The Rhumboogie Café , also referred to as the Rhumboogie Club , was an important, but short-lived nightclub at 343 East 55th Street, Chicago.
120-661: Opened with great fanfare in April 1942, the Rhumboogie was owned by Charlie Glenn and boxing champion Joe Louis . The club closed as the result of a fire on December 31, 1945. Reopening in June 1946, it never regained its old form, and closed for good in May 1947. The opening night's performance was the first of Tiny Bradshaw and His Orchestra's eight-week residency. This stint was followed by Horace Henderson . An early, regular performer
240-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,
360-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around
480-447: A speech impediment and spoke very little until about the age of six. Munroe Barrow was committed to a mental institution in 1916 and, as a result, Joe knew very little of his biological father. Around 1920, Louis's mother married Pat Brooks, a local construction contractor, having received word that Munroe Barrow had died while institutionalized (in reality, Munroe Barrow lived until 1938, unaware of his son's fame). In 1926, shaken by
600-548: A Braddock–Louis matchup for months. Schmeling's victory gave Gould tremendous leverage, however. If he were to offer Schmeling the title chance instead of Louis, there was a very real possibility that Nazi authorities would never allow Louis a shot at the title. Gould's demands were therefore onerous: Jacobs would have to pay 10% of all future boxing promotion profits (including any future profits from Louis's future bouts) for ten years. Braddock and Gould would eventually receive more than $ 150,000 from this arrangement. Well before
720-406: A black contender was that in the mid-1930s boxing desperately needed a marketable hero. Since the retirement of Jack Dempsey in 1929, the sport had devolved into a sordid mixture of poor athletes, gambling, fixed fights, thrown matches, and control of the sport by organized crime. New York Times Columnist Edward Van Ness wrote, "Louis ... is a boon to boxing. Just as Dempsey led the sport out of
840-410: A crowd of approximately 32,000. Louis fought one of the hardest battles of his life. The bout was closely contested and went the entire 15 rounds, with Louis being unable to knock Farr down. Referee Arthur Donovan was even seen shaking Farr's hand after the bout, in apparent congratulation. Nevertheless, after the score was announced, Louis had won a controversial unanimous decision. Time described
960-615: A few notable black champions, such as Tiger Flowers . Louis and his handlers would counter the legacy of Johnson by emphasizing the Brown Bomber's modesty and sportsmanship. Biographer Gerald Astor stated that "Joe Louis' early boxing career was stalked by the specter of Jack Johnson". If Louis were to rise to national prominence among such cultural attitudes, a change in management would be necessary. In 1935, boxing promoter Mike Jacobs sought out Louis's handlers. After Louis's narrow defeat of Natie Brown on March 29, 1935, Jacobs and
1080-399: A few seconds only to dash them to the ground ... That's the last time my emotions will get the better of me in a prize fight! There was much booing at the announced result, but, as I say it, it was all emotional. I gave Tommy two rounds and one even—and both his winning rounds were close. Speaking over the radio after the fight, Louis admitted that he had been hurt twice. In preparation for
1200-436: A fight against Lee Ramage, Louis noticed a young female secretary for the black newspaper at the gym. After Ramage was defeated, the secretary, Marva Trotter, was invited to the celebration party at Chicago's Grand Hotel. Trotter later became Louis's first wife in 1935. During this time, Louis also met Truman Gibson , the man who would become his personal lawyer. As a young associate at a law firm hired by Julian Black, Gibson
1320-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to
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#17328021628591440-622: A gang of white men in the Ku Klux Klan , Louis's family moved to Detroit , Michigan , forming part of the post- World War I Great Migration . Joe's brother worked for Ford Motor Company (where Joe would himself work for a time at the River Rouge Plant ) and the family settled into a home at 2700 Catherine (now Madison) Street in Detroit's Black Bottom neighborhood. Louis attended Bronson Vocational School for
1560-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to
1680-625: A lawsuit by MSG to halt the Braddock–Louis fight. A federal court in Newark, New Jersey , eventually ruled that Braddock's contractual obligation to stage his title defense at MSG was unenforceable for lack of mutual consideration. The stage was set for Louis's title shot. On the night of the fight, June 22, 1937, Braddock was able to knock Louis down in round one, but afterward could accomplish little. After inflicting constant punishment, Louis defeated Braddock in round eight, knocking him out cold with
1800-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside
1920-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and
2040-440: A series of swift attacks, forcing him against the ropes and giving him a paralyzing body blow (Schmeling afterward claimed it was an illegal kidney punch). Schmeling was knocked down three times and only managed to throw two punches in the entire bout. On the third knockdown, Schmeling's trainer threw in the towel and referee Arthur Donovan stopped the fight. Well-established as one of the most significant boxing matches in history,
2160-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In
2280-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of
2400-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to
