Flashcards in C33 - The Politics of Boom and Bust 1920-1932 Deck (29):
Multimillionaire businessman who was chosen by President Harding as Secretary of Treasury. He was friendly toward business and generally did a good job. The economy boomed. He believed in the principle of Government staying out of the way of business...less regulation.
1928: Pact signed by many countries - pledged to solve disputes peacefully, not through war.
Harry M. Daugherty
Chosen by President Harding to be Attorney General. He was a crook. Bad choice by Harding to choose a crook as the main law enforcer of the US.
He was strongly anti-union and took actions that severely hurt the Labor movement in the 1920s.
He was forced out of office and tried related to allegations of selling liquor licenses, and other illegal acts while in office.
Alfred E. Smith
1928 Democratic candidate for President. He was "wet" (thought alcohol should be legal) during this time when the country still believed "dry" was better.
Radio first made a big difference in this election, and Smith did not sound as good on the radio as his opponent, Republican Herbert Hoover.
President Harding's cronies. They had influence, even though many were dishonest, because Harding liked to be friends and hated to say no.
People said that Harding could not spot a "liar"
Charles R. Forbes
1923. Spent 2 years in prison after steeling from the US Government in his position as head of Veterans affairs.
Teapot Dome Scandal
1921. Crooked Secy. of the Interior, Albert B. Fall, made a shady transfer, where the Teapot Dome land in WY, which was rich in oil reserves was transferred to the Dept. of the Interior and therefore under his control.
He then took bribes from oilmen (Sinclair and Doheny) who wanted to drill the oil.
Fall later spent 1 year in jail.
Bonus expeditionary force. 1932 - 20,000 WWI veterans marched on Washington DC to demand a law be passed by Congress to give them their pensions early. They were mostly unemployed during the Depression and desperate for money. Some stayed a built camps in DC. They became unsanitary and eventually all men were forced to leave...some by forces led by Douglas Macarthur.
1930. Tariff passed by Congress. Initially the goal was to help farmers, but the law ended up with so many amendments from so many special interest groups, that it became the largest Tariff ever passed during peacetime.
This angered foreign nations (high tariffs stunt the ability for other countries to sell their goods in the US).
Caused the US to become more isolated economically and helped to sink the US and foreign countries into an economic depression. This played into the hands of Hitler and helped his rise to power.
Senator from WI who ran for President in the 1924 election with support of Progressives and Socialists and Labor leaders. "Fighting Bob" was his nickname. Farmers also supported him.
John W. Davis
Democratic Presidential candidate in 1924 election.
Pushed by farmers from 1924-1928. Twice passed by Congress and twice vetoed by President Coolidge, who thought it would be too expensive.
The bill was a way to raise prices for agricultural goods so farmers could make more $. They were losing $ as surpluses built after the war ended also after machines made it easier for farmers to harvest more crops. This caused a surplus, which caused prices to drop.
Charles Evans Hughes
Harding's choice for Secretary of State (responsible for foreign policy and relations).
He helped secure rights for America re: oil drilling in the middle east.
1921: He led the Disarmament Conference, a meeting meant to get agreement from world powers to reduce large Naval ships and arms.
Soldier/Veteran's association that got together socially and also lobbied the Federal government for money and benefits for Veterans.
1924. Negotiated by Charles Dawes, who ended up as Coolidge's VP.
Helped to solve the world financial problem that existed after WWI.
During WWI, the Allies (Britain and France) had borrowed $ from the US. The Allies were having a hard time paying US back due to economic problems (and high tariffs passed by the US, making it harder for Europeans to sell their goods). The Allies were demanding reparations from Germany for the damage done during WWI. Coolidge refused to forgive any of the debt owed by the Allies, which kept this constant pressure on Britain, France and Germany.
Finally, this 1924 law was passed that rescheduled some of Germany's debt.
In the end, the US was never repaid.
1931: Said that the US would not recognize any territory taken by force by Japan. This was a way to deal with the problem of Japanese aggression in the Far East, without the US getting its military involved.
VP under Harding, who became President in 1923 when Harding died. He was honest, moral and frugal.
Nickname "Silent Cal" - not a good speaker of leader, but he did start to get rid of some of the crooks from Harding's administration.
Agricultural Marketing Act
1929. Bill passed to help farmers to help themselves (Hoover's and the Republican's philosophy), rather than give a handout.
Federal Farm Board was created with $ that could be lent to farmers.
Warren G. Harding
Became President in 1921. Republican. Friendly and well liked, but had a mediocre mind. He admitted this and promised to surround himself with a Cabinet of great minds. He chose: Andrew Mellon (multimillionaire businessman) as Secy. of Treasury; Charles Evans Hughes as Secy. of State; Herbert Hoover as Secy. of Commerce.
2 bad choices for his cabinet were: Albert Fall (big anti-conservationist) as Secy,. of Interior and Harry M. Daugherty (turned out to be a crook) as Atty. General.
Harding was well-intentioned but weak willed - did not stop corruption around him.
Harding packed the courts, especially the Supreme Court with justices that thought like him. Progressive laws were shot down.
Big business did well under Harding. His administration pushed pro-business policies, but went too far in terms of not stopping wrongdoing by some business leaders. The hopes of Progressives of having more Federal Government Regulation of business were dashed. Harding and his group favored leaving business alone.
Scandals were prevalent in his administration due to some of the crooked people he put in positions of power and due to inability to see the corruption around him.
Before he could fully see the outcome of the scandals, Harding died in 8/1923 of pneumonia during a speaking tour.
Black Friday + Black Tuesday
Black Tuesday: 10/29/1929. The Stock market crashed.
President Harding's chose him for Secy. of Commerce.
Ran for President as Republican when Coolidge did not want to run in 1928.
An orphan who had worked his way through college (Stanford), he became a very successful engineer and businessman. Believed in American individualism, free enterprise and small government. Hoover won the election of 1928 by huge margins, even becoming the first Republican to win in a state that had formerly seceded from the Union.
Muscle Shoals Bill
Law that would pave the way for the Tennessee River to be dammed and therefore produce electricity. Hoover did not support this because he didn't believe the government should be involved in producing electricity and therefore competing against private electricity providers.
It was embraced later by President Roosevelt.
Albert B. Fall
President Harding's choice for Secretary of the Interior. Bad choice. His job was to oversee National Parks, etc., but he was a big anti-conservationist.
1922: Tariff hike (increase) passed by Congress.
Big Business and the Harding administration were supported higher Tariffs because it was temporarily good for American business.
This was a sign of the Isolationist Foreign Policy beliefs of Harding, his administration and supporters, including Big Business.
A high Tariff makes foreign goods more expensive (that's why US business liked these laws). But the downside is that other countries could become more Isolationist too and not trade with the US (or raise tariffs of their own on US goods). This practice furthered world-wide economic distress (and partly smoothed the way for Hitler in Germany to rise to power).
Reconstruction Finance Corporation
Formed in 1932, this government body lent $ to insurance companies, RRs, banks, etc. to help ease the problems related to the Depression.
Oilman who was part of scandal/bribe in Teapot Dome Scandal.
Army general who had orders from President Hoover to force all men from the "Bonus Army" to leave DC...their camps were burned, etc.