Presentation on theme: "An era of prosperity, Republican power, and conflict"— Presentation transcript:
1 An era of prosperity, Republican power, and conflict The Roaring 20sAn era of prosperity,Republican power,and conflict
2 1920's collectively known as the "Roaring 20's", or the "Jazz Age" A period of great change in American Society - modern America is born at this timeFor first time the census reflected an urban society - people had moved into cities to enjoy a higher standard of living
3 Republican Power President Warren G. Harding Elected 1920 Legacy of Scandals“Teapot Dome” ScandalDied in office
4 The 1920 Election: Meet the Candidates Warren G. Harding: Republican PartyFrom OhioHad originally made his mark as a newspaper editor and parlayed his success there into a seat in the SenateJames Cox: Democratic PartyPresident Wilson wanted a third term despite his poor health and declining public appeal.Party regulars, however, refused to accede to the president's wishes and succeeded in garnering the nomination for a political nonentityEugene V. Debs: Socialist PartyWas then serving a 10-year prison term for antiwar activities in violation of the Espionage Act of 1917.
5 The 1920 ElectionWoodrow Wilson originally tried to run for a 3rd termHe lost the Democratic Party’s nominationWilson supported Democratic Candidate James M. Cox of OhioIf Cox won, Wilson was convinced it would prove that Americans supported his vision of peace and the League of NationsElection of Warren G. Harding served as the final rejection of the League of NationHarding ran on platform rejecting both Wilson’s idealism & joining the League of NationsHe campaigned on a “Return to Normalcy”
6 The 1920 Election ResultsHarding proved to be a better judge of the electorate than Wilson.Staging a sedate campaign from his front porch in Marion, Ohio, Harding stated,"America's present need is not heroics but healing; not nostrums but normalcy; not revolution but restoration...."In November, the voters overwhelmingly indicated their exhaustion with Wilson's idealism and a preference for Harding's return to normality.Harding wins in a landslideRepublicans also won majority in Congress, which proved Americans wanted to take a different path in foreign affairs and isolate themselves from European affairs/wars
8 Noteworthiness of the 1920 Election THE RADIO CHANGES THE WAY ELECTION RESULTS DELIVEREDFor the first time in American history, election results were made available to the public by radio.KDKA in Pittsburgh received polling information by telegraph and passed the information along to listeners in the eastern part of the country.WOMEN VOTE IN A FEDERAL ELECTIONThis election also marked the first time that women voted in a federal election, following the ratification of the Nineteenth Amendment in August of that year.
9 Scandal Rocks the Harding Administration TEAPOT DOME SCANDAL. Cartoon by Rollin Kirby from the New York World, January 30, 1924, on the Teapot Dome investigations.
10 Teapot Dome Scandal: Background Refers to a bribery scandal of the White House administration of President Warren G. Harding.Teapot Dome is an oil field (picture bottom right) on public land in the U.S. state of Wyoming, so named for Teapot Rock (picture top right), an outcrop resembling a teapot overlooking the field.
11 Teapot Dome ScandalIn 1921, by executive order of President Harding, control of Naval oil reserves at Teapot Dome in Wyoming and at Elk Hills, California, was transferred from the Navy Department to the Department of the Interior.The oil reserves had been set aside for the Navy by President Taft.In 1922, Albert B. Fall, U.S. Secretary of the Interior, leased, without competitive bidding, the Teapot Dome fields to Harry F. Sinclair, an oil operator, and the field at Elk Hills, California, to Edward L. Doheny.These transactions became (1922–23) the subject of a Senate investigation conducted by Sen. Thomas J. Walsh.
12 Teapot Dome Scandal Findings It was found that in 1921, Doheny had lent Fall $100,000, interest-free, and that upon Fall's retirement as Secretary of the Interior, in March 1923, Sinclair also lent him a large amount of money.The investigation led to criminal prosecutions.Fall was indicted for conspiracy and for accepting bribes. Convicted of the latter charge, he was sentenced to a year in prison and fined $100,000. In another trial for bribery Doheny and Sinclair were acquitted, although Sinclair was subsequently sentenced to prison for contempt of the Senate and for employing detectives to shadow members of the jury in his case.The oil fields were restored to the U.S. government through a Supreme Court decision in 1927.
13 TEAPOT DOME SCANDAL: 1924"Bargain Day in Washington": American cartoon, 1924, by Ellison Hoover on the political corruption of the Harding administration revealed by Teapot Dome.
14 TEAPOT DOME SCANDAL: 1924American cartoon by Clifford K. Berryman, 1924, showing Washington officials racing down an oil slicked road to the White House, trying desperately to outpace the Teapot Dome scandal.
