Access to History for the IB Diploma. The Great Depression by Peter Clements (Wr PDF

By Peter Clements (Wr

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He argued that in the 1920s the USA was well on the way to becoming a property-owning democracy, and the Wall Street Crash would have righted itself, with prosperity returning by 1930. Liaquat Ahamed KEY TERM Gold Standard Where the value of money is based on the amount of gold in the nation’s reserves. Ahamed, a financier himself, wrote a very influential book entitled The Lords of Finance in 2009. In arguing that even in the 1920s the economy was global and interrelated, he focused on the careers of four major central bankers in the USA, Britain, France and Germany.

P. Morgan Ltd, held a press conference. ‘There has been a little distress on the stock market’, he said, with a masterly sense of understatement. He went on to explain that this was due entirely to a technical difficulty, and the situation was ‘susceptible to betterment’, by which he meant things would improve.  Morgan Ltd, was buying stock above current prices in lots of 10,000 in an attempt to restore confidence in the market. The bankers having come to the rescue, confidence returned and the situation improved.

The Ku Klux Klan still terrorized much of the midwest and south, although the number of lynchings was falling. Comparatively few African-Americans were allowed to share in any prosperity; 14 per cent of farmers were African-Americans. Rural poverty The census showed in 1920 that for the first time the USA was essentially an urban nation. The total population was 106,466,000; of these 31,614,000 lived on the land, but the rest lived in towns. As the majority of Americans had hitherto lived in rural areas, the farm lobby had been very powerful in influencing the government.

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