APUSH Chapter 26 and 27 Part 1 Flashcards
Election 1920
Warren G. Harding (Rep) Calvin Coolidge (VP) Pushes " return to normalcy" Relief from upheaval of progressivism/war Win electoral and popular (60%)
The Ohio Gang
Harding fills many cabinet positions with political friends
Secretary of Interior Albert Fall
Attorney General Harry M. Daugherty
Corruption was rampant
The Teapot Dome Scandal
Secretary of interior takes oil reserves from navy (1921)
Harding signs transfer
Fall then sells land to oil well for $400,000 bribe
Details of scandal leak out 1923
Public confidence in Washington fades
Suspicions of Harding increase, never materialize
Harding dies of pneumonia in SF (1923)
Calvin Coolidge
Harding's VP , former MA governor Boston police strike (1918) Known as "silent Cal" Maintains status quo w business (anti regulation) Wins reelection in 1924
Election 1928
Coolidge chooses not to run
Herbert Hoover (secretary of commerce) vs Al Smith (NY Governor)
Hoover wins 84% of electoral votes
Hoover
Pro business–>rides success of previous rep presidents in roaring twenties
Smith
Catholic “wet” politician from city
KKK against
March 1929
Economists warn of a crisis on the horizon
Unemployment slowly rising
Sept 1929
Slow decline in stock prices begin
Predicted by roger babson
Most ignore warning
Stock market reaches all time high 10/10/29
Thurs 10/24/29
Portions of GM sold at a loss
Investors hurry to sell stocks fearing steep decline
Panic causes huge sell off/price drops
Billions of dollRs lost
Monday 10/28/29
Bankers hurry to find wealthy investors to buy stock
Rockefeller family and others buy a lot of stock but by Monday attempts are unsuccessful
Black Tuesday 10/29/29 THE CRASH
16 million shares traded
Dow loses 30 points (12%)
30 billion lost (14 billion on Black Tuesday alone)
Begins downward spiral of market–>not the only factor
Economic problems lead to recession then depression
Speculation
Many improve standard of living by buying on credit
Cannot repay loans for consumer goods (cars, radios, etc)
Investors borrow money to buy stock (buying on margin)
Key industries begin to face competition
Railroads
Overproduction
-many workers laid off
-others have hours cut
Farm production
Increased yield=increased supply=decreased prices
Uneven distribution of wealth
Top 5% take in 1/3 of nation’s income
Bottom 40% take in 1/10
