harding. election of 1920 orepublicans nominated warren g. harding of ohio (calvin coolidge as vice...
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Election of 1920 o Republicans nominated
Warren G. Harding of Ohio (Calvin Coolidge as vice president)o Platform was effectively
ambiguous on the issue of the League of Nations
o Harding spoke of returning America to "Normalcy"
o Conservative "Old Guard" wing of the Republicans now dominated as Teddy Roosevelt’s Progressive.
Democrats nominated James M. Cox of OhioResults: Harding d. Cox 404-127; 16,143,407 to
9,130,328Eugene V. Debs received largest number of
votes for Socialist party (919,799) while sitting in jail
Results displayed public desire for change from idealism, moral overstrain and self-sacrifice.
Isolationists turned results into a death sentence for the League of Nations.
Scandal "Ohio Gang" or "Poker Cabinet"
Harding appointed his friends to prominent positions in his cabinet
Harding considered one of the worst presidents in U.S. history.
Most stories of his corrupt administration came out after his death.
- Col. Charles R. Forbes, head of the Veteran’s Bureau and his accomplices looted the gov’t of about $200 million.
Teapot Dome Scandal 1921, Sec. of Interior Albert Fall
arranged transfer of valuable naval oil reserves at Teapot Dome, WY & Elk Hills, CA to Interior Dept.
Fall then leased lands to 2 oilmen and received a bribe of about $400,000
The scandal became public in 1923 and the three men were indicted in 1924
Fall sentenced to one year in jail. Scandal undermined Americans’
faith in the courts & public officials -- "In America everyone is assumed guilty until proven rich.“
Attorney General Harry Daugherty brought to Senate investigation for illegal sale of pardons and liquor permits. He was forced to resign and brought to trial in 1927. Jury twice failed to convict him. Several of his advisors committed suicide rather than
face humiliation for corruption.
IMPORTANT LEGISLATION
• EMERGENCY QUOTA ACT 1921–LIMITS 3% BASED ON 1910 CENSUS–TOTAL 350,000 / YEAR
• FORDNEY-McCUMBER TARIFF 1922 38.9 %RATE
FORDNEY-McCUMBER TARIFF 1922 38.9 %RATE
o Businessmen feared cheap goods coming from a recovering Europe.
o Tariff rates pushed from 27% (Underwood Tariff) to an average of 38.5% (almost as high as the Payne-Aldrich Tariff of 1909).
o Duties on farm produce increasedo President authorized, with the advice of the
fact finding Tariff Commission, to increase duties by as much as 50%.
o Impact
CONGRESSIONAL INVESTIGATION
• 1923- HARDING IS IN DEBT• CHARLES FORBES RESIGNS• CHARLES CRAMER, WRITES LETTER TO
HARDING• THEN SHOOTS HIMSELF• HARDING REFUSES TO READ LETTER.
HARDING’S FINAL DAYS
• TAKE A TRIP TO ALASKA• TELL HOOVER ABOUT THE FRAUD,
HOOVER TELLS HIM TO CONFESS.• HARDING BECOMES ILL
CALVIN COOLIDGE BECOMES PRESIDENT
• 2 MONTHS LATER THE SCANDALS ARE REVEALED.
• ADDS TO DISILLUSION OF THE 1920’S
Carried out Harding’s Conservative Programs
• Farm Problem:– Cause:
• Recovery of European farmers brought less demand for U.S. farm products
• Machines facilitated more food production
• Depression hit agricultural sector in 1920s as 25% of farms were sold for debt or taxes
McNary-Haugen Bill• 1924-1928• Bipartisan Congressional “farm bloc” from
agricultural states aimed to help farmers.• Coolidge vetoed it twice• Result: Farm prices stayed down and
disgruntled farmers sought to make a difference in the 1924 elections.
