chapter 31 lecture - oak park independent · • congress (1912) created veterans bureau to operate...
TRANSCRIPT
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Chapter 31The PoliticsofBoomandBust,1920–1932
Presented by:
Mr. Anderson, M.Ed., J.D.
I.TheRepublican“OldGuard”Returns
• WarrenG.Harding, inaugurated in1921,lookedpresidential:– Foundhimselfbeyondhisdepthinpresidency
• Unabletodetectmoralfaultsinassociates• Couldnotsaynoanddesigningpoliticiansleechedontothisweakness
• Washingtoncouldnottellalie,Hardingcouldnottellaliar
• Promisedtogatheraroundhim“bestminds”
I.TheRepublican“OldGuard”Returns(cont.)
– CharlesEvansHughes:• Masterful,imperious,incisive,brilliant• Broughttopositionofsecretaryofstateadominatingconservativeleadership
– AndrewW.Mellon:• NewsecretaryofTreasury
– HerbertHoover:• FamedfeederofBelgiansandwartimefoodadministrator
• Becamesecretaryofcommerce
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I.TheRepublican“OldGuard”Returns(cont.)
• Raisedhissecond-ratecabinetposttofirst-rateimportance
• Especiallyindrummingupforeigntradeformanufactures
• Harding's “worst minds”:– SenatorAlbertB.Fall:
• Schemingantconservationist• Appointedsecretaryofinterior• Asguardianofnation'snaturalresources,heresembledwolfhiredtoprotectsheep
I.TheRepublican“OldGuardReturns(cont.)
– HarryM.Daugherty:• Big-timecrookin“OhioGang”• Supposetoprosecutewrongdoersasattorneygeneral
II.GOPReactionattheThrottle• Harding aperfect “front” for industrialists:
– NewOldGuards:• Hopedtocrushreformsofprogressiveera• Hopedtoimproveonoldbusinessdoctrineoflaissez-faire
• Wantedgovernmenttokeepitshandsoffbusiness• Wantedgovernmenttoguidebusinessalongpathtoprofits
– Achieved goal byputting courts andadministrative bureausin safekeeping offellow stand-patters
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II.GOPReactionattheThrottle(cont.)
– Hardinglivedlessthanthreeyearsaspresident:• Appointedfourofninejustices:• Fortunatechoiceforchiefjusticewasex-presidentTaft,whoperformeddutiesablyandwasmoreliberalthansomeofhisassociates
– SupremeCourtaxedprogressivelegislation:• Killedfederalchild-laborlaw• Strippedawaymanyoflabor'shard-wongains• Rigidlyrestrictedgovernmentinterventionineconomy
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II.GOPReactionattheThrottle(cont.)
• LandmarkcaseAdkinsv.Children'sHospital (1923):– Reversed its reasoning inMuller v. Oregon (see Chap.28):
» Which declared women needed special protection inworkplace» To invalidate minimum-wage law forwomen» Reasoning: because women hadvote (19th Amendment), theywere legal equal ofmenandcould no longer beprotected byspecial legislation
– Twocases frameddebateovergender differences:» Werewomen sufficiently different frommenthat theymeritedspecial legal andsocial treatment?
» Orwere theyeffectively equal in eyesof lawandundeservingof special protections andpreferences?
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II.GOPReactionattheThrottle(cont.)
– Corporationscouldoncemorerelaxandexpand:• Antitrustlawsignored,circumvented,orfeeblyenforcedbyfriendlyprosecutors
• InterstateCommerceCommissiondominatedbymensympathetictomanagersofrailroads
• Bigindustrialistsstrivedtoreducerigorsofcompetitionthroughtradeassociations
• Althoughassociationsrancountertospiritofantitrustlaws,theirformationencouragedbyHoover
II.GOPReactionattheThrottle(cont.)
