American Economic History event that occurred in 1900 1960:Alcohol Prohibition:

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ROWAN UNIVERSITY COLLEGE OF LIBERAL ARTS & SCIENCES DEPARTMENT OF POLITICAL SCIENCE & ECONOMICS SPRING 2015AMERICAN ECONOMIC HISTORY (ECON 04205)Dr. Brendan Livingston03/13/2015

Introduction:Alcohol prohibition was as a result of the passing of the 18th amendment bill in 1917. The amendment banned any manufacturing, importation, selling and consumption of liquor in United States. By the late 19th century, alcohol consumption was in an increase. The drinking behavior of most Americans was alarming, and a drinking culture was spreading with the increasing immigrants from Europe. By the year, 1893 alcohol prohibition movement had started to gather strength after the creation of the anti-saloon league and other organizations such as the womens Christian temperance movement. At this time, the brewing industry was prospering, and competition was high and, as a result, many brewers turned to alcohol retailing. Glass saloons proliferated as they increased in numbers, and these saloons led to the increase of social crimes such as prostitution and gambling as the saloon keepers sought to increase their profits. American as a country was slowly turning into a drinking nation. By 1905, the alcohol prohibition leaders had succeeded in passing several laws limiting the consumption of alcohol in different states. However, in 1917 the temperance societies pushed for the national legislature changes to elevate morality in the country by banning the alcohol consumption (Blocker, 2006). The house of Congress passed the 18th constitution amendment to prohibit alcohol sale and consumption, and the amendment gave the states a seven-year limit to pass the amendment. By 1220, the prohibition was in full force after several states had passed the amendment.Initially, alcohol consumption reduced drastically as alcohol related arrest reduced. However, after some months of Prohibition, the ban proved not to serve the intended purpose. There was a general reduction in taxes collected by different states and restaurants were closing down since they could not exist without dealing with liquor (Allsop, 1961). Either to say, the American economy was on its knees. Nonetheless, the ban on alcohol manufacturing and consumption did not deter the sale of alcohol. Soon after the ban, the number of liquor smugglers increased, and there were more bootleggers and speakeasy joints than there were saloons before the ban.Alcohol smuggling became the order of the day, and other criminal activities became the order of the day. The prohibition boosted the organized crime as mafia started to surface and limited their activities on liquor smuggling, prostitution, theft, and gambling. A very profitable black market for liquor flourished and this provided a financial boost to the organized crime. By the year 1920 and 1921, crime rates in the majority of the American states that had signed to the amendment increase by about 24 percent. The increase in crime rate was as a result of the expanding black market activities associated with violence and the diversion of government resources in fight alcohol consumption rather than concentrating on the state security. The move by the federal government to poison industrial ethyl alcohol to stop alcohol production led to thousands of deaths resulting from people consuming liquor made from the denatured ethanol (Allsop, 1961). The illegal brewers also used other poisonous substances such as the Sterno that had serious effects on its consumers though the effects were not always fatal. Similarly, the bootleggers and other alcohol smugglers modified their tracks and cars by enhancing their engines increase their speed. The fast vehicles would help them outrun and escape from the agents of the Bureau of Prohibition. The black market criminal gangs also used these fast vehicles to commit other crimes like robberies since they could easily escape from the scene of the crime. Eventually, the prohibition came to an end in 1933 when Utah ratified the 21st amendment that repelled the 18th amendment; thus becoming the 36th state to repel the prohibition. After the lifting of the ban, even some proponents accepted that the prohibition had well-felt evil consequences.Thesis: the alcohol prohibition increased the rate of organized crimes and other criminal activities leading to an increase in homicides cases reported during the prohibition period in states and cities that supported the amendment.Problem statement:With the passing of the 18th Constitutional amendment in 1917, alcohol production, distribution and consumption became illegal in many American states. Many states enacted laws that supported the prohibition of alcohol; thus making alcohol production and consumption illegal in those states (Asbridge, 2009). However, some states like Maryland did not enact any law in support of the unpopular legislation. Initially, the law intended to reduce alcohol consumption in the American society. But contrary to the objective of the law, alcohol consumptions increased some few years after the inception of the law rapidly.In Chicago, the prohibition did not reduce alcohol consumption but only managed to see the closure of saloons and a drastic increase in illegal brewing and smuggling of liquor. The prohibition led to the establishment of the black market that, on the other hand, saw the cropping up of crime gangs. The rate of organized crime increased leading an increase in homicide cases as well as other criminal activities. In cities where there were no laws to support the prohibition like in Baltimore Maryland, the ban on alcohol did not affect the crime rate in such sites. The number of homicides in Baltimore remained almost constant from the year 1919 a way through to 1927 while the rates in Chicago increased continuously from the same year until 1927 when the state government reduced its hold by the prohibition law.

