Download Chapter 31 Outline

Kaley Shimogawa
AP US History P. 1
Mr. Bugallo
Chapter 31 Outline
“The Politics of Boom and Bust”
I.
II.
III.
The Failure of Warren Harding
A. Warren Harding Inaugurated, 1921
1. Good person but unable to determine if his friends
were
2. Soon after inauguration he was surrounded by men
only interested in themselves
3. His inability to say no was negative for the
presidency
B. Harding created a group he believed were better suited to
help
1. Charles Evans Hughes, Secretary of State
2. Andrew W. Mellon, Secretary of Treasury
3. Herbert Hoover, Secretary of Commerce
4. Senator Albert B. Fall, Secretary of the Interior
5. Harry M. Daugherty, Attorney General
The New Power
A. Created a Laissez-Faire Government
1. Government didn’t intervene to stop businesses but to help them
B. Took away many recent gains
1. Adkins v. Children’s Hospital, 1923
a) Court reversed Muller V. Oregon Case
b) No more minimum wage law for women
C. Laws Ignored
Post War Accords
A. No more Government regulation
1. Businesses no longer under governmental
control
2. Railroads privately owned again
a) Cut labor wages by 12%, 1922
B. Bonus Army
1. Veterans wanted compensation for
returning home to minimum wage
2. Adjusted Compensation Act
IV.
V.
VI.
VII.
3. $3.5 Billion Total added to cost of the war
American Affiliation with the Nations
A. Refusal to join Treaty of Versailles meant still at war with Germany,
Austria, and Hungary
1. Congress passed resolution declaring the end of the war
B. Not in support of League of Nations
1. Observers sent to monitor
C. Rivalry Developed between Britain and America
1. Oil Drilling Concessions
2. Hughes acquires rights to share exploitations
Disarmament
A. Secretary Hughes proposed 5:5:3 ratio of battleships with
America:Britain:Japan titled The Five-Power Naval
Treaty
B. Conclusively ended in the Nine-Power Treaty of 1922
1. Provided much more for Japan
C. Kellogg-Briand Pact
1. 62 nations joined
2. Pact promised that a nation would not initiate war,
only defend
Tariffs
A. Created Fordney-McCumber Tariff Law
1. Feared cheap Foreign goods
2. From 27% to 38.5%
B. Increased tariffs of foreign product = less Britain would sell = Less Britain
would buy in America
1. Britain retaliated with Tariff walls of their
own
2. Britain could not pay of American Debt
because business was stagnant between
both
Scandals of America
A. Veterans Bureau Scandal
1. 1923
2. Colonel Charles R. Forbes
a) Deserter from the army
b) Caught stealing $200 million from
Veterans’ Hospital funding
B. Teapot Dome Scandal
1. 1921
VIII.
IX.
X.
XI.
2. Naval Oil Reserves
3. Secretary of the Interior, Albert B. Fall
a) Leased the land after total
$400,000 bribe from Harry F.
Sinclair and Edward L. Doheny
C. Illegally sold Pardons and Permits
1. 1924
2. Attorney General Daugherty
a) Resigned and tried in 1927
b) Released after 2 jury failures
c) Claimed he was under Harding’s
command
Presidency of Coolidge
A. Harding died August 2, 1923
B. Vise President Coolidge promoted
Farmers’ Gains and Losses
A. Gains
1. Motorized Plows
2. Less hands were employed
3. Faster production
4. Wider variety of crops were grown
5.
B. Losses
1. War was over so competition with other nations resumed
2. McNary-Haugen Bill
a) Tried to keep crop prices high
b) Twice Vetoed by Coolidge
c) Prices stayed low
1924 Elections
A. Coolidge (Republican), Davis
(Democratic), La Fallette
(Progressive)
B. Coolidge won 382:136:13
Stubbornness of America
A. Coolidge continued the Isolation
B. America demanded their debts to
be repaid by the Allies
1. Britain and France claimed
the impossibility of this
demand because of the
XII.
XIII.
XIV.
Tariff Wall instated during Harding’s Presidency
2. Allies suggested America write off the debt
C. Dawes Plan
1. America Paid Germany, Germany Paid Britain and France, Britain
and France Paid America and America waited for Germany to Pay
of the new Loans
1928 Elections
A. Alcoholic Smith VS. Antisocial Hoover
1. Radio helped Hoover and hurt
Smith
a) Audience believed that
Hoover’s voice was
more appealing
B. Overwhelming Win for Hoover
Hoover Presidency Appears Great
A. Bull Market is going up up up
1. Farmers and Workers not able
to get in on the action
2. Agricultural Marketing Act,
June 1929
a) Gave $500,000 to
Federal Farm Board to loan to Farmers
in need
B. In an attempt to be helpful Hoover tried to change the
Tariffs minimally
1. The result was the Hawley-Smoot Tariff of
1930
a) Tariff changed from %38.5 to %60, not a
small change
b) This was taken as an Economic warfare
by the other nations
The Crash of 1929
A. Stock prices shot up
B. Britain increased their rates to bring back American
interest
C. American investors decided to drop their stocks
D. October 29th, 1929
1. Black Tuesday occurred
2. Everyone was in panic because nearly 16
million shares were dropped
XV.
XVI.
XVII.
3. Stockholders lost $40 Billion
4. Millions lost their jobs
Cause and Effects of The Great Depression
A. Overproduction
1. Farms and Factories
B. Buying on Credit
1. People were purchasing things on credit with no ability to pay it
back, only thinking of now
C. Europe experienced a financial crash
1. They were unable to pay their debt to America when asked to aid in
the American crash
D. Mississippi Valley Drought in
1930
1. Farmers had to sell their
farms to make up for their
loss
E. Hoovervilles Created
1. Small run down towns full
of poor starving people
Hoover Insists on Self-Reliance
A. Hoover attempts to continue
using Laissez-Faire on
Government but got much
criticism from the American citizens
B. In an attempt to rid himself of these critics he tried to aid the economy
C. Thinking added money to the higher tiers of the economy would trickle
down to others he assisted railroads, banks, and credit
unions
D. Hoover was still criticized for not creating visible change
1. People expressed their dissatisfaction that he
would help starving Belgians but not starving
Americans
Hoover Attempts to Rehabilitate America
A. Hoover employs Congress to give aid money
1. Congress creates Reconstruction Finance
Corporation
a) Money goes to insurance companies,
banks, agricultural organizations,
railroads, and occasionally local and state
governments
XVIII.
XIX.
2. Hoover push for the Norris-La Guardia Anti-Injunction Act
a) Outlawing anti-union activity, permitting all non-violent union
action
Bonus Army
A. Fearing their promised payment in 1945
they went to Washington and demanded
it presently
1. Created Hooverville in front of
White House to intimidate
B. Congress refused to pay
1. Hoover offered to pay for return
trip, many refused to leave
a) Hoover dubbed these
people riffraff and
Communist supporters
C. Forcefully removed with guns and tear
gas
1. This violent action by Hoover
caused him to lose all support
Japan Takes Advantage
A. America and Britain were in turmoil
1. Japan saw an opportunity to take china
B. Bombed Shanghai, 1932
1. America
Boycotted Japanese goods but
not important enough for
military involvement