15 President Warren G. Harding Dies Summer 1923 Harding was on a speaking tour that went as far as AlaskaHe died on August 2, 1923 in California on from pneumonia & thrombosis on his way back from a speaking tourMany say that he may have died from a broken heart from finding out his friends and some cabinet members were disloyal (Teapot Dome Scandal)DEATH OF HARDING, Front page of the Los Angeles Times, 3 August 1923, announcing the death of Warren G. Harding, 29th President of the United States.
16 Coolidge Administration Few political pros in 1923 believed that Coolidge had any chance of being elected in his own right in the following year.However, the president demonstrated great political skill by distancing himself from the Harding scandals and pursuing policies that enjoyed widespread support.The thoroughly conservative Coolidge believed that those who had been tested in the business arena should be trusted with making decisions for the nation, once opining that "The business of America is business."Little significant legislation was enacted during his administration because of his firmly held belief that government should interfere as little as possible in the lives of its citizens.
17 Coolidge Administration Calvin Coolidge took the oath of office from his father, a justice of the peace in Plymouth Notch, Vermont, on the day following Warren Harding's death.
18 Election of 1924 Party Platforms The Republican platform endorsed the following:support for tax reductions and the limitation on government's role in American society;tariff protection for American industry, as provided in the recently enacted Fordney-McCumber Tariff;U.S. participation in international arms reduction programs and membership in the World Court.Calvin Coolidge(Republican Party Candidate)
19 Election of 1924 Party Platforms The Democratic platform promoted:a graduated income tax;tough enforcement of antitrust laws;public works projects to alleviate unemployment;farm relief with more accessible credit and crop price subsidies;a tariff reduction;Philippine Islands independence;a referendum on the League of Nations.John W. Davis(Democratic Party Candidate)
20 Election of 1924 Party Platforms The Progressive Party Platform:public management and conservation of natural resources;government ownership of the railroads and power-generating resources;acknowledgement of workers' right to unionize and bargain collectively;elimination of child labor;dissolution of monopolies;curbs on the use of injunctions to break strikes;opposition to the conservative policies of Treasury Secretary Andrew Mellon.Robert LaFollette(Progressive Party Candidate)
22 President Coolidge “The business of America is business.” Fordney-McCumber TariffSmoot-Hawley TariffNo help for farmersForeign Policy
23 Post-War Domestic Politics War Industries Board dissolvedProgressive hopes of continuation government regulation evaporatedEsch-Cummins Transportation Act (1920)Government returned railroads to private ownershipEncouraged private consolidation of railroadsICC pledged profitabilityNew Philosophy: Save railroads for the countryMerchant Marine Act (1920)Authorized Shipping Board to dispense most of the 1,500 vessels of war-time fleet at bargain-basement pricesBoard operated the remainder of vesselsLa Follette Seaman’s Act (1915)American shipping couldn’t thrive in competition with foreignersProvided wretched food & starvation wages to crews
24 Post-War Domestic Politics Veterans Bureau (1921)Operated Veteran’s HospitalsCreated to provide vocational rehabilitation for the injuredAmerican LegionFounded in Paris (1919) by Colonel Theodore Roosevelt, Jr.Members met regularly to “let off steam” and renew old hardshipsBecame distinguished for its militant-patriotism, rock-ribbed conservatism, and zealous antiradicalismVeterans aggressively lobbying for Veteran’s BenefitsVeteran’s Demand CompensationFormer servicemen, the “doughboys,” wanted their “dough”—that is adjusted compensation to make up for the money they lost while they served in the warBonus Bill (1922)Passed in Congress, but Harding Vetoed it.Congress would try again in 1924.Adjusted Compensation Act (also known as the Bonus Army Bill) (1924)Congress passed law to give soldiers a paid up insurance policy due in 20 years, adding $3.5 billion to cost of WWICoolidge vetoed bill, Congress overrode this veto
25 Emergency Tariff Act (1921) Reversing the trend toward downward revision established during the Wilson administration, Republican leaders in Congress rushed through a temporary measure to ease the plight of farmers until a more thorough measure could be crafted.The Emergency Tariff increased rates on wheat, sugar, meat, wool and other agricultural products brought into the United States from foreign nations, which provided protection for domestic producers of those items.This measure remained in effect until the enactment of the Fordney-McCumber Tariff in the fall of 1922.
26 Fordney-McCumber Tariff (1922) Republican leadership marshaled over their overwhelming majorities in both the House and Senate to return the nation’s tariff policy to protectionism.The Emergency Tariff Act of 1921 was designed to be only a temporary measure until a more comprehensive measure could be drafted.TARIFF BILL, 'Cures All the Ills of Man or Beast.' Cartoon, 1921, by Rollin Kirby commenting on the resurrection of the Fordney Emergency Tariff Bill, vetoed by President Woodrow Wilson but signed, 1921, by President Warren G. Harding.
