Presentation on theme: "Presidential Impact On The 1920’s. When We Think Of An Economic Downturn What Other Terms Do We Think Of? What are some synonyms? Recession Bailout Crisis."— Presentation transcript:
What Do You Think Of Harding? Good natured man but judgment was poor The nation liked his words of peace and calm after WWI
High Tariffs and Reparations Britain and France couldn’t pay back the 10 Billion they had borrowed They could do this by selling goods to the U.S. or getting money from Germany
Tariffs 1922-Fordney-McCumber Tariff: raised taxes on some U.S. imports to 60 percent the highest level ever. The tax protected U.S. businesses especially in the chemical and metals industries- it made it impossible for these two countries to pay back debt.
Basically… This tariff was intended to protect American farmers from overseas competition this weakened international commerce therefore other nations raised their tariffs as well.
Secretary of the Interior Albert B. Fall in 1921 secured transfer to several naval oil reserves to his jurisdiction. These locations were Tea Pot Dome, WY and Elk Hills, CA In 1922 he secretly leased reserves at Teapot Dome in Wyoming to Harry Sinclair of Monmouth Oil Elk Hills California to Edward Doheny of Pan- American Petroleum. Tea Pot Dome Scandal
A Senate investigation later revealed that Sinclair had given Fall $305,000 in cash and bonds and a herd of cattle. Doheny had given him a $100,000 unsecured loan. Sinclair and Doheny were acquitted in 1927 of charges of defrauding the government 1929 Fall was convicted, fined, and imprisoned for bribery.
Was The Country Still For Harding? What do you folks think? Harding dies suddenly in San Francisco on August 2 1923
Coolidge Born in Vermont (1872-1933) and provided no presidential leadership while in office Soldiers Bonus Bill: Veterans of war were given a 20 year endowment even though Coolidge vetoed it in 1924, 2/3 passed it. “The Chief business of America is business”
President Hoover’s Responses… He didn't believe that the government should play an active role in the economy He persuaded bankers/business to follow his policy of VOLUNTARY NON - COERCIVE COOPERATION where he gave tax breaks in return for private sector economic investment economy
Hoover also organized some private relief agencies for the unemployed He worked out a system with European powers that owed U.S. money as a result of WWI debts = HOOVER MORATORIUM - put a temporary stop to war debt & reparations payments
Tariffs Smoot- Hawley Tariff Act: Raised tariffs dramatically in order to limit competition for domestic products. This sparked international trade war Euro. countries were to purchase American goods instead to stimulate American Economy.
Black Thursday Stock Prices increased throughout the decade which went up 16 times their earnings in 1929 Careful investors realizing that stocks were overpriced began to sell to take back their profits. On Black Thursday October 24, 1929 almost 13 million shares were traded, a large number for that time and prices fell precipitously.
Black Tuesday Investment banks tried to boost the market by buying, but on October 29 Black Tuesday the market fell about 40 Points with 16.5 million shares traded. A long decline followed until early 1933, and with it, depression.