Vivian Marlowe
On March 22, 1933, President Franklin D. Roosevelt signed the Beer and Wine Revenue Act, which legalised the sale of beer and wine in the United States. This law levied a federal tax on all alcoholic beverages to raise revenue for the federal government and gave individual states the option to further regulate the sale and distribution of beer and wine. This decision came after Prohibition proved difficult and expensive to enforce, and Roosevelt's support for the repeal was a major issue during his 1932 presidential campaign.
| Characteristics | Values |
|---|---|
| Prohibition | Nationwide ban on alcoholic beverages in the United States |
| Dates | Prohibition era: 1920-1933 |
| Prohibition ended: 5 December 1933 | |
| Beer and Wine Revenue Act: 22 March 1933 | |
| Twenty-first Amendment: December 1933 | |
| Supporters | "Drys" |
| Opponents | "Wets" |
| Supporters of repeal | Women, farmers, doctors, influential leaders, Franklin Roosevelt, Democrats |
| Reasons for repeal | To generate tax revenue, create jobs, stimulate business expansion, reduce crime, and heal society of alcohol-related problems |
| Alcohol-related problems: alcoholism, domestic violence, political corruption |
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What You'll Learn
Roosevelt's personal views on alcohol
Franklin D. Roosevelt was not a fan of temperance himself. He had developed a taste for alcohol when he attended New York cocktail parties as a budding politician. As president, Roosevelt refused to fire his favourite personal valet for repeated drunkenness on the job. Roosevelt also enjoyed making martini cocktails with his own hands, as recalled by cabinet member Robert H.
Roosevelt's move towards a drunker America instilled a swaggering patriotism and harmony between the underworld and the business community. Alcohol sales generated billions of state and federal tax dollars almost immediately after the 21st Amendment passed, which was a large contribution to what became the US economy's fastest growth rates in history.
Roosevelt's decision to allow alcohol to be legal again was influenced by multiple factors. Firstly, he considered the new law of the highest importance for its potential to generate much-needed federal funds. Secondly, he included it in a set of New Deal policies designed to boost the US economy out of the Great Depression. Thirdly, Roosevelt believed that the Democratic Party was the party of the people, and he saw himself as a man of the people. Finally, Roosevelt's decision was also influenced by the widespread problems caused by Prohibition, including the negative impact on the agriculture business and the rise of organised crime.
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The Beer and Wine Revenue Act
On March 22, 1933, President Franklin D. Roosevelt signed the Beer and Wine Revenue Act, which legalized the sale of beer and wine. This was seen as a preliminary step towards ending Prohibition, which had been in place since 1920. The Act allowed for the sale of alcoholic beverages with an alcohol content of no more than 3.2%.
The push for the repeal of Prohibition also came from influential leaders and organizations, such as the Association Against the Prohibition Amendment led by the du Pont brothers, and John D. Rockefeller Jr., who had initially supported Prohibition but later advocated for its repeal due to its negative consequences. The Women's Christian Temperance Union, which had played a pivotal role in the enactment of Prohibition, saw a decrease in its influence following World War I, and women became a substantial part of the repeal movement, recognizing the destructiveness of both alcohol abuse and Prohibition itself.
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The 1932 presidential election
Roosevelt's support for repeal was not new. In 1932, the United Repeal Council, a coalition of anti-prohibition groups, lobbied both the Republican and Democratic national conventions to integrate repeal into their election campaigns. The Democrats, with Roosevelt at the helm, duly obliged. Roosevelt's vacillation on Prohibition over the years had caused disappointment among the "dry vote" in 1928, when he ran against the avowed "wet" Democrat Al Smith. However, by 1932, with the country in the grip of economic crisis, the political calculus had changed.
Hoover, for his part, had also come around to supporting repeal. A longtime "dry", he had been forced to pivot by the dire economic situation and polls showing majority support for repeal. However, his proposal for a new constitutional amendment was vague and failed to satisfy either side of the debate.
Roosevelt's victory in the 1932 election set the stage for the end of Prohibition. Within his first 100 days in office, he got Congress to propose a repeal amendment and legalize beer. On March 22, 1933, he signed the Beer and Wine Revenue Act, also known as the Cullen-Harrison Act, which legalized the sale of beer and wine with low alcohol content. This was followed by the passage of the 21st Amendment in December 1933, which officially ended Prohibition.
