US 13: Republican Conservativism, 1920-1932 Flashcards
What was changed about American politics after WW1?
- More inward looking, rejecting expansionism and conservative
- Less socialism after the red scare
- Republicans regained strength and Democrats were divided
- Harding ⇒ business friendly policies with Coolidge as VP
- In the election of 1920, Coolidge and Harding won over 60% of the vote
→ All events meant the end of Republican Conservativism and a 20 year Democratic dominance.
What is key about the president Warren G. Harding during a period of Republican Conservativism?
- Main interests “golf, drinking and other women’s wives” - tarnished his strong reputation
- Popular with women voters
- Amiable, reassuring, in tune with national mood → emphasis on regaining ‘normalcy’
- Surrounded by scandal and corruption in his inner circle i.e. Teapot Dome Scandal
- Return to the system of 96 - Republicans x business → “less government in business, more business in government”
- Appointed Andrew Mellon as Secretary of the Treasury (monetarist, minimal regulation) and Hoover as Secretary of Commerce
- Rise founded on Republican politics in Ohio around McKinley and Mark Hanna
- Compromiser and reliable ‘political fixer’
- Made friends from Ohio important members of authority → ‘Ohio gang’ known for notorious poker parties = 1922 paper reported Albert Fall (S. of Interior) of corruption in Teapot Dome Scandal
- Died in 1923 with no explanation
What was Harding’s policy?
- What was Harding’s policy?
- High protective tariffs → 1922 Fordney-McCumber Act
- Supported pro-business because post-war recession 1920-21 was followed by years of prosperity and rising living standards
- Supported anti-lynching law and budget reforms
- Emergency Tariff Act 1921 to help protect agriculture and business which increased their purchasing power but also increased inflation
- With Secretary of Treasury Mellon, the tax rate cuts means reducing the war debt
- Aimed to reduce armaments → agreements about Far East cooperation
What was the Teapot Dome Scandal?
- What was the Teapot Dome Scandal?
- Strategic importance of oil meant US kept federal reserves
- Teapot Dome was a mountain near the reserves
- 1922, high officials (Fall) were accused of leasing oil reserves for personal gain
- 1931, Fall was the first US cabinet minister to be jailed for crimes against the office
- Empowered the senate to conduct rigorous investigations into government corruption
- Marked the first time a US cabinet official served jail time for a felony while in office
- Background of this - debate around conservation vs. development, when Fall became secretary of the interior 1921, this showed Harding favoured development
- *Wall Street Journal* broke the news about the deal made in Wyoming in April 1922
- Meanwhile, Fall was contending with G. Darden who claimed he had first dibs on Teapot Dome site before he leased it to Sinclair
- Convinced the President to dispatch US Marines to halt Darden’s efforts → *Denver Post* publicised the incident and used threats of additional editorials to blackmail Sinclair into paying $1 million to them
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What was significant about Harding’s VP and successor - Calvin Coolidge?
- Coolidge took over in 1924 after Harding died but didn’t run again in 1928 - leaving it to Hoover (1929) who defeated Al Smith (handicapped by Catholicism)
- Public image was dull, dry and respectable which restored respect to the white house
- Coincided with ‘feelgood factor’ that accompanied prolonged economic boom and rising stock market
What caused the ‘Wall Street Crash?’ and what was the impact?
1929, the stock market lost one-half its value in the fall of 1929
(Not cause of the Great Depression as only 10% of American households held stock investments and speculated)
What was Hoover’s approach to the Wall Street Crash and initial instinct?
- Followed orthodox economic thought, tried to be passive and allow business to run free
- Took Andrew Mellon’s advice “Purge the rottenness out of the system…”
- Tried to use deflation and rejected the ideas from Keynesian economic thought
When this proved ineffective, he changed his mind and started to increase government intervention
What were examples of Hoover changing his approach in handling the financial crisis of 1932?
- Banks were failing at a rate of 600 per year in the 1920s, used ‘banking holidays’ to suspend banks
- Urgent crisis in agriculture 1929-30, promised aid in 1928 was reluctant to give direct subsidies but passed ‘Agricultural Marketing Act’
- ‘Grain Stabilisation Act’ 1930: aimed to guarantee fair prices by buying up wheat but prices sank lower → industry further harmed by protectionism
- ‘Smoot Hawley Act’ : tried to increase import duties on 20,000 commodities but had harmful effect on international trade
Why was the ‘Smoot Hawley Act’ critcised?
- Considered to be ‘economic stupidity’ by Henry Ford and not stopping was seen as his biggest mistake
How did Hoover deal with the agricultural crisis in 1930-31?
- Heat waves let to dust bowl conditions, the mid west suffered from drought and soil erosion
- Hoover provided $47 million loans to farmers but this wasn’t enough and by 1932, 25% lost their land
What were Calvin Coolidge’s policies?
Policies: small gov, low tax, kept Mellon as S of T, supported Mellon Plan → 1924 Coolidge’s Revenue Act made cuts in income taxes, won again that year
During 1924, progressivism continued to decline and La Follette lost
Coolidge was fiscally conservative but socially progressive. Believed that size and scope of government should be small, supported women’s suffrage
One of the only presidents who left the office with federal debt and a budget deficit smaller than when he left office.
He supported legislation lowering the work week for women and children (54 to 48 hours)
Known as “Silent Cal” (some thought he was depressed after his son died in 1924)
Signed 1924 Immigration Act imposing limits on immigration (although didn’t like the clause limiting Japanese immigration)
There was high economic growth and low unemployment in his 2nd term → he lowered income tax rate, cut spending, little regulation
Criticisms of Calvin Coolidge and foreign involvement
Some argue his laissez-faire attitude led to the Great Depression (other argument is that this ignores long term factors)
Coolidge was hesitant about foreign involvement and doubted the benefit of the US in the League of Nations
Due to the size of the US, it was difficult to stay out of world affairs → “Kellogg - Brian Pact” was an agreement with Japan, USA, UK, France, Italy and Germany to avoid the use of war when settling political disputes
He is criticised for not being radically progressive or conservative enough.
Criticised for doing and saying little during his term
Criticised for his low work rate (slept a lot and people thought he was depressed after his son died).
