• 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