Chapter 32

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Warren Harding
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A Republican who was unclear about where he stood on every issue; the Republican Nominee for Presidential Election in 1920
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Ohio Gang
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Poker-playing cronies from Harding’s native state who contributed to the morally loose atmosphere in his administration. Responsible for the Teapot Dome scandal
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What flaws did Warren Harding possess?
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He was of average intelligence and gullible. It was said that he couldn’t tell a liar.
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What pro-business policies were taken by the government during the Harding administration?
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It passed the Merchant Marine Act which authorized the Shipping Board to sell WWI era ships to private ships. It also hiked up the tariff with the Fordney McCumber Tariff to 38.5%.
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Railway Labor Board
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In 1922, this board ordered a 12% pay cut to all employees. A 2 month strike followed which was broken up by Attorney General Daugherty who launched a sweeping injunction. Incidents like this caused to union membership to drop 30% by 1930.
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American Legion
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Founded in Paris in 1919 by Theodore Roosevelt Jr, it consisted of WWI veterans who met up to tell old war stories and let off steam. it became famous for it’s patriotism, conservatism, and anti radicalism. They also loobied for veteran’s benefits and their “doughboys” called for compensation from the war in the form of bonuses.
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Adjusted Compensation Act
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Gave every former soldier a paid-up insurance policy due in twenty years- adding about $3.5 billion to the total cost of the war.
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What effects did the war have on the post-war economy?
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New technologies made farm work easier and increased production. However, increased supply with the same demand yielded decreased prices, putting farmers on hard times.
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Unofficial Observers
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US “not delegates” who watched proceedings at the League of Nations
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Charles Evan Hughes
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US Secretary of State who argued at the Washington conference that the only way to escape an international armaments race was to “end it now.”
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Five-Power Naval Treaty
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Treaty in which the US, Japan, Britain, France, and Italy agreed to limit their navies, place a moratorium on battleships for 10 years, and stop further fortifying their Pacific possessions. This resulted in the division of the world into US, Japanese, and British sectors. However, the act’s efficacy suffered from its lack of enforcement and consequence.
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Four-Power Treaty
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Treaty in which the US, Britain, France, and Japan agreed to accept each other’s possessions in the Pacific. However, the act’s efficacy suffered from its lack of enforcement and consequence.
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Nine-Power Treaty
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Treaty which formalized the open door policy in China, ensuring equal trade and investment opportunities for all countries, free from regional monopolies. However, the act’s efficacy suffered from its lack of enforcement and consequence.
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Kellogg-Briand Pact
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Pact which resulted from the push to abolish war in the US, under which the US and France would promise never to go to war with each other. Its real intentions were to prevent the US responding if France infringed upon their rights, and SoS Frank Kellogg countered it by proposing the Pact of Paris.
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How did the U.S. take the lead in disarmament in the 20’s?
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It held a disarmament conference which invited all the major powers except Russia. The Five Power Treaty set up the 5:5:3 ration of ships (US:Britain:Japan), the Four Power Treaty which required Britain, Japan, US to keep the status quo in the pacific and the Nine-power Treaty which kept open the Open Door Policy with china.
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Fordney-McCumber Tariff Law
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Reflected US isolationist inclinations following WWI. Congress adopted a laissez-faire attitude toward regulating business and pro-business attitude in passing the tariff and in promoting foreign trade through providing huge loans to the postwar Allied governments who returned the favor by buying US goods and by cracking down on strikes.
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What effects were produced by high American tariffs?
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There was a snag in the system, Europe owed money to the U.S. for WWI, in order to pay it back they needed to export, but the U.S. tariff crippled those exports.
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Charles R. Forbes
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Harding’s Secretary of State who, with his accomplices, looted the Veteran’s Bureau of $200 million. “Strong-minded leader of Harding’s cabinet and initiator of major naval agreements.”
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Albert B. Fall
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Harding’s Secretary of the Interior (Senator from New Mexico), convicted of taking bribes for leases on federal oil reserves in the Teapot Dome scandal
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Teapot Dome
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One of many scandals under Harding; Involved priceless naval oil reserves at Teapot Dome, Wyoming. Albert B. Fall got Secretary of Navy, Denby to transfer valuable goods to Interior Department secretly. Harry Sinclair and Edward L Dohney were released the lands after paying a large bribe. Scandal polluted governments prestige and made public wonder about the sufficiency of government and undermined faith in courts
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Harry M. Daugherty
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U.S. attorney general and a member of Harding’s corrupt “Ohio Gang” who was forced to resign in administration scandals, some involving the illegal sale of liquor permits.
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“Such was his [Harding’s] weakness that he tolerated people and conditions that subjected the Republic to its worst disgrace since the days of President Grant.” Explain.
