2.  Washington Naval Conference, 1921-22  Disarmament conference focused on Pacific, Asia  Freeze naval construction at current ratio (5:3:1)  US focus was to limit Japan’s naval forces & avoid arms race  Scandals of Admin.  Teapot Dome Scandal (oil: Sec’y of Interior Albert Fall)  Attorney General resigned for taking bribes

3.  Pres. Harding died on August 2, 1923, of pneumonia  VP Coolidge became president  Former gov. of Mass. during Boston police strike  “Silent Cal”: dinner story  Small government conservative

4.  Prosperous times, no foreign affairs problems = GOP nomination of Pres. Coolidge  Dems split  Conservative D = John Davis  Liberal Ds support Progressive Party nominee: Robert La Follette Sr.  GOP slogan: “Keep cool with Cal” (very popular) Results Coolidge:382 ECV / 15.7 million Davis:136 ECV / 8.3 million La Follette: 13 ECV / 4.8 million

5.  Coolidge emerged as strict Federalist  Limited responsibilities of Federal Gov. (Constitution)  State, local gov. responsibilities = wage / hour laws, safety measures, etc.  Cut income taxes  Proposed reducing size of gov’t, paying off national debt

6.  Economic prosperity reigned, and GOP got credit  Memory of Teapot Dome Scandal fading  GOP nominated Sec. of Commerce Hoover  Dems nominated Al Smith, Gov. of NY Results Herbert Hoover444 ECV / 21.4 million Al Smith 87 EXV / 15 million

7.  Loss of global markets  High unemployment  Over production  Over speculation (stock market bubble)  Deflation in asset, commodity prices (stock market crash)  Critical reduction of money supply  Dramatic drop in and demand for credit

8.  Run on banks  Businesses close  Unemployment spiked  1930: 7 million  1932: 12 million (125 million pop.)  Foreclosures  Unsympathetic Hoover administration?

9.  “Hooverville”  Shanty town built in urban area by homeless men  Often close to soup kitchen  “Hoover blanket”  “Hoover flag”

10.  1924: WWI vets promised $1 / day for stateside (max $500) & 1.25 / day overseas (max $625)  Certificates sent to servicemen to be paid out over 20 years  Great Depression: vets want gov’t to accelerate payments / pay lump sum

11.  Summer of 1932: 43k total people – 17k vets and families – march to DC  Stayed in Hooverville near Capitol  7/28/32: DC police attempt to disperse Bonus Army, shoot and kill 2  Army sent in: cavalry charge, tear gas, bayonets; several more killed, 100s injured

12. $$2.2 billion spent on public works projects (ex – Hoover Dam) RReconstruction Finance Corp. ($ lent to banks) HHome Loan Bank Act ($ lent to help people keep homes)

13.  1932 Election  Franklin Delano Roosevelt (D)  Herbert Hoover (R)  Hoover campaign slogan: “Time will heal”  FDR slogan: “A New Deal” Results Roosevelt472 ECV / 22.8 million Hoover 59 ECV / 15.7 million