2520-514: A strong right hand that busted James' teeth through his gum shield and lip and sent him to the ground for a few minutes. It was the first and only time that Braddock was knocked out (the one other stoppage of Braddock's career was a TKO due to a cut). Louis's ascent to the world heavyweight championship was complete. Louis's victory was a seminal moment in African American history. Thousands of African Americans stayed up all night across
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#17328021628592640-470: A technicality when Jack Sharkey was disqualified after giving Schmeling a low blow in 1930. Schmeling was also 30 years old at the time of the Louis bout and allegedly past his prime. Louis's training retreat was located at Lakewood, New Jersey , where he was first able to practice the game of golf , later to become a lifelong passion. Noted entertainer Ed Sullivan had initially sparked Louis's interest in
2760-494: A time to learn cabinet-making. The Great Depression severely affected the Barrow family, but Joe still made time to work out at a local youth recreation center at 637 Brewster Street in Detroit. His mother attempted to get him interested in playing the violin. He is rumoured to have tried to hide his pugilistic ambitions from his mother by carrying his boxing gloves inside his violin case. Louis made his debut in early 1932 at
2880-531: A unique disadvantage in the fight: earlier that evening, Louis had married Marva Trotter at a friend's apartment and was eager to end the fight in order to consummate the relationship. Later that year, Louis also knocked out Paulino Uzcudun , who had never been knocked down before. By this time, Louis was ranked as the No. 1 contender in the heavyweight division and had won the Associated Press' "Athlete of
3000-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation
3120-585: Is equivalent to $ 1,148.60 in 2020 dollars. Louis won all 12 of his professional fights that year, 10 by knockout. In September 1934, while promoting a Detroit-area "coming home" bout for Louis against Canadian Alex Borchuk, Roxborough was pressured by members of the Michigan State Boxing Commission to have Louis sign with white management. Roxborough refused and continued advancing Louis's career with bouts against heavyweight contenders Art Sykes and Stanley Poreda. While training for
3240-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated
3360-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that
3480-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of
3600-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,
3720-451: The historic rematch of the two , in one of the world's most famous sporting events. After defeating Louis, Schmeling expected a title shot against James J. Braddock , who had unexpectedly defeated Max Baer for the heavyweight title the previous June. Madison Square Garden (MSG) had a contract with Braddock for the title defense and also sought a Braddock–Schmeling title bout. But Jacobs and Braddock's manager Joe Gould had been planning
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3840-474: The stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until the Wall Street crash, after which the slide continued for three years, which
3960-453: The "mistake" that may have led to this confusion. He wrote: As Tommy walked back to his corner after shaking Louis' hand, I followed him and seized his glove. "Tommy, a wonderful perform—" I began ... Then I dropped his hand like a red-hot coal! He had started to raise his arm. He thought I had given him the fight and the world championship! I literally ran away, shaking my head and shouting. "No! No! No!" realising how I had raised his hopes for
4080-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It
4200-813: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with
4320-616: The Chicago Tournament of Champions against Joe Bauer. However, a hand injury forced Louis to miss the New York/Chicago Champions' cross-town bout for the ultimate Golden Gloves championship. In April 1934, he followed up his Chicago performance by winning the light heavyweight United States Amateur Champion National AAU tournament in St. Louis , Missouri . By the end of his amateur career, Louis's record
4440-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there
4560-469: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in
4680-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit
4800-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There
4920-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade
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5040-562: The Louis team met at the Frog Club, a black nightclub, and negotiated a three-year exclusive boxing promotion deal. The contract, however, did not keep Roxborough and Black from attempting to cash in as Louis's managers; when Louis turned 21 on May 13, 1935, Roxborough and Black each signed Louis to an onerous long-term contract that collectively dedicated half of Louis's future income to the pair. Black and Roxborough continued to carefully and deliberately shape Louis's media image. Mindful of
5160-481: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on
5280-544: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This
5400-490: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending
5520-517: The United States has ever had such an effect on Negro emotions—or on mine. I marched and cheered and yelled and cried, too. Despite his championship, Louis was haunted by the earlier defeat to Schmeling. Shortly after winning the title, he was quoted as saying, "I don't want to be called champ until I whip Max Schmeling". Louis's manager Mike Jacobs attempted to arrange a rematch in 1937, but negotiations broke down when Schmeling demanded 30% of
5640-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in
