HARDING AS PRESIDENT
 FOREIGN
POLICY
– League of Nations
– 5 Power Treaty—Brit, Jap, US, Fr, Italy
– 4 Power Treaty-US,Brit, Fr, Japan
– 9 Power Treaty-observe “open door” in
China
HARDING—Domestic Policy
 Decrease
taxes
 Increased tariffs
 Veto bonus bill ($ to vets)
 War debt—installment plan
 Scandals—”Teapot Dome”, Ohio
Gang
 Harding picks 4 justices to SC
1924 Election
 Rep-Coolidge
 Dem-Davis
 Progressives-LaFollette
 Issues:
city vs. country
 Winner—Coolidge—”cool Cal”
Coolidge as President
Foreign Policy
 Dollar
diplomacy
 Good neighbor
Coolidge—Domestic Policy
 Decreased
taxes
 Help industry
 Decrease Gov’t spending
 No gov’t regulation
 Veto of McNary Haugen Bill
– Gov’t buy surplus farm products & set
prices high
THE 1928 ELECTION
 REPUBLICAN
 HOOVER
– “RAGS TO RICHES”
– INDUSTRY, THRIFT & SELF RELIANCE—RUGGED
INDIVIDUALISM
– DEMOCRATIC
 AL
SMITH—NY
– “WET, IRISH CATHOLIC, CITY GUY”
– RESULT: HOOVER WINS
– WHY?
– “HOOVERCRATS”
HOOVER’S PRESIDENCY

WHO IS NOT GETTING THE MONEY???

HOOVER’S “FIXES”
– 1-AGRICULTURAL MARKETING ACT, JUNE 1929
 FEDERAL
FARM BOARD
– FARM COOPS
– 2-GRAIN STABILIZATION CORPS. 1930
– COTTON STABLIZATION CORPS
– 3-TARIFF
 CAMPAIGN
 1930
PROMISE
HAWLEY SMOOT
Coming of the Great Depression
 Stock
market speculation
 “Black Thursday” Oct. 24, 1929
 Prices drop rapidly-----sell off-----prices drop even more
 JP Morgan & others--$30 mil in
market
 Hoover—”Fundamental business of
the country is on a sound and
prosperous base”
GREAT DEPRESSION

Oct. 24, 1929—Black Thursday
– Decreased prices----sell off----further decline in prices

OCT. 29, 1929



BLACK TUESDAY
IMPACT??
BY END OF 1929 STOCKHOLDERS LOST 40 BIL IN “PAPER”
VALUE
CAUSES OF THE GREAT DEPRESSION
OVERPRODUCTION
OVEREXPANSION OF CREDIT
DECREASE OF WORLD TRADE-tariffs & war debt
*DROUGHT IN MISSISSIPPI VALLEY 1930
TECHNOLOGICAL UNEMPLOYMENT
TOO MUCH MONEY IN TOO FEW HANDS—Unequal
distribution of wealth
Bad Banking structure
Limited Economic “Intelligence”
Affects on different groups
Wealthy—”cushion” of cash
 Middle class—wages drop
 Can’t pick up the slack of investment
 Business—less investment—close factories
 Holding Corps/Trusts/Banks—no payback
of debt; lost $ in market
 Poor—lower wages or layoffs
 DOWNWARD SPIRAL OR SNOWBALL
AFFECT

HOOVER’S POLICIES
1 RECONSTRUCTION FINANCE CORP.
 “TRICKLE DOWN ECONOMICS”

2-NORRIS-LAGUARDIA ANTI INJUNCTION
ACT 1932
 3-USE CHARITIES—NOT GOV’T
ASSISTANCE
*1930 MIDTERM CONGRESSIONAL
ELECTIONS

1932 ELECTION
– DEMOCRAT FDR
– REPUBLICAN HOOVER
– NEW DEAL VS. “PROSPERITY IS JUST AROUND
THE CORNER”
– RESULTS:
 DEMS
TAKE PRES AND CONGRESS
 AFRICAN AM VOTERS SHIFT TO DEM PARTY

FIRST 100 DAYS OF FDR’S PRESIDENCY
– 3 R’S—RECOVERY, RELIEF AND REFORM