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Harding was an honest man, but he was oblivious to corruption and didn’t want to believe that the people he chose could pull such a feat off. He simply tried to ignore the scandals that were were happening, but he couldn’t prevent nor did he want it to happen. Forbes was a worker for the Veteran’s and he skimmed money from them and later went to jail from it, although first successfully taking $300 dollars. Teapot Dome Scandal was another time where corruption happened just like how it did in Grant’s administration. Fall was selling the land of oil for bidding instead of actually monitoring it. Harry M. Daugherty also took bribes and gave away liquor licenses.
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Calvin Coolidge
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Taciturn, pro-business president (1923-1929) who took over after Harding’s death, restored honesty to government, tried to clean up scandals, business prospered and people’s wealth increased, and accelerated the tax cutting and antiregulation policies of his predecessor; his laissez-faire policies brought short-term prosperity from 1923 to 1929.
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Do the nicknames, “Silent Cal” and “Cautious Cal” accurately describe the Coolidge presidency?
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Coolidge was very soft spoken, and also very traditional at the time earning him the name Silent Cal and Cautious Cal. He was a shy and boring president, unlike most other politicians which is why they called him something of that nature. He was also very pro-business and went even more laissez-faire than what Harding tried to be. He believed that the factory was a temple that rich people built and the workers there worship at it.
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McNary-Haugen Bill
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it sought to keep agricultural prices high by having the government buy surpluses to sell abroad, vetoed twice by Coolidge
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What had changed for the farmer since 1890? What had remained the same?
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Farmers had enjoyed a boom during WWI, meeting the supply for demand of food. However, improved technology and increased production lowered food prices which hurt the farmer.
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Robert La Follette
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Leader of a liberal third-party (Progressive Party) insurgency who attracted little support outside the farm belt and his home state of Wisconsin. Ran against Coolidge in the 1924 election
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Why did Calvin Coolidge easily win the 1924 election?
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The times were good and prosperous, thus he was reelected easily.
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What are the arguments for America canceling the WWI debt of European countries?
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The high tariffs hurt European exports which hurt the European’s ability to repay their debt. As a result, The Dawes Plan solved the problem even though the US never got repaid for the loans.
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Dawes Plan
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A plan to revive the German economy, the United States loans Germany money which then can pay reparations to England and France, who can then pay back their loans from the U.S. This circular flow of money was a success.
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What were the world-wide repercussions of America’s insistence on debt repayment?
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France and Britain demanded from Germany reperations to then repay America back it’s debt. The Dawes plan established a financial system between Germany and America, which only resulted in the cycle of money from America to Germany to France and Britain and then back to America.
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Alfred Smith
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He ran for president in the 1928 election for the Democrat Party. He was known for his drinking and he lost the election to Herbert Hoover. Prohibition was one of the issues of the campaign. He was the first Roman Catholic to run for president, and it was during a time many people were prejudice toward Catholics
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“Rum, Romanism, and Ruin”
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“Rum, Romanism, and Rebellion” was an insult made against Irish Immigrants during the 1884 presidential campaign. This insult managed to sway New York to rethink its decision on electing republican candidate James Blaine, and his failure to repudiate the statement lost him NY in the election and allowed Cleveland to become president.
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Why was Herbert Hoover so much more popular with voters than Al Smith?
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Herbert Hoover was so much more popular than Al Smith mostly because Hoover did a successful job at commerce, but also because he sounded much better on the voice radio media than Hoover did. Hoover was born in a city and he was also New Yorkian and Irish and Catholic. The normally Democratic south disliked the fact that he was Catholic so they were split on the vote. Hoover also spoke of individualism, and he lived a lifestyle of being an individual, and that appealed to many Americans.
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Farm Board
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Agency of the U.S. Department of Agriculture; it offered farmers insurance against loss of crops due to drought; flood; or freeze. It did not guarantee profit or cover losses due to bad farming.
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Hawley-Smoot Tariff
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Raised tariffs to an unprecedented level and worsened the depression by raising prices and discouraging foreign trade. (1930)
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Did Hoover’s attempts to help farmers produce positive results? Explain.
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Hoover’s attempts to help the framers help produce more money ended up to help them in the end, although his other policies would ultimately worsen the conditions of all of America. The Agricultural Marketing Act was passed and it set up the Federal Farm Board to lend money to the farmers that needed it. Another thing they did was create a company that bought the surpluses of food and sold them to other nations, thus allowing the price to stay high. However, the Hawley-Smoot Tariff would ultimately hurt everyone in America and cause a depression to hit because it raised tariffs so high that it was impossible for foreign imports to be bought. Trade would slowly stop with America.
