Politics of Boom and Bust

APUSH

I. Republican Reactionism

A. Warren G. Harding1. Charming exterior/weak interior. 2. Ohio Gang

A. advisors that were corrupt (that used their power for their own benefit. 1. Charles Evan Hughes – Secretary of State2. Andrew W. Mellon – Secretary of Treasury3. Herbert Hoover- Secretary of Commerce4. Albert B. Fall – secretary of the Interior5. Harry M. Daugherty – Attorney General

Harding

I. Republican Reactionsim

A. Warren G. Harding2. Ohio Gang

B. Goal was to bring back laissez faire and business should help guide business to profit.

C. Anti trust laws were ignoredD. Supreme Court was used to do so

1. Axed progressive legislation2. Killed child labor laws3. Adkins v Children's Hospital – overturned Muller v Oregon

(women no longer need special protection)

I. Republican Reactionism

A. Warren G. Harding2. Ohio Gang

E. Esch- Cummins Transportation Act of 1920 – encouraged private consolidation of railroads

F. Merchant Marine Act - sold 1500 ships to private shippers, decreased navy

G. With these policies, labor movement would suffer

Ohio Gang

I. Republican Reactionism

A. Warren G. HardingB. WWI Vets

1. Veterans Bureau – hospitals and vocational rehab2. American Legion3. Veteran Benefits

I. Republican Reactionism

B. Foreign Policy1. American Isolationism

A. Agreed to a joint resolution to end the war.B. Left Europe to fend for themselvesC. Middle EastD. Disarmament

A. Five Power Treaty: set up 5-5-3 ratio of shipsB. Four Power Treaty: required Britain, Japan, France,

and US to keep Status quo in the Pacific.C. Nine Power Treaty: kept open door policy with

China

I. Republican Reactionsim

B. Foreign Policy1. The Terrible Tariff

A. Fordney-McCumber Tariff: increased tariff from 27 to 38.5%, authority given to executive to fluctuate tariff to 50%

B. Problem: Europe owed money to US and needed to export, but tariff crippled exports. We weren’t getting paid back

I. Republican Reactionism

D. Harding Scandals1. Forbes’ Veteran Bureau Scandal – looted over $200

million from the government bribes for pardons and liquor permits. Never convicted though much evidence supported.

2. Teapot Dome Scandal – (1921) – Albert Fall (Sect. of Interior) transferred naval oil reserve lands in Wyoming and Calif. to Dept. of Interior. He then leased these to Sinclair and Doheny in exchange for $400,000.

3. Investigation of Attorney General Daugherty – illegal sale of pardons and liquor permits.

Tea Pot Dome Scandal