1920s Politics: Harding & Coolidge

The 1920s: Politics

• Republicans held control during the 1920s with three presidents: William Harding, Calvin Coolidge, and Herbert Hoover.
• The Republican party dominated Congress, believing the economy would grow if business led the way.
• The 1920s saw a business boom from increased productivity, oil/electricity use, and a laissez-faire government approach.
• Economic growth led to low unemployment (below 4%), improved living standards, more indoor plumbing/central heating, and higher incomes for middle/working classes.

The Harding Presidency (1921-1923)

• Harding campaigned on a "return to normalcy".
• His presidency was marked by scandals.
• The Teapot Dome scandal involved Secretary of Interior Albert Fall accepting bribes for oil leases near Teapot Dome, Wyoming.
• Attorney General Harry Daugherty took bribes to avoid prosecuting criminals.
• Harding died of a heart attack in August 1923 before the scandals were exposed.

The Coolidge Presidency (1923-1928)

• Coolidge believed in limited government and embraced the business doctrine.
• Coolidge is quoted as saying, "The chief business of the American people is business."

Foreign Policy: Washington Naval Conference

• The Washington Naval Conference is considered the greatest achievement of the Harding presidency.
• Hosted by Secretary of State Charles Evans Hughes, the topic was disarmament.
• Nations in attendance: Belgium, China, France, Great Britain, Italy, Japan, the Netherlands, and Portugal.
• Resulted in the signing of several treaties:
  • Five-Power Treaty: the U.S., Great Britain, France, Japan, & Italy agreed to maintain current naval tonnage and stop building new ships for 10 years
  • Britain and the U.S. agreed not to fortify Pacific possessions and to respect each other's territory.
  • Nine Power Treaty: All nations agreed to respect the open-door policy in China.

Foreign Policy: Fordney-McCumber Tariff (1922)

• Increased taxes on foreign goods by 25%.
• Foreign nations retaliated with tariffs on U.S. goods.

Foreign Policy: National Origins Act of 1924

• Over one million immigrants, mainly Catholics and Jews from eastern and southern Europe, entered the country between 1919 and 1921.
• This influx fueled the Red Scare of 1919 and increased nativism.
• The Act limited immigration by setting quotas based on nationality.
• Immigration visas were limited to 2% of the total number of people of each nationality in the U.S. as of the 1890 census.

Foreign Policy: Dawes Plan of 1924

• Addressed war debts and reparations issues after World War I.
• The U.S. expected European allies to repay $10 billion in loans.
• Allies claimed they were unable to pay.
• U.S. banks/businesses were encouraged to lend/invest in Germany, so Germany could rebuild, pay reparations to Allies, who could then repay the U.S.
• The plan ultimately failed; only Finland fully repaid the U.S.

Foreign Policy: Kellogg-Briand Pact (Pact of Paris of 1928)

• Negotiated between the U.S. and France.
• Renounced the aggressive use of force to achieve national ends.
• It was an attempt to outlaw offensive wars.
• Eventually, 62 nations signed the pact.
• It ultimately failed because it didn't outlaw defensive wars, nor did it provide actions against violators.

Foreign Policy: Dollar Diplomacy

• U.S. used diplomacy to advance American business interests in Latin America and the Middle East.