Prohibition
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Category:
- Date:
- 1920 - 1933
- Location:
- United States
- Key People:
- Texas Guinan
- Eliot Ness
- On the Web:
- CORE - Value-Chain Analysis Of Prohibition In The United States, 1920-1933: A Historical Case Study In Marketing (Mar. 27, 2024)
Top Questions
What led to Prohibition?
Nationwide Prohibition came about as a result of the temperance movement. The temperance movement advocated for moderation in—and in its most extreme form, complete abstinence from the consumption of—alcohol (although actual Prohibition only banned the manufacture, transportation, and trade of alcohol, rather than its consumption). The temperance movement began amassing a following in the 1820s and ’30s, bolstered by the religious revivalism that was sweeping the nation at that time. The religious establishment continued to be central to the movement, as indicated by the fact that the Anti-Saloon League—which spearheaded the early 20th-century push for Prohibition on the local, state, and federal levels—received much of their support from Protestant evangelical congregations. A number of other forces lent their support to the movement as well, such as woman suffragists, who were anxious about the deteriorative effects alcohol had on the family unit, and industrialists, who were keen on increasing the efficiency of their workers.
Read more below:The temperance movement and the Eighteenth Amendment
How long did Prohibition last?
Nationwide Prohibition lasted from 1920 until 1933. The Eighteenth Amendment—which illegalized the manufacture, transportation, and sale of alcohol—was passed by the U.S. Congress in 1917. In 1919 the amendment was ratified by the three-quarters of the nation’s states required to make it constitutional. That same year the Volstead Act, which engineered the means by which the U.S. government would enforce Prohibition, was passed as well. The nationwide moratorium on alcohol would stay in place for the next 13 years, at which point a general disenchantment with the policy—affected by factors ranging from the rise of organized crime to the economic malaise brought on by the stock market crash of 1929—led to its disbandment at the federal level by the Twenty-first Amendment. The prohibition of alcohol continued to exist at the state level in some places for the next two decades, as it had for over a half-century prior to the ratification of the Eighteenth Amendment in 1919.
Read more below:Bootlegging and gangsterism
What were the effects of Prohibition?
The Eighteenth Amendment was ratified in the hopes of eliminating alcohol from American life. In that respect, it failed. To the contrary, people intent on drinking found loopholes in the newly passed anti-liquor laws that allowed them to slake their thirst, and, when that didn’t work, they turned to illegal avenues to do so. An entire black market—comprising bootleggers, speakeasies, and distilling operations—emerged as a result of Prohibition, as did organized crime syndicates which coordinated the complex chain of operations involved in the manufacture and distribution of alcohol. Corruption in law enforcement became widespread as criminal organizations used bribery to keep officials in their pockets. Prohibition was detrimental to the economy as well, by eliminating jobs supplied by what had formerly been the fifth largest industry in America. By the end of the 1920s, Prohibition had lost its luster for many who had formerly been the policy’s most ardent supporters, and it was done away with by the Twenty-first Amendment in 1933.
Read more below:Bootlegging and gangsterism
How did people get around Prohibition?
From Prohibition’s inception, people found ways to keep drinking. There were a number of loopholes to exploit: pharmacists could prescribe whiskey for medicinal purposes, such that many pharmacies became fronts for bootlegging operations; industry was permitted to use alcohol for production purposes, much of which was diverted for drinking instead; religious congregations were allowed to purchase alcohol, leading to an uptick in church enrollment; and many people learned to make moonshine in their own homes. Criminals invented new ways of supplying Americans with what they wanted, as well: bootleggers smuggled alcohol into the country or else distilled their own; speakeasies proliferated in the back rooms of seemingly upstanding establishments; and organized crime syndicates formed in order to coordinate the activities within the black-market alcohol industry. The only people who were really curtailed in their ability to drink were members of the working class who were unable to afford the price hike that followed illegalization.
Read more below:Bootlegging and gangsterism
How was Prohibition enforced?
The Volstead Act charged the Internal Revenue Service (IRS) in the Treasury Department with enforcing Prohibition. As a result, the Prohibition Unit was founded within the IRS. From its inception, the Prohibition Unit was plagued by issues of corruption, lack of training, and underfunding. Often, the level to which the law was enforced had to do with the sympathies of the citizens in the areas being policed. The Coast Guard also played a role in implementation, pursuing bootleggers attempting to smuggle liquor into America along its coastline. In 1929 the onus of enforcement shifted from the IRS to the Department of Justice, with the Prohibition Unit being redubbed the Bureau of Prohibition. With Eliot Ness at the helm, the Bureau of Prohibition mounted a massive offensive against organized crime in Chicago. It was Ness and his team of Untouchables—Prohibition agents whose name derived from the fact that they were “untouchable” to bribery—that toppled Chicago’s bootlegger kingpin Al Capone by exposing his tax evasion.
Read more below:Bootlegging and gangsterism
Prohibition, legal prevention of the manufacture, sale, and transportation of alcoholic beverages in the United States from 1920 to 1933 under the terms of the Eighteenth Amendment. Although the temperance movement, which was widely supported, had succeeded in bringing about this legislation, millions of Americans were willing to drink liquor (distilled spirits) illegally, which gave rise to bootlegging (the illegal production and sale of liquor) and speakeasies (illegal, secretive drinking establishments), both of which were capitalized upon by organized crime. As a result, the Prohibition era also is remembered as a period of gangsterism, characterized by competition and violent turf battles between criminal gangs.