27 Fordney-McCumber Tariff (1922) Major new tariff legislation was guided through Congress by Representative Joseph W. Fordney of Michigan and Senator Porter J. McCumber of North Dakota, and provided for the following:(1) raising tariff rates to their highest level to that time, exceeding those provided by an earlier Republican Congress in the Payne-Aldrich Tariff (1909);(2) granting to the president broad powers to raise or lower rates by as much as 50 percent on items recommended by the Tariff Commission, a review body created during the Wilson administration;(3) introducing the use of the “American selling price”* as a means to increase the protective nature of the tariff without raising rates further.
28 Fordney-McCumber Tariff (1922) 'Scientific tariff': this linked tariffs to the wages in the country of export. If wages in, say Italy, were very low, then Italian goods were given a proportionately higher tariff. This negated the effect of lower wages in competitor countries.'American Selling Price': this linked tariffs to the price of American goods, not to the cost of production. A German company might be able to produce, say, a certain chemical for $60, but if the selling price in America was $80, and the U.S. tariff was 50%, the tariff would be $40. This meant that foreign imports were ALWAYS more expensive than American-produced goods, however cheaply they had been made.
29 Fordney-McCumber Tariff (1922) Act established the highest tariffs in history, with some duties up to 400% and an average of 40%.In the long-run, the act damaged the American economy, because other countries retaliated by putting up their duties and stopping American exports. However, for the moment, America was a huge new country, and there was plenty of demand at home.An anti-tariff American cartoon of the time, linking the tariff to isolationism. The French man is saying: 'But Monsieur, where does it end'.
30 Negative Effects of the Fordney-McCumber Tariff (1922) As a matter of actual practice, the Republican presidents of the 1920s predictably ignored recommendations to lower tariff ratesregularly offered protection to American producers by raising rates when given the opportunity.The impact of the Fordney-McCumber Act was considerable.Rising tariff barriers in the U.S. made it more difficult for European nations to conduct trade and, resultantly, to pay off their war debts.TARIFF CARTOON, 'But, Monsieur, Where Does it Bend?' Cartoon commenting on the Fordney Emergency Tariff Bill by Rollin Kirby from he New York 'World,' 4 October 1927.
31 Negative Effects of the Fordney-McCumber Tariff (1922) Further, the protective shield against foreign competition enabled the growth of monopolies in many American industries.Predictably, other nations resented the American policy, protested without result, and eventually resorted to raising their own tariff rates against American-made goods, thus creating a significant decline in international trade.
32 Smoot-Hawley Tariff Act (1930) Sometimes known as the Hawley-Smoot Tariff Act) was an act signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels.In the United States 1,028 economists signed a petition against this legislationafter it was passed, many countries retaliated with their own increased tariffs on U.S. goodsAmerican exports and imports plunged by more than half. In the opinion of most economists, the Smoot-Hawley Act was a catalyst for the severe reduction in U.S.-European trade from its high in 1929 to its depressed levels of 1932 that accompanied the start of the Great Depression.HAWLEY AND SMOOT, Representative Willis C. Hawley (left) and Senator Reed Smoot, advocates of the Hawley-Smoot Tariff Act. Photograph, 11 April 1929.
33 Demand to Slow Down Immigration Demand was growing, however, to slow down immigration and there followed a number of laws to restrict immigration:Immigration Law (1917)This required all immigrants to prove they could read English, banned all immigration from Asia, and charged an immigration fee of $8.Emergency Quota Act (1921)This stated that the number of immigrants from 'the eastern hemisphere' could not be more than 3% of the number already in America in 1910. It set the maximum number of immigrants in any year at 357,000.
34 Demand to Slow Down Immigration Reed-Johnson Act (1924)Maximum number of immigrants in any year at 154,000. Quota from eastern hemisphere reduced to 2% of those already in America in 1890The South and the East of Europe were thus only allowed to send 20,000 immigrants per year, and non-Europeans only 4,000.
35 At the same time measures were taken to 'Americanize' immigrants: The Federal Bureau of Naturalization organized naturalization proceedings, and patriotic 'Americanization Day' rallies and Fourth of July celebrations.The Federal Bureau of Education organized courses on politics and democracy to prepare immigrants for the 'citizenship exam'.The courts clamped down harshly on political crimes by immigrants
36 Budget & Accounting Act 1921 In the postwar period, Republicans regained control of the White House and Congress, and pursued their goal of reducing the cost of government and increasing its efficiency.Warren Harding called a special session of congress and urged, among other things, the passage of the budget bill.Budget & Accounting Act 1921The overall aim of this legislation was to centralize the budget process. In the past, budget matters had been assigned to a variety of Congressional committees and no central control existed.
