Barnett
UHS
APUSH

I. The New Era
 A. Rise of conservatism
 B. Laissez-Faire

II. Harding – A return to “normalcy”
 A. Hardworking
 B. Unwilling to offend
 C. Influenced by cabinet “Ohio Gang”
○ 1. Charles Hughes- Secretary of State
○ 2. Andrew Mellon Secretary of Treasury- one of the richest
men in the world.
○ 3. Herbert Hoover Secretary of Commerce
○ 4. Secretary of Interior- Albert Fall
○ 5. Charles Forbes- Veterans Administration Chief

III. Regulating Business
 A. Andrew Mellon- Trickle Down Economics or Supply Side Economics.
He opposed lowering tax rates for those earning less than $66,000
 B. reduced inheritance taxes and income tax on the wealthy by 2/3.B
 C. Bureau of Budget 1921- reduce WWI debt.
 D. Farmers suffered
 E. Mellon ignored the Farm Bloc
 F. Revenue Act of 1921
 G. Fordney - McCumber Tariff of 1922.
 H. Mellon's programs did pay off the war debt and reduced the national
debt by $500 million a year.
 I. ICC, FTC, and Federal Reserve to be pro-business.

IV. Harding Scandals
 A. The Veteran's Administration, led by Charles Forbes, stole millions
 B. Secretary of the Interior Albert Fall leased Navy lands in Wyoming
(Tea Pot Dome) and in California (Elk Hills) to oil companies
 C. Harding died in August 1923 late in his term.

V. Coolidge
 A. Coolidge untouched by scandal
 B. Henry Ford- Anti-semitic- Collapse in support
 C. Democrats split on a nominee, compromise on John Davis
 D. Old Progressive Robert La Follette (Liberal/Socialist) "Wisconsin Bolshevism”

VI. Coolidge: "a man who builds a factory...builds a temple…the man
who works there worships there.”
 A. Replaced Attorney General Daugherty with Harlan Fiske Stone
 B. Laissez-Faire
○ 1. Andrew Mellon was Secretary of Treasury
 C. Norris LaGuardia Injunction Act- Passed in 1932 to protect workers'
rights.
 D. Other Consumer goods- Installment purchases
 E. Ads and Mass marketing
 F. Later Speculation
○ 1. land and stocks

VII. Foreign Policy- Rise of Isolationism
 A. Charles Evans Hughes (Secretary of State)
 B. Steer clear of foreign entanglements which led to isolationism
 C. The Open Door Policy continued to dominate US business goals and
foreign policy
 D. Foreign Policy
○ 1. German hyperinflation
○ 2. Financial Crisis in Europe
○ 3. 5 Power Treaty to reduce naval power and 9 Power Treaty agree
to respect China's independence.
○ 4. Japan - Co-prosperity Sphere (Asia for the Asians)
 1. Stance on China
 5. Kellogg-Braind Pact - Outlawed War as a means of
foreign policy
○ a) Jane Addams
○ b) FDR
○ c) Carnegie Endowment for International Peace
 6. Good-Neighbor Policy - Clark Memorandum
○ 1. Hoover Administration stated that Roosevelt's Corollary
to the Monroe Doctrine was improper.
○ 2. US withdrew Marine units from Haiti, Dominican
Republic and Nicaragua.

E. Diplomacy in the Depression Isolationist
 1. Continue Good Neighbor Policy-does not go after
business debts
 2. Monetary Diplomacy○ a) Debts with German-Hoover Moratorium 1931
 (1) 1933 Hitler is in power
 (2) Rise of Third Reich
○ b) Failure of the gold standard
 3. Japan's aggression in Manchuria
○ a) Violated the Kellogg- Briand and Nine Power Treaty
○ b) Stimson Doctrine (1932)
 Did not recognize
 still traded oil and steel
 “Not World’s Policemen”
 4. Hawley Smoot Tariff 1930 - increase 59%
○ Farm & Industrial Goods
○ Global Reprisals
 5. Dawes Plan - provided Germany with $200 million
loan designed to stabilize it's currency
 6. World Court -USA did not join
VIII. Election of 1928
 A. Herbert Hoover (R)

 1. Conservative
 2. Rugged Individualism
 3. He was pro tariff and prohibition.
 4. McNary-Haugen Bill- created price supports for
farmers

B. Al Smith (D)
 1. Accused of being wet, and a socialist.
 2. Anti-Catholicism from rural areas
 3. Democrats look in trouble.

VIII. 1928

1929 Crash - decline of conservativism
 A. Stock Market Crash - October 29, 1929
 B. Great Depression Causes
○ 1. Income Inequality

1929 Crash - decline of conservativism
 A. Stock Market Crash - October 29, 1929
 B. Great Depression Causes
○ 1. Income Inequality
○ 2. Gold Standard
○ 3. Federal Reserve Policy
○ 4. Protective tariffs (Hawley-Smoot Tariff)
○ 5. Over use of credit and buying stocks on margin
○ 6. Agri-depression (The Dust Bowl)
 A. 1921 Agriculture Marketing Act
○ 7. Unemployment-production slow down

C. 3 phases of Hoover's policies for recover
 Phase 1 Conservative - Mellon's Liquidation policy rejected
by Hoover.
○ a) Mellon liquidate - follow the business cycle & stay calm
○ b) Tariff more protectionism
○ c) Cut corporate and wealthy taxes
○ d) Monetary Policy-Tight-no inflation
○ E) Fiscal Policy - keep balanced budget

Phase 2 Slightly moderate - European panic on
falling off Gold Standard 1931 and defaulted on
WWI debts to USA
 a) Business should voluntarily maintain wages
 b) Local charities overwhelmed.
 c) Charities received minimal funding and relief

Phase 3 Slightly liberal
 a) Glass Steagall Act- freed up 1 billion in gold for Euro
 b) Reconstruction of Finance Corporation lent money
 c) Created Deficit
 d) $1.5 Billion in Public works

D. Suffering and Poverty
 1. Hoovervilles (small shanty towns),
○ Hoover Blankets (newspapers),
○ Hoover Flags (empty pockets)
 2. Dust Bowl - Okies and Arkies fled west
○ Demographic change
 3. Bread lines and soup kitchens, Hoboes and beggars
○ a) Loss of ambition and hope.
○ b) Many never applied for public assistance
○ c) Poor nutrition and public health
○ d) Children became burdensome.
 4. Bonus March on Washington DC
○ WWI veterans - World War Adjustment Act of 1924 (1945)
○ Burned out of Annicosta Flats
○ Hoover's brutal suppression of the protest further lessened
his hopes for reelection

D. Election of 1932
 1. Rugged Individualism V. The New Deal
 2. Hoover was considered negative
 3. FDR was considered positive and vague-promised
gold standard and no deficits and gave the impression
of a moderate or even conservative
 4. FDR was the big winner people wanted proactive
change