Tag: history

On This Day In History June 14

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June 14 is the 165th day of the year (166th in leap years) in the Gregorian calendar. There are 200 days remaining until the end of the year.

On this day in 1777, during the American Revolution, the Continental Congress adopts a resolution stating that “the flag of the United States be thirteen alternate stripes red and white” and that “the Union be thirteen stars, white in a blue field, representing a new Constellation.”

The Flag Resolution of 1777

On June 14, 1777, the Marine Committee of the Second Continental Congress passed the Flag Resolution which stated: “Resolved, that the flag of the United States be thirteen stripes, alternate red and white; that the union be thirteen stars, white in a blue field, representing a new Constellation.” Flag Day is now observed on June 14 of each year. A false tradition holds that the new flag was first hoisted in June 1777 by the Continental Army at the Middlebrook encampment.

The 1777 resolution was most probably meant to define a naval ensign, rather than a national flag. It appears between other resolutions from the Marine Committee. On May 10, 1779, Secretary of the Board of War Richard Peters expressed concern “it is not yet settled what is the Standard of the United States.”

The Flag Resolution did not specify any particular arrangement, number of points, nor orientation for the stars. The pictured flag shows 13 outwardly-oriented five-pointed stars arranged in a circle, the so-called Betsy Ross flag. Although the Betsy Ross legend is controversial, the design is among the oldest of any U.S. flags. Popular designs at the time were varied and most were individually crafted rather than mass-produced. Other examples of 13-star arrangements can be found on the Francis Hopkinson flag, the Cowpens flag, and the Brandywine flag. Given the scant archaeological and written evidence, it is unknown which design was the most popular at that time.

Despite the 1777 resolution, a number of flags only loosely based on the prescribed design were used in the early years of American independence. One example may have been the Guilford Court House Flag, traditionally believed to have been carried by the American troops at the Battle of Guilford Court House in 1781.

The origin of the stars and stripes design is inadequately documented. The apocryphal story credits Betsy Ross for sewing the first flag from a pencil sketch handed to her by George Washington. No evidence for this exists; indeed, nearly a century had passed before Ross’ grandson, William Canby, first publicly suggested it. Another woman, Rebecca Young, has also been credited as having made the first flag by later generations of her family. Rebecca Young’s daughter was Mary Pickersgill, who made the Star Spangled Banner Flag.

It is likely that Francis Hopkinson of New Jersey, a signer of the Declaration of Independence, designed the 1777 flag while he was the Chairman of the Continental Navy Board’s Middle Department, sometime between his appointment to that position in November 1776 and the time that the flag resolution was adopted in June 1777. This contradicts the Betsy Ross legend, which suggests that she sewed the first Stars and Stripes flag by request of the government in the Spring of 1776. Hopkinson was the only person to have made such a claim during his own lifetime, when he sent a bill to Congress for his work. He asked for a “Quarter Cask of the Public Wine” as payment initially. The payment was not made, however, because it was determined he had already received a salary as a member of Congress, and he was not the only person to have contributed to the design. No one else contested his claim at the time.

The Breakfast Club (Flag Day)

Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover  we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.

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Breakfast Tune: Stars And Stripes Forever by Roger Sprung on 1963-64 Folkways LP.

Today in History


Nazi Germany’s troops enter Paris during World War II; TWA Flight 847 hijacked; Stars and Stripes adopted as official U.S. flag; Leftist guerrilla Che Guevara and real estate mogul Donald Trump born. (June 14)

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On This Day In History June 13

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June 13 is the 164th day of the year (165th in leap years) in the Gregorian calendar. There are 201 days remaining until the end of the year.

On this day in 1966, The Miranda rights are established.

The Supreme Court hands down its decision in Miranda v. Arizona, establishing the principle that all criminal suspects must be advised of their rights before interrogation. Now considered standard police procedure, “You have the right to remain silent. Anything you say can, and will, be used against you in court of law. You have the right to an attorney. If you cannot afford one, one will be appointed to you,” has been heard so many times in television and film dramas that it has become almost cliche.