37 Budget & Accounting Act 1921 The measure gained approval in June, retaining the provision opposed by Wilson, and provided:Created the Bureau of the BudgetIts director was to be a presidential appointee.The bureau was originally part of the Treasury Department, but in 1939 it was transferred to the Executive Department.Budget & Accounting Act 1921Required that the Director of the Budget examine all budget requests from Congress, seek economies, and remove duplicates.Required the president to submit a budget proposal and a statement of the government’s financial condition to Congress annually.The federal fiscal year was to run from July 1 through June 30 of the following year.Established the General Accounting Office under the control of the Comptroller General.The GAO's function was to conduct audits of government accounts.
38 The immense cost of U.S. participation in World War I had necessitated a wide variety of new taxes and increases in existing ones.When the conflict ended, the nation faced two choices:(1) Retain the high taxes and pay down the large debt accumulated during the war, or(2) provide relief to taxpayers by reducing or eliminating taxes.Revenue Act 1921The Revenue Act of 1921 highlighted an enduring problem — attempting to balance the responsible position of discharging the nation’s obligations with the ever-popular demand for lowering taxes.
39 Judges Bill (1925)The U.S. Supreme Court labored under an increasingly heavy workload in the early 1920s as prohibition enforcement issues and residual matters from World War I demanded attention.In 1921, 3 Associate Justices accommodated Congress by drafting a measure tailored to limit the number of cases to be heard by the Court.The basic thrust of the proposed legislation was to direct most of the appeals from the federal district courts to the federal courts of appeal, which had been created by Congress, in 1891.Chief Justice William Howard Taft left most of the overt lobbying to the other justices, but worked to build a coalition of supporters for the proposal.Backing in Congress grew slowly, but achieved a majority in early 1925.The so-called “Judges’ Bill” helped to change the role of the Supreme Court, making it largely an arbiter of questions of constitutional principle, while the appeals courts became the final authority on most appeals cases.
40 Revenue Act (1926)Treasury Secretary Andrew Mellon continued his drive toward the reduction of the size of government and the tax burdens it imposed on its citizens.Highlights of the 1926 law included:the reduction of inheritance and personal income taxes;the cancellation of many excise imposts (luxury or nuisance taxes);the end of public access to federal income tax returns.The continuation of Republican tax reduction efforts would be evident again in the Revenue Act of 1928.
41 Jones-White Act (1928)Often known as the Merchant Marine Act of 1928, this measure was evidence of an attempt by Congress to stimulate private shipbuilding in the United States and to assist in making the merchant marine competitive in the global market.Provisions of this law included the following:A federal loan fund was increased to $250 million and enabled private shipbuilders to borrow up to 75 percent of their costs for new construction or reconditioning of existing vessels.Authorization was given to allow the sale of surplus government vessels to private firms at bargain prices.Long-term government contracts were authorized to hire private shippers to transport U.S. mail; ships engaged in this trade were required to employ one American-born male under 21 years of age for every 1,000 tons of gross weight and train those individuals in seamanship.
42 Background: the Election of 1928 In August 1927, incumbent President Calvin Coolidge announced to the nation:"I do not choose to run for president in 1928."That blunt statement opened the doors to a number of Republican hopefuls, but none approached the public esteem enjoyed by Herbert Hoover, the current secretary of commerce and possessor of a long record of humanitarian service.Herbert Hoover
43 Election of 1928: Herbert Hoover (R) Republican Platform of 1928Claimed full credit for the nation's prosperity and pledged to:continue opposition to the McNary-Haugen farm bill, favoring instead the creation of farmer-owned stabilization corporations as a means to increase farm prices;support the strict enforcement of the 18th Amendment (prohibition);maintain a high protective tariff for the benefit of American farmers and manufacturers;carry on Coolidge-era foreign policy initiatives.
44 Election of 1928: Alfred E. Smith (D) Democratic Platform of 1928a farm policy that would give American farmers government support commensurate with that provided to other industries,avoided an endorsement of the contentious McNary-Haugen bill;enforcement of prohibition laws, but it was clear to all observers that the Democratic nominee was opposed to this position;this effort to take both sides of a nettlesome issue would cost the party heavily in the Bible Belt;opposition to the blanket use of injunctions and support for collective bargaining rights for American workers;
45 Election of 1928: Alfred E. Smith (D) Democratic Platform of 1928a change in the heavy-handed Coolidge foreign policy and, in particular, the granting of immediate independence to the Philippines;a transformation in government to escape the scandals of Republican leadership; the Democrats deftly avoided reference to the nation's prosperity and instead tried to dredge up memories of Harding's corrupt cronies.Smith Quick Info:He was a CatholicProduct of Tammany Hall Politics
47 Foreign Affairs in the 1920s Harding displayed some of his best instincts by his appointment of the distinguished Charles Evans Hughes as secretary of state.Campaign equivocation was put aside and the administration boldly proclaimed its intention to steer clear of membership in the League of Nations — a clear step toward isolationism.However, a meaningful step was taken in the direction of international cooperation and arms reduction.Charles Evans Hughes
48 America Isolates itself from the Rest of the World “I SYMPATHIZE DEEPLY WITH YOU, MADAME, BUT I CANNOT ASSOCIATE WITH YOU”CHARLES EVANS HUGHES ( ). American jurist. Cartoon by Rollin Kirby from the New York 'World,' 4 December 1923.