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The Great Depression
In the United States, the Great Depression hit hard, exacerbating existing social and economic inequalities. The country experienced a significant decline in economic output and trade, with many businesses failing and banks closing their doors. The Hoover administration, which was in power when the Depression began, struggled to respond effectively. President Herbert Hoover's initial policies, such as the Smoot-Hawley Tariff Act, were largely ineffective and, in some cases, made the situation worse.
Franklin D. Roosevelt, who took office in 1933, campaigned on a platform that included the repeal of Prohibition, the ban on the sale and manufacture of alcohol implemented in 1920. The negative economic impact of Prohibition, including the loss of tax revenue from alcohol sales, had become increasingly apparent during the Great Depression. Roosevelt saw the legalisation of alcohol as a way to boost the economy and generate much-needed federal funds.
On March 22, 1933, Roosevelt signed the Beer and Wine Revenue Act, also known as the Cullen-Harrison Act, which legalised the sale of beer and light wine with a low alcohol content of 3.2% by weight or 4% by volume. This act also levied a federal tax on alcoholic beverages, providing a new source of revenue for the government. The legalisation of alcohol was met with celebrations across the country, and it marked a significant shift in policy, ending the era of Prohibition.
The repeal of Prohibition was part of Roosevelt's broader New Deal agenda, which aimed to address the economic crisis caused by the Great Depression. The New Deal included a range of economic and social reforms designed to provide relief to those affected by the Depression, stimulate the economy, and create jobs. Roosevelt's administration implemented measures to stabilise the banking system, provide relief to farmers, and create employment through public works projects. The New Deal had a significant impact on American society and played a crucial role in shaping the country's recovery from the Great Depression.
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The 21st Amendment
On December 5, 1933, the Twenty-first Amendment to the U.S. Constitution was ratified, repealing the Eighteenth Amendment and bringing an end to Prohibition. The Twenty-first Amendment barred the transportation or importation of intoxicating liquors into any state in violation of that state's laws.
The Eighteenth Amendment, which prohibited the manufacture, sale, or transportation of liquor, had been ratified in 1919, along with the Volstead Act, which set harsh punishments for violations of the amendment. However, Prohibition proved difficult and expensive to enforce, and it increased illegal trafficking without significantly reducing alcohol consumption.
As the nation struggled with the Great Depression following the stock market crash of 1929, many came to believe that repealing Prohibition would boost the economy by creating new jobs and generating tax revenue from the legal sale of alcohol. Influential figures such as John D. Rockefeller Jr. and the du Pont brothers threw their support behind the repeal movement, and it became a major issue in the 1932 presidential election, with both Democrat Franklin D. Roosevelt and Republican incumbent Herbert Hoover campaigning for an end to Prohibition.
Within his first 100 days in office, Roosevelt got Congress to propose a repeal amendment, and he signed the Cullen-Harrison Act on March 22, 1933, legalizing beer with an alcohol content of 3.2% and light wine of the same percentage, effective April 7, 1933. Roosevelt famously remarked, "I think this would be a good time for a beer."
The Twenty-first Amendment was ratified by state conventions one by one, starting with Michigan. On November 7, 1933, Utah became the 36th state to ratify the amendment, placing it over the top in terms of the required number of states for ratification. With Utah's approval, National Prohibition officially ended.
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Frequently asked questions
President Roosevelt's Democratic platform promised the repeal of the 18th Amendment, which prohibited the manufacture, sale or transportation of liquor. The Prohibition was difficult and expensive to enforce and it was believed that repealing it would bring in much-needed federal funds.
On March 22, 1933, President Roosevelt signed an amendment to the Volstead Act, the Beer and Wine Revenue Act, which levied a federal tax on all alcoholic beverages. On December 5, 1933, the Eighteenth Amendment was repealed with the ratification of the Twenty-first Amendment to the U.S. Constitution.
The Beer and Wine Revenue Act was passed as part of a set of New Deal policies designed to boost the U.S. economy during the Great Depression. It was believed that the act would serve to elevate national morale by legalizing beer and wine and raise much-needed tax revenue for the government.
