Chapter 13
Section 2
The Republicans
In Power
The Election of 1920
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Seeking a candidate with broad appeal, Republicans
nominated Warren G. Harding for the 1920 election
{the Harding administration believed in pro-business
practices,} higher tariffs, limits on immigration and a return
to normalcy
Harding won the presidency in a landslide
The administration set out to reduce the national debt, as it
had risen from $1 billion in 1914 to $25 billion in 1919, by
slashing spending.
Congress also passed the {Fordney-McCumber Tariff Act
in 1922, pushing tariff rates on manufactured good to an all time high}
Continued…
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To achieve the goal of economic growth, Secretary of
the Treasury Andrew Mellon, proposed taking away
the high war time taxes imposed on wealthy
Americans. Claiming that if their taxes were lowered
they would have more money to invest, thus the
economy would grow
Mellon argued that the benefits would trickle down to
the poor and middle class in the form of jobs and
higher wages
Sound silly?? Well, Congress passed it. Of course they
were all in the wealthy group. In all honesty though it
did work
The Effects of Republican Policies
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More than 1,000 mergers- the combining of two or more
companies- took place in this era
By 1930 200 corporations owned nearly half of the nations
corporate wealth
For the most part workers did not share in the business
profits. While business profits increased by 60% the salaries
increased by about 10%
Farmers still faced a shrinking market, low prices, high interest
rates and debt
Federal courts also upheld “yellow-dog contracts” which
prevented workers from joining unions. {Business leaders
promoted a policy known as the American Plan which supported
union-free open shops}
New Direction for Women
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After the passing of the Nineteenth Amendment divisions in
the women’s rights movement came about in the debate over
the Equal Rights Amendment
It was proposed to Congress in 1923 by Alice Paul of the
National Woman’s Party. It stated that men and women would
have equal rights throughout the U.S. and every place subject
to its jurisdiction
{The Equal Rights Amendment was opposed by many
reformers,} like those who had fought so hard to get better
hours and working conditions for women, now they would be
the same as men hurting their chance to get a job
In the end the Equal Rights Amendment failed to win political
support
The Harding Scandals
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A group of Harding’s constituents known as the Ohio Gang
was using their connections to the president to enrich
themselves at the public’s expense
Charles Forbes, the director of the Veterans Bureau was
pocketing millions through corrupt schemes
The most notorious scandal was revealed after Harding’s
death in office.
{The Teapot Dome Scandal, involving friends of Warren
Harding, exposed the Secretary of the Interior, Albert Fall, had granted
private leases to oil reserves in California and Wyoming}
In return conspirators received personal loans, cash and cattle
Fall was convicted and jailed
This cartoon depicts the "steamrolling" effect of the Teapot
Dome oil scandal of the Harding Administration in the 1920s.
Coolidge Takes Charge
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After Harding’s death, his {Vice President Calvin Coolidge,
known as Silent Cal,} was sworn in.
Coolidge easily won the election in 1924
{Calvin Coolidge was even more pro-business than Harding he
declared “the business of America is business”}
Coolidge passed the Revenue Act, which repealed the gift tax,
cut estate taxes in half and reduced taxes for the wealthy
He vetoed spending bills, such as a bonus bill to provide aid to
WWI veterans and a bill designed to boost farm prices by
authorizing the gov. to but surplus crops and sell them abroad
The president remained popular because of the improvement
of the economy, but chose not to re-run in the following
election
Calvin Coolidge
The Election of 1928
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The Republicans nominated Secretary of Commerce
Herbert Hoover for president in 1928
{Hoover had a reputation for administrative skill
and efficiency}
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The Democrats nominated Alfred E. Smith, a
moderate progressive, with Franklin D. Roosevelt as
his running mate
Hoover won the election
Review Questions
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The Harding administration believed in pro-________ practices
What did the Fordney-McCumber Tariff Act in 1922, do to Tariff
rates?
What was the plan business leaders promoted which supported
union-free open shops
This Amendment was opposed by many reformers, like those who
had fought so hard to get better hours and working conditions for
women,
This Scandal, involving friends of Warren Harding,
exposed the Secretary of the Interior, Albert Fall, had
granted private leases to oil reserves in California and
Wyoming
This president “the business of America is business”
Tell me that’s not just a little creepy.
Oh yea, please don’t try this