• Hoover's efficiency:– Ledhimtocondemnwasteresultingfromcutthroatcompetition
– Hiscommitmenttovoluntarycooperationledhimtourgebusinessestoregulatethemselvesratherthanberegulatedbybiggovernment
III.TheAftermathofWar
• Wartime government controls oneconomyswiftlydismantled:– WarIndustriesBoarddisappeared
• Withitspassing,progressivehopesformoregovernmentregulationofbigbusinessevaporated
– Returnedrailroadstoprivatemanagement in1920• Crushedhopeforpermanentnationalization• CongresspassedEsch-CumminsTransportationAct:
– Encouraged private consolidation of railroads
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III.TheAftermathofWar(cont.)
– Pledged Interstate Commerce Commission toguaranteerailroad profitability
– Newphilosophy was tosave railroads
– Governmenttriedtogetoutofshippingbusiness:
– Merchant Marine Act (1920)authorized Shipping Board tosell most ofhastily built wartime fleet
– Board operated remaining vessels without muchsuccess– Under LaFollette Seaman's Act (1915), American shippingcould not thrive incompetition with foreign shipping
III.TheAftermathofWar(cont.)
• Lackinggovernment support, labor limpedalongbadlyinpostwar decade:– Bloodysteelstrikecrushedin1919– RailwayLaborBoardcutwages12%in1922
• Whenworkersstruck,AttorneyGeneralDaughertyclampedinjunctiononstrikers
– Needyveterans reapedlastinggainsfromwar:• Congress(1912)createdVeteransBureautooperatehospitalsandprovidevocationalrehab
III.TheAftermathofWar(cont.)
• Veteransorganizedintopressuregroups• AmericanLegiondemonstratedmilitantpatriotism,rock-ribbedconservatism,zealousantiradicalism,and
• Aggressivepushforveterans' benefits,especially“adjustedcompensation” tomakeupforwageswhileinservice
• Wonwith1924passageofAdjustedCompensationAct:
• Gaveformersoldiersapaid-upinsurancepolicyduein20years
• Added$3.5billiontocostofwar
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IV.AmericaSeeksBenefitsWithoutBurdens
• Makingpeacewith fallenfoe:– U.S.A.,havingrejectedTreatyofVersailles,technicallyatwarwithGermany,Austria,andHungary:• In1921Congresspassedsimplejointresolutionthatdeclaredwarover
• IsolationenthronedinWashington• ContinuedtoregardLeagueasunclean• HardingatfirstevenrefusedtosupportLeague'sworldhealthprogram
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IV.AmericaSeeks BenefitsWithout Burdens(cont.)
– SecretaryHughessecuredforU.S.oilcompaniesrighttoshareinMiddleEastoilexploitations
– DisarmamentanissueforHarding:• Businessmendidnotwanttofinancenavalbuildingprogramstartedduringwar
• Washington“DisarmamentConference” 1921-1922:– Invitations sent toall butBolshevik Russia– Agenda included navaldisarmament andsituation in FarEast
– Hughes declared 10-year“holiday” onconstruction ofbattleships– Proposed scaled-down navies ofAmerica andBritain with parity– Ratio 5:5:3forU.S.A.,England, and Japan in FivePower Treaty,1922
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Figure 31-1 p723
IV.AmericaSeeks BenefitsWithout Burdens(cont.)
– Four-Power Treaty– pactbound Britain, Japan, France,andUnited States topreserve status quo inPacific
– China—“Sick Manof theFarEast”—helped byNine-PowerTreaty (1922), whose signatories agreed tonail wide-openOpen Door inChina
– Conference important, but:
» Norestrictions onconstruction of smaller warships» Congress madenocommitment touse ofarmed force
• Kellogg-BriandPact (1928):– Secretaryof stateFrankB.Kellogg won Nobel PeacePrizeforhis role;Kellogg signed Pactwith French foreign minister
IV.AmericaSeeks BenefitsWithout Burdens(cont.)
