The Politics of Boom and The Politics of Boom and BustBust

Chapter 33Chapter 33

1920-19321920-1932

1920’s Presidents1920’s Presidents

Warren G. HardingWarren G. Harding Calvin CoolidgeCalvin Coolidge Herbert HooverHerbert Hoover All retreated from Progressive All retreated from Progressive

reforms, less government action and reforms, less government action and more cooperation with big businessmore cooperation with big business

Highlights of the 1920sHighlights of the 1920s

KKK revived with KKK revived with Birth of a NationBirth of a Nation Prohibition (18Prohibition (18thth Amendment) passed Amendment) passed

in 1919 – Volstead Actin 1919 – Volstead Act Scopes Trial in Dayton, TN Scopes Trial in Dayton, TN The New WomenThe New Women Babe Ruth, Jack Dempsey, Babe Ruth, Jack Dempsey,

automobiles, airplanes, radio, automobiles, airplanes, radio, Hollywood, the flapperHollywood, the flapper

““Old Guard”Old Guard” Harding’s administration urged Harding’s administration urged

business to regulate themselves business to regulate themselves rather than be regulated by big rather than be regulated by big businessbusiness

““Ohio Gang” – poker playing Ohio Gang” – poker playing cronies from home became cabinet cronies from home became cabinet members and advisorsmembers and advisors

1920s1920s Supreme Court axed progressive Supreme Court axed progressive

legislationlegislation Killed federal child labor lawKilled federal child labor law Took away labor gains made in the Took away labor gains made in the

previous decadesprevious decades Restricted government intervention in Restricted government intervention in

the economythe economy Protections given to women in the Protections given to women in the

workplace were taken away because workplace were taken away because of passage of the 19of passage of the 19thth Amendment Amendment

HardingHarding

Businesses and Businesses and Corporations Corporations expanded under expanded under Harding Harding

Anti-trust laws were Anti-trust laws were ignoredignored

Example of most Example of most bureaus: bureaus: Interstate Interstate Commerce Commerce CommissionCommission – run by – run by friends of RR friends of RR executivesexecutives

After the WarAfter the War

Wartime controls Wartime controls over the economy over the economy were liftedwere lifted

War Industries Board War Industries Board was dismantledwas dismantled

Government returned Government returned Railroad to private Railroad to private management in 1920management in 1920

LaborLabor

Labor had NO Labor had NO government support government support during the 1920sduring the 1920s

Linked to Linked to CommunismCommunism

The steel strike of The steel strike of 1919 gave unions a 1919 gave unions a major setback in major setback in the post war decadethe post war decade

Harding Makes Peace with Harding Makes Peace with Central PowersCentral Powers

1921 Congress passes 1921 Congress passes a joint resolution that a joint resolution that declared the war declared the war officially overofficially over

Harding did not Harding did not support the League of support the League of NationsNations

America and Britain America and Britain developed a rivalry developed a rivalry over oil from the over oil from the Middle East.Middle East.

The League of NationsThe League of Nations

The US did not The US did not participateparticipate

The US did send The US did send “unofficial “unofficial observers” observers”

League of Nations League of Nations met at Geneva, met at Geneva, SwitzerlandSwitzerland

DisarmamentDisarmament

Harding promoted disarmamentHarding promoted disarmament US, Britain, and Japan all had large naval US, Britain, and Japan all had large naval

programsprograms ““Disarmament” Conference – 1921 – 1922 Disarmament” Conference – 1921 – 1922

Washington, D.C. – invited all naval powers Washington, D.C. – invited all naval powers except Communist Russia to discuss disarmingexcept Communist Russia to discuss disarming

Sec. Hughes proposed naval “holiday” – Sec. Hughes proposed naval “holiday” – moratorium on building destroyers for 10 yearsmoratorium on building destroyers for 10 years

Five Power Treaty (1922)Five Power Treaty (1922)

US, Britain, Japan, US, Britain, Japan, France, and ItalyFrance, and Italy

United States and United States and Britain agreed not Britain agreed not to fortify Far to fortify Far Eastern territories, Eastern territories, including the including the PhilippinesPhilippines

Four Power Treaty (1921)Four Power Treaty (1921)

Bound Britain, Japan, Bound Britain, Japan, France, and US to France, and US to preserve, protect preserve, protect and respect rights in and respect rights in the Pacific.the Pacific.

