Study Notes on the Presidents of the 1920s

Overview of 1920s Presidents

  • Examination of three key presidents during the 1920s: Warren G. Harding, Calvin Coolidge, and Herbert Hoover.
  • Characteristics of government in the 1920s: return to smaller government, less intervention in the economy, weakened presidential power.

Warren G. Harding

  • Harding as a representative figure for the presidency in the 1920s.
  • Notable quote: "I am not fit for this office and should never have been here."
  • Delegation of power:
    • Relied heavily on his cabinet rather than asserting presidential authority.
    • Key figures:
      • Charles Hughes - Secretary of State, initiated isolationism policies.
      • Andrew Mellon - Secretary of Treasury and pivotal economic figure.

Economic Policies under Andrew Mellon

  • Support for high protective tariffs reminiscent of the Gilded Age.
  • Encouragement of the Federal Reserve to loosen credit:
    • Resulted in low interest rates, promoting bank lending to Americans.
  • Lack of enforcement of anti-monopoly legislation, allowing monopolies to thrive.
  • Cutting of income taxes leading to an economic environment characterized by:
    • Low taxes
    • High tariffs
    • Relaxed credit restrictions
    • Increase in monopolistic enterprises.

Calvin Coolidge

  • Noteworthy for anti-union stance, gaining prominence from actions during the Boston police strike.
  • Utilized injunctions to suppress strikes, depicting a strong anti-labor government approach.
  • Known as "Silent Cal" due to his reserved nature and limited speech.
    • Anecdote: Responding to a bet about speaking more than three words at dinner with "You lose."
  • Actions taken as president:
    • Fired members of the Ohio gang connected to Harding's corruption.
    • Continued laissez-faire approach similar to Gilded Age policies.
    • Notably anti-union; sent military to quash coal mining strikes in 1923.
    • Did extend citizenship rights to Native Americans.
    • Minor quirky detail: Owned a pet raccoon.

Political Corruption during Harding’s Administration

  • General atmosphere of corruption revived reminiscent of the Gilded Age.
  • Harding partook in personal corruption, hosting parties during Prohibition and gambling away White House possessions.
  • The Ohio Gang:
    • Harding’s aides who engaged in overt corruption.
  • Central example of corruption: Teapot Dome scandal:
    • Albert Fall, Secretary of the Interior, accepted bribes from oil companies for cheap land deals.
    • Uncovered by muckrakers, leading to Fall's conviction - the only cabinet member in U.S. history to be imprisoned for corruption.
  • Harding’s popularity waned significantly due to the scandal, yet he died of a heart attack before facing backlash.

Herbert Hoover

  • Considered one of the worst presidents; did not cause the Great Depression, but failed to engage effectively with the crisis.

Election of 1928

  • Cultural and political divides reflected:
    • Democrats: Al Smith, a Catholic son of immigrants, favorable towards prohibition (wet).
    • Republicans: Herbert Hoover, a Protestant, Quaker, dry, with roots in traditional America.
  • Election results:
    • Hoover wins with 61% of the popular vote.
    • Democrats lose ground in rural areas but gain support in urban centers, showing cultural conflicts between cities and rural America.

Causes of the Great Depression

  • Instability from the 1920s economic practices:
    • Over-reliance on monopolies leading to limited economic diversity.
    • High consumer debt fueled by credit practices:
      • Buying on credit
      • Buying on margin
      • Installment plans.
  • Tariffs led to international trade reductions as other nations imposed reciprocal tariffs on American goods.
  • Agricultural overproduction caused price deflation affecting producers severely.

The Trigger of the Great Depression

  • The stock market crash on October 29, 1929 (Black Thursday):
    • 29 million shares sold as panic ensued, contributing to drastic decreases in stock prices.
    • Loss of consumer confidence as banks failed, resulting in a deflationary cycle.
    • Destruction of savings as depositors rushed to withdraw funds, exacerbating bank failures.
  • Global impact of the Great Depression following the failure of major economies, especially affecting nations that borrowed from the U.S. like Germany.
  • Economic downturn led to a deflationary spiral affecting employment and productivity due to lack of consumer demand.

Conclusion

  • Economic policies and political actions of the 1920s laid a precarious foundation leading to eventual economic collapse.
  • Presidents of the 1920s characterized by corruption, anti-union sentiment, and isolationism in foreign policy, revealing significant contrasts in approach to governance and addressing the emerging financial crises.