5760-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had
5880-450: The Year" award for 1935. What was considered to be a final tune-up bout before an eventual title shot was scheduled for June 1936 against Max Schmeling . Although a former world heavyweight champion, Schmeling, who had been knocked out by the same Max Baer Louis had handily beaten, was not considered a threat to Louis, then with a professional record of 27–0. Schmeling had won his title on
6000-648: The actual fight, Jacobs and Gould publicly announced that their fighters would fight for the heavyweight title on June 22, 1937. Figuring that the New York State Athletic Commission would not sanction the fight in deference to MSG and Schmeling, Jacobs scheduled the fight for Chicago. Each of the parties involved worked to facilitate the controversial Braddock–Louis matchup. Louis did his part by knocking out former champion Jack Sharkey on August 18, 1936. Meanwhile, Gould trumped up anti-Nazi sentiment against Schmeling, and Jacobs defended
6120-435: The age of 17. Legend has it that before the fight, the barely literate Louis wrote his name so large that there was no room for his last name, and thus became known as "Joe Louis" for the remainder of his boxing career (more likely, Louis simply omitted his last name to keep his boxing a secret from his mother). After this debut—a loss to future Olympian Johnny Miler —Louis compiled numerous amateur victories, eventually winning
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#17328021628596240-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why
6360-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate
6480-565: The challenge against Louis, saying instead that he would rely on a "hit and run" strategy. This prompted Louis's famous response: "He can run, but he can't hide". However, Louis had clearly underestimated Conn's threat. In his autobiography, Joe Louis said: Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around
6600-709: The club championship of his Brewster Street recreation center, the home of many aspiring Golden Gloves fighters. In 1933, Louis won the Detroit-area Golden Gloves Novice Division championship against Joe Biskey for the light heavyweight classification. He later lost in the Chicago Golden Gloves Tournament of Champions. The next year, competing in the Golden Gloves' Open Division, he won the light heavyweight classification, this time also winning
6720-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which
6840-562: The collective nickname "Bum of the Month Club". Notables of this lambasted pantheon include: Despite its derogatory nickname, most of the group were top-ten heavyweights. Of the 12 fighters Louis faced during this period, five were rated by The Ring as top-10 heavyweights in the year they fought Louis: Galento (overall #2 heavyweight in 1939), Bob Pastor (#3, 1939), Godoy (#3, 1940), Simon (#6, 1941) and Baer (#8, 1941). Four others (Musto, Dorazio, Burman and Johnny Paychek ) were ranked in
6960-524: The country in celebration. Noted author and member of the Harlem Renaissance Langston Hughes described Louis's effect in these terms: Each time Joe Louis won a fight in those depression years, even before he became champion, thousands of black Americans on relief or W.P.A. , and poor, would throng out into the streets all across the land to march and cheer and yell and cry because of Joe's one-man triumphs. No one else in
7080-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by
7200-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what
7320-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered
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#17328021628597440-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and
7560-514: The doldrums ... so is Louis leading the boxing game out of a slump". Likewise, biographer Bill Libby asserted that "The sports world was hungry for a great champion when Louis arrived in New York in 1935". While the mainstream press was beginning to embrace Louis, many still opposed the prospect of another black heavyweight champion. In September 1935, on the eve of Louis's fight with former titleholder Max Baer , Washington Post sportswriter Shirley Povich wrote about some Americans' hopes for
7680-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did
7800-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of
7920-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought
8040-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though
8160-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating
8280-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be
8400-503: The fight has been widely regarded as among the most important or historic sports events of all time. It was the first time that many white Americans openly cheered for a black man against a white opponent. In the 29 months from January 1939 through May 1941, Louis defended his title thirteen times, a frequency unmatched by any heavyweight champion since the end of the bare-knuckle era. The pace of his title defenses, combined with his convincing wins, earned Louis's opponents from this era
8520-407: The first black heavyweight champion. Johnson's flamboyant lifestyle and marriage to a white woman engendered an enormous backlash that greatly limited opportunities of black fighters in the heavyweight division. Black boxers were denied championship bouts, and there were few heavyweight black contenders at the time, though there were African Americans who fought for titles in other weight divisions, and
8640-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August
