Beginning of the 20th century.
Spanish-American war.
1898 began the war. The status of the USA was changed.
The war was connected with Cuba. America wanted to get Cuba. The latter was under the control of Spain. In 1895 – the Guerilla war between Spain and Cuba.
In 1898 the USA sent a battleship to Havana «with a friendly visit». The USA wanted to show support for Cuba.
February, 15, in 1898 the ship exploded. It was just an accident. But people believed, that Spain was involved. Some yellow press sustained this idea. Articles included information about «evidence».
People made the government declare the war. The USA attacked Spain in the Philippines. Spanish fleet was defeated. The war in the Caribbean was ineffective for Spain.
December 1898 – peace treaty. Spain gave to the USA Cuba, Guam, the Philippines (20 mln. $), Puerto-Rico.
The status of the USA changed: America became a colonial country (NOT a colony). It was necessary to change foreign policy.
1898 – Hawaii was annexed.
Big Stick (Dick) Diplomacy.
Theodore Roosevelt: have good intentions, but carry a big stick.
The USA wanted to make sure that bordering to American new possessions countries were loyal to the USA. America was ready to use all types of intervention.
2 decades of the 20th century – America controlled nearly the whole (except for Jamaica) of the Caribbean.
Colombia (Panama) was very attractive to the USA (the idea to create a canal). The canal was mostly important from the military point of view. Colombia refused to give up Panama. The USA supported the independence movement in Panama. In 1903 Panama got independence. The USA and Panama signed a new treaty. As a result, the USA got a piece of land for a lease (10 mln $). In 1914 the canal was built. The USA controlled this canal until 1999.
Woodrow Wilson’s Presidency.
1912 – he became the 1st democratic president.
The domestic reforms.
The 16 amendment (1913) introduced the income tax. The Congress hoped that this amendment would not be ratified. Graduated (прогрессивный) income tax. 1-2% of the population paid this tax at the beginning.
The 17 amendment (1913) introduced the direct election of Senators.
In 1913 the Federal Reserve Act (Federal Reserve System) established Federal Reserve Board and Federal Reserve Banks (12) that set interest rates for private banks, supervised the banking system, controlled the amount of money in circulation.
Wilson believed that the economy needed more competition (more businesses). The government had to have little intervention in the economy.
1916 – railroad workers were to work 8 hours a day, it was prohibited to sell goods produced by children. Financial assistance for those injured in the job.
1919 – the 18th amendment.
1920 – the 19th amendment gave women the right to vote.
In April 1917 America entered the 1st world war. Before that the USA only gave loans to the warring countries, which brought a huge benefit.
Reasons for entering the war:
Germany attacked American ships. A telegram was sent to Mexico (Germany wanted Mexico to fight the USA in exchange for the lost territory). The telegram was intersected.
At the end of the war (November 1918) America sent a lot of soldiers to Europe (obligatory mobilization).
In 1918 – the speech by Wilson: the aim to leave the war peacefully. The League of Nations (without the USA participating) was established.
The Prohibition.
1920 – 18th amendment was enforced. Franklin Roosevelt proposed the 21st amendment in 1933, which abolished the Prohibition.
It was possible to drink, but not sell alcohol. People were against the amendment. 1920s – 300 million $ to enforce the law.
People still possessed alcohol. Many of them tried to produce alcohol, got it from physicians on prescription. The police was corrupt.
1925 – some states (including New York) passed a law, which prohibited the police to investigate the violation of the Prohibition.
1920s and the Stock Market Crash.
1920s – the strongest economy in the American history. The government did not interfere. People had a lot of free money and preferred to invest it (sometimes in risky enterprises). As a result, people and banks were careless (gave a lot of loans).
1929, October the 29th, the Bubble collapsed (the Stock Market collapsed). People started selling the stocks to get back their money. The price for the stock was extremely low and people could not get the money and banks could not get back the loans. 12 million people became unemployed.
Factories started to use machines, not hand labour.
The Great Depression.
21.04.2012