Politics of Boom and Bust

1. Politics of Boom and Bust APUSH

2. I. Republican Reactionism • Warren G. Harding • Charming exterior/weak interior. • Ohio Gang • advisors that were corrupt (that used their power for their own benefit. • Charles Evan Hughes – Secretary of State • Andrew W. Mellon – Secretary of Treasury • Herbert Hoover- Secretary of Commerce • Albert B. Fall – secretary of the Interior • Harry M. Daugherty – Attorney General

3. Harding

4. I. Republican Reactionsim • Warren G. Harding • Ohio Gang • Goal was to bring back laissez faire and business should help guide business to profit. • Anti trust laws were ignored • Supreme Court was used to do so • Axed progressive legislation • Killed child labor laws • Adkins v Children's Hospital – overturned Muller v Oregon (women no longer need special protection)

5. I. Republican Reactionism • Warren G. Harding • Ohio Gang • Esch- Cummins Transportation Act of 1920 – encouraged private consolidation of railroads • Merchant Marine Act - sold 1500 ships to private shippers, decreased navy • With these policies, labor movement would suffer

6. Ohio Gang

7. I. Republican Reactionism • Warren G. Harding • WWI Vets • Veterans Bureau – hospitals and vocational rehab • American Legion • Veteran Benefits

8. I. Republican Reactionism • Foreign Policy • American Isolationism • Agreed to a joint resolution to end the war. • Left Europe to fend for themselves • Middle East • Disarmament • Five Power Treaty: set up 5-5-3 ratio of ships • Four Power Treaty: required Britain, Japan, France, and US to keep Status quo in the Pacific. • Nine Power Treaty: kept open door policy with China

9. I. Republican Reactionsim • Foreign Policy • The Terrible Tariff • Fordney-McCumberTariff: increased tariff from 27 to 38.5%, authority given to executive to fluctuate tariff to 50% • Problem: Europe owed money to US and needed to export, but tariff crippled exports. We weren’t getting paid back

10. I. Republican Reactionism • Harding Scandals • Forbes’ Veteran Bureau Scandal – looted over $200 million from the government bribes for pardons and liquor permits. Never convicted though much evidence supported. • Teapot Dome Scandal – (1921) – Albert Fall (Sect. of Interior) transferred naval oil reserve lands in Wyoming and Calif. to Dept. of Interior. He then leased these to Sinclair and Doheny in exchange for $400,000. • Investigation of Attorney General Daugherty – illegal sale of pardons and liquor permits.

11. Tea Pot Dome Scandal