Harding, Coolidge And Hoover Flashcards
Why was Harding elected
Failure of Democrats - LON, Wilson, Republicans United
Strengths of republicans.
- stalwart division over
- Harding= normalcy
- women enfranchisement
- prohibition influenced - republicans behind, dem split
WW1
- 100,000 men lost
- economic recession
- race riots
Explain Harding vs Coolidge
Coolidge - hard on strikes eg Boston
Harding - return to normalcy, anti immigration, WASPS , America first
Why did politics become less progressive
Redscare - fear of communism - inc support for KKK = rise in communism —> inward thinking
Democrat party hurt by support for LON
Post WW1 politics more conservative
Laissez faire - boom, overturn of attempts to regulate business
Congress lowered income tax
Dem split over prohibition
Progressives vote for La Follette but defeated 1924
Did progressivism continue under Harding
Shepherd Towner Act
Among 60 social welfare bills - many unsuccessful
Resulted in decrease in infant mortality
Women’s group = most successful progressive element of US society during period
Women’s groups often % on acc of race and class
Vocational education act revitalised 1920
Explain the teapot dome scandal
Harding gave important jobs to friends who became known as Ohio gang
Albert Fall - Secretary of Interior- took over $300,000 in loans and bribed to allow a company to drill for oil —-> it was not his to sell
Teapot dome was gov owned land
Fall made $100,000 out of agreement
Took 6 years to find evidence
Fall jailed for year and fined $100,000
Symbol of 1920 corruption
Explain scandals under Harding
(Apart from teapot dome)b
4 and a half years after death - 2 cabinet members forced to resign and indicted for crimes ranging from defrauding gov to bribery to corruption
Forbes (Harding’s closest friend) went prison for accepting loans from a construction firm bidding government contracts and selling medical supplies to friendly purchaser at low price
Jess Smith - conspired to recover securities confiscated from Germans during war
Jury failed to convict him
Economic strengths during Harding’s administration
Fordney McCumber tariff good for BB 1922
Agricultural credits 1923
- attempts to deliver recession in farm eco
- but did not address overproduction
Copper Volstead 1922
- gave ‘associations’ of persons producing agricultural products certain exemptions from anti trust laws
- sometimes called the magma carta corporation
- more long term than short term
- federal trade commission good for BB
Economic weakness of Harding
Gov reduced taxes 1921 (on corporations and wealthy individuals)
The following year, tariffs raised making imported goods more expensive
Fordney McCumber Act 1922- one of highest tariffs - not good for farmers
The federal trade commission - formed to monitor business, but co-operates with them rather than regulate
Supreme Court protected BB from anti-trust legislations and ruled against labour unions in attempt to organise strikes
Uneven distribution of wealth
Red scare - Harding more conservative
Made cuts to gov spending
Social strengths during Harding administration
1920- Supreme Court rules against use of evidence seized illegally by raids post WW1
During 1920- strong reaction against violation of people’s rights and red scare faded away
Shepard Towner Maternity Aid
Provided federal aid to states to encourage them to built infant and maternity health centre
Racial strength during Harding administration
Harding spoke out against segregation in Birmingham Alabama
However some cynics day he did this for electoral support of northern African Americans
Racial weakness during Harding’s administration.