49 Foreign Affairs in the 1920s: Reconciliation with Columbia Background:The administration of Theodore Roosevelt blatantly interfered in Colombian affairs in 1903 in order to secure land for the construction of a canal across Central America.That event had soured relations between the two nations and made others in Latin America suspicious about U.S. activities.An effort was launched to redress Colombian grievances during the Wilson administration.Thaddeus A. Thomson, an American lawyer and diplomat from Texas, negotiated a treaty in Bogotá:awarded the government $25 million for the loss of Panama and included an apology for the U.S. role in the affair.Senate friends of Roosevelt, who was still alive and actively critical of Wilson, refused to consider the matter, regarding it as an unjust condemnation of the former president.Colombian resentment continued to simmer beneath the surface.
50 Foreign Affairs in the 1920s: Reconciliation with Columbia By 1921, conditions had changed.Roosevelt had died two years earlier and his supporters in the Senate seemed less concerned about his memory than responding to the call of American businessmen who had learned about the discovery of vast oil reserves in Colombia.The 7-year old reconciliation treaty was dusted off and an offending passage removed — that which expressed the United States’ “sincere regret” for the Panamanian adventure.The cash payment, however, was retained.The Thomson-Urrutia Treaty was a clear reversal of policy by the Republicans, as the Democrats gleefully pointed out during the ratification hearings.In the end, the agreement was easily ratified by the Senate on April 20, 1921 and accepted by Colombia later that year.
51 Foreign Affairs in the 1920s: The World Court The idea of establishing a world judicial body was not originated in Paris in 1919, but had been discussed on many occasions, most recently at the Second Hague Conference in 1907.The Covenant of the League of Nations called for the creation of such a body with judges to be selected by the league’s council and assembly from a list of nominees submitted by the Hague Court of Arbitration.Despite not being a member of the League, the United States sent the distinguished diplomat Elihu Root to assist in the drafting of the court’s protocol or constitution.The expectation was that the U.S. would participate actively in the court.A recommendation to that effect was made by Secretary of State Charles Evans Hughes, who urged President Harding to act favorably on the matter.The League of Nations attempted to smooth the way by making an exception to its rules and allowing a non-member to have a role in naming judges to the court.
52 Foreign Affairs in the 1920s: The World Court Despite the efforts of the forces favoring American participation, isolationists in the Senate succeeded in blocking ratification of the court’s protocol.They feared that membership in the judicial body would be a first step toward membership in the League of Nations.During the Coolidge administration, American public opinion continued to oppose any thought of membership in the League of Nations, but favored "adherence" to the World Court.Both political parties gave support to those views in their platforms in 1924.However, the Irreconcilables in the Senate feared that cooperation with the court might be used as a backdoor entry into the league, and, indeed, many supporters of the court hoped that to be the case.On November 11, 1926, President Coolidge, recognizing that the senate would not consider revising its reservations at that point, announced that the United States would not join the court.
53 Foreign Affairs in the 1920s: Peace with the Central Powers The fighting in World War I was halted by the signing of an armistice on November 11, 1918.The United States, in a bitter struggle between President Wilson and determined Senate leaders, refused to take the next step and ratify the Treaty of Versailles, which was concluded in June 1919.An effort to force the Senate’s hand by making the Election of 1920 a referendum on Wilson’s version of the peace failed miserably and passed the question on to the administration of Republican Warren G. Harding.
54 Foreign Affairs in the 1920s: Peace with the Central Powers Harding had waffled shamelessly on the Treaty issue during the campaign, but made it clear upon entering office that he would not seek membership in the League.On July 2, 1921, Congress adopted a joint resolution declaring the war at an end.The United States proclaimed its right to the privileges granted the other Allied nations in the Treaty, but assumed no corresponding obligations.In late August, separate treaties were concluded with Germany, Austria and Hungary.These agreements were promptly ratified by the Senate, which provided an official end to the United States’ role in the conflict.No accommodation was sought with Bulgaria and Turkey because the U.S. had not declared war on those nations.
55 Foreign Affairs in the 1920s WARREN G. HARDING, President Harding signing the Congressional Resolution ending the state of war with Austria and Germany at the country home of Senator Frelinghuysen of New Jersey, July 1921.