• Newparchment peacedelusory:– Defensivewarsstillpermitted– Pactadiplomaticderelictandvirtuallyuseless– ReflectedAmericanmind(1920s):
• Willingtobelulledintofalsesenseofsecurity• Sameattitudeshowedupinneutralismof1930s
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V.HikingtheTariffHigher• Businesspeople soughttokeepU.S.markettothemselvesbythrowing uptariffwalls– Fordney-McCumberTariffLaw:
• Lobbyistswantedtoboostaveragefrom27%to38.5%,almostashighasTaft'sPayneAldrichTariffof1909
• Dutiesonfarmproduceincreased• Flexibility:presidentcouldincreaseordecreasedutiesasmuchas50%
• HardingandCoolidgemorefriendlytoincreasesthanreductions
V.HikingtheTariffHigher(cont.)
• Insixyears,theyauthorized32upwardcharges• Duringsametime,theyorderedonlyfivereductions
– High-tariffcoursesetoffchainreaction:• Europeanproducersfeltsqueeze• ImpoverishedEuropeneededtosellitsmanufacturedgoodstoUnitedStatestobeabletorepaywardebts
• AmericaneededtogiveforeigncountriesachancetomakeaprofitinordertobuyU.S.exports
• Internationaltrade,Americansslowtolearn,atwo-waystreet
V.HikingtheTariffHigher(cont.)
• Americanscouldnotselltoothersunlesstheyboughtfromthem—orlentthemmoreU.S.dollars
• TariffsagametwocouldplayasEuropeansrespondedwithhighertariffs
• WholeEuropean-Americantariffbattledeepenedinternationaleconomicdistress,providingonemorerungonladderbywhichAdolfHitlerscrambledtopower
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VI.TheStenchofScandal
• Loosemorality andget-rich-quickism ofHarding eraresulted inseriesofscandals:
• 1923ColonelCharlesR.ForbesforcedtoresignasheadofVeteransBureau
– Lootedgovernment of$200 million, chiefly inbuilding ofveterans' hospitals
– Sentenced to twoyears in federalpenitentiary
• TeapotDomescandal:– Involvedpriceless naval oil reserves atTeapot Dome(Wyoming) andElkHills (California)
VI.TheStenchofScandal(cont.)
– Secretaryof interior Albert Fall induced secretaryofnavytotransfer properties to Interior Department
– Harding signed secret order– Fall leased lands tooilmen HarrySinclair andEdwardDohenybut notuntil he received bribe (“loan”) of$100,000fromDohenyand about three times thatamount fromSinclair
– Teapot Dome finally cametowhistling boil» Fall, Sinclair, andDoheny indicated in1924
» Case draggedonuntil 1929» Fall found guilty oftaking bribe, sentenced tooneyearin jail
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VI.TheStenchofScandal(cont.)
» Twobribe givers acquitted while bribe takerconvicted» Sinclair served several months in jail forhaving“shadowed” jurors and for refusing to testify beforeSenatecommittee
– Acquittal ofSinclair andDohenyundermined faith incourts
• ScandalofAttorneyGeneralDaugherty:– Senate investigation (1924)of illegal sale ofpardons andliquor permits
– Forced to resign, tried in1927, but released after jury twicefailed toagree
VI.TheStenchofScandal(cont.)
• Harding spared fullrevelation ofiniquities:– EmbarkedonspeechmakingtouracrosscountryallthewaytoAlaska• Onreturn,hediedinSanFranciscoonAugust2,1923
– Brutalfact:Hardingnotstrongenoughforpresidency—ashehimselfprivatelyadmitted
– ToleratedpeopleandconditionsthatsubjectedRepublictoitsworstdisgracesincedaysofPresidentGrant
VII.“SilentCal”Coolidge
• VicePresident Coolidge sworn intooffice byhisfather:
• EmbodiedNewEnglandvirtuesofhonesty,morality,industry,andfrugality
• Seemedtobecrystallizationofcommonplace• Hadonlymediocrepowersofleadership• Speechesinvariablyboring• TruetoRepublicanphilosophy,hebecame“highpriestofgreatgodBusiness”
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VII.“SilentCal” Coolidge(cont.)
