1913 -- Income Tax Amendment- Gave the US government more power over basic economic activity.

Prior

to this, there was only the ICC and the Federal Trade Commission which were considered police
power. A tax on general economic activity was needed to give the government decisive economic
power and to give them the funds to fight the oncoming world war, to which tensions were building.

1914 --

Start of WWI- Austrian heir Archduke Franz Ferdinand was assassinated in

Sarajevo by Serbian revolutionary Gavrilo Princip, member of the Black Hand, causing Europe to
explode into World War I, also known as The Great War. Germany invaded Belgium to outflank France,
which brought Brittan into the conflict. Soon after, almost all of Europe was at war.
1914 --

1915 -1915 --

1915 --

Neutrality Declared- President Woodrow Wilson declared American neutrality on August 4th, 1914.
Funding the War Effort- From 1915 to 1919 53% of totoal revenue to the government came from
income tax. Tax rate began at 1% and went up to 7% for the individuals with income exceeding
$500,000. Incomes lower than $3,000 were exempt from this tax.
Social Support- National support slowly went towards the allies, which included France, Great
Brittan, and Italy.
Capital Shift- Capital outlays of fixed plant and equipment in manufacturing industries, $600 million
in 1915, rose by a factor of four to $2.4 billion in 1920. Then investment fell almost 50%.

1916 --

1917 --

The gold standard banking system had absorbed $2 billion, the largest amount of gold ever held by a
single nation- Naval Consulting Board formed. Later transformed into Council for National
Defense. National Defense Act and The Shipping Act are both passed.
Lever Food Control Act passed and Herbert Hoover put in charge- This act created the US Food
Administration and eventually the US Fuel Administration. Gave power to place minimum set prices
on wheat and other crops. It also funded the FBI in its infant stage.

1917 --

Selective Service Act- Required all males 21 to 30 to register in armed forces.

1918 --

Post War Inflation- There was huge post war inflation in many commodities.

1920 --

Money Circulation- Amount of money in circulation had a 100% increase from 1914.

1920 --

Urban Center Living - The number of Americans living in urban centers of 2500 people or more
passed the 50 million mark. There was dramatic growth in electronic appliances such as vacuum

cleaners, radios, and refrigerators.

1920 --

1920 --

1920 --

1920 --

1920 --

1921 --

1921 --

The 18th Amendment- The 18th Amendment was passed prohibiting the manufacture, sale, or
transport of "intoxicating liquors" and taking away a basic comfort of field hands, factory workers,
and others, on the grounds that drinking was sinful and the poor people were not entitled to such a
luxury. This caused much hate and fear which eventually led to the formation of the Ku Klux Klan (and
anti-African-American, anti-Jewish, and anti-Roman Catholic group.) in 1924.
Right to Vote- Women gained the right to vote, and also began to participate more in the labor
force.
Wages and Hour Workweek Change- Wages began to rise and a 48 hour workweek was accepted
and instituted by most industries. Unemployment rate was 3.3%.
Immigration Restrictions- There were many restrictions placed on immigration. For example, in
1882, Chinese immigration was banned for 10 years. This restriction was later renewed and
strengthened. In 1885 the practice of prepaying the cost for an immigrant voyage in exchange for future
labor was made illegal. In 1907, there was a financial test place for immigrants, and in 1917 a literacy
test was put into place.
High School and the Standard of living- High school became a standard of living. It was organize
much like it is today with 45 minute periods, diverse criteria, academic tracking, and of course band
athletic teams. In 1910 less than 10% of American 17-year-olds had graduated from high school. But by
1938 almost half were graduated.
Production of Automobiles- Annual production of automobiles rose from 1.5 million in 1920 124.8
million in 1929. By 1930, 60% of Americans families owned an automobile. The automobile provided
many advantages. One being the ability to change the location of residence, as well as the ability to
travel for necessary resources and entertainment.
Emergency Immigration Act- The emergency immigration act was put into place. This act
restrictive the number of people to be admitted each year from any country to 3% of the number of
people that lived in the United States in 1910. In 1924 that same act limited immigration to only 2% of
the US population in 1890.

1929 --

Economy disintegration- The economy had simply disintegrated. The U.S GDP (Gross Domestic
Product) declined from 46 percent, from $104.4 billion to $56 billion. The decline was 27 percent. By
1933, gross investment was below levels of capital depreciation.

1929 --

First break in the stock market- It became nearly impossible to buy a stock that did not rise rapidly
in value, and investors quickly accumulated fortunes. Some investors and government officials felt
uneasy about the heights to which prices have rose.

1930 --

1930 --

1931 --

Smoot- Hawley Tariff passed- The Smoot-Hawley Tariff has often been considered along with the
stock market crash and banking panics to have been a major cause of the Great Depression. This tariff
was passed in June of 1930, raising tariffs on goods and agricultural products. Many protested that
President Hoover veto the bill in worry that the high tariffs would reduce imports, making it harder for
countries earn the money needed for imports.
Onset of the first banking crisis in the United States- Banks began to fail October of 1930. Banks
were going under because an abundance of people were pulling out money at once, and the bank
didnt have enough money to fund it.

The beginning of the banking crisis- The beginning of the banking crisis started with waves of bank
failures, starting in the South and Mideast. Then on December 11, the bank of the United States in
New York failed, which was the largest failure of the banks.