Miranda v. Arizona 384 U.S. 436 (1966), was a landmark 5-4 decision of the United States Supreme Court. The Court held that both inculpatory and exculpatory statements made in response to interrogation by a defendant in police custody will be admissible at trial only if the prosecution can show that the defendant was informed of the right to consult with an attorney before and during questioning and of the right against self-incrimination prior to questioning by police, and that the defendant not only understood these rights, but voluntarily waived them. This had a significant impact on law enforcement in the United States, by making what became known as the Miranda rights part of routine police procedure to ensure that suspects were informed of their rights. The Supreme Court decided Miranda with three other consolidated cases: Westover v. United States, Vignera v. New York, and California v. Stewart.

The Miranda warning (often abbreviated to “Miranda”) is the name of the formal warning that is required to be given by police in the United States to criminal suspects in police custody (or in a custodial situation) before they are interrogated, in accordance with the Miranda ruling. Its purpose is to ensure the accused is aware of, and reminded of, these rights under the U.S. Constitution, and that they know they can invoke them at any time during the interview.

As of the U.S. Supreme Court decision Berghuis v. Thompkins(June 1, 2010), criminal suspects who are aware of their right to silence and to an attorney, but choose not to “unambiguously” invoke them, may find any subsequent voluntary statements treated as an implied waiver of their rights, and which may be used in evidence.

On This Day In History June 12

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June 12 is the 163rd day of the year (164th in leap years) in the Gregorian calendar. There are 202 days remaining until the end of the year.

On this day in 1776, Virginia adopts George Mason’s Declaration of Rights

The assembled slaveholders of Virginia promised to “the good people of VIRGINIA and their posterity” the equal right to life, liberty and property, with the critical condition that the “people” were white men. These same white men were guaranteed that “all power” would be “vested in, and consequently derived from” them. Should a government fail to represent their common interest, a majority of the same held the right to “reform, alter or abolish” the government.

Drafting and adoption

The Declaration was adopted unanimously by the Fifth Virginia Convention at Williamsburg, Virginia on June 12, 1776 as a separate document from the Constitution of Virginia which was later adopted on June 29, 1776. In 1830, the Declaration of Rights was incorporated within the Virginia State Constitution as Article I, but even before that Virginia’s Declaration of Rights stated that it was ‘”the basis and foundation of government” in Virginia.  A slightly updated version may still be seen in Virginia’s Constitution, making it legally in effect to this day.

It was initially drafted by George Mason circa May 20, 1776; James Madison assisted him with the section on religious freedom. It was later amended by Thomas Ludwell Lee and the Convention to add a section on the right to uniform government (Section 14). Patrick Henry persuaded the Convention to delete a section that would have prohibited bills of attander, arguing that ordinary laws could be ineffective against some terrifying offenders.

Mason based his initial draft on the rights of citizens described in earlier works such as the English Bill of Rights (1689), and the Declaration can be considered the first modern Constitutional protection of individual rights for citizens of North America. It rejected the notion of privileged political classes or hereditary offices such as the members of Parliament and House of Lords described in the English Bill of Rights.

The Declaration consists of sixteen articles on the subject of which rights “pertain to [the people of Virginia]…as the basis and foundation of Government.” In addition to affirming the inherent nature of natural rights to life, liberty, and property, the Declaration both describes a view of Government as the servant of the people, and enumerates various restrictions on governmental power. Thus, the document is unusual in that it not only prescribes legal rights, but it also describes moral principles upon which a government should be run.

Influence

The Virginia Declaration of Rights heavily influenced later documents. Thomas Jefferson is thought to have drawn on it when he drafted the United States Declaration of Independence one month later (July 1776). James Madison was also influenced by the Declaration while drafting the Bill of Rights (completed September 1787, approved 1789), as was the Marquis de Lafayette in voting the French Revolution’s Declaration of the Rights of Man and of the Citizen (1789).

The importance of the Virginia Declaration of Rights is that it was the first constitutional protection of individual rights, rather than protecting just members of Parliament or consisting of simple laws that can be changed as easily as passed.

