Harding Genial Lack of strong convictions Put strong men in important offices

3. Harding • Genial • Lack of strong convictions • Put strong men in important offices • Gave lesser offices to the “Ohio Gang”

4. Harding’s Wife and Girlfriend

5. Secretary of Treasury, Andrew Mellon, dominated domestic policy under Harding • Lowered taxes – BUT opposed lower rates for lower classes • Raised tariffs to protect US industries • Returned to laissez-faire policies • Reduced national debt • BUT farm bloc opposed rich industrialists – farmers lost income following WWI

6. Charles Forbes – embezzled millions appropriated for veterans’ hospitals • Attorney general Daugherty implicated in fraud • Teapot Dome Scandal • Secretary of Interior Albert Fall • Leased government oil reserves to private oil companies

7. Calvin Coolidge • Elected after three-party split election (LaFollette ran on Progressive ticket) • After elected cleaned house • Kept on Secretary of Treasury Mellon • “Silent Cal”

8. Both Harding and Coolidge deferred to the Senate on foreign affairs • US overwhelmingly isolationist • Economic interests forced US to seek American influence abroad • Continued Open Door Policy in China – required increasing checks on Japanese expansionism

9. The Washington Conference • Five-Power Treaty • US-GB-Fr-Jp-It agreed to stop building battleships and reduce fleets to a fixed ratio • Four-Power Treaty • US-GB-Fr-Jp agreed to respect each other’s interests in Pacific and confer if any attack launched • Nine-Power Treaty • All powers agreed to respect Chinese independence and maintain Open Door

10. Treaties signified US interest in world affairs but treaties toothless • Ratio under treaty actually gave Japanese naval dominance in Pacific • Treaty made Philippines indefensible and endangered Hawaii • Japan offended by National Origins Act 1924 that omitted Japan from quota • Most Japanese military officers considered war with US inevitable

11. Peace organizations flourished in 1920’s • Isolationism strengthened • Kellogg-Briand Pact 1928 • French foreign minister Aristide Briand and US Secretary of State Frank Kellogg • Both saw treaty as meaningless but were pushed by peace movement • Diplomats from 15 countries signed treaty that renounced war as implement of policy

12. Hoover first to treat Latin Americans as equals • Re-interpreted Roosevelt Corollary to Monroe Doctrine to mean US to intervene only in self-defense • Marines in Haiti, Nicaragua, and Dominican Republic recalled in 1934 • Platt amendment abrogated • Latin Americans still resentful of “rich Americans”

13. 1931 Japanese occupied Manchuria made into puppet state Manchukuo • Violation of Kellogg-Briand Pact and Nine-Powers Treaty • US and League of Nations asked by Chiang Kai-shek to intervene – US refused – not a world policeman • 1932 Japan attacked Shanghai • Condemnation by League of Nations resulted in Japanese withdrawal from League

14. US lent Allies $10 billion for WWI – wanted money repaid • Allies demanded billions from Germany to pay for war • 1924 Dawes Plan scaled down German reparations • 1929 Young Plan further scaled down German reparations • When Great Depression struck both Germans and Allies defaulted on payments

15. Democrats nominated Governor Al Smith • Catholic • Wet • Born in slums • Tammany Hall product • Republicans nominated Herbert Hoover • Quaker • Dry • Modern approach to business and labor • Economic prosperity and Hoover’s wide appeal gave Hoover a landslide

16. Economy of 1920’s had defects – lagging industries • Movement towards consolidation meant more business in fewer hands • Large manufacturers afraid of upsetting the public about monopolies, kept prices down • Trade associations flourished – government allowed them to set terms of marketplace

17. Agriculture weakest sector – prices fell and costs rose along with European tariffs and quotas • Government did little to help the farmer • US economy built on sand • Large wealth gap • Money held by rich used in stock market speculation and rise in “bull market”

18. Stock prices increased – some brokers expressed alarm at overvalued stocks – few cared • Stock speculation became national mania – pulling in thousands of small investors • October 24 – a wave of selling sent prices spinning downward • October 29 – 16 million shares sold – prices plummeted

19. Stock market collapse did not start Depression • Great Depression was a global event caused by economic chaos as result of WWI • In US too much wealth in too few hands – not enough consumers to buy products • Wealth gap caused by easy credit extended by federal reserve (friendly to rich) • Under-consumption caused factories to close and fire workers causing demand to further shrink

20. Automobile output fell from 4.5 million in 1929 to 1.1 million in 1932 • Financial system cracked under strain – more than 1300 banks closed doors in 1930, 3700 more in next 2 years • Each bank failure deprived people of funds to buy goods • Agriculture worsened as demand for farm products dropped

21. Unemployment rose from 1 million at height of economic boom to 13 million • Hoover tried to end depression – lowered taxes, lowered interest rates, made loans available to businesses • Hoover failed to help local and state agencies and failed to allow federal funds to be given to individuals – he also relied too much on private charities

22. Charities were drying up and state/local governments overwhelmed • When drought impacted farmers Hoover allowed federal funds to be used for seed and food for livestock but not for farmers themselves • Hoover put more stress on the economy by balancing the budget instead of spending

30. 1930 Hawley-Smoot Tariff Act – dramatically raised tariffs on imports • Tariff made it hard for Europe to earn money to repay US and helped bring financial collapse to Europe

31. Spring of 1932 – many families unable to find public aid • Many evicted and forced to live in communities of shacks near dumps or swamps called “Hoovervilles” • Food prices so low farmers burned corn for fuel – farmers dumped milk – and blocked transport of crops to market

32. Mexicans were rounded up and deported so they would not compete for jobs and food • Summer 1932 – Veterans marched on Washington DC demanding their WWI bonuses • “Bonus Army” shacks in Washington were attacked and burned by US troops • US in revolutionary situation • Communists gained support in intellectual circles

33. Unemployment led to apathy • Unemployment brought shame – many never applied for public assistance • High food costs resulted in diets low in protein creating listlessness • Depression resulted in dramatically lower birth rate • Some families were strengthened while others were destroyed

34. The influence of wives increased • Attitudes of husbands and wives magnified • Some children caused strain while others helped the family

35. The Depression caused Hoover to turn defensive and petulant • Franklin D. Roosevelt • Governor of New York • Roosevelt’s sunny attitude contrasted with Hoover’s glum demeanor • Roosevelt crippled by polio • Had no real plan and contradicted himself but was the face of hope

36. The Twentieth Amendment • 1933 • Provided for convening new Congresses in January instead of the following December (eliminated the lame-duck Congress) • Advanced the date of the presidential inauguration from March 4th to January 20th