Politics of the 1920s leading to Depression

1
Chapter 33

• Politics of the 1920s leading to Depression

2
The Republicans

• Warren G. Harding and the Ohio Gang arrive in
  1920. Surrounded by the best minds, which only
  led to scandal.
• The wealthy working for the wealthy the
  Progressive movement had been forgotten.
  Corporations relaxed and tariffs went up (sorry).
• Veterans Bureau and the Adjusted Compensation Act
  (Bonus Bill).

3
Disarmament and Scandal

• Sec of State Hughes and the Disarmament
  Conference 1921-22. Scaled-down navies and a ten
  year holiday from construction of battleships and
  aircraft carriers.
• Col. Forbes stole 200 million from the Veterans
  Bureau.
• Albert Fall, Sec of the Interior, went to prison
  for the Teapot Dome Scandal. Leasing government
  oil fields for private profit through bribes
  equaling 300,000.
• In America one is guilty until proven RICH.

4
Coolidge and Crops

• Harding died in August 1923 and Silent Cal
  Coolidge is sworn in office. Sympathetic to
  business and let Mellon reduce taxes and debt.
• Coolidge elected in 1924 over Fighting Bob
  LaFollette.
• The Dawes Plan for repayment of US loans to
  allies in WWI.

5
Hoover and the Economy

• Hoover runs against Al(cohol) Smith who the
  Republicans claimed supported Rum, Romanism, and
  Ruin. Hoover wins since a vote for Al was a vote
  for the Pope.
• Hoover backs the Agricultural Marketing Act which
  led to the Federal Farm Board that gave loans
  freely. Hawley-Smoot Tariff raises taxes and
  makes Europe mad.

6
The Crash

• The boom was stimulated by a post-war economy
  based on autos, radio, movies,etc, but it had to
  end because of overproduction.
• Speculation and buying on the margin in the
  stock market create many wealthy people, but the
  market ultimately became saturated with borrowed
  money.
• Fear ultimately brought the crash.
• October 29, 1929 was Black Tuesday where 16.5
  million shares of stock were liquidated.
• 40 million dollars were lost by the end of 1929.
• 6 billion in borrowed money on the stock
  market.
• 10 billion evaporated in the stock market crash
  total.

7
Life

• Thousands of banks collapse which take the
  savings thousands who never even gambled on
  stocks.
• Breadlines, soup kitchen, poverty, Hoovervilles,
  unemployment averages 25, stress, guilt,
  suicide, hobos, etc.
• Hoover believed it was simply a trend and the
  market would recover on its own.
• Congress established 2.25 billion for aid of
  businesses, railroads, ag organizations, but no
  individuals.
• The Bonus Army seals the fate of the Republican
  party in 1932.
• Foreshadowing a war Japan attacks Manchuria
  viciously.