• Hands-offtemperament;apostleofstatusquo• ThriftynaturecausedhimtosympathizewithSecretaryofTreasuryMellon'sefforttoreducetaxesanddebts
• CoolidgeslowlygaveHardingregimebadlyneededmoralfumigation
• Coolidgenottouchedbyscandals
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VIII.FrustratedFarmers
• Farmersinboom-or-bust cyclein post-wardecade– Peacebrought:
• Endtogovernment–guaranteedhighpricesandmassivepurchasesbyothernations
• Foreignproductionreenteredstreamofworldcommerce
– Machines:• Threatenedtoplowfarmersunderavalancheofoverabundantcrops
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VIII.FrustratedFarmers(cont.)
• Gasoline-enginetractorrevolutionizedfarms:– Could grow bigger cropson larger areas– Improvedefficiency andexpanded acreagepiled upmoreprice-dampening surpluses
– Withering depression swept through agricultural districts in1920s, when one farmin four sold fordebtor taxes
• Schemesaboundedforbringingrelieftohard-pressedfarmers:
– Bipartisan “farmbloc” fromagricultural states coalesced inCongress in1921 andsucceeded ingetting somehelpfullaws passed
VIII.FrustratedFarmers(cont.)
• Capper-VolsteadAct:– Exempted farmers' marketing cooperatives fromantitrustprosecution
• McNary-HaugenBill (1924-1928):– Sought toboost agricultural prices byauthorizinggovernment tobuyupsurpluses andsell them abroad
– Government losses tobemadeupbyspecial taxon farmers
– Congress twicepassed bill– Coolidge twice vetoed it– Farmprices stayeddown; farmers' political temperaturesstayedhigh, reaching feverpitch in election of1924
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IX.AThree-WayRacefortheWhiteHousein1924
• Election of1924:– Republicansnominated“SilentCal” atsummerconventioninCleveland
– DemocratshaddifficultychoosingcandidateatconventioninNewYorkbecausesplitby:• “Wets” vs.“drys”• Urbanitesvs.farmers• Fundamentalistsvs.Modernists• Northernliberalsvs.southernstand-patters• Immigrantsvs.old-stockAmericans
IX.AThree-WayRacefortheWhiteHousein1924(cont.)
• DemocratsfailedbyonevotetopassresolutioncondemningKuKluxKlan
• Deadlockedforunprecedented102ballots,conventionturnedtoconservativeWallStreetlawyerJohnW.Davis
• Fieldwide-openforaliberalcandidate:– Senator Robert (“Fighting Bob”) LaFollette sprang forth tolead newProgressive party
– Gained endorsement ofAmerican Federation ofLabor– Support fromshrinking Socialist party– Farmershis major constituency
IX.AThree-WayRacefortheWhiteHousein1924(cont.)
– LaFollette'sProgressiveparty:• Fieldedonlyapresidentialticket• Nocandidatesforlocaloffice• ProvedshadowofrobustprewarProgressivecoalition• Platformcalledforgovernmentownershipofrailroadsandreliefforfarmers
• Lashedoutatmonopolyandantlaborinjunctions• UrgedconstitutionalamendmenttolimitSupremeCourt'spowertovoidlawspassedbyCongress
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IX.AThree-WayRacefortheWhiteHousein1924(cont.)
• Election returns:• LaFollettepollednearlyfivemillionvotes• “CautiousCal” andoil-smearedRepublicansover-whelmedDavis:15,718,211to8,385,283
• Electoralcountstoodat382forCoolidge,136forDavis,andthirteenforLaFollette,allfromhishomestateofWisconsin(seeMap31.1)
• ProsperityunderminedLaFollette'sreformmessage
Map 31-1 p728
X.Foreign-Policy Flounderings• Isolation continued toreign inCoolidge era:
• SenatenotallowAmericatoadheretoWorldCourt• Coolidgehalfheartedlyandunsuccessfullypursuedfurthernavaldisarmament
• InterventioninCaribbeanandCentralAmerica:– Troops withdrawn (aftereight-year stay)fromDominicanRepublic in1924
– Remained inHaiti (1914-1934)– America inNicaragua intermittently since 1909;Coolidgebriefly removed troops in1925, but in 1926hesent thembackwhere theystayed until 1933
– Oil companies clamored formilitary expedition toMexico in1926, butCoolidge resisted; U.S.-Mexicantensions increased
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X.Foreign-Policy Flounderings(cont.)
