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Although the term prohibition can refer to a variety of legally banned activities including narcotics manufacture, sale, and possession, it is commonly understood to mean the period between 1920 and 1933 during which the Eighteenth Amendment to the U.S. Constitution was in effect. Prohibition was intended to reduce the consumption of alcohol, seen by prohibition advocates as a major cause of crime, poverty, high death rates, a weakening economy, and declining quality of life. It is interesting to note, however, that the first state laws prohibiting the manufacture and sale of alcoholic beverages were enacted as early as 1838 in Tennessee and in 1846 in Maine. By 1900, 18 states had enacted prohibition laws and many states maintained laws banning the manufacture and sale of liquor after the repeal of the Eighteenth Amendment until 1959 when Oklahoma, the last dry state, repealed its prohibition laws. The terms wet and dry were commonly used to identify states and groups that were, respectively, in favor of or against prohibition.

Passage of the Volstead Act

Shortly after the ratification of the Eighteenth Amendment, Congress, overriding a veto of President Woodrow Wilson, passed the National Prohibition Act (commonly known as the Volstead Act, named after its author, Congressman Andrew J. Volstead (R-MN), who was chairman of the Judiciary Committee at the time of the law's enactment and who, indicating how quickly the law became unpopular, was defeated in 1922 when he ran for reelection). This act prohibited the importing, exporting, transporting, selling, and manufacturing of intoxicating liquor. Intoxicating liquor was defined as anything having an alcoholic content of more than 0.5%. Exceptions were made for alcohol used for religious purposes as well as for liquor that had been purchased for home use prior to July 1919 and alcohol prescribed for medicinal use. However, in 1921, because of abuses by many physicians, Congress enacted a law that established limits on how much liquor a doctor could prescribe for a patient; no more than one pint per patient during a 10-day period.

The first year of prohibition witnessed a substantial decline in the consumption of alcoholic beverages; however, this was not the result of a reduction in demand but because legitimate sources of alcohol were terminated. During the Prohibition Era the demand for alcohol actually increased. Consequently, a number of illegal supply channels were created to satisfy that demand.

Prohibition Enforcement

The Volstead Act also set up guidelines for enforcement. In 1920, Congress appropriated $2 million for enforcement of the Volstead Act and another $6.5 million in 1921. Federal responsibility for enforcement of the Volstead Act was assigned to the Prohibition Unit of the Treasury Department. This existing unit had been created to enforce the Harrison Act of 1914 that prohibited the sale and use of narcotics. A Narcotics Division was created within the Prohibition Unit to separate the enforcement of narcotic and liquor laws. In 1927 the office of Commissioner of Prohibition, consisting of 27 administrative districts, was created. Each district was headed by a chief administrator and contained an enforcement office that was divided into three sections: General Enforcement, Major Investigations, and Case Reports. Almost 18,000 agents were appointed during the Prohibition Era. Of that number more than 13,000 were either terminated for cause or resigned, leaving an annual staffing of between 1,500 and 2,300 agents. These agents were authorized to enforce all violations of the Volstead Act. They focused primarily on illicit distilleries (stills), smuggling, and bootlegging; however, because of limited resources they relied on local law enforcement for support. They were ill prepared to do their jobs, however. There were no standard qualifications; training was optional and a large number were political patronage appointments.

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