56 Foreign Affairs in the 1920s: Washington Naval Conference (1921) Known as the International Conference on Naval Limitation, this disarmament effort was occasioned by the hugely expensive naval construction rivalry that existed among Britain, Japan and the United States.Senator William E. Borah, Republican of Idaho, took the lead on this matter and urged that the major Allied nations from the recent war gather in an effort to slow the arms race.The proposal was not met with initial enthusiasm by the Harding administration, but it became a political imperative when it was portrayed as a Republican alternative to League of Nations’ peace efforts.
57 Foreign Affairs in the 1920s: Washington Naval Conference (1921) The Four-Power Pact, signed by the United States, Great Britain, Japan, and France on Dec. 13, 1921stipulated that all the signatories would be consulted in the event of a controversy between two of them over “any Pacific question.”An accompanying agreement stated they would respect one another’s rights regarding the various Pacific islands and mandates that they possessed.These agreements ensured that a consultative framework existed between the United States, Great Britain, and Japan
58 Foreign Affairs in the 1920s: Washington Naval Conference (1921) The Five-Power Naval Limitation Treaty, which was signed by the United States, Great Britain, Japan, France, and Italy on Feb. 6, 1922, grew out of the opening proposal at the conference by U.S. Secretary of State Charles Evans Hughes to scrap almost 1,900,000 tons of warships belonging to the Great Powers.The treaty halted the post-World War I race in building warships and even reversed the trend; it necessitated the scrapping of 26 American, 24 British, and 16 Japanese warships that were either already built or under construction.The contracting nations also agreed to abandon their existing capital-ship building programs for a period of 10 years, subject to certain specified exceptions. Under another article in the treaty, the United States, Great Britain, and Japan agreed to maintain the status quo with regard to their fortifications and naval bases in the eastern Pacific.The Naval Limitation Treaty remained in force until the mid-1930s.
59 Foreign Affairs in the 1920s: Collection of War Debts The desire of the United States to secure repayment for cash loans and goods extended to European Allies during and after World War I was a highly publicized issue during the 1920s.The stance did much to destroy the loyalties and goodwill that had developed during the conflict.Even before peace had formally been concluded, various Allied nations began to press the United States to scale back or cancel entirely these obligations.Indeed, there was some justification for reconsidering the entire debt issue:
60 Foreign Affairs in the 1920s: Collection of War Debts ARGUMENTS AGAINST COLLECTION OF WAR DEBT(1) Most of the borrowed money had been spent in the United States for supplies and war matériel, and had provided a tremendous stimulus for the American economy, which was then the envy of the world.Many Europeans believed that the U.S. had already been repaid.(2) Some of the debtor nations argued that the war had been a common cause and that one victorious power should not profit at the expense of others.Further, the U.S., insulated by wide oceans, had entered the war late and allowed the European allies to do most of the fighting and dying.(3) It was unlikely that the Europeans would be able to repay their obligations in gold, as the U.S. wanted, because that commodity was needed to back up their faltering currencies.The other payment alternative would have been to send European goods to America and build a trade surplus, but U.S. protective trade policies made this nearly impossible.
61 Foreign Affairs in the 1920s: Collection of War Debts The Harding administration made it clearly understood that the United States had no interest in cancellation.This position was widely supported by the public, which felt that those who incur debts should repay them.This tight-fistedness was not well received in Europe, where the image of Uncle Sam slowly gave way to “Uncle Shylock.”In February 1922, Congress established the World War Foreign Debt Commission to negotiate repayment plans with the debtor nations.The Commission eventually concluded 15 agreements that contained terms based upon the debtors’ abilities to pay.In aggregate, a final principal amount of $11.5 billion was accepted, to be paid off over 62 years with interest rates averaging slightly above two percent.If paid in full, this would have yielded more than $22 billion.Allied recipients of the reparations payments were unable to pay the U.S. after the German default on their payments.
62 Foreign Affairs in the 1920s: Central American Conference (1922) The 1920s saw a continuation of endemic political instability in Central America and many parts of the Caribbean.Despite the trappings of democracy, dictatorships prevailed in most of these nations and a progression of corrupt regimes continued to oppress the working masses.In 1922, the U.S. invited Central American nations to a conference in Washington for the specific purpose of trying to heal a bitter dispute between Honduras and Nicaragua.U.S. delegates failed to ignite interest in the formation of a Central American union, an idea that had been planned a number of times previously, but had never succeeded. However, the conference was able to reach agreement on the following:the establishment of a Central American Court of Justicethe negotiation of a treaty of neutralitypreliminary planning on an arms limitation agreement.
63 Foreign Affairs in the 1920s: Central American Conference (1922) Over the next few years, a number of Central American nations ratified these agreements, but no effort was made to implement their provisions.The United States was unable to exert effective leadership because it was viewed with suspicion, if not hatred, by many Latin nations.The U.S. had a history of supporting dictatorships that were friendly to American business interests and repeatedly intervened when it was felt that conditions were spiraling out of control.This pattern continued in the 1920s, when Nicaragua, Haiti and Cuba were occupied by American forces to protect lives and investments.