On This Day In History June 11

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June 11 is the 162nd day of the year (163rd in leap years) in the Gregorian calendar. There are 203 days remaining until the end of the year.

On this day in 1776, the Continental Congress selects Thomas Jefferson of Virginia, John Adams of Massachusetts, Benjamin Franklin of Pennsylvania, Roger Sherman of Connecticut and Robert R. Livingston of New York to draft a declaration of independence.

Knowing Jefferson’s prowess with a pen, Adams urged him to author the first draft of the document, which was then carefully revised by Adams and Franklin before being given to Congress for review on June 28.

The revolutionary treatise began with reverberating prose:

Draft and adoption

While political maneuvering was setting the stage for an official declaration of independence, a document explaining the decision was being written. On June 11, 1776, Congress appointed a “Committee of Five”, consisting of John Adams of Massachusetts, Benjamin Franklin of Pennsylvania, Thomas Jefferson of Virginia, Robert R. Livingston of New York, and Roger Sherman of Connecticut, to draft a declaration. Because the committee left no minutes, there is some uncertainty about how the drafting process proceeded-accounts written many years later by Jefferson and Adams, although frequently cited, are contradictory and not entirely reliable. What is certain is that the committee, after discussing the general outline that the document should follow, decided that Jefferson would write the first draft. Considering Congress’s busy schedule, Jefferson probably had limited time for writing over the next seventeen days, and likely wrote the draft quickly. He then consulted the others, made some changes, and then produced another copy incorporating these alterations. The committee presented this copy to the Congress on June 28, 1776. The title of the document was “A Declaration by the Representatives of the United States of America, in General Congress assembled.” Congress ordered that the draft “lie on the table”.

On Monday, July 1, having tabled the draft of the declaration, Congress resolved itself into a committee of the whole, with Benjamin Harrison of Virginia presiding, and resumed debate on Lee’s resolution of independence. John Dickinson made one last effort to delay the decision, arguing that Congress should not declare independence without first securing a foreign alliance and finalizing the Articles of Confederation.[64] John Adams gave a speech in reply to Dickinson, restating the case for an immediate declaration.

On This Day In History June 10

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June 10 is the 161st day of the year (162nd in leap years) in the Gregorian calendar. There are 204 days remaining until the end of the year.

On this day in 1990, Luther Campbell and fellow 2LiveCrew members are arrested on obscenity charges

Though the First Amendment to the Constitution clearly states that the U.S. Congress “shall make no law…abridging the freedom of speech,” free speech is widely understood to have its limits. It is dangerous and potentially criminal, for instance, to yell, “Fire!” in a crowded theater. But what about yelling “$&%#@!!” in a crowded nightclub? Lenny Bruce and other comedians tested the limits of that practice in the 1960s, but it was not until the late 1980s that the issue of obscenity came front and center in the world of popular music. The group that brought it there was 2LiveCrew, a hip-hop outfit led by Luther “Luke Skyywalker” Campbell. On June 10, 1990, just days after a controversial ruling by a Florida federal judge, Campbell and two other members of 2LiveCrew were arrested on charges of public obscenity after performing material from their album As Nasty As They Wanna Be in a Hollywood, Florida, nightclub.

As Nasty As They Wanna Be

In 1989, the group released their album, As Nasty As They Wanna Be, which also became the group’s most successful album. A large part of its success was due to the single “Me So Horny”, which was popular despite little radio rotation. The American Family Association (AFA) did not think the presence of a “Parental Advisory” sticker was enough to adequately warn listeners of what was inside the case. Jack Thompson, a lawyer affiliated with the AFA, met with Florida Governor Bob Martinez and convinced him to look into the album to see if it met the legal classification of obscene. In 1990 action was taken at the local level and Nick Navarro, Broward County sheriff, received a ruling from County Circuit Court judge Mel Grossman that probable cause for obscenity violations existed. In response, Luther Campbell maintained that people should focus on issues relating to hunger and poverty rather than on the lyrical content of their music.