– Internationaldebtsovershadowedallforeign-policyproblemsin1920s:• Complicatedtangleofprivateloans,Alliedwardebts,andGermanreparationspayments(seeFigure31.2)
• 1914:U.S.A.adebtornationtosumof$4billion• 1922:U.S.A.acreditornationtosumof$16billion
Figure 31-2 p729
X.Foreign-Policy Flounderings(cont.)
• Americaninvestorsloaned$10billiontoforeignersin1920s,butmostinvestmentremainedwithinU.S.A.
• Keyknotindebttanglewas$10billionU.S.TreasuryhadloanedtoAlliesduringwar
– Allies protested U.S.demand for repayment asunfair– FrenchandBritish stressed theyhad suffered tremendouslosses against common foe
– America, theyargued, should writeoff loans aswar costs– Borrowed dollars fueled wartime boom inU.S.economy,where nearly allAllied purchases hadbeen made
– Final straw, protested Europeans, wasAmerica's postwartariffs made italmost impossible forEuropeans tosell goodstoearndollars topaydebts
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XI.UnravelingtheDebtKnot
• Allied debtsaffected policyonreparations:– FrenchandBritishdemanded$32billioninreparationspaymentsfromGermany
– AllieshopedtousemoneytosettlewardebtssinceU.S.A.demandedrepayment
– AsGermanysufferedtremendousinflation,someEuropeansproposeddebtsandreparationsbescaleddownorevencanceled
– Coolidgerejectedanyideaofdebtcancellation
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XI.UnravelingtheDebtKnot(cont.)
• DawesPlan (1924):• NegotiatedbyCharlesDawes,abouttobeCoolidge'srunningmate
• RescheduledGermanreparationspayments• OpenedwayformoreprivateAmericanloanstoGermany
• Wholefinancialcyclebecamemorecomplicated:– U.S.bankers loaned money toGermany,
– Germanypaid reparations toFranceandBritain,– FormerAllies paidwar debts toUnited States
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XI.UnravelingtheDebtKnot(cont.)
• WhenU.S.loansdriedupaftercrashof1929,jungleofinternationalfinancequicklyturnedtodesert
• PresidentHerbertHooverdeclaredone-yearmoratoriumin1931,butmostdebtorssoondefaulted
– Except“honest little Finland,” which struggled alongmakingpayments until last ofdebtdischarged in1976
• UnitedStatesneverdidgetitsmoney,butharvestedbumpercropofillwill
XII.TheTriumphofHerbertHoover,1928
• 1928presidential race:– Coolidgedecidednottorun– HerbertHooverbecameRepublicancandidate:
• Nominatedonplatformofprosperityandprohibition
– DemocratsnominatedAlfredC.Smith• “Al(cohol)Smith,” soakinglyanddrippingly“wet”whencountrystilldevotedto“nobleexperiment”ofprohibition
• Seemedtobeabrasivelyurban• WasRomanCatholic
XII.TheTriumphofHerbertHoover(cont.)
– Radioplayedkeyroleincampaignforfirsttime:– HelpedHoovermorethanSmith
– Hooverdecriedun-American“socialism”• Preached“ruggedindividualism”• Neverhavingbeenelectedtopublicoffice,hewasthin-skinnedinfaceofcriticism
• Didnotadapttogive-and-takeofpoliticalaccommodation• Realpowerlayinhisintegrity
– Hishumanitarianism– Hispassion forassembling facts
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XII.TheTriumphofHerbertHoover(cont.)
