Chapter 17:

1. Chapter 17: Boom and Bust By, Sean Woo - 8th Grade Mr. Burgess - Georgia Studies

2. Technology in Georgia • The “horseless carriage” was brought to GA in 1901. • Henry Ford introduced the Model T Ford. In 1915, he built a expanded South and built a factory in ATL. • Atlanta, Savannah, Macon, and other GA cities had electric streetlights, trolleys, and buildings 12 stories high or higher. • In rural areas, life moved much slower – farmers’ lifestyles pretty much remained the same. • The Good Roads Movement paved roads. pages 280-281

3. The Coming of World War • 1912: • New Mexico and Arizona were admitted into the Union • Woodrow Wilson was elected president in the U.S. • European powers began forming alliances. • Alliance- an agreement between countries to come to each other’s aid in case of war. • Central Powers: Germany, Austria-Hungary, Italy • Allied Powers: Britain, France, Russia • Summer of 1914: the archduke and archduchess of Austria-Hungary were assassinated by a Serbian. • Austria-Hungary declared war on Serbia. • Germany joined Austria-Hungary while Russia joined Serbia. Other countries took sides and Europe was at war. • U.S.- wanted to stay neutral but it was difficult • Neutrality- not taking sides in a conflict pages 282

4. America Enters the War • 1917- German official suggested that Mexico go to war against the U.S. to get back its ceded land. • March 1917- German submarines sunk several U.S. cargo ships in the Atlantic  President Wilson asked Congress for a declaration of war. • May 1917- Congress passed a law to draft young men into the armed force; even with the draft, over half volunteered for duty pages 283

5. Georgia’s Role in World War I • Besides the large amount of troops from GA, GA was helpful in other ways. • Forts, prisons, training centers, and camps were built in GA because of its great climate and abundant railroads. • GA also supplied the majority of the soldiers’ food and clothing. • Late spring of 1918: 200,000 American soldiers were arriving in France every month.  October 1918- Germany was ready to surrender • November 11, 1918- President Woodrow Wilson called the end of “the war to end all wars.” pages 284-285

6. The 1920s in Georgia • WWI created a huge demand for agricultural products: cotton for the uniforms for the soldiers, crops for food, ect. • This brought prosperity to farmers. • Cotton prices skyrocketed to triple the regular price. • Once again, cotton was “king” in Georgia. pages 286

7. Hard Times for Farmers • The prosperity did not last long. • At the end of the war, cotton prices dropped from 35 cents to 17 cents. • During the same time, the boll weevil brought destruction to the cotton fields of the South. • On top of that, GA farmers suffered through one of the worst droughts of the century in 1925. • Farmers abandoned their farms for cities resulting in the loss of 60,000 farmers. • Also, America entered the worst depression in its history.  cotton prices fell to 5 cents. • Tobacco became GA’s second most important crop. • GA lead the nation in peanut production and a decade later, GA lead in pecan producing. • Farmers became more involved in growing vegetables, dairy, and livestock. pages 286

8. The Brighter Side • There were more paved roads. • By 1922, GA’s state road system had over 5,500 miles of roads. • In 1920, the nation’s first radio station began broadcasting in Philadelphia. Two years later the South’s first radio station began operation in ATL. • Eventually every GA town had a motion picture theater. Air conditioning made these places popular. • Baseball, golf, and football became more popular. pages 286-287

9. Boosting Atlanta • Good stories about Florida began circulating causing people to move down there.  GA was loosing its population. • In late 1925, ALT leaders came up with a plan to promote the growth of ATL called the “Forward Atlanta Commission.” • Over the next three years, over $1 million was spent on telling people about ATL. The result was successful. • 1926: regular air mail service • 1929: Delta Air Lines began passenger service. pages 288-289

10. The Great Depression • The 1920s was a time of prosperity for the upper and middle class people called the Roaring ‘20s. • The prosperity however ended on Oct. 29, 1929 when the stock market crashed. This day was called Black Tuesday. • Unemployment rises. • A decade long depression. • Great Depression- the severe econmic depression from 1929 to the outbreak of WWII. pages 290

11. The Crash of ‘29 • The beginning of the nationwide depression starts at the stock market crash on Oct. 29, 1929. • Late 1920s- America’s economy was booming. • People speculated in a hurry to make money. • Speculating- buying stock, real estate, or any other valuable goods at a low price with a plan to sell it soon at a higher price. • As more and more speculators jumped into the market, the stock prices continued to rise. • Buying stock was risky. pages 290-291

12. Flaws in the Prosperity • The prosperity of the 1920s was flawed. • The agriculture remained depressed since WWII- farmers were producing more crops than demanded causing the prices to fall. • Americans were going heavily on debt because of luxuries. • The government followed a laissez-faire policy. • American businesses were free to operate as they pleased therefore often cheating customers and workers. • Many were unable to pay back their loans causing banks to fail and investors to lose all their savings. • Organizations such as the Salvation Army helped the poor and homeless. pages 291-294

13. The Depression Continues • The reason why this depression was so long was because the economy was more dependant on the industry than ever, meaning that when something happened involving the industry, more people were affected. • People had become more interdependent. • Since everyone was “linked together”, more people were affected when something happened. pages 295

14. Depression Politics in Georgia • It is said that some rural families lived in such poverty anyway that they hardly noticed that a depression was going on. • In the lat 1920s, the General Assembly spent more money than what was available from taxes. • By 1930, the state government couldn’t pat its bills. • It owed public school teachers over $4 million. • In 1930, Richard B. Russell Jr. was elected governor. He provided GA with a more efficient government. • In 1932, Russell was elected to the U.S. Senate. At the same time, Eugene Talmadge was elected to be governor. • Talmadge used the powers of the governor as no one had done before. Many people were outraged because of this. Newspapers and citizens attacked him. pages 295-296

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