The Roaring 20s USA, 1919-1929 Flashcards
What was the Tariff policy: the Fordney-McCumber tariff, 1922:
Put a tariff on foreign goods and made them more expensive than the same American products
The policy was intended to protect American industry and worked well in the 1920s.
Helped to create ‘boom’ conditions
Tariff not effective in the long term as it encouraged foreign governments to retaliate and put tariffs on American goods.
American attitudes on the League of Nations:
Did not want their country involved in disputes taking place far away
Believed the USA would have to bear the cost of keeping the peace
Key points for Isolationism:
- issue of League of Nations
- effects of WW1
- tariff policy
What is isolationism:
America saying to the rest of the world they want to do things there way.
What was Woodrow Wilson responsible for:
His fourteen points of 1918 were the basis for the peace settlement therefore he was responsible for setting up the League of Nations.
What was the republicans view on the League of Nations:
Against the League of Nations.
What was the democrats view on the League of Nations:
Democrats for the League of Nations
What was Warren Hardings view on the League of Nations:
‘American First’
Need to return to ‘normalcy’
Cost of the League and any future war
Cost of the war - 112,000 dead
Examples of Republicans against the League of Nations:
Henry CabotLodge - congression
Warren Harding - President
Examples of Democrats for the League of Nations:
Woodrow Wilson - sick - lack of effectiveness
What were Hardings key policies:
Isolation
Tariffs
Low taxes to help businesses grow
Give workers money to spend
Why were the democrats for the League of Nations:
US involvement was essential as they had the money and the military to see the League of Nations off to a good start
Moral thing to do - Woodrow Wilson religious
Couldn’t see League of Nations working without US involvement
What did the 1917 immigration law state:
Required all foreigners to take a literacy test to prove they could read a short passage of English.
This effectively prevented people from poorer countries entering the USA.
What did the 1921 immigration Quota Act state:
Limited maximum number of immigrants allowed into the USA to 357,000 per year.
Limited number of ethnic group emigrating to USA to three per cent of the number already in the USA in 1910. Worked in favour of immigrants from northern and Western Europe as already had great number of American citizens.
Mass production in the USA before 1920:
USAs industry and farming had grown steadily since 1860
Country had huge huge resources
Had a growing population, many of them immigrants willing to work hard
Railways, mining and manufacturing were all strong
Immediate consequences of the Wall Street Crash:
Many individuals were bankrupt - could not pay back the loans they used to buy their shares
Some homeowners lost homes as could not pay mortgages
Some who had savings lost their money when banks collapsed
Farmers suffered similar fate as banks tried to get back loans
How did big institutions suffer as a result of the Wall Street Crash:
About 11,000 banks stopped trading between 1929 and 1933
At same time, demand for goods of all types fell
As a result, production fell and so did wages and jobs
In the USA in 1920 how did the rush to buy shares cause problems:
Many people bought and sold shares to make quick profits instead of keeping their money invested in the same businesses for some time.
Companies were forced by shareholders to pay out profits to shareholders rather than reinvesting the profits.
Americans borrowed money on credit to buy their shares.