– Hisefficiency– His talent foradministration– Hisability to inspire loyalty inclose associates who calledhim“theChief”
• Hooverbestbusinessperson'scandidate:– Self-made millionaire, he recoiled fromanythingsuggestingsocialism, paternalism, or“planned economy,”
– Yetas secretary ofcommerce,heexhibited someprogressiveinstincts:
» Endorsed labor unions» Supported regulation ofradio broadcasting industry» Flirted with idea ofgovernment-owned radio
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XII.TheTriumphofHerbertHoover(cont.)
– Indicationsoflow-levelcampaigners:• ReligiousbigotryagainstSmith'sCatholicism
– White House would becomebranchofVaticanwith “Rum,Romanism, and Ruin”
• Southshiedawayfrom“cityslicker”AlSmith– Electionreturns:
• Hoovertriumphedinlandslide:– Bagged 21,391,993 popular votes toSmith's 15,016,169– Electoral countof444 toSmith's 87
• BigRepublicanvictory;HooversweptfiveformerConfederatestatesandallBorderStates(seeMap31.2)
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Map 31-2 p731
XIII.PresidentHoover'sFirstMoves
– Hoover'sself-helpresponsestounorganizedwageearnersanddisorganizedfarmers
– AgriculturalMarketingAct(June1929):• Designedtohelpfarmershelpthemselvesthroughproducers' cooperatives
• SetupFederalFarmBoardwithrevolvingfundof½billiondollarsatitsdisposal
• Moneylenttofarmorganizationsseekingtobuy,sell,andstoreagriculturalsurpluses
XIII.PresidentHoover'sFirstMoves(cont.)
– In1930FarmBoardcreated:• GrainStabilizationCorporationandCottonStabilizationCorporation
• Bolstersaggingpricesbybuyingupsurpluses• Suffocatedbyavalancheoffarmproduce
– HooverduringcampaignpromisedtocallCongressintosessiontobringabout“limited”changeintariff
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XIII.PresidentHoover'sFirstMoves(cont.)
• Hawley-Smoot Tariff (1930):– BytimepassedbybothhousesofCongress:
• Turnedouttobehighestprotectivetariffinnation'speacetimehistory
• Averagedutyonnon-freegoodsraisedfrom38.5%tonearly60%
• Toforeigners,itwasblowbelowtradebelt:– Seemed like declaration ofeconomic waronentire world– Reversed promising worldwide trend toward reasonabletariffs
XIII.PresidentHoover'sFirstMoves(cont.)
– Plunged both America andother nations deeper into depression thathadalready begun
– Increased international financial chaosand forcedUnitedStates further into bogofeconomic isolationism
– And economic isolationism, both athome andabroad, played intohands ofhate-filled Germandemagogue, Hitler
XIV.TheGreatCrashEndstheGoldenTwenties
– Speculativebubble:• Fewpeoplesensedpermanentplateauofprosperitywouldsoonbreak
• Pricesonstockexchangecontinuedtospiralupward• Createdfool'sparadiseofpaperprofits• Afewtriedtosoundwarnings
– CatastrophiccrashinOctober1929:• PartiallycausedbyBritishwhoraisedinterestrates• Foreigninvestorsanddomesticspeculatorsbegantodump“insecurities”
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XIV.TheGreatCrashEndstheGoldenTwenties (cont.)
• TensionsbuilttopanickyBlackTuesdayofOctober29,1929:
– 16,410,030 shares of stocks sold in save-who-may scramble– Wall Streetbecamewailing wall asgloom anddoomreplacedboom
– Suicides increased alarmingly– Unbelievable losses in blue chipsecurities– Byendof1929, stockholders lost $40billion inpapervalues(seeFigure 31.3)
Figure 31-3 p733
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XIV.TheGreatCrashEndstheGoldenTwenties (cont.)