Alcohol prohibition and its effects on crime in Chicago:Chicago had by the early 29th century had numerous saloons that threatened to destroy the social and economic fabric of the community living in the town. As a result, Chicago had very strong temperance led by women who advocated the ban on production, distribution and consumption of liquor. The 18th constitutional amendment prohibited the manufacture, distribution and consumption of alcohol and the state, but this did not curb alcohol consumption. After the passing of the alcohol prohibition law Constitutional 1919, there was a reduced consumption of alcohol during the first years of implementation. Similarly, criminal activities were not affected by the ban in its first years. But as years went by, there was increased demand for alcohol beverages. More illegal brewers cropped up, and alcohol smuggling was at its highest peak.The illegalization of alcohol and the increased demand for liquor created a new illegal market. Several gangs came up and organized international bootlegging with hundreds of illegal brewers and distillers all over the state (Prohibition, 2013). The illegal brewers and distillers and others in the black market formed cartels and gangs to protect their businesses. As a result, by 1922, several gangs were formed in Chicago, and these gangs engaged in other illegal activities apart from bootlegged businesses. These illegal businesses included prostitution, gambling, and other petty crimes. In addition, the illegalization of alcohol production saw to the deaths of hundreds of alcohol consumers due to alcohol poisoning. The federal government had ordered the poisoning all industrial ethyl alcohol, but the bootleggers contacted local chemists who denatured the ethyl. The brewers used the chemical to produce alcohol beverages, but it turned out to be poisonous and led to deaths of hundreds during the prohibition.As years went by, the rate of crimes increased drastically as the number of gangs increased. These gangs bribed their way by offering thousands of dollars to police and politician thus they had the threat from the authorities while committing their crimes. These gangs engaged in labor racketeering where they infiltrated legitimate business such as unions by threatening the leaders and members (Asbridge, 2009). The gangs would take over these unions and extorted funds from the frightened members by pilfering fractions of their monthly incomes. Similarly, the gang would hire substitute union members and pay them lower wages and keep the difference. In addition to labor racketeering, the rate of violence increased as the criminal gangs extorted funds from the public and as they fought for supremacy. The gangs could extort money from business owners and in order to keep their business running. Some of these businesses ended up inviting labor racketeers in their companies so as to fight competitors.As the prohibition continued, more gangs from other towns and states invaded the town as a result of the booming business in sale of illegal alcohol and the well established black market. As the number of crime gangs increased, the struggle and rivalry between the gangs increased. The gangs fought each other to expand their territories and businesses leading to increasing in death rates as a result of murder and homicides. By the end of 1920 Chicago had the highest homicides 510 as compared to New York City with double the population of Chicago with 340 homicide cases (Allsop, 1961). Powerful gangs terrorized other gangs and stole certain percentage of the profits they made from extortion of the public. The income gained from the bootlegging alcohol was the source of power for many gangs and the more the brewers and distillers a gang controlled the most powerful was the gang.The most notorious gang was Capones gang known as the mob that extorted money from Handbook owner, gambling-house keeper, vice resort keeper and small beer runners who had to contribute a percentage of their profit (Asbridge, 2009). They had to give in to the gangs demands as they feared to die, or their businesses destroyed. The mob was immune to the law as they used their large pool of money to bribe the authorities together with the politicians. Corruption was the order of the day as the wealthy could control any office in the state. Capone with his gang could afford to pay half a million dollars from the huge profit he made in the bootlegging business to politicians for the protection of his gambling joints, prostitution brothels, breweries, etc. Using his powerful influence on the authorities, Capone ordered raids on competitor brewers and gamblers by his corrupted law enforcement agents (Asbridge,2009). Similarly, Capone rarely experienced raids by police in his gambling establishments, and he made Chicago the center for gambling in the nation. His gambling benefited even the law, and it had affiliations with the law that his gambling slots were found everywhere in the streets of Chicago, and the police had a blind eye on them. Capone had an upper hand in the illegal alcohol, businesses, gambling and other crimes that contributed to the rise in crime rate in Chicago especially between 1919 and 1926.Similarly, there were other crime gangs that cropped up as a result of the emergence of the black market due to the alcohol prohibition. These gangs like the mob operated illegal businesses such as breweries and distillers, prostitution brothels and gambling (Blocker, 2006). There were rivalries between these gangs and the most powerful criminal gang completely took over businesses owned by other gangs resulting in street wars between the rival gangs. The street wars involved war bombings as the gangs fought for territories, to embarrass the police, or they wanted to intimidate witnesses (Prohibition, 2013).These wars led to more deaths in the streets while the dethroned gangs would turn to other crimes like robbery, burglary, and stealing. Chicago by 1925 was not a place to live. The rule of law was completely overtaken by corruption and bribery, and the law applied only to the poor (Asbridge, 2009). Small gangs and other non-organized criminals took advantage of the security situation as the security authorities directed most of their resources in implementing the alcohol prohibition act. There was an increase in other crimes such as burglary, murders, rape, prostitution, and other criminal offenses.Alcohol prohibition and its effects on crime in Baltimore in the Maryland state:As the other states embraced and supported the 18th constitutional amendment, Maryland State rejected the amendments. In Baltimore, the culture of drinking was part of the traditions, and they considered drinking a cherished component of their living. They considered the temperance movement struggle to prohibit alcohol production, distribution and consumption as a cultural war against them. As a result, even after the 18th amendment of the Constitution to prohibit the use of alcohol in America, only Maryland State that did not pass any law to enforce the prohibition law (Blocker, 2006). Marylanders rejected the amendment unanimously regardless of their classes as they believed that alcohol consumption was part of their culture, and it had no effects on their lives. As a result, Baltimore city was the center of resistance, and it remained a wet city all through the prohibition era. The city succeeded to reject the unpopular law because it was cosmopolitan home for people from different cultures and beliefs. Similarly, the Maryland government had not passed any laws prohibiting manufacturing of alcohol or its consumption. Even though saloons stopped to function in Baltimore, it was not illegal to produce alcohol in the city. People relied on homemade alcohol beverages, and there was no increased alcohol smuggling in Baltimore as compared to Chicago. This is because many bought family made liquor; thus there was no need to smuggle in alcohol into the city. Due to the reduced bootleggers, there were no black markets for alcohol and, as a result, there were crime gangs in Baltimore. Thus, the rate of crime was not affected in Baltimore due to the lack of organized crime resulting from alcohol prohibition. The number of homicides and other crimes remained almost constant all through the prohibition era as compared to the steady increase in the number of homicides and other crimes in Chicago.

