VII. Prosperity, Depression and the New Deal

VII.  Prosperity, Depression and the New Deal

A.  Red Scare

1.  Palmer Raids 1919-1920

Between 1919 –1920 a wave of ______- ______hysteria swept the United States. Attorney General A. Mitchell Palmer led the wave of anti-communist raids known as the "Palmer Raids." Some ten thousand people were persecuted for their beliefs or for belonging to political organizations. Men and women were rounded up, imprisoned without charges or access to a ______, and in some cases deported before their families could even learn their whereabouts.

2.  Sacco and Vanzetti 1920

Political and cultural debates divided Americans of the 1920s. ______, anti-radical sentiments emerged in a 1921 trial, the Sacco-Vanzetti Case. Two ______, immigrants who were self proclaimed ______, were tried and convicted of murder. Many believed that the men's ______origins and political beliefs played a part in their convictions. The case evoked protests from socialists, radicals and prominent ______and remained a source of conflict for decades.

B.  Warren G. Harding (1921 – 1923) 29th

Many Americans of the 1920s endorsed conservative values in politics and economics. ______presidents stood for these values, or what President Warren G. Harding called "______...a regular steady order of things." Under presidents Harding and Calvin Coolidge tariffs reached new ______, income taxes ______for people who were most well off and the Supreme Court upset progressive measures, such as the ______wage and federal child labor laws. Both Harding and Coolidge tended to favor business. "The business of ______is business," Coolidge declared. "This is a business country, and it wants a business ______."

1.  Kellogg-Briand Pact

Republican presidents shared ______inclinations in foreign policy; the United States never joined the ______of Nations. In 1928, under Coolidge, the United States and France cosponsored the Kellogg - Briand Pact which renounced ______and called for the end of war. As a practical instrument for preventing war, the treaty was ______. However, it helped to establish the 20th-century concept of war as an ______act by an aggressor nation on a victim nation.

C.  The Roaring 1920’s

1.  The Automobile

Automobile production symbolized the new potential of industry. Nine million motorized vehicles on the road became ______million by the end of the 1920s. At his ______plant, Henry Ford oversaw the making of the popular black ______. New modes of ______changed car manufacture. A moving ______line brought interchangeable parts to workers who performed ______tasks again and again. Assembly-line techniques cut production ______, which made cars less ______and more available to ______citizens.

2.  The Effects of Automobile Production

Auto-building spurred industries that made steel, ______, rubber, and ______. Exploration for oil led to new corporations such as Gulf Oil and ______. State-funded programs to build roads and ______changed the nation's landscape. Previously isolated rural areas filled with tourist cabins and gas ______. New ______with single-family homes on small plots of land arose at the outskirts of cities and the construction industry soared. Finally, the car industry pioneered new ways to distribute and sell products. Auto companies sold cars through networks of dealers to customers who often used a new type of ______called the installment plan. With this plan, the purchaser made a down payment and then agreed to pay the balance of the purchase price in a ______of payments.

3.  Mass Culture

Rural and urban Americans read mass-circulation magazines, full of ______, such as The Saturday Evening Post, Reader's ______and The Ladies' Home Journal. They listened on the ______to the same popular music, comedy shows and commercials, broadcast by new radio networks such as National Broadcasting Company (______) and Columbia Broadcasting System (______). Motion pictures gained vast urban audiences, and in 1927, Al Jolson's film The ______Singer introduced ______to movie audiences. Fans followed the careers of ______stars in film magazines. The press also tracked other celebrities, such as Charles ______, who flew the first transatlantic flight in 1927.

4.  The Flapper

Young and uninhibited, the flapper represented much of what typified the ______Age of the 1920s-youthful rebellion, female ______, exhibitionism, competitiveness and consumerism. Although a symbol of liberation, the flapper was in fact the ultimate ______, dependent on a variety of products. With her ______hairdos, short ______, makeup and cigarettes, she supported growth industries of the 1920s—the beauty parlor, the ready-made clothing industry, ______manufacture and tobacco production. Consumerism linked the ______, adventurous mood of the Jazz Age with the dominance of large corporations and their conservative values.

