• WARREN G. HARDING 1921-1923 RETURN TO STABILITY & NORMALCY– POWERFUL CABINET
• STATE – CHARLES EVANS HUGHES
• TREASRUY – ANDREW MELLON
• COMMERCE – HERBERT HOOVER
REPUBLICAN LEADERSHIP OF THE 1920’SHow did the relationship between big business & the government aid economic
growth?
THE OHIO GANG
• ATTORNEY GENERAL: H.DAUGHERTY
• INTERIOR: ALBERT FALL• VETERANS BUREAU:
CHARLES FORBES
DOMESTIC AFFAIRS – MELLON AT THE HELM ECONOMIC NATIONALISM
• FORDNEY-MCCUMBER TARIFF ’22 The Fordney-McCumber Act established the highest tariffs in history, with some duties up to 400% and an average of 40%.
• DEBT REDUCTION• 19TH AMENDMENT• SHEPPARD 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• DOESN’T ADDRESS PROBLEM OF OVER-
PRODUCTION & DECLINING PRICES• 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
• c. 4 Power Treaty – respect interests in islands off 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”
• TEAPOT DOME – LEASING OIL RESERVES FOR BRIBE: A. FALL JAILED
• FORBES CONVICTED OF STEALING FUNDS & FLED
• DAUGHERTY ESCAPED CONVICTION 2 CRIMIINAL 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 ‘LIVES’ BY
DOMESTIC AFFAIRS ANDREW MELLONCONTINUES AS SECRETARYOF THE TREASURY
• LOWER INCOME TAX RATES FOR WEALTHY
• TRICKLE DOWN THEORY IS BORN
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» Make up difference w/ tax on domestic sales of same
commodities
» Beware “tyranny of bureaucratic regulation & control”
FOREIGN AFFAIRS: WAR DEBT & REPARATIONS
• DAWES PLAN 1924: $200M LOAN TO GER.
• a. Germany agrees to pay $250m/yr to allies
• to stabilize German currency through investment & rebuilding economy
KELLOGG-BRIAND PACT 1928: 62 NATIONS OUTLAW WAR
• French want US protection and commitment
• 62 nations in all sign pact• ineffective due to no
enforcement.
ELECTION OF 1928• HOOVER – DRY, PROTESTANT &
NATIVE• SMITH – WET, CATHOLIC & IMMI-
GRANT• PERSONIFICATION OF DIVISIONS
WITHIN AMERICA• HOOVER 58% OF POPULAR VOTE• DEMOCRATIC GAINS IN CITIES
SHOWS SHIFT IN ELECTORATE