1. Chapter 31 Politics and Prosperity (1920-1929)

2. Section 1: Republican Decade I. Red Scare A. Russian Revolution 1. 1920 elected Warren G. Harding as president a. “Return to Normalcy”- life before WW1 2. New Gov’t in March 1917 Russia a. Vladimir I Lenin asylum in Germany- Came back b. called his group Bolsheviks c. overthrew new govt in Nov 1917> signed peace agreement treaty with Germany. d. Second Revolution “1905” 3. Reds- Bolsheviks (communist) vs. Whites (anti- Bolsheviks) a. 2 years Red won – USSR (Union of Soviet Socialist Republic) aka Soviet Union (1922). b. Communism 1. Single party controlled by govt 2. govt owned all land/property 3. needs of country outweigh individual rights

3. I. Red Scare cont B. American Fears 1. Lenin openly disagreed with American Culture- Capitalism, private ownership- individual rights a. openly preached spread of communism and for unsatisfied workers to revolt. 2. Worried that all the immigrants in Africa with workers would revolt (thought that all may be communist) 3. 1919- communist party tried to overthrow democratic govt of Germany a. did overthrow Hungary b. used this every time workers went on strike – most communist or revolutionaries c. Red Scare intense fear of communism and other radical ideas

4. I. Red Scare C. Schenck vs. U.S. 1. Charles Schenck mailed letters to men who were drafted telling them not to report for duty. a. jailed for violating Espionage Act b. Supreme Court ruled that govt could silence free speech if there is a “clear and present danger” to the nation. Compared it to yelling “fire” in a movie theater D. Gitlow vs. New York 1. Bernard Gitlow- Socialist- convicted- published writing telling people to overthrow the gov’t. a. supreme court upheld conviction b. also went on and said that 14 th amendment protected civil rights against state federal govt

5. I. Red Scare E. Palmer Raids 1. June 1919, bombs exploded in several cities, one explosion severely damaged the home of A. Mitchell Palmer. Attorney General F. Sacco and Vanzetti 1. April 15, 1920, gunman robbed and killed the guard and paymaster of a shoe factor in South Braintree, Mass. a. few weeks later 2 Italian immigrants where arrested and charge with the murder and where sentence to death. b. Vanzetti (fish peddler), Sacco (shoemaker) c. both anarchist, both had guns on them when found, sacco gun was the model used in the shooting. d. drew national attention because many Americans thought they were arrested just for being immigrants and anarchist e. very unfair trail found guilty years of appeal but 1927 died in electric chair

6. II. Labor Strike 1. Labor strikes added fuel to Red Scare a. 175 went up to 370 a month in August 1919 b. Americans believed communist were behind it 2. Unions reached peak in 1919- declined by late 1920’s because of the economic boom which led to higher wages III. Republican Leadership A. Harding Presidency 1. Wise cabinet appointments a. sec of state Charles Evan Hughes b. Herbert Hoover (sec of Commerce) Mellon (Sec of Treasure) 2. Rest of Appointed were buddies> stole> very dishonest a. will ruin his presidency

7. III. Republican Leadership B. Foreign Policy 1. Isolationism- avoid political/economical alliances with foreign countries. 2. Harding called for Disarmament voluntary giving up weapons 3. High tariffs passed- kept GB/France from being able to pay off war debts – we reduced debt a. Germany- Dawes Plan payment schedule and added another loan to Germany. C. Domestic 1. Nativism a. Patriotism b. Religion c. Urban condition d. Jobs E. Red Scare

8. IV. Coolidge Presidency 1. August 1923 Harding died (possible heart attack) a. Calvin Coolidge became president b. elected in 1924 A. Laissez Faire 1. Coolidge is leaving business alone a. went so far as to not help citizens after a massive flood of Miss. River B. Kellogg- Brand Pact 1. 15 nation pledged not to use the threat of war against one another. a. 60 nations will eventually join b. by 1941 many nations that signed where at war 2. 1928- Coolidge did not want to run he elected Herbert Hoover

9. III. Republican Leadership 2. Set Quota – numerical limits a. National Origins Act- 1924 2% based on 1890 b. Harding equality blacks- met total wall in congress. D. Teapot Dome 1. Sec of Interior gave oil drilling rights on gov’t fields in California, and Teapot dome, Wyoming. (two private companies) 2. 300,000 illegal payments and gifts disguised and loans

10. Section 2: Business Boom 1. Buying On Credit a. Installment plan- practical payment overtime 2. Electric Power a. General Electric I. Ford 1. 1 st appeared in 1880’s a. 1903 started on automobile company b. 1908 model t 2. Assembly Line a. wanted to price everything so that most could afford it. b. Workers worked down a line doing one specific task c. did not invent it but made it more efficient d. could turn out Model T ford every 24 seconds 1908-1927 built half the cars in the world. e. Vertical Consolidation- process of gaining control over many diff. Business 3. Car Industry of Ford led to other Business

11. Section 3: I. Economic Danger Signs A. Uneven Prosperity 1. Gap between the Rich-Poor continued to grow B. Personal Debt 1. Buying of Credit Cards led to this C. Stock Market 1. Speculation – the practice of making high risk investments in hope of getting a huge return. 2. Buying on margin 10% to 50% down- borrowers could sell stock at a high enough price to pay off both the loan and the interest charges and still make money. D. Too many Goods too little demand E. Farmers/Workers 1. Good country bank failed in 1920’s