Pressure for reform obv w immigration. WCTU and ASL = largest campaign groups
Wartime conditions acted as a catylist to speed up support
It was widely ignored in densely populated urban areas
It achieved significant support in rural western and southern regions
Harding and his cronies widely ignored
Anti/lynching bill introduced and passed by House but blocked by senate
1921 Emergency Quota Act - passed to limit immigration into the US. Number of immigrants was limited to 3% of each national group
Nativism . KKK revises
Uncertainty of post war and fears of radicalism derived from Russian revolution 1917 led to attempt to stop immigration
Literacy tests and further legislations arrived under Coolidge
Strength of foreign policy during Harding
USA reject LON 1920
Key negotiated in Washington Naval Conference aiming to power acts to reduce battleship building to avoid dangers of arms racing
Series of disputed w Mexico over its failure to protect American citizens
Oil companies backed government
A compromise agreement made 1923- but 2 years later it was met w a tougher line from Mexico
What action had been taken against immigration up until 1920s
50 cent head count Ellis island
Mexican checks- if failed - sent back
Prohibition
1882 Chinese exclusion act - as well as railroads done being made - chinease were employed on railroads
1917- literacy test on immigrants
1915 rise of KKK and lynching prior to WW1
Boston police strike
Espionage and sedition act
Red scare
Palmer raids
Compare 1921 and 1924 immigration acts
The Emergency Quota Act
- The national origins act 1924
Reduced maximum number of immigrants to 150,000 per year and cut quota to 2% of 198 pop US
Aimed at restrict southern and Eastern European immigrants
Also prohibited immigration from Asia and angered Chinese and Japanese already in U.s
More desperate and racist
Economic criticism of Coolidge
Failed to give ley way to countries facing economic difficulties after war
Failed to address worsening economic plight of farmers
‘Do nothing’ President - flavoured free market economy
His economic policy led to Great Depression —> world war 1, uneven wealth etc
Did nothing to Avert Depression
Social criticism of Coolidge
Criticism for condemning KKK when march down Pennsylvania Avenue in Washington 1925
Signed 1924 immigration act
Spoke out against lynching, child labour, low wages for women - but did nothing about it
Criticisms of Coolidge as a person
Lack of public speaking and poor work ethic was dissimilar to FDR
Childish - made bodyguards think he was kidnapped and slept in afternoons
Didn’t speak much. Held breakfast meetings in congress to control it but did not speak
Received his appointees reports in silence and often sent them away w out a word
1924 Indian citizenship act
Appointed council - look into teadome scandal
Flappers generation
Economic success of Coolidge
Largest 200 companies owned 20% nation’s wealth
1928 US richest country world
‘Coolidge prosperity’- declining unemployment, rising wages
Massive growth in consumer goods
Coolidge foreign policy success
Rejected LON
Implicit in Dawes Plan - helped Ger out of hyperinflation and Kellon Brand Pact - tried to endure not another way
Sent Hoover —> rescue, relief and reconstruction after Mississippi River Flood 1927
1925 -> chinease nationalism led to attacks on US in shanghai and call for unfair provileges for foreigners in China
Coolidge gave what asked
Did silent cal deserve his name
Yes - large extent
Presidency - massive economic growth - unregulated - did nothing
Unprofessional
Spoke out against lynching child labour and appointed AA to federal office - did nothing for child labour. Just spoke on issue
FP- silent - X LON X eco other
Successful in FP with Chiba
X like Roosevelt
Why was their an economic boom in US 1920
Laissez faire
Assembly line
Credit
Knowledge
Position of USA
A
New consumer goods
Tariffs
Share confidence
WW1 Republicans policies Tech policies Car industry Media Confidence
1921-1924 wages
Rose 22% per person
Confidence and stock market
1920 boom
Value of stocks and shares rose steadily throughout decade. Rose dramatically 1928+29
Buying and seeking of shares grew substantially until it was common pccurance for working people to be involved
Most companies shares rise so people prepared to make risk
Even if not enough - deposit and borrow to pay rest
Number of share - $451- 1926
25m Involved
Technological changes
1920 boom
New advances in manufacturing and technology
Boom enhanced by abundant supply of coal +/- oil
US steel - so big - could dictate prices
Advances in tech - age of steel and electricity powered homes not coal
Radios, vacuum cleaners - with electricity
Henry Ford - Assembly Line - lots produced and fast and cheap. —> other industry - rubber, glass, paint. Required for new roads, petrol stations and moods
Boom in chemicals + movie industries
New business methods - significant growth in corporations
1929- largest 200 corporations held 20% nation wealth - dominated various ways. Operated cartels. Gov turned blind eye.
