HARDING SCANDALS AND THE STOCK MARKET CRASH (1920’S)

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Presentation transcript:

HARDING SCANDALS AND THE STOCK MARKET CRASH (1920’S)

Warren G. Harding: 1920  Nice guy, some said “lazy”, not too intellectual and “hands off” mindset  Cuts taxes for the wealthy, help for big business  High tariffs on foreign imports  Opposed to social reforms  Appoints friends from his hometown to various positions in his Administration

Harding Scandals ( )  Ohio Gang  Millions of missing dollars meant for Veterans Hospitals turns up missing  Attorney General implicated in fraud related to seized assets of Germany from WWI  Teapot Dome  Albert Fall had oil lands marked for Navy use turned over to him where he sold off drilling leases to private contractors in return for money and cattle  Fall sentenced to year in prison

Harding Dies and Calvin Coolidge Is In  Controversy free, known as “Silent Cal”  Serious, quiet and honest  Re-elected in 1924  Man of few words, “the business of the country is business”  Ignores many social issues

How did US support world peace efforts?  Kellogg-Briand Pact  Dawes Plan  Washington Naval Disarmament Conference

President Herbert Hoover (R)  “…we are challenged with a peace time choice between the American system of rugged individualism and a European philosophy of diametrically opposed doctrines – doctrines of paternalism and state socialism”  What is Hoover’s view on America as he enters office in 1928?

Underlying Problems  Farmers:  Farm crop surplus from post WWI investments  Failure to pay back debts  Natural disasters  Too much credit and consumer debt  Middle class is dissolving  Less industrial infrastructure development  Stock market speculation  Any of these sound familiar?

Black Tuesday  October 24 th (Black Thursday): nervous investors start to sell  October 29 th, 1929 (Black Tuesday)