Politics of Boom and Bust Pt 1

Harding on the Presidency “God! What a job!” Not so much his own corruption, more not being able to control people who worked for him Some good news: Charles Evans Hughes Sec. of State, Mellon Sec. of Tres., Herbert Hoover Sec. of Commerce

The Republican “Old Guard” Returns Harding’s cabinet – Some competent and honest Charles Evans Hughes – secretary of state Andrew W. Mellon – secretary of treasury Herbert Hoover – secretary of commerce – Two incompetent crooks Albert B. Fall – secretary of the interior Harry M. Daugherty – attorney general

Supporting Business Keep hands off business, even guide them to profits Harding gets to appoint four SC Justices Relaxed labor laws Antitrust laws often ignored Encouraged railroad consolidation and promised ICC cooperation Government and Attny Gen Daugherty help break up strikes

Foreign Relations 1921 joint resolution calls end to WWI Unofficial observers sent to L of Nations Work on securing oil rights in the Middle East w/England Disarmament discussed in Washington Conference, end up with 5:5:3 ratio agreed upon (US, England, Japan) War outlawed in the Kellogg-Briand Pact signed by 62 nations

Tariffs Forney Mc Cumber Tariff Law brings tariffs back up to 38.5% European economy hurt by lack of US business European countries limit imports from US

Scandal Head of Vets Bureau Forbes taking $$ from Veterans Hospitals Teapot Dome Scandal: Sec of the Interior Fall leases oil rights at Teapot Dome and Oak Hills after getting them transferred from the Sec of Navy. Fall’s bank account increases by $100k. Fall eventually goes to jail (Sinclair and Doheny, those leasing lands do not) Harding dies on trip across the West in 8/23

Silent Cal Mechanization of farms change everything “Keep Cal and Keep Coolidge” allows Coolidge to get re-elected Defeats Democrat Davis and Progressive LaFollette (actually gets 13 electoral votes)

Foreign Policy Works out oil crisis w/Mexico US trying to get back $10 billion in war loans French and British want their $$ back from Germany Germany has run away inflation US loans $$$ to Germany to repay England and France---Dawes Plan

“Silent Cal” Coolidge Coolidge’s philosophy on government – Believed government should support business, not right social wrongs “the man who builds a factory builds a temple; the man who works worships there” – Supported Mellon’s tax and spending cuts – Approved of business consolidation and profit – Not politically affected by the scandals because of his transparent honesty