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USA > Credit, Business & Advertising of the 1920s > Flashcards

Credit, Business & Advertising of the 1920s Flashcards

1
Q

how much easy credit was financed by 1929?

A

$7billion

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2
Q

% of cars sold on credit / hire-purchase

A

75%

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3
Q

% of electrical goods sold on credit / hire-purchase

A

50%

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4
Q

X2 companies who set up organisations to promote instalment buying (hire-purchase)

Name of GM”s hire purchase company

A

GM and Ford

General Motors Acceptance Corporation

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5
Q

What were business methods and profits aided by?

A

government policies which were in favour of large corporations e.g tax cuts, actions against unions etc.

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6
Q

Number of mergers during 1920s was times what than previously?

A

X3

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7
Q

mergers are a form of what integration?

A

horizontal

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8
Q

How many corporations possessed 20% of all US wealth in 1929

A

top 200

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9
Q

The top 200 corporations possessed what % of wealth generated by businesses in 1929?

A

20%

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10
Q

What was the nature of ‘holding companies’, give an example of one

A

firms ‘competing’ against each other were really one and the same

e.g US steel

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11
Q

What film was mass production and the monotonous conveyor system satirised in? What did this process do to labour?

A

Charlie Chaplin’s “Modern Times”

took initiative out of labor

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12
Q

What was advertising essential to creating?

A

constant demand

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13
Q

What did the Kansas Journal say about the importance of advertising and mass production?

A

“advertising and mass production are the twin cylinders that keep the motor of modern business in motion”

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14
Q

What did the Kansas journal suggest about the relationship between advertising and mass production?

A

the fact that they were ‘twin cylinders’ suggests one cannot function effectively without the other

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15
Q

How were radio costs covered?

A

via advertising

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16
Q

What was the audience during the Dempsey-Tunney fight on the radio?

A

50million

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17
Q

What sparked some of the mass production of radios?

A

1920 presidential election results announced via radio

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18
Q

What was the purchasing of stocks using credit referred to as

A

buying ‘on margin’

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19
Q

What was the Florida Land Boom in part stimulated by?

A

motor car industry meaning undeveloped area now accessible to middle class

20
Q

What did the population of Florida rise by between 1920-25?

A

250,000

21
Q

When did demand tail off in the Florida Land Boom?

A

1926

22
Q

Example of notorious speculation on the stock market;

A

Radio Corporation of America goes from 85 to 420 points in 1928 - without paying any dividends

23
Q

By 1929 how many individual investors were there on the stock market?

A

9million

24
Q

How many had radios in 1920?

How many by 1929?

A

60,000

10million

25
Q

What type of store was appearing on the landscape in the 1920s?

Name one

What % of sales were made at department stores

A

department stores

JC Penny / Wallgreens

8%

26
Q

How many films was Hollywood making a year?

A

1,000

27
Q

Non-Farm Residential Mortgage Debt;

  • 1920
  • 1930
A

1920 - $9billion

1930 - $30billin

28
Q

% of gross domestic private investment that went into construction during the 1920s;

Growth in construction between 1921-25;

A

60% of gross domestic private investment

construction X2 between 1921-25

29
Q

Fall from 1926 peak in construction;

1929 -

1932 -

A

1929 - dropped 20%

1932 - dropped 82%

30
Q

What happened to the rediscount rate;

1927 -

1928 -

1929 -

A

1927 : 4% to 3.5%

1928 : 3.5% to 1.5%

1929 : increased

31
Q

What was unique about credit compared to government policies in helping to perpetuate the boom?

A

Gov policies helped big businesses, rather than directly helping the consumer with purchasing power

Credit changed the environment to one of greater confidence and power for the consumer

32
Q

Benefit of credit in producing a boom across several industries;

A

versatility of credit

stimulation of not just material goods, but stock market, construction etc.

33
Q

Duration of Florida Land Boom

What did population increase by?

A

1921-26

250,000 population increase

34
Q

Stocks sold;
1927:
1928:
1929:

What was the average downpayment for buying on the margin?

Example of mass speculation leading to inflated stock value;

What were the bluechip stocks increasing by annually?

A

1927 : 450,000
1928 : 577,000
1929 : 1.1billion

Average downpayment : only 10%

Radio Corporation America :
85 –> 420 in 1928 alone

Safest (bluechip) increasing 16.5% p.a

35
Q

What did lowering the rediscount rates allow the Fed to do?

What did this do for consumers?

A

maintain the buoyancy of markets

meant that consumers maintained the confidence to finance their consumerism via going into debt

36
Q

Schunn’s quote on speculation;

A

“wasn’t gambling…it was an investment in the glorious American future”

37
Q

How many Hollywood tickets were sold weekly?

What did this mean for advertising?

A

95million Hollywood tickets weekly

meant mass audience for advertising

38
Q

When was the first mail order catalogue?

What was it called?

What did it allow for?

A

1921

Sears-Roebuck

allowed women at home to purchase goods conveniently and quickly - so more trade

39
Q

What type of sales techniques were developed in the 1920s x2

A
  • Bruce Barton

- Travelling salesmen

40
Q

Sign that the KKK recognised that spending had to be encouraged via advertising

A

Hired X2 publicists

profits from Indiana = $4.4billion in 1 single year

41
Q

Example of advertisements appealing to women X2

A
  • Chesterfield Cigarettes 1926 first cigarette advert with female
  • Sunbeam Vacuum : advertised that it would save 52hours annually of housework
42
Q

Sales of electrical goods increase:
1918
1928

A

1918 : 2.6million

1928 : 160million

43
Q

Get Rich Quick Schemes advertising showed those who made mass profits on stock market, including;

A

Ponzi Scheme :

promised 50% profit in 90days

44
Q

What was the role of advertising?

How did advertising evolve over the 1920s?

A

Role of advertising was to stimulate and direct consumption
Its role was to make spending more attractive, faster and easier

Over 1920s advertising became increasingly pervasive and diversified its methods

45
Q

What was the act which banned interstate banking in most states?

When did it come into effect?

What happened to branch banking and the Act during the New Deal? Why?

A

McFadden Act

1927

Legal restrictions on branch banking remained on into the New Deal - people feared the increasing concentration of wealth

46
Q

Figure on magazines and their circulation in the 1920s

A

10 magazines had a circulation of 2.5million in early 1920s

USA (33 decks)

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