HARDING AS PRESIDENT  FOREIGN POLICY –League of Nations –5 Power Treaty—Brit, Jap, US, Fr, Italy –4 Power Treaty-US,Brit, Fr, Japan –9 Power Treaty-observe “open door” in China

HARDING—Domestic Policy  Decrease taxes  Increased tariffs  Veto bonus bill ($ to vets)  War debt—installment plan  Scandals—”Teapot Dome”, Ohio Gang  Harding picks 4 justices to SC

1924 Election  Rep-Coolidge  Dem-Davis  Progressives-LaFollette  Issues: city vs. country  Winner—Coolidge—”cool Cal”

Coolidge as President Foreign Policy  Dollar diplomacy  Good neighbor

Coolidge—Domestic Policy  Decreased taxes  Help industry  Decrease Gov’t spending  No gov’t regulation  Veto of McNary Haugen Bill –Gov’t buy surplus farm products & set prices high

THE 1928 ELECTION  REPUBLICAN  HOOVER –“RAGS TO RICHES” –INDUSTRY, THRIFT & SELF RELIANCE—RUGGED INDIVIDUALISM –DEMOCRATIC  AL SMITH—NY –“WET, IRISH CATHOLIC, CITY GUY” –RESULT: HOOVER WINS –WHY? –“HOOVERCRATS”

HOOVER’S PRESIDENCY  WHO IS NOT GETTING THE MONEY???  HOOVER’S “FIXES” –1-AGRICULTURAL MARKETING ACT, JUNE 1929  FEDERAL FARM BOARD –FARM COOPS –2-GRAIN STABILIZATION CORPS –COTTON STABLIZATION CORPS –3-TARIFF  CAMPAIGN PROMISE  1930 HAWLEY SMOOT  38% TO 60% –IMPACT

Coming of the Great Depression  Stock market speculation  “Black Thursday” Oct. 24, 1929  Prices drop rapidly-----sell off prices drop even more  JP Morgan & others--$30 mil in market  Hoover—”Fundamental business of the country is on a sound and prosperous base”

GREAT DEPRESSION  Oct. 24, 1929—Black Thursday –Decreased prices----sell off----further decline in prices  OCT. 29, 1929 BLACK TUESDAY  IMPACT??  BY END OF 1929 STOCKHOLDERS LOST 40 BIL IN “PAPER” VALUE  CAUSES OF THE GREAT DEPRESSION OVERPRODUCTION OVEREXPANSION OF CREDIT DECREASE OF WORLD TRADE-tariffs & war debt *DROUGHT IN MISSISSIPPI VALLEY 1930 TECHNOLOGICAL UNEMPLOYMENT TOO MUCH MONEY IN TOO FEW HANDS—Unequal distribution of wealth Bad Banking structure Limited Economic “Intelligence”

Affects on different groups  Wealthy—”cushion” of cash  Middle class—wages drop  Can’t pick up the slack of investment  Business—less investment—close factories  Holding Corps/Trusts/Banks—no payback of debt; lost $ in market  Poor—lower wages or layoffs  DOWNWARD SPIRAL OR SNOWBALL AFFECT

HOOVER’S POLICIES  1 RECONSTRUCTION FINANCE CORP.  “TRICKLE DOWN ECONOMICS”  2-NORRIS-LAGUARDIA ANTI INJUNCTION ACT 1932  3-USE CHARITIES—NOT GOV’T ASSISTANCE *1930 MIDTERM CONGRESSIONAL ELECTIONS BONUS ARMY

1932 ELECTION –DEMOCRAT FDR –REPUBLICAN HOOVER –NEW DEAL VS. “PROSPERITY IS JUST AROUND THE CORNER” –RESULTS:  DEMS TAKE PRES AND CONGRESS  AFRICAN AM VOTERS SHIFT TO DEM PARTY  FIRST 100 DAYS OF FDR’S PRESIDENCY –3 R’S—RECOVERY, RELIEF AND REFORM