TENSION BETWEEN CITY & COUNTRY SHAPED COURSE OF POLITICS IN THE 1920’S REPUBLICAN LEADERSHIP OF THE 1920’S How did the relationship between big business & the government aid economic growth?   TENSION BETWEEN CITY & COUNTRY SHAPED COURSE OF POLITICS IN THE 1920’S WARREN G. HARDING 1921-1923 RETURN TO STABILITY & NORMALCY POWERFUL CABINET BECAUSE HE WASN’T STATE – CHARLES EVANS HUGHES TREASURY – ANDREW MELLON COMMERCE – HERBERT HOOVER ALL REPUBLICAN PRESIDENTS WISH TO RETURN TO PRE- WWI POLICIES: LAISSEZ FAIRE, REDUCED TAXES ON BB & WEALTHY PRO-BUSINESS APPOINTEES TO FRC ALA ICC

THE OHIO GANG ATTORNEY GENERAL: H. DAUGHERTY INTERIOR: ALBERT FALL VETERANS BUREAU: CHARLES FORBES (WWI DRAFT DODGER)

DOMESTIC AFFAIRS – MELLON AT THE HELM *INDUSTRIAL WORKERS ONLY MARGINAL BENEFITS *WHITE WOMEN’S RIGHTS 19TH AMENDMENT 1920 LEAGUE OF WOMEN VOTERS SHEPPARD TOWNER ACT 1921 1928 7 WOMEN ELECTED TO HOUSE OF REPRESENTATIVES AFRICAN AMERICAN WOMEN FORMED OWN ORGS. *DECLINING VOTER PARTICIPATION AMONG ALL VOTERS PROSPERITY, CONSERVATISM ECONOMIC NATIONALISM 4 WAYS GOVERNMENT SUPPORTED BIG BUSINESS: 1) FORDNEY-McCUMBER TARIFF 1922 HIGHEST IN HISTORY AVG. 40% 2) DEBT REDUCTION: TAX CUTS, ↓ GOV’T SPENDING 3) CUTBACKS AT FTC & PRO-BUSINESS APPOINTMENTS 4) HERBERT HOOVER

FOREIGN AFFAIRS – INDEPENDENT INTERNATIONALISM INVOLVED IN FOREIGN AFFAIRS WHEN IT SERVED OUR INTEREST & HOW IS THIS ISOLATIONIST? IT’S NOT WASHINGTON NAVAL CONFERENCE 1921 a. US, GB, FR, ITALY, JAPAN, BELGIUM, PORTUGAL, UK & NETHERLANDS b. 5 POWER TREATY:US, UK, FR, J, IT: SPECIFIC RATIO OF BATTLESHIPS – 1ST ATTEMPT AT NAVAL REDUCTION c. 4 POWER TREATY: US, FR, UK, J CONSULT W/ EA. OTHER BEFORE TAKING ACTION IN E. ASIA – JAPAN #1 THREAT TO U.S. INTERESTS d. 9 POWER TREATY: INTERNATION-ALIZATION OF OPEN DOOR; RESPECT TERRITORIAL RIGHTS IN CHINA

DEATH & SCANDALS “I HAVE NO TROUBLE WITH MY ENEMIES, IT’S MY DAMN FRIENDS THAT KEEP ME UP AT NIGHT” *JULY 1923 VACATION OUT WEST & DIES OF HEART ATTACK. *1924 INVESTIGATIONS INTO RUMORS IN FULL SWING *TEAPOT DOME – LEASING OIL RESERVES FOR BRIBE: A. FALL JAILED * FORBES CONVICTED OF STEALING FUNDS & FLED TO EUROPE *DAUGHERTY ESCAPED CONVICTION IN 2 CRIMINAL TRIALS

COOLIDGE TAKES OFFICE AT HOME IN VERMONT BY HIS FATHER’S SIDE CHOICE FOR VP SIGN OF RETURN TO CONSERVATISM PHILOSOHY WAS TO PRESIDE BENIGNLY NOT GOVERN RAISED ETHICAL TONE IN D.C. EPITOMIZED MYTH OF AMERICAN SELF MADE MAN “THE BUSINESS OF AMERICA IS BUSINESS” –EPIGRAMS NOT ACTION MORE CONSERVATIVE: SC UNDER TAFT OVERTURNS FED CHILD LABOR LAW, HIGHER TARIFFS, PROMOTED BUSINESS INTERESTS BUT NOT OTHER GROUPS (WOMEN, BLACKS, WORKERS)

DOMESTIC AFFAIRS MELLON STILL TREASURY SECRETARY, TRICKLE DOWN CONTINUES BIG BUSINESS & GOVERNMENT AS PARTNERS & LESS ADVERSARIAL REGULATORY BODIES, ICC & FTC, PRO-BUSINESS AGENCIES ECONOMY CONTINUED TO RISE SO COOLIDGE DIDN’T HAVE TO DO MUCH MCNARY HAUGEN ACT 1924: 2X VETOED ’27 & 28 - UNSUCCESSFUL Purchase surplus wheat at avg. price 1909-14 & resell abroad at market price (prices highest during 09-14) Make up difference w/ tax on domestic sales of same commodities Beware “tyranny of bureaucratic regulation & control” Veto in 1928 leads many to vote Democratic next election