Navarro warned record store owners that selling the album may be prosecutable. The 2 Live Crew then filed a suit against Navarro. That June, U.S. district court Judge Jose Gonzalez ruled the album obscene and illegal to sell. Charles Freeman, a local retailer, was arrested two days later, after selling a copy to an undercover police officer. This was followed by the arrest of three members of The 2 Live Crew after they performed some material from the album at a nightclub. They were acquitted soon after, as professor Henry Louis Gates, Jr. testified at their trial in defense of their lyrics. Freeman’s conviction was overturned on appeal as well.

In 1992, the United States Court of Appeals for the Eleventh Circuit overturned the obscenity ruling from Judge Gonzalez, and the Supreme Court of the United States refused to hear Broward County’s appeal. As in the Freeman case, Gates testified on behalf of Navarro, arguing that the material that the county alleged was profane actually had important roots in African-American vernacular, games, and literary traditions and should be protected.

As a result of the controversy, As Nasty As They Wanna Be sold over two million copies. It peaked at #29 on The Billboard 200 and #3 on the Top R&B/Hip-Hop Albums chart. A few other retailers were later arrested for selling it as well, including Canadian Marc Emery who was convicted in Ontario in 1991, and would later gain fame as a marijuana activist. Later hard rock band Van Halen sued over an uncleared sample of their song “Ain’t Talkin’ ‘Bout Love” in The 2 Live Crew Song “The Fuck Shop”. The publicity then continued when George Lucas, owner of the Star Wars universe, successfully sued Campbell for appropriating the name “Skywalker” for his record label, Luke Skyywalker Records. Campbell changed his stage name to Luke (and changed the record label’s name to Luke Records) and the group released an extremely political follow up album, Banned in the USA after obtaining permission to use an interpolation of Bruce Springsteen‘s Born in the U.S.A. The 2 Live Crew paraphernalia with the Luke Skyywalker or Skyywalker logos are often sought-after collector’s items.

On This Day In History June 9

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June 9 is the 160th day of the year (161st in leap years) in the Gregorian calendar. There are 205 days remaining until the end of the year.

On this day in 1973, Secretariat wins Triple Crown

With a spectacular victory at the Belmont Stakes, Secretariat becomes the first horse since Citation in 1948 to win America’s coveted Triple Crown–the Kentucky Derby, the Preakness, and the Belmont Stakes. In one of the finest performances in racing history, Secretariat, ridden by Ron Turcotte, completed the 1.5-mile race in 2 minutes and 24 seconds, a dirt-track record for that distance.

With easy victories in his first two starts of 1973, Secretariat seemed on his way to the Triple Crown. Just two weeks before the Kentucky Derby, however, he stumbled at the Wood Memorial Stakes at Aqueduct, coming in third behind Angle Light and Sham. On May 5, he met Sham and Angle Light again at the Churchill Downs track in Louisville for the Kentucky Derby. Secretariat, a 3-to-2 favorite, broke from near the back of the pack to win the 2 1/4-mile race in a record 1 minute and 59 seconds. He was the first to run the Derby in less than two minutes and his record still stands. Two weeks later, at Pimlico Race Course in Baltimore, Maryland, Secretariat won the second event of the Triple Crown: the Preakness Stakes. The official clock malfunctioned, but hand-recorded timers had him running the 1 1/16-mile race in record time.

On June 9, 1973, almost 100,000 people came to Belmont Park near New York City to see if “Big Red” would become the first horse in 25 years to win the Triple Crown. Secretariat gave the finest performance of his career in the Belmont Stakes, completing the 1.5-mile race in a record 2 minutes and 24 seconds, knocking nearly three seconds off the track record set by Gallant Man in 1957. He also won by a record 31 lengths. Ron Turcotte, who jockeyed Secretariat in all but three of his races, claimed that at Belmont he lost control of Secretariat and that the horse sprinted into history on his own accord.

