In 1937, Congress passed the Marihuana Tax Act which levied a tax of one dollar on anyone who dealt commercially in marijuana. The bill had been written using the slang term “marihuana” throughout, obscuring the fact that it covered the plant’s legitimate uses in medicine, where it was broadly known as cannabis and in the fiber industry as hemp. The Act did not itself criminalize their possession, but regulations and restrictions on the sale of cannabis as a drug had been around since the previous century. In effect, the bill made it impossible for anyone to deal with call it what you will in any form.
Conspiracy theorists maintained that business tycoons Andrew Mellon, Randolph Hearst, and the Du Pont family were behind passage of the Act as a way to reduce the size of the hemp industry. Hemp had became a very cheap substitute for the paper pulp that was used in the newspaper industry and as such was a threat to Hearst’s extensive timber holdings. Mellon had invested heavily in the Du Pont family’s new synthetic fiber nylon that was competing with hemp.The campaign that Hearst’s newspapers had been staging against the dangers of the recreational use of the”powerful narcotic in which lurks MURDER! INSANITY! DEATH!” was therefore disingenuous. (‘Beware the evils of hemp’ didn’t quite cut it. “Reading newspapers printed on hemp will lead to degradation and reading the New York Post.”)
The legislation effectively killed the hemp industry and the medical use of cannabis, and the ensuing years of “reefer madness” completed its evolution to the abominable recreational drug it has become (although it has begun to make a bit of a comeback).