Findings:

Rates from homicide per 100,000 estimated population (Washington government printing office, 1926)Cities 191919201922192319241925

Chicago8.57.48.89.811.911.2

Baltimore 8.58.48.89.28.78.3

Graph of rates from homicide per 100,000 of the population over the years:

Cost of police force in terms of dollars:cities1918191919211923192419251926

Chicago 7483749

7993966

10927039

13286216

13794528

14659117

14917073

Baltimore150722

162385

219744

302848

343840

401651

450844

A graph of cost of police in dollars against the years

Conclusion:The 18th constitution amendments had the purpose of reducing alcohol consumption in America. However, the prohibition affected the country severely with increased organized crime and other criminal activities. In Chicago, the crime rate increased with the inception of the prohibition as a result of the emergence of bootleggers gangs. There was increasing homicides during the years of prohibition in states that supported the prohibition law. However, in other states that did not support the law, the rate of crime remained normal. The increase in crime rates in cities that prohibited alcohol consumption is an indication that the prohibition contributed to the increase in organized crime and other types of crime.

References:Allsop (1961) the Bootleggers: The Story of Chicago's Prohibition Era, Hutchinson, USAAsbridge, M., & Weerasinghe, S. (2009). Homicide in Chicago from 1890 to 1930: prohibition and its impact on alcohol- and non-alcohol-related homicides. Addiction, 104(3), 355-364. doi:10.1111/j.1360-0443.2008.02466.xBlocker (2006) Did Prohibition Work? Alcohol Prohibition as a Public Health Innovation; Am J Public Health. 96(2): 233243Prohibition (2013) organized crime in Chicago; http://prohibitionhistory173.weebly.com/organized-crime.htmlWashington government printing office (1926) mortality statistics, Retrieved from; http://www.cdc.gov/nchs/data/vsushistorical/mortstatsh_1923.pdf1