64 Dawes Plan (1924)In 1921, the international Reparations Commission was established to determine the scope of damages caused by Germany during World War I.An unrealistically high total of $33 billion was forced on the defeated nation, but it managed to make an initial installment payment in September 1921.However, dire economic conditions in Germany led to default and the imposition of a moratorium by the creditor nations, which hoped that a temporary cessation of payments would allow the German economy to recover so that payments could be resumed.An international committee was formed with two representatives each from Britain, France, Italy, Belgium, and the United States.The American delegates were financier Charles G. Dawes, who headed the effort, and financier Owen D. Young.
65 Dawes Plan 1924A report was issued in April 1924 that called for the following:A series of financial reforms was to be implemented in Germany, including the backing of the mark with gold reserves as a means to stabilize the currency;a variety of new taxes was to be introduced in Germany;the reparation payment schedule was reworked to require annual installments that would increase from one billion gold marks due in 1924, to two and a half billion marks due four years later;a massive series of loans was to be extended to Germany, many of them from the U.S.;France agreed to evacuate its forces from the Ruhr.Charles G. Dawes
66 Geneva Conference (1927)In February 1927, President Coolidge issued a call to the Big Five Powers to meet in Geneva to confront the issue of naval rivalries. Britain and Japan accepted the invitation, but France and Italy declined, citing their current involvement in League of Nations disarmament efforts.Big navy advocates in the U.S. read the failure at Geneva to mean that further arms limitation could be accomplished only by resuming the naval construction race.If Congress would fund a new building program and be willing to outspend the others, then the rivals would be forced to seek an agreement.In early 1929, Congress provided funding for 15 new cruisers and an additional aircraft carrier, which effectively put Britain on notice that the United States was serious about reestablishing naval parity.
67 Kellogg-Briand Pact (1928) Relations between the United States and France had cooled in the aftermath of World War I. A number of issues had driven the former allies apart, including:residual tensions from hard bargaining and perceived double-dealing at Versailles;the continuing effort of the U.S. to collect the full amount of war debts incurred by hard-pressed France;the embarrassment felt by France because of being assigned a lesser naval role at the Washington Conference (1921);the recent failure, regretted by both nations, of the Geneva Conference (1927).
68 Kellogg-Briand Pact (1928) The Kellogg-Briand Pact provided for outlawing war as an “an instrument of national policy,” and was further notable for the following:No enforcement mechanism was provided for changing the behavior of warring signatories.The agreement was interpreted by most of the signatories to permit “defensive” war.No expiration date was provided.No provision existed for amending the agreement was included.Despite these shortcomings, the pact was signed in August 1928 by 15 nations. In the following months, more than 60 countries joined in this renunciation of war.
69 Kellogg-Briand Pact (1929) Caption: 'Having an insurance policy doesn't mean you can do without fire prevention': American anti-pacifist cartoon, 1929, on the need for an adequate U.S. naval force to back the Kellogg-Briand Pact.
70 Clark Memorandum (December 17, 1928) During the late 1920s, a number of American foreign policy leaders began to argue for a softer tone in U.S. relations with Latin American nations, which had been chafing under decades of intervention by the colossus to the north.Undersecretary of State, and later Ambassador to Mexico, J. Reuben Clark ( ) held these conciliatory views and completed work on the hefty Memorandum on the Monroe Doctrine late in the Coolidge administration. Clark argued the following:The Monroe Doctrine was not solely concerned with inter-American relations.The Doctrine states a case of the United States versus Europe, not of the United States versus Latin America.The primary purpose of the Doctrine was to protect Latin American nations from intervention by European powers.The Roosevelt Corollary was not part of the Monroe Doctrine.
71 Young Plan (1928)German reparation payments stemming from World War I had been modified by international agreement under the terms of the U.S.-inspired Dawes Plan in 1924.By late in the decade, however, it was becoming increasingly difficult for the defeated nation to meet its obligations.The United States, which was not a direct recipient of reparations, again dispatched an expert to help salvage the threatened payments and avert an international crisis.The Young Plan won approval shortly before the beginning of the great world economic crisis of 1929, but Germany was able to make payments into 1931 before defaulting.President Hoover attempted to salvage the situation by arranging another moratorium in , but the rise of Adolf Hitler in 1933 was quickly followed by his repudiation of the reparation obligation.In all, more than $4.5 billion in reparations was collected by the Allies from Germany.
