In the 1920s post war period, there was an unprecedented first-class revolt against the American law and order situation (Caldwell 2015). Nikolai Lenin could not do anything to prevent the situation as the rebellion did not progress by way of troops rather it started off by sons and daughters from well to do American families. The society experienced tremendous challenges in order to handle the younger generations who were posing to a Red Menace to conservative fathers and mothers. Consecutively a “Bankers’ Pool” was formed linked to the stock market that made the market rally though various people significantly lost their money. It helped to create an unsustainable boom to the stock market and its role was that of financing in 1920s. The scope of this essay analysis deals with the moral forces that spurred revolution in 1920s along with role of “Bankers’ Pool”, its formation, members and other detailed analysis.
A number of “Forces” were present that spurred the revolution in manners and morals during the 1920s. These forces were interacting with one another creating a revolution that was rather inevitable in nature. Mostly it was the prevalent set of mind that brought about the condition of war within the country (Wald 2017). The entire young generation was having a separate spirit altogether that made them to enjoy life by being merry post departure of soldiers from training camps. There was rise in prostitution and war regarding abrupt war marriages. American nurses that were sent across to France, who were experiencing filth and annihilation, faced break down of their traditional spirit. Taboos were getting removed and it became more and more prominent that the generation could not remain unchanged post the war got over. Due to pressures of the war, there were millions of people who had received emotional stimulant. There were torn nerves from the war which led to looking for new excitement and passion to pursue their lives. Previous generations also found themselves detached from Pollyanna land of rosy ideals and settle into new American life, but the elders found the new way of life disrespectful. There is immense amount of responsibility that was thrown open to older generation, as many accused them of causing the war situation and ruining their way of life. John F. Carter in Atlantic Monthly, accused the older generation to have caused a harm to sentiments and attitudes (Bolt 2014).
Though the young generation had been significantly affected which accelerated their spirit to lead the revolution, the middle generation remained unaffected. They had immense time prior to 1917 to build up their habits and not getting affected by neurosis. However, post war situation they were also faced by discontentment and restlessness. They also started to indulge in experiences that their juniors were exploring, they started a new culture that could grow freedom and develop. Mostly, the revolution was further triggered by freedom of America women post their sufferings in 1920. Their dressing sense had changed, they were drinking and smoking in public and was participating in politics. Governor Ma Ferguson of Texas was a prominent figure involved in politics that drew other women to having a public life (Carrero 2017). There was a shift from large houses into smaller apartments and buildings or smaller houses. Responsibility of women from household chores started to diminish and sales of prepared meals and canned foods started to grow. Women moreover started taking up jobs and feeling of economic independence crept into being. The war situation had led to degeneration of values which finally led to people with unhappiness and disillusionment. All factors in their life seemed to be meaningless and unimportant, leading to tremendous rise in drinking habits. This was the time when new code was formed and established from revolution period. There was an emotional transition that was created from bravado during new era of war. The older order of things had started to getting disillusioned and morality was dethroned form lives. Though it was not easy to throw across moral code with that of confusion and distress, but there was transition. Married couples were also looking for sex which was found to be independence and freedom. Women allowed their husbands for independent life and men also allowed their wives to look for freedom.
Till the 1920 security markets related frauds affected few Americas and there was no governmental intervention to resolve them. Then “Bankers’ pool” was formed with members and purpose to accomplish. Security market participants were mostly wealthy manipulators whose battles and frauds used to get resolved within them (Whalen 2008). Post war situation in 1920 average Americans discovered stock markets and wanted to take advantage of it. A “Bankers’ Pool” was formed which agreed to purchase stocks above market prices. Investors, financiers, bankers, corporate leaders formed secret pools to purchase stocks from glamorous companies, then they often sent bank salesman to encourage middle class people to purchase the stock at margins. Small investors in the market were taking substantial risks by speculating a stocks future performance and then planning for selling it at a considerably high price. During 1920s, there were large number of investors who purchased stock at margins by borrowing rest from the broker. Banker’s were often engaged in such transactions by setting aside customer’s money into making purchase related to stocks. This process promised creation of significant profits for investors as well as for banks till and until prices kept increasing.
It was termed as insider trading and post accumulation of stock piles, it used to be sold at a significantly high rates. Smaller investors who were not part of the pool suffered huge losses, when prices finally settled to reflect true value of the stock (Payne 2015). The formation of the “Bankers’ Pool” was for the upper class to create profits and money for themselves from such stock purchase. This led to failure of more than 11,000 to 24,000 banks, leading to crashing of the market. The system led to formation of superficial credit system and its failure led to crashing of several companies and people losing out their jobs facing hunger situation.
The revolution that was sparked in 1920s were mostly from the after-effects of war situations.
Change was significant in spheres of life and there was considerable number of changes that were taking place. Rise of the young generation was mostly noticeable across the first class people. Further there were changes brought about in the banking systems as well due to the collapse of the stock market from “Bankers’ Pool” collapse.
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Caldwell, M. "A short history of rudeness: Manners, morals, and misbehavior in modern America." Picador, 2015.
Carrero, T. "Flapperism: A National Phenomenon Comes to New Orleans." 2017.
Payne, P. G. "Crash!: How the Economic Boom and Bust of the 1920s Worked." JHU Press, 2015.
Wald, A. M. "The New York intellectuals: the rise and decline of the anti-Stalinist left from the 1930s to the 1980s." UNC Press Books, 2017.
Whalen, C. J. "John R. Commons and John Maynard Keynes on economic history and policy: The 1920s and today." Journal of Economic Issues, 2008: 225-242.