Getting On With Business American History Chapter 11 Sacco and Vanzetti Convicted of Murder in a 1920 Robbery Found Guilty Because they Were Immigrants and Radicals Radicals Supported Political and Social Revolution Both Believed in Anarchism- Do Not Recognize the Authority of Government People Around the World Protested their Execution Sacco and Vanzetti Became Martyrs For Socialism and Anarchy The Red Scare Violent Wave of Anti-Communist Sentiment that Swept Across the United States 1919-1920 Communist Revolution in Russia (Bolsheviks) Communist Uprisings in Hungary and Bavaria Development of Two Communist Political Parties in the United States The Red Scare was Directed By Attorney General A. Mitchell Palmer (The Fighting Quaker) Led Americans to Believe that Communists Were About to Take Over Our Government J. Edgar Hoover Bureau of Investigation Started to Gather Information about Radical Activities In the United States The Red Scare The Red Scare A. Mitchell Palmer Got $500,000 From Congress to Remove Radicals from America The Palmer Raids November 1919 Raids in 12 Cities 249 Aliens Deported to Russia Ship was Dubbed The Soviet Ark December 1919 Raids in 33 Cities 4,000 People Arrested 600 Deported They Were Denied their Constitutional Rights Americans Generally Supported the Raids
By Mid-Summer 1920 the Red Scare Had Passed The Palmer Raids Labor Unrest 1919 Cost of Living Up & Wages Down 3,600 Strikes in 1919 Alone Some Serious Boston Police Strike Opposition to the Strike Launched the Political Career of Governor Calvin Coolidge Steel Strike 350,000 Workers Went on Strike to Oppose 12 Hour Days, 7 Days a Week Coal Strike Fall of 1919 Threatened the Nation s Coal Supply Heading into Winter Miners Received a Presidential Order to Return to Work The Great Migration The Great Migration Jobs, Jobs, Jobs Meatpacking Industry Automobile Industry (Ford) Steel Industry Northern Whites Resented the Migration 1917 Race Riots Erupted in 26 Northern Cities Riots Continued into the 1920s The Garvey Movement Marcus Garvey Back to Africa African-Americans Should Form Their Own Government in Africa Universal Negro Improvement Association Attracted 250,000 Members Black Star Ships to Take Blacks to Africa Garvey was Eventually Deported as an Undesirable Alien Progressivism Endures New Social Reforms Prohibition Ban the Manufacture, Sale, Transportation and Consumption of Alcohol During World War I Alcohol Was Tied To Germany States and Counties Passed Prohibition Laws National Prohibition 1919 Volstead Act Outlawed Beverages With.05% Alcohol
Americans Thought Prohibition Would Eliminate Crime, Poverty, and Prostitution Campaign For Woman s Suffrage Progressivism Endures New Social Reforms Women s Suffrage Voting Rights 1848 Seneca Falls Conference Western States Led the Way in Woman s Suffrage (Kansas 1912) National American Woman Suffrage Association (1916) Carrie Chapman Catt National Woman s Party Alice Paul 19 th Amendment August 26, 1920 3 Republican Presidents Harding, Coolidge, & Hoover The Roaring Twenties The Republican Presidents Warren G. Harding- (1921-1923) Campaigned on a Return to Normalcy Move Away From Wilson s Internationalism Extremely Capable Cabinet: Charles Evans Hughes Secretary of State Andrew Mellon Secretary of Treasury Herbert Hoover Secretary of Commerce Not So Capable Ohio Gang (Harding s Friends) Used Their Jobs to Take Money One Went to Jail, Two Committed Suicide Warren G. Harding Teapot Dome Scandal Teapot Dome: Most Famous of Harding s Scandals Albert Fall-Secretary of the Interior Leased National Oilfields to Private Companies Received Several Hundred Thousand Dollars in Bribes Fall First Cabinet Member to go to Prison Scandal Effected Harding s Health Died in San Francisco on August 2, 1923
Public Loved Harding Upset over Scandal Breakers Succeeded by Calvin Coolidge Silent Cal and Big Business Coolidge The Man Proper New England Upbringing Attended a One-Room School Absolute Honesty Sworn in By His Father (A Justice of the Peace) Appeared to be Looking down his nose to locate that evil smell which seems forever to affront him. (William Allen White) He looked as if he had been weaned on a pickle. (Alice Roosevelt Longworth) The government is not an insurer of its citizens against the hazards of the elements. (Calvin Coolidge) Calvin Coolidge Silent Cal and Big Business 3 Important Ways Coolidge and Harding Supported Business: Appointed Business People to Commissions that were Supposed to Regulate Business Selected Supreme Court Justices who Ruled Against Progressive Legislation Named Conservatives to Powerful Cabinet Positions Examples FTC & ICC Overlooked Business Violations 5 Conservative Supreme Court Appointments Andrew Mellon Sec. of Treasury 3 rd Richest Person in the U.S. Andrew Mellon Secretary of Treasury Under: Harding, Coolidge & Hoover Founder of the National Gallery of Art From a Rich Pittsburg Banking Family Policies Greatly Reduced Income Tax Herbert Hoover, The Wonder Boy U.S. Food Administration During WW I Directed Belgium Relief Committee U.S. Secretary of Commerce Extended Regulation to Airlines, and Radio
