿ Unemployment
{30% worldwide
{25% Americans (about 3% normal)
|à 25%à 0 relief on welfare
Ÿ 1932 {33% Pennsylvanians on relief
{40% Chicago unemployed
| {50% Cleveland unemployed
| {80% Toledo unemployed (every bank closed)
| à5K banks closed nationally
| |àsavings costà0 purchasing
| {33% (3.5M) farms foreclosed & farmers
| {2M Americans homeless and wandering
| {Emigration out of US >immigration into U.S.
| {Marriages v 25% desertion ^
History Notes #4 Second Semester

| {mental illness ^
--------------- {suicide ^
{reading #1 form of entertainmentàmovie box
office v
{petty theft, prostitution, & begging} ^
Ÿ Causes agricultural failure in prairie states
Ÿ Dust storms {prairie high winds & 0 grass on tilled soil à dust
{millions of tons of dust àjet streamà{muddy rain in NY,
{muddy rain in 300 NM at sea
{fish suffocated in eastern
Ÿ Land values v
Ÿ Bankruptcy ^ farmer cannot à $ for mortgages foreclosures ^ àbanks v
Ÿ Food prices so low, farmers burnt corn for fuel