Warren Gamaliel Harding Return to “Normalcy ” Meaning, return to... conservatism McKinley-style support of business Laissez-faire

Warren Gamaliel Harding Scandalous! Veterans Bureau Scandal Charles R. Forbes, head of VB, skimmed off $200m

Warren Gamaliel Harding Scandalous! Attorney General Daugherty Investigated by Senate for illegal sale of pardons and liquor permits; he resigns

Warren Gamaliel Harding Scandalous! Teapot Dome Scandal = worst U.S. naval oil reserves at Teapot Dome, WY are sold to private developers for ~$400k by Secretary of the Interior, Albert Fall; he serves time in prison

Teapot Dome Scandal

Warren Gamaliel Harding Also chose Best & Brightest......Charles Evans Hughes, Secretary of State...Andrew W. Mellon, Secretary of Treasury...Herbert Hoover, Secretary of Commerce

Warren Gamaliel Harding Conservatism... Wm Howard Taft appointed as Chief Justice of the Supreme Court Supreme Court struck down Keating- Owens Act (child labor) Interstate Commerce = pro-biz High tariff: Fordney McCumber

Post WWI turmoil: labor Economic demobilization Government dismantles economic controls End of government support of business & labor Business under private management once again Labor wants reward for good behavior on the home front during the war

Post WWI turmoil: labor Steel strike of 1919

Post WWI turmoil: labor Steel strike of 1919 Broken by authorities Supposedly a “Red”-inspired strike Also exploited ethnic/racial differences among workers

Post WWI turmoil: labor Boston Police Strike 1919 WWI inflation rose beyond that of police officers’ wages. Cost of living (1913 to 1919)  by 76%; increase in wages  by 18%. They worked in 10-hour shifts and often slept in the station under unsanitary conditions. They were not paid for court time.

Post WWI turmoil: labor Boston Police Strike 1919

American public reaction to labor disruptions

Post WWI veterans *Veterans’ Bureau established *Adjusted Compensation Act (aka “Bonus Bill”) To make up for wages lost while serving in war Bill passed (vetoed by Harding) Passed again (signed by Coolidge) Bonus due in 1945

International Relations Sign end-of-war agreement with Germany Rival Britain for oil rights in Middle East Washington (Disarmament) Conference *10-year holiday in battleship construction *5-Power Naval Treaty = ratio: US/UK/Japan *4-Power Treaty = Pacific status quo: UK/US/France/Japan *9-Power Treaty = Keep Open Door in China ISOLATIONISM!

“Silent Cal” Coolidge HonestPro-business “The man who builds a factory builds a temple...” “The business of American is business” Vetoes McNary-Haugen Bill......which proposed relief to farmers; Government would have bought and sold farmers’ unsold surplus

“Silent Cal” Coolidge HonestPro-business “The man who builds a factory builds a temple...” “The business of American is business” Vetoed (2x) McNary-Haugen Bill......which proposed relief to farmers; government would have bought and sold farmers’ unsold surplus

International Debts $10b owed to US by Allies who want their debt forgiven by us Allies pressure Germans for reparations; French send troops to get theirs Berlin inflates currency  hyperinflation

International Debts The 5 billion mark note from October 20, 1923: A German needed 40 of these to buy 1 loaf of bread!

International Debts The Dawes Plan, 1924 Rescheduled German reparations payments Allowed for private loans to Germany American bankers loan $ to Germany  Germany pays reparations to Allies  Allies pay US back

International Debts America’s refusal to forgive foreign debts promotes ill-will and, thus, reinforced isolationism

Election of 1928 Republican Herbert Hoover vs. Democrat Al Smith

Election of 1928 Herbert Hoover Orphan, engineer, self-made millionaire Respected international humanitarian who believed in America’s “rugged individualism” Excellent and honest administrator Supports unions and government control of radio Rejected “planned economy”

Election of 1928 Al Smith 4-term governor of New York A “wet”: Al(cohol) Smith Urban and northern Roman Catholic Southern Democrats became “Hoovercrats” KKK slogans against him

Hoover as President *Established Farm Board for farm loans *Grain/Cotton Stabilization Corp. to raise prices *Smoot-Hawley Tariff (serious mistake) raised tariffs to almost 60% seals US off from European goods

Causes of Great Depression Overproduction Income disparity Easy credit High tariffs Postwar worldwide depression Unemployment Natural disasters

Hoover as President (1) Trickle Down theory (2) Public Works (Boulder Dam on Colorado River) (3) Reconstruction Finance Corporation (!!!) (4) Norris-LaGuardia Anti-Injunction Act (Boost to organized labor unions) Significance? Bridge between old and new— government IS doing something

Hoover as President Bonus Expeditionary Force 20,000 vets march to DC seeking early payment on the 1945 bonuses Take up residence in Anacostia Flats Hooverville Congress refuses early payment General Douglas MacArthur wages “war” on the vets to get them out of DC