Had the Bureau of Standards Standardize Items Manufactured in the United States Tires, Nuts and Bolts, Electrical Appliances, Mattresses Supported Zoning, 8-Hour Workdays, Improved Nutrition for Children, Conservation of Natural Resources Pollution Act of 1924-1 st Effort to Control Coastal Oil Pollution Herbert Hoover Republican Foreign Policy Expansion of Overseas Business Shift away from political involvement with Europe, but an increase in economic involvement American Domination: Cars, Farm Machinery, Tractors, & Electrical Equipment World Peace Through World Trade (Thomas J. Watson, IBM) The Dawes Plan 1922- Germany Defaulted on Its Reparation Payments to the Allies Allies Could Not Repay the $10 Billion They Owed the United States French Troops Marched Into Germany Dawes Plan: U.S. Banks Loaned Germany $2.5 Billion Germany Pays Allies Allies Pay The U.S. An Annual Reparation Schedule Was Established for Germany The Dawes Plan Results of the Dawes Plan War Was Avoided Between France and Germany Assisted the German Economy Allowed Allies to Pay Debts to the United States Nobel Peace Prize for Dawes Tied the German Economy to the American Economy Made the Great Depression of the 1930s an International Depression German Depression Gave Rise to Fascism Washington Conference Charles Evan Hughes 1921 U.S. Secretary of State Call For Disarmament
Wanted a Destruction of Weapons Including Battleships Stop Construction of New Ships Japan Had the Greatest Limitations No New Western Naval Bases in Asia U.S. Remained Concerned with the Power of Japan Hughes Later Appointed Chief Justice of the U.S. Supreme Court Kellogg-Briand Pact 1928 Attempt to Make War Illegal U.S. Secretary of State Frank Kellogg French Foreign Minister Aristide Briand Treaty Signed by 14 Nations War was Outlawed Only Means of Enforcement War Relations With Latin America U.S. Military Presence In Nicaragua Kept to Protect American Business Interest Resented at Home and Abroad Public Opinion Critical of Coolidge Resisted Militarily by Troops Under César Augusto Sandino Troops Reflected U.S. Commitment to Business Prosperity and American Business The Gospel of Big Business The man who build a factory builds a Temple The man who works there worships there. (Calvin Coolidge) Wartime Expansion of American Industry Industrial Productivity Rose 70% Between 1922 and 1928 Highest Wages in the History of the United States Electric Power Replaced Steam Power in Factories Assembly Lines Speeded Up Production Growth of Cities and Suburbs in Manufacturing Areas Growth of the Auto Industry America s Most Important New Industry Ford s Moving Production Line Produced a Car in 93 Minutes By 1925 a New Ford Rolled off the Assembly Line Every 10 Seconds Impact on Related Industries: Steel, Rubber, Glass, Petroleum, Machine Tools, & Road Construction
New Commercial Downtowns Skyscrapers Empire State Building 102 Stories High World s Tallest Building Other Skyscrapers Followed The Corporate Revolution Small Companies Lacked the Capital for Research & Development & Advertising Large Corporations Dominated American Business The Corporate Revolution Oligopoly Few Major Producers Influence an Entire Industry Meatpacking, Utilities, Banking, & Tobacco Great Atlantic and Pacific Tea Company (A & P) 400 Stores in 1912 to 15,000 Stores by 1932 The American Plan After the War, Labor Organizations Were Associated with Communism Throughout the Rest of the 1920s Corporations Kept Labor in Check Through A System of Rewards and Punishments The American Plan Labor s Punishment Open-Shop Associations Union Members Were Blacklisted Companies Hired Spies Who Joined Unions and Reported Back Yellow-Dog Contracts Must Agree Not to Join a Union Supreme Court Consistently Ruled in Favor of Business Union Membership Fell By 30% From 1921-1929 Welfare Capitalism Welfare Capitalism Labor s Reward Welfare Capitalism Programs Designed to Convince Workers That They Do Not Need Unions Improved Working Conditions On Site Doctors and Nurses Group Insurance Programs Stock Purchase Opportunities Pension Plans Industrial Democracies On Site Unions Kiss Me Clubs
Welfare Capitalism Paid Off For Big Business in the Form of Increased Efficiency and Higher Profits The Changing Nature of Work: Henry Ford Industrialist Commercial Production and Sale of Goods 1914 Introduced the $5.00 Day Double A Normal Wage Workers Were Also Consumers Ford Called the Wage Increase the Smartest Cost Reduction Plan Ever 1926 Reduced the Work Week to 40 Hours (5 Days) The Changing Nature of Work: Henry Ford Assembly Line Allowed for Mass Production Ford s Profits-- $264,000 Per Day In 1922 Ford Hired Immigrants and Minorities Ford Plants Were Non-Union Assembly Line Work Was Dehumanizing Henry Ford Scientific Management Frederick Taylor- The Father of Scientific Management Scientific Management Efficiency Experts Analyze Each Aspect of Every Factory Job Workers Would Be Trained on How to Minimize their Efforts Productivity Standards Were Established Bonuses Went to Workers Who Exceeded Productivity Standards 1911 The Principles of Scientific Management Embraced by the Auto Industry Still Followed in Many Areas Today New White-Collar Workers White-Collar Workers Professionals, Retail Sales, Clerks, Bookkeepers, Typists, Bankers, Insurance Agents, etc. Sales Profits Were Large For Those Who Could Sell Traveling Sales Persons; Door-to-Door Sales Companies had Quotas, Offered Bonuses, Had Contests Advertising Persuaded Americans They Needed What Was Being Sold Companies Spent Billions on Advertising in the 1920s Young White College Graduates
Women Offered Special Insight on Products Salaries Were High, But So Was Job Turnover Women in the Workforce Office Work (Typists) Middle Class, High School Educated, Females Needed to Know Spelling, Grammar, Punctuation, and Capitalization Women Worked in a Clean Environment Women in the Workforce Telephone Companies and Department Stores Women Without High School Diplomas Clerks, Cashers, Wrappers, Switchboard Operators Women s Jobs Were Unskilled Little Advancement Opportunity Work Taught Endurance, Obedience, and Modesty Perfect Preparation for Marriage