On This Day In History June 8

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June 8 is the 159th day of the year (160th in leap years) in the Gregorian calendar. There are 206 days remaining until the end of the year.

On this day in 1776, Canadian Governor Sir Guy Carleton defeats American Patriot forces under John Sullivan, who were already in retreat from Quebec toward Montreal.

After General Richard Montgomery’s early success in Montreal, he and Colonel Benedict Arnold attempted to take Quebec in the middle of the night between December 31, 1775 and January 1, 1776. Montgomery lost his life and Arnold was wounded in the action; half of their men were also lost to death, injury or capture and Quebec remained in British control. The colonists’ ill-conceived, pre-emptive attack on Canada ended in disaster. Instead of winning French Canadians to the Patriot cause, it led only to a huge loss of life among Patriot forces.

The Battle of Trois-Rivières (Three Rivers in English) was fought on June 8, 1776, during the American Revolutionary War. A British army under Quebec Governor Guy Carleton defeated an attempt by units from the Continental Army under the command of Brigadier General William Thompson to stop a British advance up the Saint Lawrence River valley. The battle occurred as a part of the American colonists’ invasion of Quebec, which had begun in September 1775 with the goal of “liberating” the province from British rule.

The crossing of the Saint Lawrence by the American troops was observed by Quebec militia, who alerted British troops at Trois-Rivières. A local farmer led the Americans into a swamp, enabling the British to land additional forces in the village, and to establish positions behind the American army. After a brief exchange between an established British line and American troops emerging from the swamp, the Americans broke into a somewhat disorganized retreat. As some avenues of retreat were cut off, the British took a sizable number of prisoners, including General Thompson and much of his staff.

This was the last major battle fought on Quebec soil. Following the defeat, the remainder of the American forces, under the command of John Sullivan, retreated, first to Fort Saint-Jean, and then to Fort Ticonderoga.

On This Day In History June 7

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June 7 is the 158th day of the year (159th in leap years) in the Gregorian calendar. There are 207 days remaining until the end of the year.

On this day in 1692, a massive earthquake devastates the infamous town of Port Royal in Jamaica, killing thousands. The strong tremors, soil liquefaction and a tsunami brought on by the earthquake combined to destroy the entire town.

Port Royal was built on a small island off the coast of Jamaica in the harbor across from present-day Kingston. Many of the buildings where the 6,500 residents lived and worked were constructed right over the water. In the 17th century, Port Royal was known throughout the New World as a headquarters for piracy, smuggling and debauchery. It was described as “most wicked and sinful city in the world” and “one of the lewdest in the Christian world.”

Earthquakes in the area were not uncommon, but were usually rather small. In 1688, a tremor had toppled three homes. But four years later, late in the morning on June 7, three powerful quakes struck Jamaica. A large tsunami hit soon after, putting half of Port Royal under 40 feet of water. The HMS Swan was carried from the harbor and deposited on top of a building on the island. It turned out to be a refuge for survivors.

Piracy in Port Royal

Port Royal provided a safe harbour initially for privateers and subsequently for pirates plying the shipping lanes to and from Spain and Panama. Buccaneers found Port Royal appealing for several reasons. Its proximity to trade routes allowed them easy access to prey, but the most important advantage was the port’s proximity to several of the only safe passages or straits giving access to the Spanish Main from the Atlantic. The harbour was large enough to accommodate their ships and provided a place to careen and repair these vessels. It was also ideally situated for launching raids on Spanish settlements. From Port Royal, Henry Morgan attacked Panama, Portobello, and Maracaibo. Roche Brasiliano, John Davis (buccaneer), and Edward Mansveldt (Mansfield) also came to Port Royal.

Since the English lacked sufficient troops to prevent either the Spanish or French from seizing it, the Jamaican governors eventually turned to the pirates to defend the city.

By the 1660s, the city had gained a reputation as the Sodom of the New World where most residents were pirates, cutthroats, or prostitutes. When Charles Leslie wrote his history of Jamaica, he included a description of the pirates of Port Royal:

   Wine and women drained their wealth to such a degree that… some of them became reduced to beggary. They have been known to spend 2 or 3,000 pieces of eight in one night; and one gave a strumpet 500 to see her naked. They used to buy a pipe of wine, place it in the street, and oblige everyone that passed to drink.

