Return of the Republican Guard AIM: How did the policies of three Republican president’s effect the economy and foreign policy of the 1920’s?

1920’s Economic and Foreign Policy

I. Warren G. Harding A. “Return to Normalcy” 1. “Smoke-Filled Room” nomination 2. Sec. of Treasury: Andrew Mellon 3. Sec. of Commerce: Herbert Hoover 4. Sec. of State: Charles Evans Hughes 5. Pardon’s Eugene Debs

B. Economic Policy under Mellon 1. Goals/Tactics: Lower taxes of wealthy Revenue Act of 1921 “trickle down theory”

b. Fordney-McCumber Tariff Act 1922 – increase tariff on foreign goods 1) Impact: Makes it more difficult for European nations to pay back war debts

c. Reduce national debt and balance the budget d. Cut government spending e. Raise taxes on lower income

2. Laissez Faire Government a. Rolls back Progressive safeguards 1) ICC, FTC, Federal Reserve all headed by pro business men

C. Scandal!! "If Fall isn't an honest man, then I'm not fit to be President." 1. Sec. of Interior Albert Fall and Att. General Harry Daugherty accepted bribes for granting oil leases in WY.

II. Calvin Coolidge “Silent Cal” The business of America is business.” A. Coolidge Prosperity 1. Pro business, anti-Labor 2. Keeps Andrew Mellon 3. Millionaires increase 4. 1913-1927 # of homes with electricity increases 465%

5. Chair Stores 6. Installment plans 7. Planned Obsolescence of goods 8. Advertising and psychology

9. Introduction of automobile a. urban sprawl b. filling stations, roads

B. Inaction in the White House 1. Vetoed most acts of Congress 2. Vetoed Bonuses for WWI veterans Vetoed McNary-Haugen Bill of 1928 a. Would have aided farmers with buying up surplus food

III. Herbert Hoover, 1928

A. Alfred E. Smith KKK attacks Smith’s Catholicism Calls for repeal of 18th Current Republican prosperity http://www.nationalatlas.gov/printable/images/pdf/elections/elect09.pdf

B.Signs of Economic Slowdown

B. Signs of Economic Slowdown Railroads face competition from trucks, buses, private cars. Textile industry faces competition from Asia and Latin America a. Women’s style require less cloth Coal demand decreases a. Replaced with hydroelectric, oil, gas

C. Farmer Problems Overproduction a. War ends b. Can’t pay off mortgages c. Switch to rayon from cotton

2. McNary-Haugan Bill Would have helped farmers – buy surplus Vetoed by Coolidge

D. Uneven distribution of wealth 3/5 of wealth owned by 2% population Get rich fever a. Stock speculation b. Florida Land Boom

Foreign Policy of 1920’s Was American foreign policy during the 1920’s isolationist or internationalist? A. Disarmament and Peace 1. Rejection of League of Nations

Post war disillusionment http://edsitement.neh.gov/view_lesson_plan.asp?id=754

C. The Quest for Peace Senator William Borah - “outlawing war” Emergence of many peace organizations

New York Peace Society Carnegie Endowment for International peace Pacifists in the Fellowship of Reconciliation War Resisters League Women’s Peace Union Committee on the Cause and Cure of War Women’s International League for Peace and Freedom

D. Washington Naval Conference 1921-1922 5 Power Treaty: Maintain the following ratio for warships in their navies. US 5, GB 5, Japan 3, France 1.67, Italy 1.67 2. 4 Power Treaty: U.S. France, GB and Japan agree to respect each’s territory in Pacific 3. 9 Power Treaty: all agree to respect Open Door Note

E. Kellogg Briand Pact, 1928 Signed by most nations of the world Renounced aggressive force to achieve national ends. Ineffective: a. permitted defensive war b. no way to punish violators of agreement

E. Dawes Plan

Only Finland paid off its debt Unpaid debt left bad feelings on both sides. Reinforced some Americans view towards isolationism.

II. Summary Was American foreign policy in the 1920’s “isolationist” or “internationalist”?

The Roaring Twenties!!