Media and advertisement
1920 boom
1929- over 25,000 cinemas opened + average of 100 million US wheat
Movies became one of most important advertising mediums of 1920s
1920s- flapper —> wanted glamorous clothes
Mass advertising - 70% of radios 1920s brought on credit
Radios = +$1 million in advertising time to Democrat and Republican
Car industry
1920s boom
Hire purchase - people bought goods even if X cash to pay for immediately
End of 1920s a 4.5 million cars on road - largest industry in world
1913- Assembly lime
1918- ford factory - car every 3 min
1920- every 10 seconds
People found work boring
1914 doubled wage $5 a day
Workers raced to work for him
Reduced working day to 7 hours
Price decreased
1914= $850
1926= $295
90% petrol and rubber consumed by car industry
Building of motels, highways and towns
1921 highway act - gov build roads. 10,000 miles 1 year
World war 1
1920s consumer boom
USA entered WW1 1917
No damage to repair - no war on US soil
US made a lot of money by selling weapons and arms to France and Britain
While European countries were busy fighting, USA took over many of their markets
USA’s chemical industry replaced Germany industry as world leader producing explosives, fertilisers, dyes and plastics
According to WW1/ foreign debts commission- Bri, France and Italy owed US $22 billion and interest
USA wealth 1920s
Coolidge
The USA was rich in raw materials such as steel and had much fertile land
It was the world’s leading industrial nation
It’s popular with migrants - hardworking and ambitious
The early 1900s move from rural and agricultural to industrial
New industries in the 1920s
Coolidge
The total population of American industry increased 50% during 1910s
The boom was fuelled by a demand for ‘new’ consumer goods
For example radios etc
Most significant was the growth in the motor industry
Rising wages and stable prices
1920s
Coolidge
People could afford to buy new goods because income rose around 25% during 1920s - whilst prices remained the same or fell
A reason for this was the introduction of the Assmebly Line - Ford —-> manufactured could increase production + make goods cheaper
Gov policies
1920s
Coolidge
Throughout 1920s, control of the economy were in the hands of Andrew Mellon
He believed in laissez faire
His policy was to give BB what it wanted. Businessmen believed of taxes were low, people and companies would have more money to invest
The gov introduced high tariffs in foreign goods coming to America
The Fordney-McCumber Tariff 1922- raised tariffs higher than ever before - protected US industry
Hire purchase
1920s
Coolidge
The consumer boom was encouraged by the easy availability of credit
Pioneered by car companies, hire purchase enabled customers to buy the goods they wanted with a small deposit, and then pay the rest in weekly, monthly instalments
6/10 cars bought this way
Another marketing tool was the Mail Order Catalogue eg Roebuck Catalogue
1920s weak unions
Coolidge
The Republican government like businessmen - against trade unions
Employers allowed to use violence to break strikes and refuse to employ union members
Unions excluded altogether from car industry
Employers able to keep wages low and working hours long - time when profits increase rapidly
1920s influence in foreign entanglements
Coolidge
Business corporations bought oil concessions in many countries like Canada
Firestone corporation developed a rubber industry in Liberia
Guggenhams invested in South America to produce nitrates, copper and lead
United Fruit Co had large budget in Costa Rica
US dominated Canadian markets and effectively destroyed their car industry
US refused to trace or co-operate with USSR but American businessmen infiltrated the USSR.
133% of Ford Tractors went there)
1919- foreign investments in overseas: $700m
1930= $17200m
1920s Coolidge
Road building
Breaking with laissez faire -
The government investment a great deal in road building programmes
3 million miles of road in 1920 were largely unavailable to cars (1% available)
Federal Highway Act 1921- led to 10,000 miles of road built by 1929
This had massive knock on effect
Who missed out on the 1920s boom
Farmers in South Carolina
South Carolina
Farmers
Native Americans and African Americans
Women
His far so farmers in South Carolina and South Carolina in general, Miss out on the boom?
