Beer in the United States
On January 16, 1919, the Eighteenth Amendment to the United States Constitution was enacted into law, creating the Prohibition era, wherein the production, sale and transportation of alcoholic beverages was made illegal. All legal American brewing came to a halt when prohibition was imposed, though the earlier temperance movement had already reduced the number of breweries significantly. Only a few breweries, mainly the largest, were able to stay in business by manufacturing near beer, malt syrup, or other non-alcohol grain products, in addition to soft drinks such as colas and root beers. Production and shipping of alcohol was largely confined to illegal operations that could deliver compact distilled beverages—smuggled rum and domestic moonshine—more efficiently and reliably than bulkier products such as beer.
Atlantic City, New Jersey
The 1920s, with tourism at its peak, are considered by many historians as Atlantic City's golden age. During Prohibition, which was enacted nationally in 1919 and lasted until 1933, much liquor was consumed and gambling regularly took place in the back rooms of nightclubs and restaurants. It was during Prohibition that racketeer and political boss Enoch L. "Nucky" Johnson rose to power. Prohibition was largely unenforced in Atlantic City, and, because alcohol that had been smuggled into the city with the acquiescence of local officials could be readily obtained at restaurants and other establishments, the resort's popularity grew further. The city then dubbed itself as "The World's Playground". Nucky Johnson's income, which reached as much as $500,000 annually, came from the kickbacks he took on illegal liquor, gambling and prostitution operating in the city, as well as from kickbacks on construction projects.