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The Red Scare As the war kicked up many could not forget what had happened during the Russian Revolution. The American public feared there may be communist.

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Presentation on theme: "The Red Scare As the war kicked up many could not forget what had happened during the Russian Revolution. The American public feared there may be communist."— Presentation transcript:

1 The Red Scare As the war kicked up many could not forget what had happened during the Russian Revolution. The American public feared there may be communist trying to cause a revolution already in the country. Specifically Labor unions were thought to be a hive of Communism.

2 The Scare for Mitchell Palmer. As the war drew to a close in June of 1919 Eight were detonated within moments of each other. It made people believe there must have been a conspiracy One of the bombs damaged the home of Attorney General Mitchell Palmer.

3 Palmer Raids To strike back against this fear the FBI Federal Bureau of Investigation Began to hunt down possible communist threats. These Raids were ordered by Mitchell Palmer

4 J. Edgar Hoover. Hoover was head of many of the investigations. HE went after radical organizations and socialist parties. States began to pass laws to stop people from joining revolutionary groups. Eventually 600 citizens were deported from the U.S.

5 Chapter 17- the Boom and the Bust of the 1920’s

6 The election of Harding As Warren G. Harding was elected President on the idea that he would be less like the Progressive Presidents before him.

7 The Harding Cabinet Harding placed a mix of talented candidates for his cabinet along with those he had selected, because of past friendships

8 Qualified Nominees Former supreme court Justice Charles Evans Hughes Food Administrator and Future President Herbert Hoover Business Tycoon Andrew Mellon

9 Unqualified Nominees The following were all friends or associates of Warren G. Harding. Campaign Manager Harry M. Daugherty Boyhood Friend Daniel Crissinger Many of those in the cabinet positions sold jobs, pardons and positions.

10 The First Scandal Another member of the Harding Cabinet, Forbes Sold Medical supplies from Veteran, and kept the profits from the sales. Harding was displeased by this scandal feeling betrayed. Harding left to tour the west dying of a heart attack on June 1923, and was replaced by Calvin Coolidge

11 Teapot Dome Scandal The most famous scandal of the Harding administration. Albert B. Fall secretly allowed private interests to lease lands containing U.S Navy Oil reserves. Fall received 300,000 dollars in bribes for this. After an investigation and a Supreme Court ruling Fall was the first Cabinet member to be sent to prison.

12 Economic policies Mellon argued to lower tax rates allowing consumer to have more money to spend on products. This known as supply side economics or trickle down economics Congress would drastically lower taxes.

13 Cooperative Individualism The idea involved encouraging businesses to form trade associations that would share information with the Federal Government. This idea was proposed by Herbert Hoover He believed this system would reduce costs and promote economic efficiency. Built the Bureau of aviation and Federal Radio commission, which lead to the growth the air and radio industry.

14 Overseas interests At this time Isolationism began to grow Isolationism: The belief that America should deal with issues witihin their own borders,and not overseas. At the same time the Coolidge administration did believe in helping the European economy.

15 Dawes Plan In attempt to help the European economy the U.S. passed the Dawes Plan. The plan used American banks to loan money to Germany to help them pay repartitions, as long as Britain and France accepted less money.

16 Mass production The original idea for mass production came about with Henry Ford and the assembly line. The assembly line gave every worker a specialized task as they moved a product down the line. Lead to the quick production of Ford’s Model T the first successful car. Eventually lead to mass production.

17 Aviation After the successful flight by the wright brothers the U.S. continued to invest in aeronautic research. Eventually Charles Lindbergh would have his first successful solo flight over the Atlantic in the Spirit of Saint Louise.

18 Products As the amount of money or deposable income increased in the country so did products. Electric Razors, Refrigerators were just a few of the many products being bought. Consumers would normally purchase larger items on credit and slowly pay the debt off over time.

19 Mass Media Aside from radio motion pictures came into being in the twenties. As well as women challenging social norms that wore short skirts and smoked referred to as flappers. Writers like Ernest Hemingway popular for their realistic writing.

20 Prohibition During the twenties citizens and the government were worried about the affects of alcohol on citizens. The 18 th amendment was passed which banned the production, selling and transportation of alcohol. The FBI became the organization that stopped the selling and production of products.

21 The Harlem Renascence Those who remained from the first great migration took Harlem and turned it into a cultural epicenter for African Americans It was referred to as the Harlem Renascence. It lead to the creation of jazz and famous writers like Langston Hughes.

22 Social unevenness Not everyone was fortunate enough to enjoy all that benefits of the 1920’s. African Americans were pushed out of their jobs they had obtained during WWI, some moved back south, while others struggled to maintain employment in the north. We also saw that those with lower income could not afford such a lifestyle.

23 Farming Difficulties Farmers began to see a drop in the prices of their products. Instead of slowing down their production Farmers continued to grow more of the same crop to try cover their production cost. The continued production of such crops drove the prices down even lower on the market.

24 Election of 1928 Herbert Hoover who was part of the Coolidge administration ran against Alfred E. Smith of the Democratic party. Hoover said that the wealth and prosperity of the 1920’s was due to the actions of the republican party. This would be how he won the election

25 Causes of the Depression The twenties saw a boom in consumer spending. As people began to but more durable good such as cars, and refrigerators production began to peter off. Due to the fact that people did not need multiples of these items. Causing a brief recession in 1920s

26 Problems continue to build Not heeding these signs the government continued to make it easier for banks to take out loans. The hope was to stimulate the economy Individuals with excess cash began investing in stock. During the time the market moved in spurts of success.

27 SEEDS OF TROUBLE By the late 1920s, problems with the economy emerged Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit Margin: Americans were buying “on margin” – paying a small percentage of a stock’s price as a down payment and borrowing the rest The Stock Market’s bubble was about to break

28 Bull market A Bull market is usually defined as a market on the rise. This rising market only lead more people to invest their money.

29 THE 1929 CRASH In September the Stock Market had some unusual up & down movements On October 24, the market took a plunge –”Black Thursday” the worst was yet to come On October 29, now known as Black Tuesday, the bottom fell out 16.4 million shares were sold that day – prices plummeted People who had bought on margin (credit) were stuck with huge debts

30 Bank Runs As the stock market crashed people went to the banks to pull their money out of the banks. Do to a fear of a loss of their money. Banks could not handle so many people pulling money out and did not have enough money to give to people The result was the collapse of banks.

31 Unemployment By 1932 the unemployment in the country grew to 25 percent. The unemployed stood in lines for hours looking for relief check. Some left the city for the country, but still found little hope.

32 FARMERS STRUGGLE No industry suffered as much as agriculture During World War I European demand for American crops soared After the war demand plummeted Farmers increased production sending prices further downward Photo by Dorothea Lange


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