1929- farmers in South Carolina made $129 a month
W in NY made $881
Fruit farmers in California - $1246
How did farmers miss out on the boom
Overproduction - more produced than ever before - more than pop eat - causes prices to drop - lower income for farmers
To keep incomes up - farmers grew more and cycle continued
Farmers took our mortgages worth $200m during the 1920s
Precipitation cut demand for grain
Synthetic fibres mean no need natural
Improved fertilisers, husbandry techniques lessened demand for workers
Overproduction led to dustbowls and droughts
How did native Americans and African Americans miss out on the boom
Native Americans often had difficult life on infertile reservations
African Americans made up 10% of pop, but 85% lived in south, many as sharecroppers who lived in cycle of debt and poverty
There was considerable migration north to search for far better opportunities to large cities - but here too, African Americans discrimination
How did women miss out on the boom
By 1920 eg only 150 female dentists
Women enjoyed more opportunities as clerical works and salespeople but overall got paid less than men
Despite Jazz age of flappers, women were generally expected to concentrate on home and marriage
Name the 7 problems in the economy
Uneven distribution of wealth
Rural poverty
Get rich quick
Banking schemes
Cycle of international debt
Slow down
How was unequal distribution of wealth a problem in the economy
Income distribution
Employment
Old industries - coal and cotton —> unemployment
Women —> unequal pay gap
Nature and AA tend to be in agricultural work
Explain rural poverty as a problem in the economy
Farmers economic problems
Role of gov
Agricultural business
Explain banking schemes as a problem in the economy
Federal reserve board
State banks
Explain the cycle of international debt as a problem in the economy
Loan repayments
Dawes and young Plan
US investment abroad
Explain slow down as a problem in the economy
Small businesses
for every 4 businesses, 3 failed
Construction industry circula 1926
Failing domestic - demand saturated
Explain get rich quick schemes
Early 1920s Porru coined thousands into investing in his ventures
He promised 50% profit return in 90 days
Florida land boom - 1920-25- population increased from 0.8 million to 1.2 million
Panels on land sold to wealthy northerners who had often not seen them
People began to invest money into unseen developments, hoping to sell, make quick profit
—> often people only put 10% deposit as binders
Nature destroyed Florida Land Boom - hurricanes killed 400 on 1926 and Medeteraniun fruit fly dried up citrus industry
People found out investments worth nothing or did not exists
No recovery until WW2 when Florida became major military training centre
Explain stock market speculation
Very few prepared go learn from Florida land Boom and speculative investment on stock market continued
Revisionist historian - only 1.5m people
Large concerns were investing profits in the stock of others
Eg Bethlehem Steel Corporation and Electric Bond and Share eavhcinvested $157m in market by late 1929
If prices fall- firms might go bankrupt
Explain federal reserve board
Banking system out of date in 1920s
12 regulatory reserve banks headed by federal reserve board
System allowed banks to regulate themselves w/o gov interference
The reserve banks represented the interests of the bankers and therefore could not be relied upon to act in interest of nation if - issue
- While national banks had to join the centralised system, local state banks did not
- In 1920s - almost 30,000 banks in US.
