Harding elected
 Return to normalcy
 "America's present need is not heroics
but healing; not nostrums but normalcy;
not revolution but restoration...."

Ranked as one of the worst presidents
due to scandal and ineffectiveness
 Cabinet ran presidency
 Extramarital affairs and corruption in
cabinet


Good for businesses bad for women
› Self-regulation of businesses
› Harding appoints 4 conservative supreme
court justices

Adkins v. Children’s Hospital
› Minimum Wage
› 19th amendment – no special treatment for
women

Esch-Cummins Transportation Act of 1920
› Railroads Private

Merchant Marine Act of 1920
› Sold war fleet at low cost

Adjusted Compensation Act
› Compensation for WWI vets
Resolution passed in 1921 that formally
declared WWI over
 3 years after war ended

Back to isolationism
 Exception: drilling rights in Middle East
 Washington Conference 1921-1922

 1st international conference in US
 Russia not invited
 5 Power Naval Treaty (US, GB, FR, ITA, JAP)
› Reduce naval armaments
› Largely ignored
 4 Power Treaty
› Status Quo in Pacific (US, GB, FR, and JAP)
 9 Power Treaty
› Open Door in China

Outlaw of War
› Exempted defensive war

62 nations signed

Fordney-McCumber Tariff Law
› Raised tariffs from 27%-35%
› What was the problem?
End of war lessened need for goods
 Increased supply -> Lowered prices
 Volstead Act

› Farmers exempt from Anti-trust laws

McNary-Haugen Bill
› Gvt purchase and sale of crops
› Vetoed 2x by Coolidge (Effect ?)
Oil field reserve in WY
 Albert Fall (Sec. of Interior) leased land to
in exchange for cash ($404,000)
 Exposed by Wall Street Journal
 Given back to Navy in 1927
 Fall fined $100,000 and spent 1yr in prison
 Lack of trust in big business republicans

Harding dies of pneumonia and
thrombosis in August 1923
 Very quite and bland
 Reduce taxes and debts
 Economy Prospers


Republicans nominate Coolidge
› “Keep Cool with Coolidge”
Democrats heavily divided and with no
strong candidate chose John W. Davis
 Robert Lafollette – Progressive Party


#1
› support for tax reductions and the limitation
on government's role in American society;
› tariff protection for American industry, as
provided in the recently enacted ForneyMcCumber Tariff
› U.S. participation in international arms
reduction program and membership in the
World Court.

#2
› a graduated income tax;
› tough enforcement of antitrust laws;
› public works projects to alleviate
›
›
›
›
unemployment;
farm relief with more accessible credit and
crop price subsidies;
a tariff reduction;
Philippine Island Independence
a referendum on the League of Nations

#3
› public management and conservation of
›
›
›
›
natural resources
government ownership of the railroads and
power-generating resources
acknowledgement of workers' right to
unionize and bargain collectively
elimination of child labor
dissolution of monopolies
America’s desire for $$ from Great Britain
and France...led to GB and FRA’s desire
for $$ from Germany
 Dawes Plan

› France and Belgium would leave Ruhr area
› Manageable reparation schedule
› Relied on U.S Private loans (failed)
› Replaced by Young Plan (failed)
 Reducing the German obligation from the
original $32.3 billion to $713 million

Republican – Hoover
› Individualism, free enterprise, and small
government
› Well liked

Democrats – Alfred E. Smith
› Catholicism and being anti-prohibition hurt
him

Agricultural Marketing Act
› Federal Farm Board
 $500 million
 Low cost loans to farmers

Grain and Cotton Stabilization Corps
› Raise prices by buying surplus
› failed

Hawley-Smoot Tariff
› Raised tariffs 60%
› Deepened worldwide depression

Government programs failed because of
inflation
› substantial rise in the general level of prices
related to an increase in the volume of
money and resulting in the loss of value of
currency
October 29th, 1929
 Overproduction and Overexpansion
