republican leadership of the 1920s how did the relationship between big business & the...

REPUBLICAN LEADERSHIP OF THE 1920’SHow did the relationship between big business & the government aid economic

growth?

TENSION BETWEEN CITY & COUNTRY SHAPED COURSE OF POLITICS IN THE 1920’S

• WARREN G. HARDING 1921-1923• RETURN TO STABILITY & NORMALCY• POWERFUL CABINET BECAUSE HE WASN’T –

DELEGATED ALL RESPONSIBILITY & ENDED UP HURTING HIS REPUTATION

• STATE – CHARLES EVANS HUGHES• TREASURY – ANDREW MELLON• COMMERCE – HERBERT HOOVER

THE OHIO GANG• ATTORNEY GENERAL: H. DAUGHERTY

• INTERIOR: ALBERT FALL

VETERANS BUREAU: CHARLES FORBES (WWI DRAFT DODGER)

DOMESTIC AFFAIRS – MELLON AT THE HELM ECONOMIC NATIONALISM

FORDNEY-McCUMBER TARIFF ’22; protectionist established the highest tariffs in history, with some duties up to 400% and an average of 40%. DEBT REDUCTION; tax cuts, decrease gov’t spending but rich benefit not those struggling19TH AMENDMENTSHEPPARD 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: SHARE OF NATIONAL INCOME DROPS BY

50%• DOESN’T ADDRESS PROBLEM OF OVER-PRODUCTION &

DECLINING PRICES – NEED A NEW SOLUTION• PREVENTS EURO. FROM PAYING OFF DEBT

FOREIGN AFFAIRS – INDEPENDENT INTERNATIONALISMinvolved 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 – 1ST ATTEMPT AT NAVAL REDUCTION

• c. 4 POWER TREATY–US & JAPAN respect each others interests in islands in the 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”

*JULY 1923 VACATION OUT WEST & DIES OF HEART ATTACK.*1924 INVESTIGATIONS INTO RUMORS IN FULL SWING*TEAPOT DOME – LEASING OIL RESERVES FOR BRIBE: A. FALL JAILED* FORBES CONVICTED OF STEALING FUNDS & FLED TO EUROPE*DAUGHERTY ESCAPED CONVICTION IN 2 CRIMINAL 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 LIVED BY

• MORE CONSERVATIVE: SC UNDER TAFT OVERTURNS FED CHILD LABOR LAW, HIGHER TARIFFS, PROMOTED BUSINESS INTERESTS BUT NOT OTHER GROUPS

DOMESTIC AFFAIRS • MELLON STAYS ON AS TREASURY

SECRETARY, LOWERS TAX RATES FOR RICH, TRICKLE DOWN CONTINUES

• BIG BUSINESS & GOVERNMENT AS PARTNERS & LESS ADVERSARIAL

• REGULATORY BODIES, ICC & FTC, TURN INTO PRO-BUSINESS AGENCIES

• ECONOMY CONTINUED TO RISE SO COOLIDGE DIDN’T HAVE TO DO MUCH

MISSISSIPPI FLOOD 1927 “NO DUTY TO PROTECT AGAINST THE HAZARDS OF NATURE” C. COOLIDGE

NO FARMER RELIEF• MCNARY HAUGEN ACT 1924: 2X VETOED ’27 & 28

» Purchase surplus at avg. price 1909-14 & resell abroad at market price (prices highest during 09-14)

» Make up difference w/ tax on domestic sales of same commodities

» Beware “tyranny of bureaucratic regulation & control”

» Veto in 1928 leads many to vote Democratic next election

FOREIGN AFFAIRS: WAR DEBT & REPARATIONS • LACK OF AWARENESS OF

CONNECTION BETWEEN TARIFF & REPARATIONS

• DAWES PLAN 1924: $200M LOAN TO GER.

• YOUNG PLAN 1929: FURTHER REDUCTIONS BUT TOO LATE

• LOANS FROM U.S. TO GERMANY CEASE, ALLIED PAYMENTS STOP, GERMANY DEFAULTS DUE TO ECONOMIC CRISIS

KELLOGG-BRIAND PACT 1928: 62 NATIONS OUTLAW WAR

• FRENCH WANT US PROTECTION & COMMITTMENT

• 62 NATIONS SIGN PACT• INEFFECTIVE DUE TO LACK OF

ENFORCEMENT• RENOUNCE WAR AS A SOLUTION

TO INTERNATIONAL DISPUTES WAS NICE BUT….

• U.S. PEACE MOVEMENT GROWING. PEOPLE WANTED PEACE BUT, “NEITHER SURRENDER THEIR PREJUDICES & DISLIKES NOR BUILD THE DEFENSES NECESSARY TO MAKE IT SAFE TO INDULGE THESE PASSIONS”

ELECTION OF 1928• HOOVER – DRY, PROTESTANT &

NATIVE• SMITH – WET, CATHOLIC &

IMMIGRANT• PERSONIFICATION OF DIVISIONS

WITHIN AMERICA• HOOVER 58% OF POPULAR VOTE• DEMOCRATIC GAINS IN CITIES

SHOWS SHIFT IN ELECTORATE