HARDING AS PRESIDENTHARDING AS PRESIDENT

FOREIGN POLICYFOREIGN POLICY– League of NationsLeague of Nations

– 5 Power Treaty—Brit, Jap, US, Fr, Italy5 Power Treaty—Brit, Jap, US, Fr, Italy– 4 Power Treaty-US,Brit, Fr, Japan4 Power Treaty-US,Brit, Fr, Japan– 9 Power Treaty-observe “open door” in 9 Power Treaty-observe “open door” in

ChinaChina

HARDING—Domestic PolicyHARDING—Domestic Policy

Decrease taxesDecrease taxes Increased tariffsIncreased tariffs Veto bonus bill ($ to vets)Veto bonus bill ($ to vets) War debt—installment planWar debt—installment plan Scandals—”Teapot Dome”, Ohio Scandals—”Teapot Dome”, Ohio

GangGang Harding picks 4 justices to SCHarding picks 4 justices to SC

1924 Election1924 Election

Rep-CoolidgeRep-Coolidge Dem-DavisDem-Davis Progressives-LaFolletteProgressives-LaFollette Issues: city vs. countryIssues: city vs. country Winner—Coolidge—”cool Cal”Winner—Coolidge—”cool Cal”

Coolidge as PresidentCoolidge as PresidentForeign PolicyForeign Policy

Dollar diplomacyDollar diplomacy Good neighbor Good neighbor

Coolidge—Domestic PolicyCoolidge—Domestic Policy

Decreased taxesDecreased taxes Help industryHelp industry Decrease Gov’t spendingDecrease Gov’t spending No gov’t regulationNo gov’t regulation Veto of McNary Haugen BillVeto of McNary Haugen Bill

– Gov’t buy surplus farm products & set Gov’t buy surplus farm products & set prices highprices high

THE 1928 ELECTIONTHE 1928 ELECTIONREPUBLICAN REPUBLICAN HOOVERHOOVER

– ““RAGS TO RICHES”RAGS TO RICHES”– INDUSTRY, THRIFT & SELF RELIANCE—RUGGED INDUSTRY, THRIFT & SELF RELIANCE—RUGGED

INDIVIDUALISMINDIVIDUALISM– DEMOCRATICDEMOCRATIC

AL SMITH—NYAL SMITH—NY– ““WET, IRISH CATHOLIC, CITY GUY”WET, IRISH CATHOLIC, CITY GUY”– RESULT: HOOVER WINSRESULT: HOOVER WINS– WHY?WHY?– ““HOOVERCRATS”HOOVERCRATS”

HOOVER’S PRESIDENCYHOOVER’S PRESIDENCY WHO IS NOT GETTING THE MONEY???WHO IS NOT GETTING THE MONEY???

HOOVER’S “FIXES”HOOVER’S “FIXES”– 1-AGRICULTURAL MARKETING ACT, JUNE 19291-AGRICULTURAL MARKETING ACT, JUNE 1929

FEDERAL FARM BOARDFEDERAL FARM BOARD– FARM COOPSFARM COOPS

– 2-GRAIN STABILIZATION CORPS. 19302-GRAIN STABILIZATION CORPS. 1930– COTTON STABLIZATION CORPSCOTTON STABLIZATION CORPS– 3-TARIFF3-TARIFF

CAMPAIGN PROMISECAMPAIGN PROMISE

1930 HAWLEY SMOOT1930 HAWLEY SMOOT 38% TO 60%38% TO 60%

– IMPACTIMPACT

Coming of the Great DepressionComing of the Great Depression

Stock market speculationStock market speculation ““Black Thursday” Oct. 24, 1929Black Thursday” Oct. 24, 1929 Prices drop rapidly-----sell off------Prices drop rapidly-----sell off------

prices drop even moreprices drop even more JP Morgan & others--$30 mil in JP Morgan & others--$30 mil in

marketmarket Hoover—”Fundamental business of Hoover—”Fundamental business of

the country is on a sound and the country is on a sound and prosperous base”prosperous base”