• Stock-marketcollapseheraldedbusinessdepression:– Athome andabroad– Most prolonged andprostrating inAmerican orworldexperience
– Noother industrialized nation suffered sosevere asetback– Endof1929: fourmillion workers jobless– Twoyears later, figurehad tripled– Hungryanddespairing workers pounded pavements in search ofwork
– Misery andgloom incalculable– Over5,000 bankscollapsed in first three years
– Carrying down with themsavings oftens of thousands ofordinary citizens
XIV.TheGreatCrashEndstheGoldenTwenties (cont.)
– Countless thousands lost homes and farms to foreclosure– Breadlines formed; soup kitchens dispensed food– Families felt stress, as jobless fathers nursed guilt andshame atnot beingable toprovide for family
– Breadless breadwinners blamed themselves forplight– Mothers nursed fewerbabies asbirthrate dropped
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XV.HookedontheHornofPlenty• WhatcausedGreat Depression?
– Overproductiononbothfarmandfactory• Depressionof1930soneofabundance,notwant• “Greatglut”or“plagueofplenty”• Nation'sabilitytoproducegoodsclearlyoutrancapacitytoconsumeorpayforthem
• Toomuchmoneygoingintohandsofwealthy:– Who invested it in factories and otheragencies ofproduction– Notenough going intosalaries and wages to revitalizepurchasing power
XV.HookedontheHornofPlenty(cont.)
– Overexpansion:• Ofcredit(installment-plans)overstimulatedproduction• Newlaborsavingtechnologiescausedunemployment
– Economicanemiaabroad:• BritainandContinentneverfullyrecoveredfromWWI• Chain-reactionfinancialcollapseinEurope• Internationaltradedeclinedbecauseoftariffs• Europeanuncertaintiesoverreparations,wardebts,anddefaultsonloansowedtoAmerica
• ManyoftheseconditionscausedbyUncleSam'snarrow-visionedpolicies
XV.HookedontheHornofPlenty(cont.)
– Nature:droughtscorchedMississippivalleyin1930• Thousandsofhomesandfarmssoldatauctionfortaxes
• Farmtenancyorrental—aspeciesofpeonage—spreadamongbothwhitesandblacks
– By1930sdepressionhadbecomenationalcalamity• Manycitizenslosteverything• Wantedtowork—buttherewasnowork
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XV.HookedontheHornofPlenty(cont.)
• America's “uniqueness” nolonger seemedsounique, noritsManifestDestiny somanifest:– DepressionabafflingwraithAmericanscouldnotgrasp
– Initiativeandself-respectstifled– Manysleptintin-and-papershantytownscynicallynamedHoovervilles
– FoundationsofAmerica'ssocialandpoliticalstructuretrembled
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XVI.RuggedTimesforRuggedIndividualists
• Hoover's exaltedreputation aswonder-workerandefficiency engineer crashed– WouldhaveshoneinprosperousCoolidgeyears– GreatDepressionprovedtobebeyondhisengineering talents• Distressedbywidespreadmisery• As“ruggedindividualist,”heshrankfromheresyofgovernmenthandouts
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XVI.RuggedTimesforRuggedIndividualists (cont.)
– Convincedthatindustry,thrift,andself-reliancewerevirtuesthatmadeAmericagreat• Fearedthatgovernmentdolingoutdoleswouldweaken,perhapsdestroy,nationalfiber
• Reliefbylocalgovernmentagenciesbrokedown• Hooverfinallyhadtoreluctantly:
– Turn fromdoctrine of log-cabin individualism and
– Acceptproposition thatwelfare ofpeople during anationalcatastrophe adirectconcern ofnational government
XVI.RuggedTimesforRuggedIndividualists (cont.)
• Hooverworkedoutcompromisebetween– Old hand-offphilosophy– And “soul-destroying” directdole being used inEngland– Hewould assist hard-pressed railroads, banks, and rural creditcorporation
» Iffinancial health restored attop ofeconomic pyramid» Unemployment would be relieved atbottom on trickle-down basis
– Partisancriticssneeredat“GreatHumanitarian”
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XVI.RuggedTimesforRuggedIndividualism (cont.)