5.  The Harlem Renaissance

Among African Americans, the great migration of Southern blacks to Northern ______during the war created strong African American communities. During the 1920s these communities were home to ______revivals, such as the Harlem Renaissance where art, ______, and ______flourished. It was a celebration of African American ______and racial ______. As black creativity flourished, African Americans began to raise their voices for ______. Some African Americans became followers of Jamaican black nationalist Marcus ______who urged racial ______, formed the Universal Negro Improvement Association (UNIA), and led a “______to ______” movement. At its height the UNIA claimed more than ______million members. It declined after Garvey was convicted of ______and deported to Jamaica in 1927.

6.  Scopes “Monkey” Trial

In 1925 John T. ______, a Tennessee ______, was tried for breaking a state law that prohibited the teaching of the theory of ______in schools. This theory, its foes said, contradicted the account of ______in the Bible. Scopes and the American Civil Liberties Union believed that the law violated freedom of ______, an argument made by Scopes lawyer, Clarence ______. Reporters converged on Dayton, Tennessee, to witness the courtroom battle between ______and ______. Scopes was ______, though the verdict was later ______on technical grounds.

D.  Prohibition

The battle over Prohibition symbolized the divisive spirit of the 1920s. “______" favored Prohibition and “______” opposed it. The Volstead Act of 1919 enforced the ______Amendment that prohibited the ______, sale or distribution of ______beverages. Organized ______entered the liquor business; rival ______and networks of ______induced a crime wave. By the end of the 1920s, Prohibition was discredited, and it was ______in 1933.

E.  Herbert Hoover (1929 – 1933) 31st

The conflict between “______” and “______” played a role in the presidential election of 1928. The Democratic candidate, Al ______, governor of New York, was a machine politician and a “wet,” who represented ______, immigrant constituencies. Republican Herbert Hoover, an engineer from Iowa, was a “______” who represented ______, traditional constituencies. A foe of government ______in the economy, Hoover envisioned a rational economic order in which corporate leaders acted for the public ______. Promising voters "a ______for every pot and a ______in every garage," Hoover won a substantial majority of votes, except in the nation's largest cities. But he had the misfortune to assume office just before the nation encountered economic ______.

F. The Great Depression

1.  Buying on Margin

In 1929, Hoover's first year as president, the prosperity of the 1920s capsized. Stock prices climbed to unprecedented heights, as investors ______in the stock market. The speculative binge, in which people bought and sold ______for higher and higher prices, was fueled by easy ______, which allowed purchasers to buy stock "______." If the price of the stock increased, the purchaser made money; if the price ______, the purchaser had to find the money elsewhere to pay off the ______.

2.  Black Tuesday

More and more ______poured money into stocks. Unrestrained buying and selling fed an upward spiral that ended on ______29, 1929, when the stock market collapsed. The great crash shattered the economy. Fortunes vanished in ______. Consumers ______buying, businesses retrenched, ______cut off credit, and a downward spiral began. The Great Depression that began in 1929 would last through the 1930s.

3.  Effects of the Stock Market Crash

______reached 25 percent in 1933. With one out of four Americans out of work, people stopped ______money. Demand for durable goods—housing, cars, appliances ______and production faltered. By 1933 over ______banks had failed, and more than ______businesses had gone under.

People with jobs had to accept ______and they were lucky to have work. In cities, the destitute slept in ______that sprang up in parks or on the outskirts of town, wrapped up in " ______, " (newspapers) and displaying "Hoover Flags" (______). Marriage and ______rates fell and divorce rates rose. Unemployed breadwinners grew depressed; ______struggled to make ends meet; young adults gave up ______plans and took whatever work they could get.

4.  Dust Bowl

On the Great Plains, exhausted land combined with ______to ravage farms, destroy crops, and turn agricultural families into ______workers. An area encompassing parts of Kansas, Oklahoma, Texas, New Mexico & Colorado became known as the ______.

G.  Hoover’s Response to the Depression

1.  Rugged Individualism

President Hoover responded to the depression with ______remedies. At first, he proposed ______agreements by businesses to maintain production and ______; he also started small ______works programs. Hoover feared that if the ______handed out welfare to people in need, it would weaken the moral ______of America.

2. Reconstruction Finance Corporation

Hoover finally sponsored a measure to help ______in the hope that benefits would "______" to the poor. With his support, Congress created the Reconstruction ______Corporation in 1932 that gave generous ______to banks, insurance companies and railroads. But the downward spiral of price decline and ______availability continued. Hoover's measures were too ______, too limited and too ______.