The taverns of Port Royal were known for their excessive consumption of alcohol such that records even exist of the wild animals of the area partaking in the debauchery. During a passing visit, famous Dutch explorer Jan van Riebeeck is said to have described the scenes:

   The parrots of Port Royal gather to drink from the large stocks of ale with just as much alacrity as the drunks that frequent the taverns that serve it.

There is even speculation in pirate folklore that the infamous Blackbeard met a howler monkey while at leisure in a Port Royal alehouse whom he named Jefferson and formed a strong bond with during the expedition to the island of New Providence. Port Royal benefited from this lively, glamorous infamy and grew to be one of the two largest towns and the most economically important port in the English colonies. At the height of its popularity, the city had one drinking house for every ten residents. In July 1661 alone, forty new licenses were granted to taverns. During a twenty-year period that ended in 1692, nearly 6,500 people lived in Port Royal. In addition to prostitutes and buccaneers, there were four goldsmiths, forty-four tavern keepers, and a variety of artisans and merchants who lived in 2000 buildings crammed into 51 acres of real estate. 213 ships visited the seaport in 1688. The city’s wealth was so great that coins were preferred for payment rather than the more common system of bartering goods for services.

Following Henry Morgan’s appointment as lieutenant governor, Port Royal began to change. Pirates were no longer needed to defend the city. The selling of slaves took on greater importance. Upstanding citizens disliked the reputation the city had acquired. In 1687, Jamaica passed anti-piracy laws. Instead of being a safe haven for pirates, Port Royal became noted as their place of execution. Gallows Point welcomed many to their death, including Charles Vane and Calico Jack, who were hanged in 1720. Two years later, forty-one pirates met their death in one month.

Although a work of historical fiction, James Michener’s The Caribbean details the history, atmosphere and geography of Port Royal accurately.

The Breakfast Club (Tuba Skinny)

Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover  we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.

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Breakfast Tune: Tuba Skinny, New Orleans, Mardi Gras 2012

Today in History


James Byrd, Jr. dragged to death in Texas; Communists complete takeover of Czechoslovakia; Israel destroys an Iraqi nuclear power plant; ‘Grease’ opens on Broadway; Singer-songwriter Prince born. (June 7)

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On This Day In History June 6

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June 6 is the 157th day of the year (158th in leap years) in the Gregorian calendar. There are 208 days remaining until the end of the year.

On this day in 1933, eager motorists park their automobiles on the grounds of Park-In Theaters, the first-ever drive-in movie theater, located on Crescent Boulevard in Camden, New Jersey.

History

The drive-in theater was the creation of Camden, New Jersey, chemical company magnate Richard M. Hollingshead, Jr., whose family owned and operated the R.M. Hollingshead Corporation chemical plant in Camden. In 1932, Hollingshead conducted outdoor theater tests in his driveway at 212 Thomas Avenue in Riverton. After nailing a screen to trees in his backyard, he set a 1928 Kodak projector on the hood of his car and put a radio behind the screen, testing different sound levels with his car windows down and up. Blocks under vehicles in the driveway enabled him to determine the size and spacing of ramps so all automobiles could have a clear view of the screen. Following these experiments, he applied August 6, 1932, for a patent of his invention, and he was given U.S. Patent 1,909,537 on May 16, 1933. That patent was declared invalid 17 years later by the Delaware District Court.