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Black Tuesday
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October 29, 1929: Stock Market Crash
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“Brother Can You Spare A Dime?”
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Song about the great depression. Showed how even the wealthy and educated can lose everything they have.
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What were the immediate effects of the stock market crash?
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It caused many businesses to go out of business, increased unemployment, closed many banks and also created many homeless people. What caused such a crash was that the stock market shot higher and higher until suddenly the bottom of the stock market dropped some news from Britain which dropped the prices of stocks and stockholders lost about $40 billion by the end of 1929. This catastrophic caused one of the greatest depressions known to the United States.
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Hoover Blankets
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The nickname for old newspapers that people used during the ’30s when sleeping for warmth, once again criticizing (Mocking) the president for not providing anything but the newspaper.
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Hoovervilles
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camps built outside of major cities by people who had lost their homes during the great depression called hoovervilles because the people blamed hoover for their situation and the depression
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What causes contributed to the Great Depression?
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Money was going to investors instead of salaries. Overexpansion of credit overstimulated production. A prominent Vienna banking house collapsed. There was a lack of international trade; a result of the Fordney McCumber Tarriff adn teh Hawley Smoot Tarriff. There was also a drought in the Mississippi Valley. The stock market crash, over speculation, and over production all contributed to the Great Depression.
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Rugged Individualism
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Doctrine preached by Herbert Hoover; it was anti-socialism and insisted that people should work themselves out of the Great Depression without government aid. The belief that all individuals, or nearly all individuals, can succeed on their own and that government help for people should be minimal. Popularly said by Hertbert Hoover.
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The Great Humanitarian
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sarcastic nickname for Hoover
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How did President Hoover’s beliefs affect the way he handled the Depression?
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President Hoover was known for being very individualistic, and he was known for showing his rugged individualist nature around in his governmental actions, as in he takes a long time to perform them. Many people pointed out that he was willing to help people of other nations but not people of his own nation. They also questioned his conservatory when he decided to have no laissez-faire. His beliefs led him to think that all this was part of a natural business cycle and if he did nothing it would fix itself.
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Muscle Shoals Bill
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Bills that would allocate funds to dam the Tennessee River and provide employment, is vetoed by Hoover saying that it was “Socialist”. Later would be passed by FDR
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Reconstruction Finance Corporation
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This agency became a government lending bank under the Hoover administration. It was designed to provide indirect relief by assisting insurance companies, banks, agricultural organizations, and railroads. (1932)
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Pump-Priming
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The spending of government funds in commercial enterprises, to stimulate the national economy (under Hoover)
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Yellow Dog Contracts
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An agreement some companies forced workers to take that forbade them from joining a union. This was a method used to limit the power of unions, thus hampering their development.
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Is Hoover’s reputation as ultra-conservative well deserved? Explain.
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His reputation is deserved for his actions against the Bonus Army. He put down their protest with military intervention. He was anti laissez faire and prosecuted gangsters. He vetoed the Muscle Shoals Bill as he believed that the government should not by in competition with citizens.
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Bonus Expeditionary Force
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20,000 veterans who converged on the capital in the summer of 1932; they were demanding the immediate payment of their entire bonus, which was meant to be paid in later years. They set up public camps. The pending bonus bill failed to pass in Congress, and Hoover arranged to pay the return fare of 6000 of them, but the rest refused to leave and were forcibly removed by MacArthur in the Battle of Anacostia Flats
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Douglas MacArthur
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United States general who served as chief of staff and commanded Allied forces in the South Pacific during World War II
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What happened to the Bonus Army? Why?
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President Hoover critisized the BEF as being made up of riffraff and reds. As a result, General Douglas MacArthur used bayonets, tear gas, and fire to rout the BEF.
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Manchuria
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In 1931 the Japanese stage-managed an attack on the Japanese owned Manchurian railway by “Chinese bandits.” To protect their interests the Japanese army took control of the whole region. Both China and Japan appealed to the League of Nations to arbitrate.
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Stimson Doctrine
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Policy toward the Japanese; proclaimed in 1932; declared that the US would not recognize and territorial acquisitions that were achieved by force. Statement by US Secretary of State Henry Stimson
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How did the Japanese attack on Manchuria demonstrate the weakness of the League of Nations?
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The Japanese violate the Open Door policy when they attacked Manchuria, but the League of Nations did not act because the US was not a member of the league and the depression had weakened many countries. Also, the league did not act because they were not confidant of American support
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What was President Hoover’s policy toward Latin America?
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He wanted to fix US-Latin American Relationships and went on a good will tour to extend the hand of friendship. Due to the Depression, Americans stopped engaging in dollar diplomacy and pulled soldiers out of Haiti and Nicaragua.

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