XVIII. POLITICS IN THE 1920'S A. Warren G. Harding wins 1920 election in landslide 1. only 50% of eligible voters practice franchise 2. women did not change election almost 1/2 stay home 3. Harding appoints old friends to cabinet a. Teapot Dome Scandal b. Albert Fall sec. of interior i. Teapot Dome Oil Reserves in Wyoming $300,000 bribe ii. Elk Hills in CA for $100,000 loan? 4. Aug Harding dies of cerebral embolism B. Calvin Coolidge becomes president (V.P. because of Police Strike) 1. "chief business of America is business" a. lowered taxes but did very little else domestically

2. Herbert Hoover kept as secretary of Commerce a. Hoover expanded dept.- airlines, radio & other industries b. directed Bureau of Standards to work with business i. establishes standards for all types of items ii. bolts, bottles, tires, mattresses, bathtubs, light bulbs c. Pollution Act of 1924, 1st of kind (to clean coast) d. called for Conference on Unemployment i. 1st time U.S. government acts on problem C. Foreign Affairs 1. America emerges from WWI as a world power a. refused to acknowledge role i. stays out of League of Nations & world Court 2

b. world becoming dangerous with arms race i Conference on Navel Disarmament in D.C. ii. ten yr moratorium on new war ships iii. delegates agree to limit navies & set limits a. Great Britain & U.S. have same number b. Japan three for every 5 U.S. ships c. France & Italy 1 2/3rds ship d. Japan agreed if U.S. would not fortify the Pacific 2. Sec. of State Frank B. Kellog and Kellog-Briand Pact of 1928 a. 62 countries outlaw war i. only power behind is moral suasion ii. no economic or military sanctions 3

3. America continues dominance of Latin America a. removed troops in Nicaragua 1925 replaced in 1926 i. Augusto Sandino led gorillas and peasants ii. Gen. Anastasio Somoza calls truce, murders Sandino iii. Sandinistas take over from Somoza's son War Debt causing a major problem a. Great Britain & France owe the most of the $10 billion debt b. tried to get U.S. to forgive but Coolidge lowers payments c. U.S. raises tariff so trade imbalance worse d. Germany can no longer pay Britain, France or U.S e. Charles Dawes later V.P. advises reorganize German debt i. Germany now pays Britain & France and they pay us. 5. Election of 1928 a. Coolidge announces he will not run, 4

b. Hoover runs Republican c. Alfred Smith first Irish Catholic candidate runs Democrat d. Smith takes 12 largest cities, Mass. & deep south e. Hoover wins strong majority 6. The Crash a. Oct. 24, 1929 "Black Thursday” b. most people bought on margin c. on increase no one has to pay but at loss margin's due d. investors pull out in panic e. panic causes a complete collapse f. some bankrupt others commit suicide g. unsure of consequences no one knows what will happen 5