8760-513: The gate. When Schmeling instead attempted to arrange for a fight against British Empire champion Tommy Farr , known as the "Tonypandy Terror"—ostensibly for a world championship to rival the claims of American boxing authorities—Jacobs outmaneuvered him, offering Farr a guaranteed $ 60,000 to fight Louis instead. The offer was too lucrative for Farr to turn down. On August 30, 1937, after a postponement of four days due to rain, Louis and Farr finally touched gloves at New York's Yankee Stadium before
8880-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing
9000-519: The heavyweight division. After becoming part of the management team, Black hired fellow Chicago native Jack "Chappy" Blackburn as Louis's trainer. Louis's initial professional fights were all in the Chicago area, his professional debut coming on July 4, 1934, against Jack Kracken in the Bacon Casino on Chicago's south side. Louis earned $ 59 for knocking out Kracken in the first round. $ 59 in 1934
9120-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,
9240-416: The inevitable rematch with Schmeling, Louis tuned up with bouts against Nathan Mann and Harry Thomas . The rematch between Louis and Schmeling would become one of the most famous boxing matches of all time and is remembered as one of the major sports events of the 20th century. Following his defeat of Louis in 1936, Schmeling had become a national hero in Germany. Schmeling's victory over an African American
9360-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at
9480-512: The interest of professional promoters, and he was soon represented by a black Detroit-area bookmaker named John Roxborough . As Louis explained in his autobiography, Roxborough convinced the young fighter that white managers would have no real interest in seeing a black boxer work his way up to title contention: [Roxborough] told me about the fate of most black fighters, ones with white managers, who wound up burned-out and broke before they reached their prime. The white managers were not interested in
9600-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with
9720-521: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,
9840-418: The material from the December 1945 T-Bone session. Joe Louis Joseph Louis Barrow (May 13, 1914 – April 12, 1981) was an American professional boxer who competed from 1934 to 1951. Nicknamed " the Brown Bomber ", Louis is widely regarded as one of the greatest and most influential boxers of all time. He reigned as the world heavyweight champion from 1937 until his temporary retirement in 1949. He
9960-585: The media spotlight occurred on June 25, when Louis knocked out 6'6", 265-pound former world heavyweight champion Primo Carnera in six rounds. Foreshadowing the Louis–Schmeling rivalry to come, the Carnera bout featured a political dimension. Louis's victory over Carnera, who symbolized Benito Mussolini 's regime in the popular eye, was seen as a victory for the international community, particularly among African Americans, who were sympathetic to Ethiopia , which
10080-461: The men they were handling but in the money they could make from them. They didn't take the proper time to see that their fighters had a proper training, that they lived comfortably, or ate well, or had some pocket change. Mr. Roxborough was talking about Black Power before it became popular. Roxborough knew a Chicago area boxing promoter named Julian Black who already had a stable of mediocre boxers against which Louis could hone his craft, this time in
10200-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then
10320-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view
10440-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and
10560-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that
10680-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In
10800-425: The newly founded Mercury Records , Rhumboogie set up a second recording session with Walker for December 19, 1945. After reopening the venue in June 1946, plans were announced to record other artists but, like the venue itself, the label closed shortly after. The only other artist to get a release on Rhumboogie was Buster Bennett , recording under the name of his trumpet player, Charles Gray. Mercury later re-issued
10920-664: The night of June 22, 1938, Louis and Schmeling met for the second time in the boxing ring. The fight was held in Yankee Stadium before a crowd of 70,043. It was broadcast by radio to millions of listeners throughout the world (including 58% of radio-equipped U.S. households ), with radio announcers reporting on the fight in English, German, Spanish, and Portuguese. Before the bout, Schmeling weighed in at 193 pounds; Louis weighed in at 198¾ pounds. The fight lasted two minutes and four seconds. Louis battered Schmeling with
11040-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during
11160-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in
11280-459: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in
11400-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of
11520-407: The scene thus: "After collecting the judges' votes, referee Arthur Donovan announced that Louis had won the fight on points. The crowd of 50,000 ... amazed that Farr had not been knocked out or even knocked down, booed the decision". It seems the crowd believed that referee Arthur Donovan Sr. had raised Farr's glove in victory. Seven years later, in his published account of the fight, Donovan spoke of
11640-498: The sport by giving an instructional book to Joe's wife Marva. Louis spent significant time on the golf course rather than training for the match. Conversely, Schmeling prepared intently for the bout. He had thoroughly studied Louis's style and believed he had found a weakness. By exploiting Louis's habit of dropping his left hand after a jab, Schmeling handed Louis his first professional loss by knocking him out in round 12 at Yankee Stadium on June 19, 1936. The event would lead to