Election of 1924• Party nominated
– Republicans nominated Coolidge– Democrats nominated conservative businessmen John W. Davis– New Progressive Party will nominate Senator Robert “Fighting Bob” La
Follette• Endorsed by the AFL and the shrinking Socialist party• Bulk support came from farmers• Platform
• Results:– Coolidge d. Davis and La Follette• 382 – 136 – 13
– La Follette received nearly 5 million votes– Nation too prosperous for most to be overly
concerned with reform
Muscle Shoals• During WWI the
government had construction a dam and two nitrate plants on the Tennessee River at Muscle Shoals, Alabama (one of nation’s poorest region).
• Both Harding and Coolidge opposed progressive plans for federal development of hydroelectric generating stations on the Tennessee River
• Senator George Norris wanted project owned and controlled by government
• Republicans saw it as too socialistic• The proposal would have significantly improved the economic
plight of the Tennessee Valley region• Muscle Shoals because nucleus of New Deal’s Tennessee
Valley Authority of the 1930s.
Monroe Doctrine
• 1823 Presidential statement warning European nations not to colonize further the American continents and suggesting that the US would refrain from intervention in European Affairs.
Manifest Destiny
• 1844 slogan of James K Polk that it would be the fate of the US to expand its boundaries from the Atlantic to the Pacific.
Open Door Policy
• 1899 circular note from Secretary of State John Hay to nations with spheres of influence in China that there should be equal trading opportunities for all nations in China.
• Later extended to say it would be the policy of the US to “preserve the territorial integrity of China”
Roosevelt Corollary
• 1904 Presidential extension – or perversion – of the Monroe Doctrine to suggest that in cases of “chronic wrongdoing.” it might be necessary for the US to intervene in Latin American countries to protect America’s new interest in the area.
Dollar Diplomacy
• President Taft’s policy supporting American commercial enterprises abroad, particularly in Latin America and the Far East, with dollars rather than bullets.
Ratification of the League Covenant (Article X)
• Information• Findings:
– The Senate found the provision, which was intended to encourage collective action in the event of aggression, particularly objectionable.
– Opponents regarded it as a threat to their role in declaring war– Wilson regarded this provision as essential to the League’s
effectiveness– When the two sides were unable to reach a compromise, the
Senate rejected the Treaty of Versailles, and with it, Article X.– This action appeared to some a return to isolation.
The Washington Conference 1921
• Information• Findings:
– The Big Five nations, including the US, Britain, Japan, France, and Italy, agreed to a 10-year moratorium on the building of large warships and agreed to maintain an established ration of large warships.
– The idealistic and temporary expedient required the US to do most of the scrapping of large vessels and included no provisions for enforcement.
– It appealed to many American taxpayers.
Geneva Conference 1927
• Information• Findings:– The US called this conference to try to extend the
ratio arranged at Washing to smaller vessels.– This attempt failed completely and led quickly to
naval expansion by the US
War Debts: The Dawes and Young Plans
• Information• Findings:– Dawes Plan provided a US loan to Germany to
help that country establish an orderly payment of reparations to European Allies.
– Young Plan reduced substantially the amount Germany was expected to pay.
– Both initiatives by the US were intended to facilitate trade with European in order to protect American economy.
Kellogg-Briand Peace Pact 1928
• Information• Findings:– This pact between France and the US outlawed
war “as an instrument of national policy.”– Although it was signed by most nations of the
world, its lack of provision for enforcement led one historian to compare it to a “letter from Santa Claus.”
Relations with Asia: The Four and Nine Power Pacts
• Information• Findings:– These pacts committed major nations to respect
each other’s interest in the Pacific and reaffirm the Open Door in China
The Caribbean: The Clark Memorandum, December 17, 1928• Information• Findings:– This semi-official statement of the Undersecretary
of State repudiated the interventionist slant of the Roosevelt Corollary and paved the way for the “Good Neighbor Policy” and improved opportunities for favorable trade relations with Latin America.
Election
• Hoover (Republican)• Alfred E. Smith (Democrat)– Tammany Hall boss, Catholic, “Wet” son of Irish
immigrants.• Campaign– Radio used 1st time– “A vote for Al Smith is a Vote for the Pope”
• Hoover d. Smith 444 to 87,– Huge Republican majority was returned to the House of
Representatives.
