Part 5 Return to Normalcy

I.Normalcy a.Warren G. Harding for President A call to return to the peacetime economy by everyone Return railroads to private control “We want a period in America with less government in business and more business in government.” Harding/Coolidge from Ohio defeats James M. Cox and FDR for President

b.Economics after the War War time economy becomes a peacetime economy Too much inventory, not enough need Dropping prices, lost jobs, recession Exports drop, 11.5% unemployed Many strikes, some young women working for 18 cents an hour c.Loans and Debts British – 4.3 billion, French – 3.5 billion, Italian – 1.6 billion Allies wanted those debts cancelled

II.Scandal in Harding’s Admin. a.Teapot dome (oil) Teapot Dome in Wy, Elk Hills in Ca. Gov’t oil reserves set aside for the Navy by Taft and Wilson Harding transferred the land from the control of the Navy dept to the Interior Albert Fall, Secretary of the Interior, entered into a secret agreement with two oil men, no competitive bidding and a bargain price Supreme Court declared the leases illegal

III. Harding Dies, Coolidge President a.Harding dies while traveling Tours the country, giving speeches to regular folk Gets sick, dies in San Francisco b.Coolidge wins 1924 Election! “The Business of America is Business” Democratic challenger is John W. Davis, NY lawyer, loses by a 2 to 1 ration

c.Slump in agriculture Booming during the war, providing food for soldiers Returning vets to the fields of America and Europe Gasoline-engine tractor could cultivate more in one hour than a horse in a day d.The Golden Twenties Not all saw hard times Most manufacturing, retail trades, transportation saw boom times Good wages, free spending by many

The End of Part 5