Harding

1. Harding

2. Election of 1920 • Republicans nominated Warren G. Harding of Ohio Platform was effectively ambiguous on the issue of the League of Nations • Harding spoke of returning America to "Normalcy" • Conservative "Old Guard" wing of the Republicans now dominated as Teddy Roosevelt’s Progressive followers had bolted the party in 1912 and no longer had as much influence in Republican party once they came back in 1916.

3. Democrats nominated James M. Cox of Ohio who strongly supported League of Nations Running mate was FDR. Results:         1. Harding d. Cox 404-127 16,143,407 to 9,130,328         2. First time full-suffrage for women in national election        3. Eugene V. Debs received largest number of votes for Socialist party         4. Results displayed public desire for change from idealism, moral overstrain and self-sacrifice.         5. Isolationists turned results into a death sentence for the League of Nations.

4. 3 Main Scandals • "Ohio Gang" or "Poker Cabinet“ • Col. Charles R. Forbes • Teapot Dome Scandal

5. Scandal - "Ohio Gang" or "Poker Cabinet"             a. Harding appointed his friends to prominent positions in his cabinet and used his connections with them to make money in some instances.                --- Col. Charles R. Forbes, head of the Veteran’s Bureau looted the gov’t of about $200 million with building of veterans’ hospitals.             -- sentenced to 2 years in jail.

6. 3. Teapot Dome Scandal   a. 1921, Sec. of Interior Albert Fall arranged transfer of valuable naval oil reserves at Teapot Dome, WY & Elk Hills, CA to Interior Dept.       b. Fall then leased lands to 2 oilmen; bribe of $400,000    c. The scandal became public in 1923           i. Fall sentenced to one year in jail.          ii. The two oilmen were acquitted of bribe     d. Scandal undermined Americans’ faith in the courts & public officials

7. Attorney General Harry Daugherty brought to Senate investigation for illegal sale of pardons and liquor permits.      a. He was forced to resign and brought to trial in 1927.      b. Jury twice failed to convict him.      c. Several of his advisors committed suicide rather than face humiliation for corruption.

8. IMPORTANT LEGISLATION • EMERGENCY QUOTA ACT 1921 • LIMITS 3% BASED ON 1910 CENSUS • TOTAL 350,000 / YEAR • FORDNEY-McCUMBER TARIFF 1922 38.9 %RATE

9. FORDNEY-McCUMBER TARIFF 1922 38.9 %RATE • Businessmen feared cheap European goods • Tariff rates pushed from 27% to an average of 38.5% • Duties on farm produce increased • Impact: • Europeans’ post-WWI economic recovery impeded • Europeans had more trouble paying back huge debt owed U.S. • Retaliatory tariff measures against U.S. goods hurt U.S. manufacturers. • High European tariffs also hurt neighboring Europeans

10. MORE… • SEPARATE PEACE WITH GERMANY • WASHINGTON CONFERENCE 1921-22 • NAVAL REDUCTION 5:5:3 RATIO

11. CONGRESSIONAL INVESTIGATION • 1923- HARDING IS IN DEBT • CHARLES FORBES RESIGNS • CHARLES CRAMER, WRITES LETTER TO HARDING • THEN SHOOTS HIMSELF • HARDING REFUSES TO READ LETTER.

12. MORE… • HARDING CONFRONTS JESS SMITH • SMITH GOES HOME, SHOOTS HIMSELF.

13. HARDING’S FINAL DAYS • TAKE A TRIP TO ALASKA • TELL HOOVER ABOUT THE FRAUD, HOOVER TELLS HIM TO CONFESS. • HARDING BECOMES ILL

14. HARDING DIES • IN HOTEL IN SAN FRANCISCO • BLOOD CLOT • NATION MOURNS. COMPARES HARDING TO LINCOLN

15. CALVIN COOLIDGE BECOMES PRESIDENT • 2 MONTHS LATER THE SCANDALS ARE REVEALED. • ADDS TO DISILLUSION OF THE 1920’S

16. Coolidge

17. 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

18. McNary-Haugen Bill • 1924-1928 • Bipartisan Congressional “farm bloc” from agricultural states aimed to help farmers. • Sought to keep agricultural prices high • Government losses would be made up by a special tax on the farmers • Coolidge vetoed it twice • Result: Farm prices stayed down and disgruntled farmers sought to make a difference in the 1924 elections.

19. Election of 1924 • Party nominated • Republicans nominated Coolidge • Democrats nominated conservative businessmen John W. Davis • Party will spilt • New Progressive Party will nominate Senator Robert “Fighting Bob” La Follette • Endorsed by the AFL • support from farmers • Platform: • Government ownership of railroads and relief for farmers

20. 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

21. Muscle Shoals • During WWI the government had construction a dam and two nitrate plants on the Tennessee River at Muscle Shoals, Alabama • Both Harding and Coolidge opposed

22. Senator George Norris wanted project owned and controlled by government • The proposal would have significantly improved the economic plight of the Tennessee Valley region • New Deal’s Tennessee Valley Authority of the 1930s.

23. Don’t Forget… • Intervention in the Caribbean and Central America • Clark Memorandum • Loans and reparations • Dawes Plan • Kellogg-Briand Pact

24. The Crash 1929 • Hoover and the Depression

25. Election • Hoover (Republican) • Alfred E. Smith (Democrat) • Tammany Hall boss, Catholic, “Wet” son of Irish immigrants. • Campaign • Radio used 1st time • Hoover d. Smith 444 to 87, • Huge Republican majority was returned to the House of Rep.

26. 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”

28. 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

29. 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

30. And Now…The 1929 Stock Market Crash

31. The 1929 Stock Market Crash CRASH

32. The Causes • Bottom falls out Oct. 24, 1929 • Black Tuesday • Over-speculation • Artificial rises in stock and commodity values fueled speculation • Margin buying • Investors purchased stocks from stockbrokers for as little as 5% down. • When stock values rose, investors would pay back their debt • If no payment, stocks were held as collateral. • Banks loaned money to stockbrokers to facilitate on margin buying. • Foreign Economic troubles • Poor income distribution • Over-production

33. The Characteristic of each phase. • Prosperity • Recession • Depression • Recovery • If you try to interfere you will make things worse.

34. Hoover’s Philosophy • Rugged individualism • Limited role of government • Depression is caused by failure of confidence. And foreign economic problems.

35. 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

36. More on Hoover’s Policies... • Agricultural Marketing Act (June 1929) • Help farmers help themselves • Federal Farm Board established; Money lent to farms • Goal: increase price by buying up surplus • Failed as production increased. • Hawley Smoot Tariff 1930 • Highest peace-time barrier in the nation’s history. • International financial chaos.

37. Hoover becomes symbol of Depression • Hoover blankets • Hoovervilles • Hoover viewed as a “Do-Nothing President”

38. 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 -Prevented failure of basic firms

39. 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

40. 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

41. 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

42. 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

43. Good Neighbor Policy • Hoover aimed to abandon interventionist policy of TR • Great Depression meant less money for U.S. investors to spend overseas • 1932 negotiated new treaty within Haiti which provided for later withdrawal of U.S. troops in 1934

44. Bonus Army • Veterans march on Washington • Hoover called in the Army

45. Long Term Causes • Weak Industries • Overproduction of goods by manufacturers • Uneven distribution of income • Unstable banking system • Weak international economy