Hollingshead’s drive-in opened in New Jersey June 6, 1933, on Admiral Wilson Boulevard at the Airport Circle in Pennsauken, a short distance from Cooper River Park. It offered 500 slots and a 40 by 50 ft (12 by 15 m) screen. He advertised his drive-in theater with the slogan, “The whole family is welcome, regardless of how noisy the children are.” (The first film shown was the Adolphe Menjou film Wife Beware.) The facility only operated three years, but during that time the concept caught on in other states. The April 15, 1934, opening of Shankweiler’s Auto Park in Orefield, Pennsylvania, was followed by Galveston’s Drive-In Short Reel Theater (July 5, 1934), the Pico in Los Angeles (September 9, 1934) and the Weymouth Drive-In Theatre in Weymouth, Massachusetts (May 6, 1936). In 1937, three more opened in Ohio, Massachusetts and Rhode Island, with another 12 during 1938 and 1939 in California, Florida, Maine, Maryland, Massachusetts, Michigan, New York, Texas and Virginia. Michigan’s first drive-in was the Eastside, which opened May 26, 1938, in Harper Woods near Detroit.

Early drive-in theaters had to deal with noise pollution issues. The original Hollingshead drive-in had speakers installed on the tower itself which caused a sound delay affecting patrons at the rear of the drive-in’s field. Attempts at outdoor speakers next to the vehicle did not produce satisfactory results. In 1941, RCA introduced in-car speakers with individual volume controls which solved the noise pollution issue and provided satisfactory sound to drive-in patrons.

On This Day In History June 5

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June 5 is the 156th day of the year (157th in leap years) in the Gregorian calendar. There are 209 days remaining until the end of the year

1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.

Soon after taking office in March 1933, Roosevelt declared a nationwide bank moratorium in order to prevent a run on the banks by consumers lacking confidence in the economy. He also forbade banks to pay out gold or to export it. According to Keynesian economic theory, one of the best ways to fight off an economic downturn is to inflate the money supply. And increasing the amount of gold held by the Federal Reserve would in turn increase its power to inflate the money supply. Facing similar pressures, Britain had dropped the gold standard in 1931, and Roosevelt had taken note.

Prolongation of the Great Depression

Some economic historians, such as American professor Barry Eichengreen, blame the gold standard of the 1920s for prolonging the Great Depression. Others including Federal Reserve Chairman Ben Bernanke and Nobel Prize winning economist Milton Friedman lay the blame at the feet of the Federal Reserve. The gold standard limited the flexibility of central banks’ monetary policy by limiting their ability to expand the money supply, and thus their ability to lower interest rates. In the US, the Federal Reserve was required by law to have 40% gold backing of its Federal Reserve demand notes, and thus, could not expand the money supply beyond what was allowed by the gold reserves held in their vaults.

In the early 1930s, the Federal Reserve defended the fixed price of dollars in respect to the gold standard by raising interest rates, trying to increase the demand for dollars. Its commitment and adherence to the gold standard explain why the U.S. did not engage in expansionary monetary policy. To compete in the international economy, the U.S. maintained high interest rates. This helped attract international investors who bought foreign assets with gold. Higher interest rates intensified the deflationary pressure on the dollar and reduced investment in U.S. banks. Commercial banks also converted Federal Reserve Notes to gold in 1931, reducing the Federal Reserve’s gold reserves, and forcing a corresponding reduction in the amount of Federal Reserve Notes in circulation. This speculative attack on the dollar created a panic in the U.S. banking system. Fearing imminent devaluation of the dollar, many foreign and domestic depositors withdrew funds from U.S. banks to convert them into gold or other assets.

The forced contraction of the money supply caused by people removing funds from the banking system during the bank panics resulted in deflation; and even as nominal interest rates dropped, inflation-adjusted real interest rates remained high, rewarding those that held onto money instead of spending it, causing a further slowdown in the economy. Recovery in the United States was slower than in Britain, in part due to Congressional reluctance to abandon the gold standard and float the U.S. currency as Britain had done.

Congress passed the Gold Reserve Act on 30 January 1934; the measure nationalized all gold by ordering the Federal Reserve banks to turn over their supply to the U.S. Treasury. In return the banks received gold certificates to be used as reserves against deposits and Federal Reserve notes. The act also authorized the president to devalue the gold dollar so that it would have no more than 60 percent of its existing weight. Under this authority the president, on 31 January 1934, fixed the value of the gold dollar at 59.06 cents.

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