The Situation Before the Crash

Age of Total War

Fall 2007

The General Situation

•       There was hope that the war was over.

•       But the hoped for prosperity was short lived.

•       Once the hoopla came to an end.

•       Economic malaise set in.

•       Especially in the U.S. and Great Britain.

•       In Japan, there was concern that Japan was being discriminated by the West.

•       In the Soviet Union there was a struggle to see who would follow Lenin.

•       In the U.S. Americans looked inward.

Post Civil War Russia

•       Following the Civil War and the Russo-Polish War, Russia was devastated.

•       War Communism was still in place.

•       The sailors of the Baltic Fleet listened to the grievances from Petrograd.

•       By then the composition of the Baltic Fleet had changed.

•       More peasants had entered and the old guard was scattered to the winds.

Background to the Mutiny

•       In Feb. 1921 popular agitation to the Bolsheviks took place in Petrograd.

•       32 sailors served as a fact finding team to investigate the charges.

•       On Feb. 28 a general meeting agreed to support a report made by Stepan Petrichenko.

•       The 15 Demands were then drafted to Kronstadt Soviet.

•       Which proved to dangerous for Lenin.

Kronstadt Demands

•       Immediate new Elections to the Soviets

•       Freedom of Speech and Press

•       Freedom of Assembly

•       Organization of a new group to represent the interests of the people of Petrograd

•       New review of all prisoners in detention

•       Abolition of all political departments in the armed forces

•       End of the militia detachments sent to rural villages

•       Equalization of all rations

•       Abolition of all party military detachments

•       Giving peasants the right to own land and cattle

•       All military organizations should agree to this resolution

What Happened Next?

•       Mikhail Kalinin top Bolshevik tried to speak on March 1 and was shouted down.

•       The leaders of the RevKom tried to speak and were arrested.

•       Kalinin reported to Zinoviev (Party Boss in Petrograd) and Trotsky.

•       All news from Kronstadt was censored.

•       Military power was the next option.

•       Their Slogan was “Soviets without Communists.”

Crushing The Mutiny

•       Trotsky rushes to Petrograd and mobilizes loyal Red Army formations.

•       On the night of March 16, 1921, 45,000 troops under the command of Mikhail Tukhachevsky attacked in three directions.

•       The revolt was crushed, 600 were killed and 900 were executed.

•       About 8,000 fled to Finland.

Impact of Kronstadt

•       Lenin had to make a strategic retreat to insure the regime’s survival.

•       This happened before the X Party Congress.

•       In many respects, Lenin was willing to accept “a peasant’s Brest.”

•       This became the bases of NEP.

•       Changes now came from above.

New Economic Policy

•      Food tax (ten percent) replaced food requisitions.

•      Peasants could lease land and hire labor.

•      Small business were allowed to open.

•      But not the larger ones such as banks, railroads, etc.

•      Which even lead to the creation of a new group of businessmen known as “Nepmen.”

Trouble in the Workers’ Paradise

•       Not everyone was happy with this trend.

•       Especially with the “leftwing Bolsheviks.”

•       They attacked those successful peasants known as Kulaks.

•       Stalin would have another plans and ended NEP in 1929.

•       Buy this time Lenin was ill and Lenin’s lieutenants were lining up to replace him.

 

Death of Lenin and the Coming of Stalin

•       Lenin’s health was in decline following Dora Kaplan’s assassination attempt in 1918.

•       The arguments over NEP further weakened him.

•       Then he made the fatal mistake of creating the post of General Secretary.

•       Recommending Stalin for the post.

•       Lenin then had an operation to remove the bullet from Kaplan’s assassination attempt.

•       Instead, he had a stroke.

The Great Schemer

•       Stalin used his position to purge Trotsky’s supporters from key posts.

•       He was unruly.

•       Even a bully.

•       He insulted Lenin’s wife, Krupskaya.

•       Demanding that Lenin not write letters.

•       Lenin did more than that.

•       He wrote his last will and testament.

The Last Will and Testament

•       It was written sometime between Dec. 1922 or Jan. 1923.

•       He intended that it be published in Pravda and read at the upcoming Party Congress.

•       Instead it was withheld from all.

•       In his Last Testament he tells everyone no one is capable to follow him.

But Along Comes Joe

•       Stalin moved in to arrange Lenin’s funeral.

•       The creation of the Cult of Lenin.

•       Marginalizing Trotsky.

•       Then other Old Bolsheviks.

•       By 1928 he moved against the Kulaks.

•       Moving toward Collectivization.

•       Followed by the Purges.

•       The rest is history.

The Japanese Situation following Versailles

•       The Japanese felt wanted to be accepted.

•       Instead they discovered that they were rejected by the West.

•       Especially the Americans.

•       Even the British too, their traditional ally.

•       Yet Japan was making head way.

•       Especially in textiles and challenging the British.

The Great Tokyo Earthquake in 1923

•       It struck on Sept. 1, 1923.

•       Registered 8.1 on the Richter Scale.

•       Fires broke out throughout the city.