1929 --

1929 -

1930 --

1931 --

The Financial System- 1. Banking system- introduction of deposit insurance. Federal deposit
Insurance Corporation, and the federal savings and loan corporation started in 1930. Securities
markets- increased regulation to supervise stock exchanges, trading practices, and the issue of new
securities. The End of Americas Commitment to the Gold Standard- The gold standard was discarded
for two reasons. First, it was thought that the attempt to convert assets into gold was undermining the
banking system. Second, by breaking the fixed link to other currencies that were on the gold standard,
the United States could devalue the dollar (make it cheaper in terms of foreign currency) and so make
U.S. exports, particularly of farm products, more attractive. Centralization of Monetary Power in the
Federal Reserve Board-the Board of Governors was given control of the systems most powerful
economic tool, the ability to buy or sell securities
on the open market.

The Agricultural Sector- The foreclosures have often been blamed on he overexpansion of
agriculture in World War I. Farmers went into debt to acquire land, it is said, and ended up defaulting
when the postwar economy failed to sustain the high prices of the war years. To help pay back their debt
the Agricultural Adjustment Act was started, which placed greater emphasis on supporting prices by
increasing demand. CCC support prices became minimum prices in the marketplace. Two other means
of raising farm prices were used during the 1930s: (1) marketing agreements and (2) surplus removal
programs.
Critics of the New Deal- New Deal relief spending lowered infant mortality rates, suicide rates, and
other forms of premature mortality. Some economists today, echoing a criticism made at the time,
blame the pro- longation of high rates of unemployment on New Deal labor policies designed to keep
wages high and strengthen organized labor.
Failure of the Kreditanstalt, Austrias largest private bank- The crisis had become international.
Banks everywhere were failing.

1931 --

Closing of the German banks- The panic had spread throughout central Europe, and the german
government was forced to close the German Banks.

1931 --

1932 --

1932 --

Britains departure from gold standard- In September of 1931, Britain, still one of the worlds
financial centers and symbol of financial rectitude, left the gold standard. The British pound would no
longer be convertible on demand into gold. In turn, this increased the pressure on the dollar, which was
still convertible into gold.
Reconstruction of the finance corporation- In January of 1932, President Hoover set up the
Reconstruction Finance Corporation to borrow money by issuing securities guaranteed by the federal
government, and re lend it to the banks, insurance companies, railroads, and other businesses that
needed financial assistance.
Glass-Steagall act- Congress passed this act as a banking act in 1933 that prohibited commercial
banks from participating in the investment banking business. This act was sponsored by Senator Carter
Glass, a former treasure of secretary, and Senator Henry Steagall, a member of the house of
representatives and chairman of the House Banking and
Currency Committee. This act was passed as an emergency
measure to counter thefailure of almost 5,000 banks during
the Great Depression. The act was repealed in 1999.

1933 --

1933 --

1933 --

1934 --

Final banking panic began in the U.S- Banking panic of 1933- The final banking crisis began! The
banking crisis was a financial crisis that occurred in the U.S that led to a severe decline in the money
supply during a period. A series of bank failures during this time sparked panic among depositors
which lead to widespread bank runs across the country, leading into the Great Depression.
President Roosevelt announced a nationwide bank holiday- President Roosevelt decided to
announce a nationwide bank holiday where from March 6- March 10, banking transactions across the
nation were suspended, besides making change.

The New Deal- was designed to provide immediate relief and promote recovery-Relief. Created the
federal emergency relief agency. The government invested half a million dollars into bankrupt state
relief agencies. Created the Works Project Administration which created millions of jobs in road
building, and flood control. The Government also created the Civilian conservations corporation which
was created for young men to go to camp and refurbish national parks.-Recovery. The National
Industrial Recovery act was created which set minimum price, limit output, establish minimum wage,
and maximum hours. The blanket code was in effect to get business to follow these rules so they could
display a blue eagle to avoid being boycotted.

FDIC established- Federal deposit insurance corporation- This is a United States government
corporation operating as an independent agency that was created by the Banking Act of 1933.

1935 --

1939 --

1940 --

1941 --

1941 --

1943 --

Labor Markets- most important were the right to strike and to organize free of employer
interference. American Federation of Labor (AFL)- In 1935, eight industrial unions formed the
Committee for Industrial Organization within the AFL. In 1936 these unions were suspended from the
federation; It made the yellow-dog contractan employment contract in which a worker agrees not to
join a union. The goal was to protect workers and to increase employment.

World War 1- War 1 began on September 1939, when German forces attacked Poland. Britain and
France, who had guaranteed Polands independence, then declared war on Germany.

National Defense Advisory- President Roosevelt set up the Nation Defense Advisory Committee
and chose Leon Henderson, a crusty, cigar smoking new dealer, to head its price Stabilization
Division.
OPA- Roosevelt strengthened Hendersons hand by creating the Office of Price Administration and
Civilian Supply (OPA).
Attack on Pearl Harbor- America was now fully committed to war against the Axis Powers
(Germany, Japan, and their allies).
Payroll Deduction- The payroll deduction system from collecting income taxes was introduced and
the term take-home pay entered the language. Together, these innovations meant that the income tax
had become a mass tax for the first time, corporate tax rates were also increased, and an excess profits
tax was introduced. As a result of these tax increases and the rapid increase in tax base, the United States
was able to finance about 40% of the war with taxes.

1945 --

End of World War 2- The war came to a close and most of the rationing programs were
discontinued, a highly popular decision.

1946 --

Employment Act- The governments responsibility was to promote maximum employment,

production and purchasing power.

1947 --

1948 --

Taft-Hartley Act- This act reflected the belief that individual workers should be protected by public
policy not only in their right to join a labor organization but also in their right to refrain from joining
one.

Desegregating the blacks and the whites in the military- The outstanding record compiled in the
military by African Americans, along with the growing demand by the African American community

for equal justice, contributed to President Harry S. Truman's decision to issue an executive order
desegregating the armed forces.