11760-569: The top 10 in a different year. Louis's string of lightly regarded competition ended with his bout against Billy Conn , the light heavyweight champion and a highly regarded contender. The fighters met on June 18, 1941, in front of a crowd of 54,487 fans at the Polo Grounds in New York City. The fight turned out to be what is commonly considered one of the greatest heavyweight boxing fights of all time. Conn would not gain weight for
11880-447: The tremendous public backlash Johnson had suffered for his unapologetic attitude and flamboyant lifestyle, they drafted "Seven Commandments" for Louis's personal conduct. These included: As a result, Louis was generally portrayed in the white media as a modest, clean-living person, which facilitated his burgeoning celebrity status. With the backing of a major promotion, Louis fought thirteen times in 1935. The bout that helped put him in
12000-440: The white contender, "They say Baer will surpass himself in the knowledge that he is the lone white hope for the defense of Nordic superiority in the prize ring". However, the hopes of white supremacists would soon be dashed. Although Baer had been knocked down only once before in his professional career (by Frankie Campbell ), Louis dominated the former champion, knocking him out in the fourth round. Unknowingly, Baer suffered from
12120-471: The whole damned country was depending on me". When Schmeling arrived in New York City in June 1938 for the rematch, he was accompanied by a Nazi party publicist who issued statements that a black man could not defeat Schmeling and that when Schmeling won, his prize money would be used to build tanks in Germany. Schmeling's hotel was picketed by anti-Nazi protesters in the days before the fight. On
12240-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and
12360-624: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in
12480-493: The world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on
12600-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among
12720-571: Was T-Bone Walker , who first performed there in August 1942, with backing by the Milt Larkin band, during their 9-month residency there. Other acts over the years included: In October 1944, the Rhumboogie Recording Company, coinciding with T-Bone Walker's third stint at the venue, recorded him accompanied by pianist Marl Young leading the Rhumboogie house band, which included Red Saunders . By then distributed by
12840-413: Was 50–4, with 43 knockouts. Joe Louis had only three losses in his 69 professional fights. He tallied 52 knockouts and held the championship from 1937 to 1949, the longest span of any heavyweight titleholder. After returning from retirement, Louis failed to regain the championship in 1950, and his career ended after he was knocked out by Rocky Marciano in 1951. Louis's amateur performances attracted
12960-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject
13080-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did
13200-500: Was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in
13320-405: Was attempting to maintain its independence by fending off an invasion by fascist Italy . America's white press began promoting Louis's image in the context of the era's racism; nicknames they created included the "Mahogany Mauler", "Chocolate Chopper", "Coffee-Colored KO King", "Safari Sandman", and one that stuck: "The Brown Bomber". Helping the white press to overcome its reluctance to feature
13440-422: Was charged with personally entertaining Louis during the pendency of business deals. Although Louis's management was finding him bouts against legitimate heavyweight contenders, no path to the title was forthcoming. While professional boxing was not officially segregated, many white Americans did not like the prospect of a black champion. In 1908, during an era of severe anti-black repression, Jack Johnson became
13560-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of
13680-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing
13800-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by
13920-703: Was instrumental in integrating the game of golf, helping break the sport's color barrier in America by appearing under a sponsor's exemption in a PGA event in 1952. Born on May 13, 1914, in rural Chambers County, Alabama —in a ramshackle dwelling on Bell Chapel Road, located about 1 mile (2 kilometres) off State Route 50 and roughly 6 miles (10 kilometres) from LaFayette —Louis was the seventh of eight children of Munroe Barrow and Lillie (Reese) Barrow. He weighed 11 pounds (5 kg) at birth. Both of his parents were children of former slaves, alternating between sharecropping and rental farming. Louis suffered from
14040-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened
14160-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that
14280-573: Was touted by Nazi officials as proof of their doctrine of Aryan superiority . When the rematch was scheduled, Louis retreated to his boxing camp in New Jersey and trained incessantly for the fight. A few weeks before the bout, Louis visited the White House, where President Franklin D. Roosevelt told him, "Joe, we need muscles like yours to beat Germany". Louis later admitted: "I knew I had to get Schmeling good. I had my own personal reasons and
14400-507: Was victorious in 25 consecutive title defenses, a record for all weight classes. Louis has the longest single reign as champion of any boxer in history. Louis's cultural impact was felt well outside the ring. He is widely regarded as the first African-American to achieve the status of a nationwide hero within the United States, and was also a focal point of anti-Nazi sentiment leading up to and during World War II because of his historic rematch with German boxer Max Schmeling in 1938. He
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