•       The public then blamed the Koreans.

•       Who were attacked at will.

•       Perhaps 140,000 died and countless others injured.

•       Aid rushed in from the West, including the U.S.

The Emergence of the Rightwing

•      There was a deep resentments mounting in Japan.

•      Over the Washington Naval Conference in 1922.

•      Then in 1924 U.S. prohibited Japanese immigration into the United States.

•      While militarism was in decline following the war, it was revived by such nationalists as Kitta Ikki.

•      Claiming that Japan had the right to demand equality with the “millionaire powers.”

•      China was ready for the taking.

Western Culture Takes to Tokyo

•       Department stores like Harrods and Bloomingdales.

•       Japanese took to cars.

•       And Baseball.

•       Movies like Charlie Chaplain were very poplar.

•       As was Jazz.

•       Dancing.

•       Which drove the political reactionaries crazy.

Harding and the Return to Normalcy

•       Harding was not a bad man, but not fit to be president.

•       Harding was made by Harry Daughtery.

•       Because he looked like a president.

•       His main campaign promise was “Less government in Business, and more Business in Government.”

•       But behind the man was corruption.

•       And as Harding said, “my…friends…they’re the ones that keep me walking the floors at night.”

Teapot Dome

•       This was part of a general scandal that engulfed all of the Harding administration.

•       Fall convinced Edwin Denby, the Secretary of the Navy, to all the Interior Department to run the Elk Hills and Teapot Dome oil reserves.

•       And then lease them to his buds – Harry F. Sinclair and  Edward Doheny.

•       Before this was exposed Harding died.

Other Harding Scandals

•      Fall would be sent to prison in 1931.

•      Thomas Miller of the Office of Alien Property was convicted.

•      Charles Forbes, Director of Veterans Bureau was convicted of fraud for skimming profits and accepting kickbacks.

•      Charles Cramer, and aid to Forbes, committed suicide.

•      As did Jess Smith and aid to the AG.

•      Coolidge was at least clean.

Cool Cal

•       He was a minor Republican politician who made a name for himself during the Boston Police Strike in 1919.

•       Found himself on the Republican ticket with Harding in 1920.

•       He was the first president to use the radio, but did not have a telephone on his desk.

•       He was a friend of big business.

•       He was elected in his own right to the Presidency in 1924.

•       But things were happening that he was not prepared for.

•       William Allen White considered him a “Puritan in Babylon.”

The Role of Andrew Mellon

•       Mellon made a fortune in banking, construction and a host of other endeavors.

•       He also served as Secretary of the Treasury for Harding, Coolidge, and Hoover.

•       He cut the debt and cut taxes.

•       Which was called the “Mellon Plan.”

•       Reducing taxes and government expenses was his passion.

•       He was considered the greatest Secretary of the Treasure since Alexander Hamilton.

 The Jazz Age I

•       Society was changing as a result of the war.

•       Women were dressing differently.

•       Women were now “a little fast and perhaps a little brazen.”

•       Skirts were getting shorter.

•       They bobbed their hair.

•       Exposed their arms and for heaven’s sake, their legs.

•       The typical flapper was Louise Brooks.

•       F. Scott Fitzgerald would understand these ladies.

The Jazz Age II

•       But this is also the age of Prohibition.

•       Rise in crime with Al Capone in Chicago.

•       With speakeasies all the social ills that went with it.

•       As well as the rise of the KKK.

•       And the struggle with modernity with the Scopes Monkey Trial.

The Dark Side of the Jazz Age

•       Farmers were being driven into the ground by the burden of debt.

•       Workers purchasing power was stagnant.

•       Inventories were on the rise.

•       Questionable business practices threatened investors.

•       Such as the case of Samuel Insull, a forerunner of the ENRON fiasco.

The Anarchist Vision

•       That no government was good government

•       Best way of creating social justice was via the pistol and dynamite.

•       William McKinley was a victim.

•       The wife of Franz Joseph

•       Made an attempt on TR.

•       When did it come to an end?

Sacco and Vanzetti

•       Two Anarchists – Sacco and Vanzetti were arrested for a murder of a shoe factory paymaster and security guard.

•       The event happened in April 1920.

•       They were charged with capital murder, found guilty, and executed in 1927.

•       Where they innocent victims, anarcho-terrorists, or a combination of the two?

What We Know, May Know, or Simply Will Never Know

•       Both claimed that they were innocent wrongly accused.

•       The public so believed that they were victims of a “red paranoia.”

•       In 1961 evidence pointed to the fact that Sacco’s weapon was used in the crime.

•       Then in 1982 new evidence points to that weapon may have been planted.

•       But we will never know.

Collateral Damage

•       The Wall Street Bombing of Sept. 16, 1920 was the greatest terrorist attack on American soil until Oklahoma City.

•       At noon time a horse-drawn cart pulled up to the J. P. Morgan Bank.

•       It was estimated that there were a hundred pounds of dynamite on board.

•       70 died and 300 injured.

•       There was a link to the Sacco-Vanzetti case.