WARREN G. HARDING 1921-1923 RETURN TO STABILITY & NORMALCY POWERFUL CABINET STATE – CHARLES EVANS HUGHES TREASRUY – ANDREW MELLON COMMERCE – HERBERT HOOVER REPUBLICAN LEADERSHIP OF THE 1920’S How did the relationship between big business & the government aid economic growth?  

THE OHIO GANG ATTORNEY GENERAL: H.DAUGHERTY INTERIOR: ALBERT FALL VETERANS BUREAU: CHARLES FORBES

DOMESTIC AFFAIRS – MELLON AT THE HELM ECONOMIC NATIONALISM FORDNEY-MCCUMBER TARIFF ’22 The Fordney-McCumber Act established the highest tariffs in history, with some duties up to 400% and an average of 40%. DEBT REDUCTION 19TH AMENDMENT SHEPPARD TOWNER ACT ’21: RURAL PRENATAL CARE( EXP. ’29) 4 WAYS GOVERNMENT SUPPORTED BIG BUSINESS: 1) TARIFF 2) A. MELLON POLICIES 3) CUTBACKS AT FTC & PRO-BUSINESS APPOINTMENTS 4) HERBERT HOOVER

EFFECTS OF TARIFF RETURN TO PROTECTIONISM FARMER’S HURT DOESN’T ADDRESS PROBLEM OF OVER-PRODUCTION & DECLINING PRICES PREVENTS EURO. FROM PAYING OFF DEBT

WASHINGTON NAVAL CONFERENCE 1921 a. US, GB, FR, ITALY & JAPAN FOREIGN AFFAIRS – INDEPENDENT INTERNATIONALISM involved in foreign affairs when it served our interest WASHINGTON NAVAL CONFERENCE 1921 a. US, GB, FR, ITALY & JAPAN b. 5 POWER TREATY – SPECIFIC RATIO OF BATTLESHIPS c. 4 Power Treaty – respect interests in islands off Pacific d. 9 Power Treaty – China’s independence & Open Door

DEATH & SCANDALS “I HAVE NO TROUBLE WITH MY ENEMIES, IT’S MY DAMN FRIENDS THAT KEEP ME UP AT NIGHT” TEAPOT DOME – LEASING OIL RESERVES FOR BRIBE: A. FALL JAILED FORBES CONVICTED OF STEALING FUNDS & FLED DAUGHERTY ESCAPED CONVICTION 2 CRIMIINAL TRIALS

COOLIDGE TAKES OFFICE AT HOME IN VERMONT BY HIS FATHER’S SIDE PHILOSOHY WAS TO PRESIDE BENIGNLY NOT GOVERN THE NATION RAISED ETHICAL TONE IN D.C. EPITOMIZED MYTH OF AMERICAN SELF MADE MAN “THE BUSINESS OF AMERICA IS BUSINESS” – 1 OF MANY EPIGRAMS HE ‘LIVES’ BY

DOMESTIC AFFAIRS ANDREW MELLON CONTINUES AS SECRETARY OF THE TREASURY LOWER INCOME TAX RATES FOR WEALTHY TRICKLE DOWN THEORY IS BORN

MISSISSIPPI FLOOD 1927 – “NO DUTY TO PROTECT AGAINST THE HAZARDS OF NATURE” C. COOLIDGE FLOOD CONTROL ACT PASSED 1928: 10 YEAR LEVEE CONSTRUCTION PROJECT

NO FARMER RELIEF MCNARY HAUGEN ACT 1924: 2X VETOED ’27 & 28 Purchase surplus at avg. price 1909-14 & resell abroad at market price Make up difference w/ tax on domestic sales of same commodities Beware “tyranny of bureaucratic regulation & control”

FOREIGN AFFAIRS: WAR DEBT & REPARATIONS DAWES PLAN 1924: $200M LOAN TO GER. a. Germany agrees to pay $250m/yr to allies to stabilize German currency through investment & rebuilding economy

KELLOGG-BRIAND PACT 1928: 62 NATIONS OUTLAW WAR French want US protection and commitment 62 nations in all sign pact ineffective due to no enforcement.

ELECTION OF 1928 HOOVER – DRY, PROTESTANT & NATIVE SMITH – WET, CATHOLIC & IMMI-GRANT PERSONIFICATION OF DIVISIONS WITHIN AMERICA HOOVER 58% OF POPULAR VOTE DEMOCRATIC GAINS IN CITIES SHOWS SHIFT IN ELECTORATE