The temperance movement and the Eighteenth Amendment
In the United States an early wave of movements for state and local prohibition arose from the intensive religious revivalism of the 1820s and ’30s, which stimulated movements toward perfectionism in human beings, including temperance and abolitionism. Although an abstinence pledge had been introduced by churches as early as 1800, the earliest temperance organizations seem to have been those founded at Saratoga, New York, in 1808 and in Massachusetts in 1813. The movement spread rapidly under the influence of the churches; by 1833 there were 6,000 local societies in several U.S. states. The precedent for seeking temperance through law was set by a Massachusetts law, passed in 1838 and repealed two years later, which prohibited sales of spirits in less than 15-gallon (55-litre) quantities. The first state prohibition law was passed in Maine in 1846 and ushered in a wave of such state legislation before the American Civil War.
Conceived by Wayne Wheeler, the leader of the Anti-Saloon League, the Eighteenth Amendment passed in both chambers of the U.S. Congress in December 1917 and was ratified by the requisite three-fourths of the states in January 1919. Its language called for Congress to pass enforcement legislation, and that was championed by Andrew Volstead, chairman of the House Judiciary Committee, who engineered passage of the National Prohibition Act (better known as the Volstead Act) over the veto of Pres. Woodrow Wilson.
Bootlegging and gangsterism
Neither the Volstead Act nor the Eighteenth Amendment was enforced with great success. Indeed, entire illegal economies (bootlegging, speakeasies, and distilling operations) flourished. The earliest bootleggers began smuggling foreign-made commercial liquor into the United States from across the Canadian and Mexican borders and along the seacoasts from ships under foreign registry. Their favourite sources of supply were the Bahamas, Cuba, and the French islands of Saint-Pierre and Miquelon, off the southern coast of Newfoundland. A favourite rendezvous of the rum-running ships was a point opposite Atlantic City, New Jersey, just outside the three-mile (five-km) limit beyond which the U.S. government lacked jurisdiction. The bootleggers anchored in that area and discharged their loads into high-powered craft that were built to outrace U.S. Coast Guard cutters.
That type of smuggling became riskier and more expensive when the U.S. Coast Guard began halting and searching ships at greater distances from the coast and using fast motor launches of its own. Bootleggers had other major sources of supply, however. Among those were millions of bottles of “medicinal” whiskey that were sold across drugstore counters on real or forged prescriptions. In addition, various American industries were permitted to use denatured alcohol, which had been mixed with noxious chemicals to render it unfit for drinking. Millions of gallons of that were illegally diverted, “washed” of noxious chemicals, mixed with tap water and perhaps a dash of real liquor for flavour, and sold to speakeasies or individual customers. Finally, bootleggers took to bottling their own concoctions of spurious liquor, and by the late 1920s stills making liquor from corn (moonshine) had become major suppliers.
Bootlegging helped lead to the establishment of American organized crime, which persisted long after the repeal of Prohibition. The distribution of liquor was necessarily more complex than other types of criminal activity, and organized gangs eventually arose that could control an entire local chain of bootlegging operations, from concealed distilleries and breweries through storage and transport channels to speakeasies, restaurants, nightclubs, and other retail outlets. Those gangs tried to secure and enlarge territories in which they had a monopoly of distribution. Gradually, the gangs in different cities began to cooperate with each other, and they extended their methods of organizing beyond bootlegging to the narcotics traffic, gambling rackets, prostitution, labour racketeering, loan-sharking, and extortion. The American Mafia crime syndicate arose out of the coordinated activities of Italian bootleggers and other gangsters in New York City in the late 1920s and early ’30s.
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Johnny Torrio rose to become a rackets boss in Brooklyn, New York, and then relocated to Chicago, where in the early 1920s he expanded the crime empire founded by James (“Big Jim”) Colosimo into big-time bootlegging. Torrio turned over his rackets in 1925 to Al Capone, who became the Prohibition era’s most famous gangster, though other crime czars such as Dion O’Bannion (Capone’s rival in Chicago), Joe Masseria, Meyer Lansky, Lucky Luciano, and Bugsy Siegel were also legendarily infamous. Capone’s wealth in 1927 was estimated at close to $100 million.
In 1929—the year of the stock market crash, which seemingly increased the country’s desire for illegal liquor—Eliot Ness was hired as a special agent of the U.S. Department of Justice to head the Prohibition bureau in Chicago, with the express purpose of investigating and harassing Capone. Because the men whom Ness hired to help him were extremely dedicated and unbribable, they were nicknamed the Untouchables. The public learned of them when big raids on breweries, speakeasies, and other places of outlawry attracted newspaper headlines. The Untouchables’ infiltration of the underworld secured evidence that helped send Capone to prison for income-tax evasion in 1932.
Also in 1932 Warner Brothers released Howard Hawks’s film Scarface: The Shame of Nation, which was based loosely on Capone’s rise as a crime boss. The previous year the studio had started a craze for gangster films with Mervyn LeRoy’s Little Caesar (1931) and William Wellman’s The Public Enemy (1931). The cultural influence of the era proved lasting, with gangster films remaining popular and Ness’s exploits giving rise to the television series The Untouchables (1959–63).