Arguments and Arguments and disputes would be disputes would be handled by the four handled by the four countries in the countries in the treaty.treaty.

Nine Power Treaty (1922)Nine Power Treaty (1922)

Nailed wide open Nailed wide open the Open Door the Open Door Policy in ChinaPolicy in China

Trade was to be Trade was to be kept alive and kept alive and open with the open with the Asian continent, Asian continent, and Chinaand China

Down Fall of the ConferenceDown Fall of the Conference

No restrictions had been made on No restrictions had been made on small war ships and other powers small war ships and other powers constructed cruisers, destroyers and constructed cruisers, destroyers and submarinessubmarines

Frank B. KelloggFrank B. Kellogg

Secretary of State Secretary of State (1928)(1928)

Signed the Signed the Kellogg-Kellogg-Briand PactBriand Pact with with French foreign French foreign ministerminister

Pact of Paris – Pact of Paris – ratified by 64 ratified by 64 nationsnations

““the outlaw of war”the outlaw of war”

Teapot Dome ScandalTeapot Dome Scandal 1921 – Sec. of Interior 1921 – Sec. of Interior

Albert B. FallAlbert B. Fall Transferred holdings of Transferred holdings of

naval oil reserves at naval oil reserves at Teapot Dome, WY to Teapot Dome, WY to Interior DeptInterior Dept

Harding signsHarding signs Fall leased lands to Fall leased lands to

oilmen Harry Sinclair oilmen Harry Sinclair and Edward Dohenyand Edward Doheny

Received a $100,000 Received a $100,000 bribebribe

Warren HardingWarren Harding Died in San Francisco, Died in San Francisco,

CA while on a cross-CA while on a cross-country speaking tourcountry speaking tour

August 2, 1923 – died August 2, 1923 – died of pneumonia and of pneumonia and thrombosisthrombosis

Millions mourned, not Millions mourned, not yet aware of all the yet aware of all the scandalsscandals

Harding not strong Harding not strong enough to be presidentenough to be president

Calvin Coolidge Calvin Coolidge becomes presidentbecomes president

International RelationsInternational Relations

Allies force Germany to pay Allies force Germany to pay reparations.reparations.

Germany is in financial ruinsGermany is in financial ruins Coolidge refused to forgive debtCoolidge refused to forgive debt 1924 – Dawes Plan1924 – Dawes Plan

Hoover in ‘28Hoover in ‘28

Coolidge chooses Coolidge chooses not to run in ’28not to run in ’28

Hoover selected Hoover selected b/c of his belief in b/c of his belief in individualism, free individualism, free enterprise, and enterprise, and small government.small government.

Hoover defeats Hoover defeats Catholic Al Smith Catholic Al Smith by a landslideby a landslide

Hoover’s ResponseHoover’s Response

Promoted self helpPromoted self help Agricultural Marketing Act – loans to Agricultural Marketing Act – loans to

farm cooperativesfarm cooperatives Hawley Smoot Tariff – farmers want Hawley Smoot Tariff – farmers want

tariff; ended up being the highest tariff; ended up being the highest protective tariff in our nations historyprotective tariff in our nations history

Reconstruction Finance CorporationReconstruction Finance Corporation Public Works projects – Hoover DamPublic Works projects – Hoover Dam

Crash Ends The Prosperous Crash Ends The Prosperous 20s20s

The 1920s were marked by high growth The 1920s were marked by high growth and prosperityand prosperity

October 29, 1929 – millions of stocks were October 29, 1929 – millions of stocks were sold in panicsold in panic

2 months later – Americans had lost $40 2 months later – Americans had lost $40 billionbillion

Millions lost their jobs and thousands of Millions lost their jobs and thousands of banks closed.  No other industrialized banks closed.  No other industrialized nation suffered so severe a setback as the nation suffered so severe a setback as the United States.United States.

Causes of DepressionCauses of Depression

Overproduction of Overproduction of farm and factoryfarm and factory

Ability to produce Ability to produce out ran the need out ran the need

Overexpansion of Overexpansion of credit credit

1930s – terrible 1930s – terrible drought drought