FOREIGN AFFAIRS: WAR DEBT & REPARATIONS LACK OF AWARENESS OF CONNECTION BETWEEN TARIFF & REPARATIONS DAWES PLAN 1924: $200M LOAN TO GERMANY TO HELP STABILIZE DM YOUNG PLAN 1929: FURTHER REDUCTIONS BUT TOO LATE LOANS FROM U.S. TO GERMANY CEASE, ALLIED PAYMENTS STOP, GERMANY DEFAULTS DUE TO ECONOMIC CRISIS KELLOGG-BRIAND PACT 1928: 62 NATIONS OUTLAW WAR U.S. PEACE MOVEMENT GROWING. PEOPLE WANTED PEACE BUT, “NEITHER SURRENDER THEIR PREJUDICES & DISLIKES NOR BUILD THE DEFENSES NECESSARY TO MAKE IT SAFE TO INDULGE THESE PASSIONS”

RISE OF HOOVER & 1928 ELECTION AS SECRETARY ENCOURAGED VOLUNTARY COOPERATION IN PRIVATE SECTOR – CREATES STABILITY IN ECON PROMOTED TRADE ASSOCIATIONS W/I INDUSTRIES TO PROMOTE EFFICIENCY IN PRODUCTION & MARKETING AL SMITH DEMOCRATIC CANDIDATE WET, CATHOLIC, URBAN, VS. HOOVER’S DRY, PROTESTANT, RURAL UPBRINGING HOOVER 58% OF VOTE; VICTORY APPEARED TO SIGNAL DEMS WERE DOOMED FOR EXTINCTION BUT! GREAT DEM GAINS IN THE CITIES SHOWED SHIFT IN THE ELECTORATE – 12 LGST IN 24 VOTED REP. & IN 28 VOTED DEM. PROSPERITY MORE WIDELY SHARED THAN AT ANY OTHER TIME BUT MORE THAN ½ AMERICAN POPULATION FAILED TO ACHIEVE ANY REAL BENEFITS

HE’S NOT YOUR FATHER’S REPUBLICAN OPPOSED CUT-THROAT COMPETITION CORPORATE COOPERATION WELCOMED WELFARE CAPITALISM ADVOCATED VOLUNTARISM WASHINGTON BUSINESS CONFERENCES (CONTINUED AS DEPRESSION HIT TO HELP AMELIORATE SITUATION) TRADE ASSOCIATIONS 8 HOUR WORK DAY DIVISION OF CO. RIVER H2O

BLACK THURSDAY 10/24/29 & THE ONSET OF THE DEPRESSION UNDER COOLIDGE 5 YR ARTIFICIAL RISE MELLON TAX BILL CONTRIBUTED TO RAMPANT CONSUMER SPENDING: SPECULATION MAJOR MARKET CHARACTERISTIC CAUSES: UNDERCONSUMPTION & OVERPRODUCTION OF MFG GOODS; INADEQUATE PROTECTION OF STOCK MARKET HOOVER CLOSES MARKET FRIDAY & MONDAY “BUSINESS OF U.S. IS ON A SOUND & PROSPEROUS BASIS” CONSTRUCTION INDUSTRY TANKED ‘28 FRB INCREASED IR BUT BANKS KEPT MAKING LOANS TIGHT $ POLICY IN ‘30’S REDUCED $ AVAILABLE FOR INVESTMENT & GROWTH & HURT RECOVERY EFFORTS 13 MILLION SHARES SOLD THURSDAY & BLACK TUESDAY ANOTHER 16 MILLION

HOOVER’S RESPONSE – THOUGHT OUTSIDE THE BOX RUGGED INDIVIDUALISM *LOCAL GOV’T & CHARITIES RESPONSIBLE *PUBLIC WORKS: HOOVER DAM *WASHINGTON BUSINESS CONFERENCES *DEPRESSION MASSIVE, 9K BANKS GONE *SMOOT HAWLEY TARIFF: PROTECTIONIST *FEDERAL FARM BOARD – RAISE FARM PRICES BUT TOO LATE *REJECTED LAISSEZ FAIRE APPROACH *RECONSTRUCTION FINANCE CORP – AID TO BUSINESSES STILL IN OPERATION BUT NO INDIVIDUAL OR FAILED BUS. RELIEF

THE BONUS MARCH 1932 OF THE BONUS ARMY demand for immediate cash-payment redemption of their service certificates World War Adjustment Act of 1924 had awarded them bonuses in the form of certificates redeemable in 1945. Each Service Certificate bore a face value equal to the soldier's promised payment plus compound interest AG Wm Mitchell ordered to clear vets from gov’t property – 2 vets killed D. MacArthur with cavalry & tanks forcibly moved vets & families off of property & burned their makeshift houses

FOREIGN POLICY! Clark Memorandum 1930 -The primary point was that the Monroe Doctrine was based on conflicts of interest between the United States and European nations, rather than between the United States and Latin American nations. STIMSON DOCTRINE 1932 as a result of Japan’s invasion of Manchuria in 1931. Letters sent to China & Japan that US will NOT recognize legality of seizures made in violation of treaties. HH “We’re not the world’s policeman” No impact on Japan & they bomb Shanghai in 1932 & withdraw from League