- Most = v small -> unable to cope w financial problems
- If collapses - depositors prob lose all savings
Federal reserve board favoured low interest rates - encourage easy credit. Also wanted to see a flow of gold from USA to Europe so Europe can pay back loans
Explain cycle of international debt
US priority = European nations repay loans - Europe still suffering from war - could not
1922- Congress created the Debt Funding Commission. Suggested deadlines set at 1947- interest at 4.25%
Europe cannot accord
Further agreement - 1923- harsh
Get started to experience severe eco inflation in 1913 due to repetitions
Under Dawes plan and young plan - USA lent money
This resulted in USA taking money out of Treasury building and putting it in another
Europe slowly started to recover as consequence
But w repetitions - triangle of international debt
Should anything happen to US eco :O
Was the boom slowing down
For every 4 businesses that succeeded, 3 failed. Gov not prepared to help
Construction boom 1920s. But 1926- died down - decline in building materials and skills like plumbing - led to higher unemployment in construction - related business and had srs knock on effects
Late 1920s production outstrips demand. More and more people in no position to spend in non essential items
1929- 10% Philadelphia labour force unemployed
Estimate 1929/ 80% living close to subsistence
Overall workers not protected by labour unions
Supreme Court helpful - blocked child labour and minimum wages for women
But many employers operated yellow dog clauses which their employees not allowed to join union
Causes and effects of Wall Street crash
22 October 1929
Share prices plummeting on NY stock exchange - SUDDEN
Within an hour - 2.2 million shares sold
What had stock market been like 5 years prior to 1929
Market only gone up
Causes and effects of Wall Street Crash
24 October 1929
People came in to trade stocks
No buyers - price of shares fell
20,30 points at a time
—> stunned
Causes and effects of Wall Street crash
29 October 1929
A financial catastrophe —> sweet
Away US catastrophe
How could the cause of the Wall Street crash be traced back to 1918-19
WW1
Cause of Wall Street crash
How did life change in the 1920s
Electrically, airplanes, radios, car industry —> luxury new necessity has
Wall Street crash : cause and effects
How could people afford shares? Outline how bonds/ easy credit worked
Credit —> buy now pay later
Bonds —> borrow money from public to pay for war —> paid in interest —> Wall Street took advantage
Causes and effects of Wall Street crash
Outline detail of Mitchell
President of national city bank
Market eg corporate bonds and tell people they’re respectable investments
How did technology help sour boom
Telegraphic ticket rape machines —> share prices shown
Wall Street crash - cause and effects
What is a speculator and who were the speculators? What was the speculator frenzy
Embraced all types of people into the stock market —> investment in private business
!!
What was the effect of the speculative frenzy
3 million on market —> it now pay later —> buying w borrowed money
Causes and effects on Wall Street crash
What is buying on margin and the bulk market
What are the dangers/effects/rules/who did it
Bull market - shares only go up
Effects —> more demand for shares
1927- 50% - more borrowed
People who did it - men from no where, celebrities, Wall Street, women
Hoovers view on economy before depression
Republican - laissez faire
Who is Warburgh
He issued a warning prior to depression but was disregarded
Situation Sept 1929
Market was volatile
Hoover was unease’s
When was the stock market crash
23 Oct 1929
When was Black Thursday and what was it
24 Oct 1929
Beginning of crash
How did bankers try to restore confidence after crash?
Did it work
Mitchell - meeting at JP Morgan - made pool of $250 million to support key stocks
Eg Rockefeller bought a big share
WORKED
28 October 1929
Panicking investors want to see prices - people see wrong of easy credit
What happened 29 October 1929
What was hoovers response
Share prices plummeted 22% less than 28th October
Hoover - it’ll solve self - laissez faire
29 October 1929 +
What were the effects on the rest of the US esp those who did not invest
$25 billion gone
$5 billion in personal wealth gone
Jobs lost
Mortgages houses
Victims
Confidence sunk
Suicide
How did events lead to the Great Depression
Confidence sunk - banks failed
What happened to banking across USA after 1929 Oct
How did things spiral
3000 banks closed next year
Spiral Loading money Prices fell Money dissapeared Companies let workers go Companies stop production Can’t get loans Bankrupt as cannot pay people off Laid them off
Unemployment stats 1929-33
1929 3% unemployed
1933- 25% unemployed
Bank failure stats 1929-33
1929- 599 banks failed
1933- 3927 banks failed
Wheat prices stats 1920-24
1920-$2.45 per bushel