72 Young Plan (1928)Owen D. Young, an American financier, headed a committee that tried to remove ambiguities from the existing system. The following recommendations were made:The amount of the annual payment demanded from Germany was reduced sharply to $473 million, a portion of which could be postponed with prior approval;the total amount due was set at $26.36 billion or 121 billion Reichsmarks, payable over a term of 58 and a half years;new tax programs were to be introduced in Germany as a means to generate revenue;a bank for international settlements was to be established to collect and disburse reparations payments;other forms of Allied control over the German economy were to be removed;further reduction of the German obligation was held out as a possibility if the United States were to agree to the scaling back of war debts owed to it by its former allies.
73 Age of Prosperity Economic expansion Mass Production Assembly Line Age of the AutomobileAiling Agriculture…
74 U.S. farmers lost agri. markets in postwar Europe An agricultural depression in early 1920's contributed to this urban migrationU.S. farmers lost agri. markets in postwar Europeat same time agri. efficiency increased so more food produced (more food = lower prices) and fewer labourers neededFarming was no longer as prosperous, and bankers called in their loansForeclosures on farms and farms repossessedAmerican farmers enter the Depression in advance of the rest of society
75 Black Americans in this period continued to live in poverty Sharecropping kept them in de facto slaveryboll weevil wiped out the cotton cropWhite landowners went bankrupt & forced blacks off their land
76 Blacks moved north to take advantage of booming wartime industry (Great Migration) - Black ghettoes began to form, i.e. HarlemWithin these ghettoes a distinct Black culture flourishedBut both blacks and whites wanted cultural interchange restricted
77 Garvey believed Blacks should return to Africa Marcus Garvey (Jamaican born immigrant) established the Universal Negro Improvement Associationbelieved in Black prideadvocated racial segregation b/c of Black superiorityGarvey believed Blacks should return to AfricaHe purchased a ship to start the Black Star lineAttracted many investments: government charged him with w/fraudHe was found guilty and eventually deported to Jamaica, but his organization continued to exist
79 Culture of the Roaring 20’s RadioKDKA PittsburghGE, Westinghouse,& RCA form NBCSilent MoviesCharlie Chaplin“Talkies”The Jazz SingerStarring Al JolsonMary Pickford“America’s Sweetheart”
80 Celebrities Babe Ruth &Ty Cobb Charles Lindbergh The Spirit of St. LouisJack Dempsey
81 The 20s is The Jazz Age The Flappers Musicians Writers make up cigarettesshort skirtsMusiciansLouis ArmstrongDuke EllingtonWritersF. Scott FitzgeraldErnest Hemingway
82 1920's also brought about great changes for women... th Amendment gave them the federal voteAfter 1920, social circumstances changed too as more women worked outside the homeMore women went to college and clamoured to join the professionsWomen didn't want to sacrifice wartime gains - amounted to a social revoltCharacterized by the FLAPPER/ "new woman"(bobbed hair, short dresses, smoked in public...)
83 A Society in Conflict Anti-immigrant Sacco-Vanzetti Trial National Origins ActNativismDiscriminationSacco-Vanzetti TrialItalian immigrantsUnfair trial
84 For immigrants – the point of origin had shifted to South & Eastern Europe and new religions appeared: Jewish, Orthodox, CatholicNorthern European immigrants of early 19th century feared this shift and felt it would undermine Protestant valuesThis fear was known as NATIVISMMany wanted Congress to restrict immigration, leading to a quota system that favoured northern areas of EuropeFear of immigrants (from SE Europe) led to a sentiment known as the Red Scare (fear of communism post-Bolshevik Revolution)Basic communism advocates a international revolution by the proletariat workers - fears that this ideology could find its way into the U.S.
85 At this time, President Wilson was gravely ill following a stroke His Attorney General, A. Mitchell Palmer, wanted to take a shot at the presidency - he used fears of both immigrants and communism to his advantageHe had J. Edgar Hoover round up suspected radicals, many of which were deported (Palmer Raids)
86 The Ku Klux Klan In power Great increase Anti-black Anti-immigrant Anti-SemiticAnti-CatholicAnti-women’s suffrageAnti-bootleggers
87 High School Biology teacher Scopes “Monkey” TrialEvolution vs. CreationismScience vs. ReligionFamous LawyersDayton, TennesseeJohn ScopesHigh School Biology teacher
88 Prohibition Volstead Act untouchables Gangsters 18th Amendment Al Caponeuntouchables
89 PROHIBITION - on manufacture, sale, & consumption of alcohol Adopted in th AMENDMENTAn outgrowth of the long time temperance movementIn WWI, temperance became a patriotic movementdrunkenness caused low productivity & inefficiency, and alcohol needed to treat the woundeda difficult law to enforce... organized crime, speakeasies, bootleggers were on the riseAl Capone virtually controlled Chicago in this period - capitalism at its zenith…Prohibition finally ended in 1933 w/ the 21st Amendmentforced organized crime to pursue other interests…
Your consent to our cookies if you continue to use this website.