3. The Bonus Army

Hoover's reputation suffered further when war ______marched on Washington to demand that Congress pay the ______it owed them for serving in ______. When legislators refused, much of the Bonus Army dispersed, but a segment camped out near the ______and refused to leave. Hoover ordered the army under General Douglass ______to evict the marchers and ______their settlement.

H.  Franklin Delano Roosevelt & The New Deal

1. The 1932 Election

Roosevelt won easily in the 1932 election losing only ______states and winning ______percent of the popular vote. The ______also took control of both houses of Congress. When Roosevelt became president on March 4, ______the Great Depression was at its worst. ______million or more people were unemployed and many had been out of work for a ______or even longer. The American banking system had ______. Many states had declared so-called ______, or enforced closings to prevent banks from being ruined when depositors ______all their money. Roosevelt immediately called a special session of ______to deal with the depression rather than wait for the regular session in December. The President and Congress pass an extraordinary amount of legislation in a short period of time. Contemporaries called it the ______Days, a term that historians continue to use.

2.  Alphabet Soup

a.  Emergency Banking Act 1933

Roosevelt’s first act as President was to close the nation’s banks by declaring a bank “______” in order to stop the collapse of the national banking system. Through a ______chat he assured the public to have ______in the reopened banks. The law provided for ______of banks to insure that only sound banks were operating.

b.  PWA 1933

FDR established set up a ______Administration that constructed huge public buildings, great ______and irrigation and flood-control projects.

c.  CCC 1933

The ______Corps (CCC) provided work for unemployed and unmarried young ______. They received food, ______and were paid ______dollars a month, of which ______had to be given to ______or dependents. More than a quarter of a million men, many of them from city slums, worked in the Corps, living together in camps under the management of ______officers. They benefited from the healthy outdoor work, their ______benefited from the money, and the ______benefited from the many worthy projects they completed.

d.  NIRA 1933

The most spectacular agency designed to promote general ______improvement was the ______Administration (NRA), an organization established by the National Industrial Recovery Act (NIRA) which was passed by Congress in June 1933. The NRA was designed to help ______help itself. Unfair competition was supposed to be ______through the establishment of ______of fair competition. In other words, laws against monopolies and trusts were to be suspended in exchange for guarantees to ______. These guarantees specifically included ______wages, ______hours and the right to ______as a group. The NRA was unanimously declared ______by the Supreme Court of the United States in 1935. (______Co. v. U.S.)

e.  AAA 1933

A special recovery agency for one major segment of the economy was the ______Adjustment Act. The AAA sought to eliminate ______of basic crops and to ______the price of farm products. The AAA had authority to buy ______crops and to make payments to farmers to ______production. If farmers produced ______, the prices of their products would ______allowing them to make more money. The AAA was declared ______by the Supreme Court in 1936. (U.S. v. ______)

A new AAA was passed in 1936.

f.  TVA 1933

One of the most sweeping and recovery New Deal reforms was the ______Authority, an independent federal corporation set up to improve conditions in a ______area (40,000 sq mi) in seven states that included Tennessee. The TVA built a series of ______for power production, flood control and ______improvement. It distributed its own water-generated, or ______, power to many who never before had enjoyed the benefits of ______. The TVA also produced cheap ______. The TVA was seen as a direct ______to the country's ______power companies and it was not imitated elsewhere.

g.  Glass – Steagall Banking Act 1933

This Act passed in the first Roosevelt term created the Federal ______Corporation (FDIC) that created ______for small savings depositors up to ______dollars and greatly increased the authority the ______Board, the government agency that oversees banking activity.

h.  SEC 1934

The ______Commission was an independent agency empowered to regulate the sale of ______and bonds. It also had the right to bring action against those found practicing ______.

i.  SSA 1935

During the first two years of Roosevelt's presidency a commission studied the problems caused by ______, old age and physical ______and sought to determine the part that should be played by the Federal government in alleviating these problems. Unemployment insurance, financed by a Federal payroll tax paid in equal parts by ______and ______, was established as a joint federal-state program. An old-age ______system was set up to be administered by the Federal government and financed by taxes on both ______and ______. Other provisions of the Social ______Act provided Federal money to encourage the states to care for dependent ______and the blind.