Hoover on prosperity 1928
• “We live in a day when poverty will be banished from the land.”
• “Capitalism has matured. We will never have another depression.”
• “A chicken in every pot & two cars in every garage”
BOOM TURNS TO BUST
• RARING ECONOMIC GROWTH• NEW PRODUCTS & INDUSTRIES• CONSUMER CREDIT• A “BULL MARKET”– Values of stocks continued to increase during the
1920s.• CONFIDENCE IN THE FUTURE• LIFE IS JUST A BOWL OF CHERRIES
Hoover is a symbol of the times
• Self made man- millionaire businessman• WW I food administrator
– For starving people of Belgium– “Great Engineer”, “Wonder Boy”
• Member of Wilson’s team at Versailles• Member of Harding’s cabinet
– Secretary of Commerce– He supported some progressive ideas e.g. endorsing labor unions
and supporting federal regulation of new radio broadcasting industry
– For a time, considered government-owned radio like Britain’s BBC
• No elective office until President
The Causes• Bottom falls out Oct. 24, 1929
– Black Tuesday• Over-speculation• Margin buying
– Investors purchased stocks from stockbrokers for as little as 5% down.– When stock values rose, investors would pay back their debt– Banks loaned money to stockbrokers to facilitate on margin buying.
• Foreign Economic troubles• Poor income distribution• Over-production
The Characteristic of each phase.
• Prosperity• Recession• Depression• Recovery• If you try to interfere you will make
things worse.
Hoover’s Philosophy
• Rugged individualism
• Limited role of government• Depression is caused by failure of
confidence. And foreign economic problems.
Hoover’s Anti-Depression Policies
• Nov. 1929 calls a Business Conference• Slogan: “Prosperity is just around the
corner”
• “The economy is fundamentally sound!”
• Reconstruction Finance Corp. $1.8 Billion
More on Hoover’s Policies...
• Agricultural Marketing Act– Passed June 1929– Designed to help farmers help themselves, largely though
producers cooperatives– Federal Farm Board established– Money lent to farms– Goal: increase sagging prices by buying up surpluses– Failed as production increased.
• Hawley Smoot Tariff 1930– Highest peace-time barrier in the nation’s history.– Exacerbated existing economic depression– International financial chaos.
• Balances the Federal Budget
Hoover becomes symbol of Depression
• Hoover blankets• Hoovervilles• Hoover viewed as a “Do-Nothing
President”
Reconstruction Finance Corporation (RFC)
• Created by Congress in 1932• RFC had appropriation of $500 million and
authority to borrow $1.5 billion for loans to railroads, banks, and other financial institutions
Norris-La Guardia Anti-Injunction Act (1932)
• Passed by Congress and signed by Hoover• Outlawed “Yellow dog” (antiunion) contracts
and forbade the federal courts to issues injunctions to restrain strikes, boycotts, and peaceful picketing
Refusal of Relief (Rugged Individualism)
• Hoover opposed veto use of federal funds for relief for the needy– Feared government handouts would destroy the
nation’s work ethic– Compromised by authorizing RFC to lend $300
million to states for relief and to make loans to states an cities for self-liquidating public works
Foreign Policy Hoover• Japanese attack Manchuria in September
1931• Violated League of Nations covenant as well
as other international agreements• LON condemned the action• Japan left the league
Hoover-Stimson Doctrine (1932)
• Declared U.S. would not recognize any territorial acquisition that were achieved by force; Japan further infuriated as U.S. had conquered territories a few decades earlier.
• Japan continued attacking
Good Neighbor Policy
• Hoover aimed to abandon interventionist policy of TR
• Took a goodwill trip after his election in 1928 of Latin America, abroad a U.S. battleship
• Great Depression meant less money for U.S. investors to spend overseas thus decreasing U.S. interest in economic imperialism
• 1932 negotiated new treaty within Haiti which provided for later withdrawal of U.S. troops in 1934