GREAT DEPRESSIONGREAT DEPRESSION Oct. 24, 1929—Black ThursdayOct. 24, 1929—Black Thursday

– Decreased prices----sell off----further decline in pricesDecreased prices----sell off----further decline in prices OCT. 29, 1929 BLACK TUESDAYOCT. 29, 1929 BLACK TUESDAY

IMPACT??IMPACT?? BY END OF 1929 STOCKHOLDERS LOST 40 BIL IN “PAPER” BY END OF 1929 STOCKHOLDERS LOST 40 BIL IN “PAPER”

VALUEVALUE CAUSES OF THE GREAT DEPRESSIONCAUSES OF THE GREAT DEPRESSION

OVERPRODUCTIONOVERPRODUCTIONOVEREXPANSION OF CREDITOVEREXPANSION OF CREDITDECREASE OF WORLD TRADE-tariffs & war debtDECREASE OF WORLD TRADE-tariffs & war debt*DROUGHT IN MISSISSIPPI VALLEY 1930*DROUGHT IN MISSISSIPPI VALLEY 1930TECHNOLOGICAL UNEMPLOYMENTTECHNOLOGICAL UNEMPLOYMENTTOO MUCH MONEY IN TOO FEW HANDS—Unequal distribution TOO MUCH MONEY IN TOO FEW HANDS—Unequal distribution

of wealthof wealthBad Banking structureBad Banking structureLimited Economic “Intelligence”Limited Economic “Intelligence”

Affects on different groupsAffects on different groups

Wealthy—”cushion” of cashWealthy—”cushion” of cash Middle class—wages dropMiddle class—wages drop Can’t pick up the slack of investmentCan’t pick up the slack of investment Business—less investment—close factoriesBusiness—less investment—close factories Holding Corps/Trusts/Banks—no payback Holding Corps/Trusts/Banks—no payback

of debt; lost $ in marketof debt; lost $ in market Poor—lower wages or layoffsPoor—lower wages or layoffs DOWNWARD SPIRAL OR SNOWBALL DOWNWARD SPIRAL OR SNOWBALL

AFFECTAFFECT

HOOVER’S POLICIESHOOVER’S POLICIES

1 RECONSTRUCTION FINANCE CORP.1 RECONSTRUCTION FINANCE CORP. ““TRICKLE DOWN ECONOMICS”TRICKLE DOWN ECONOMICS”

2-NORRIS-LAGUARDIA ANTI INJUNCTION 2-NORRIS-LAGUARDIA ANTI INJUNCTION ACT 1932ACT 1932

3-USE CHARITIES—NOT GOV’T ASSISTANCE3-USE CHARITIES—NOT GOV’T ASSISTANCE*1930 MIDTERM CONGRESSIONAL ELECTIONS*1930 MIDTERM CONGRESSIONAL ELECTIONS

BONUS ARMYBONUS ARMY

1932 ELECTION1932 ELECTION

– DEMOCRAT FDRDEMOCRAT FDR– REPUBLICAN HOOVERREPUBLICAN HOOVER

– NEW DEAL VS. “PROSPERITY IS JUST AROUND NEW DEAL VS. “PROSPERITY IS JUST AROUND THE CORNER”THE CORNER”

– RESULTS:RESULTS: DEMS TAKE PRES AND CONGRESSDEMS TAKE PRES AND CONGRESS AFRICAN AM VOTERS SHIFT TO DEM PARTYAFRICAN AM VOTERS SHIFT TO DEM PARTY

FIRST 100 DAYS OF FDR’S PRESIDENCYFIRST 100 DAYS OF FDR’S PRESIDENCY– 3 R’S—RECOVERY, RELIEF AND REFORM3 R’S—RECOVERY, RELIEF AND REFORM