1924- 0.62 per bushel
How did the depression effect agriculture
Big agriculture
Drought - dust bowls -erosion
Repossessed
Uneven distribution of wealth
Mass poverty
AA
Overall what was the gov response to the depression
Too little too late
Hoovervilles
Hoovenlags
Voluntarism
Bonus army
Overall how did the depression effect US economy
Structural unemployment
federal reserve
Overall how did the depression affect people’s lives
Unemployment
Rugged individualism
Voluntarism
relief
Migration
Overall how did the depression affect industry
Saturation
Worthless
Slowdown in demand
Name the 8 things Hoover ‘addressed’ to deal w the depression
Agriculture
Tariffs
War debts
Voluntarism
Unemployment relied
Home loan act
RFC Jan 1932
War veterans and Bonus Army
How did Hoover and admin deal w agriculture during the depression to tackle it
Agriculture marketing act 1929
9 person board with £500m to create co-operatives
AIM was to buy, store and dispose surplus
No power to reduce production, prices therefore continued to fall
Therefore buying at this rate was waste of money
When congress proposed bill to reduce production, Hoover opposed it
How did hoovers administration deal w tariffs during the Great Depression to tackle it
Hawley smoot tariff 1920- highest 40% on agriculture and industry
Most European nations abandoned free trade and therefore even fewer goods were exported
Therefore farmers fought it and only passed by 2 votes
Hoover could have vetoed but did not
How did hoovers administration deal with war debts during the depression to tackle it
Hoover blamed depression on Europe
Trade fell after 1930 by $500 m
$1.2 billion in 1931
1931- Hoover issues moratorium on debts but it was too late + most European countries collapsed
How did hoovers administration use voluntarism during the Great Depression to tackle it
Hoover advocated voluntarism
Business had to cut back
Voluntarism could not work
How did Hoovers administration tackle the Great Depression with unemployment relief
$500m secures from Congress in 1932 to secure relief
President Emergency Committee to help agencies organise
But Hoover would not issue direct federal relief
In the end $47m was made available and only as loans
How did Hoover deal with the depression using the home loan act
1932
As loan - was only 50% of value property
Ineffective
How did Hoovers administration tackle the Great Depression with the RFC
January 1932
Most radical measure
Could lend up to £2b to rescue banks etc
Designed to restore confidence
90% small and medium banks
Argued that it only helped large firms but gov argued these needed help most
No money given to individuals
Eventually - July 1922 - $4.5 billion lent to public works, he lost support from reps
How did hoovers administration tackle the Great Depression with war veterans and bonus army
Hoover set up .org to help veterans with disabilities
Congress agreed bonus in 1925
Hoover offered to pay their way home
Many leafy squatting
Army moved in and removed them
Violent dispersal often seen as last act
What is the extent of the Great Depression and expectations of Hoover
Hoovers first response was mostly passive, trusting in the conservative approach to leave business to sort it out
Later
1931-32
Hoover changed his mind and carried out a few interventionalist policies — too little too late
Historical interpretation of Hoover
!
Evidence Hoover tried to sort out depression
Set up organisation to help veterans with disabilities
Evidence Hoover caused damage during depression or was too little too late
RFC- Jan 1932- no money given to individuals
July 1932- $4.5b lent to public works only
Voluntarism no work
1931- Hoover issued movatorium (temp postpone of debt)but too late - European countries collapsed
Long term causes of depression
Pre 1929
Decline in agriculture
Decline in staple industry
Overproduction
Uneven distribution of wealth
Get rick quick
Decline in trade (high tariffs)
Cycle of international debt
Native of Great bull market
Loans
Gov
Psychology
Short term causes of depression (1929-30)
Wall Street crash
Car ownership boom ended 1929 before WSC
Construction boom ended 1929/9 before WSC
Industry production 1929 (2 months before WSC)b
Causes of depression
During the depression
Hoover
Laissez faire
Voluntarism
Allowed deflation
Mellon ‘plurge the rotten elements’
Banking crisis
Republican policies
1923 Fordney McCumber tariff - protectionism
Isolationism
Laissez faire
Rugged individualism
1920 majority of tax payers paid 5% federal income tax - Mellon Plan
Credit
People bought on credit - luxury items- putting some money down 1st - followed by 1-5 year’s monthly payments
Due to laissez faire
Easy credit - inc in consumer indebtness - dramatic decline in savings
75% of pop spend most of yearly income to purchase foods inc food and radios
Consumer credit 1929- outstanding £3 mill
People gambled on stock market ‘safe bet’