– MostofcriticismofHooverunfair:• Hiseffortsprobablypreventedmoreseriouscollapse• Hisexpendituresforrelief,revolutionaryforday,pavedpathforenormousfederaloutlaysofhissuccessor,FranklinRoosevelt
XVII.HooverBattlestheGreatDepression
• Hoover's “trickle-down” philosophy:– RecommendedCongressvoteimmensesumsforusefulpublicworks• SecuredfromCongressappropriationstotaling$2.25billionforsuchprojects
• MostimposingofpublicenterpriseswasgiganticHooverDamonColoradoRiver
– Hugeman-made lakeforpurposes ofirrigation, flood control,andelectric power
– Sternlyfoughtallschemeshethought“socialistic”
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XVII.HooverBattlestheGreatDepression (cont.)
• ConspicuouswasMuscleShoalsBill:– Designed todamTennessee River– Hevetoedmeasure because heopposed government sellingelectricity incompetition with private companies
– In1932CongressrespondedtoHoover'sappeal:• EstablishedReconstructionFinanceCorporation(RFC):
– Provide indirect relief byassisting insurance companies,banks, agricultural organizations, railroads, and evenhard-pressed stateand local governments
– Topreserve individual character, no loans to individuals
XVII.HooverBattlestheGreatDepression (cont.)
– “Pump-priming” loans helped, butprojects largely self-liquidating
– Government profited totune ofmanymillions ofdollars– Giantcorporations also benefited
• IronythatthriftyandindividualisticHooveractuallysponsoredprojectwithstrongNewDealishflavor
XVII.HooverBattlestheGreatDepression (cont.)
• Norris-LaGuardiaAnti-InjunctionAct(1932):– Outlawed “yellow-dog” (antiunion) contracts– Forbade federal courts to issue injunctions to restrainstrikes, boycotts, andpeaceful picketing
• Hoover didinaugurate newpolicy:• Byendofterm,hehadstarteddownroadtowardgovernmentassistanceforneedycitizens—aroadFranklinRooseveltwouldtravelmuchfarther
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XVII.HooverBattlestheGreatDepression (cont.)
• Hoover's woes:– IncreasedbyhostileCongress– Republicanmajorityprovedhighlyuncooperative– In1930,DemocratsgainedcontrolofHouseandalmostofSenate
– InsurgentRepublicanscould—anddid—combinewithDemocratstoharassHoover
– SomeofHoover'stroublesdeliberatelymanufacturedbyCongress
XVIII.RoutingtheBonusArmyinWashington
• Veterans ofWWIhard-hit bydepression:• IfHawley-SmootTariffa“bonus” toindustry,• Veteranswantedearlypaymentof1924“bonus”scheduledtobepaidin1945
• ManyveteranspreparedtogotoWashington– Todemand immediate paymentofentirebonus– “Bonus Expeditionary Force” (BEF)ofsome 20,000 went tocapital in summer of1932
– Erectedshacks onvacantlots—a gigantic “Hooverville”– After Congress voteddown bonus bill, BEFordered to leave
– 6,000 left;Hoover then ordered army toremove rest
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XVIII.RoutingtheBonusArmyinWashington(cont.)
– GeneralDouglasMacArthurledefforttooustBonusArmywithbayonetsandteargas• UsedfarmoreforcethanHooverplanned• Brutalepisodebroughtadditionalabuseononce-popularHoover
– TimeripeningforDemocraticParty—andFranklinD.Roosevelt—tocashinonHoover'scalamities
XIX.JapaneseMilitaristsAttackChina
• Depression increased international difficulties• Militaristic Japanstole FarEasternspotlight:
• September,1931:JapaneseimperialistslungedintoManchuria
• AmericahadstrongsentimentalstakeinChina,butfewsignificanteconomicinterests
• Americansstunnedbyactofnakedaggression– Flagrant violation ofLeagueofNations covenant andotherinternational agreements solemnly signed byTokyo
– Not tomention American sense of fairplay
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XIX.JapaneseMilitaristsAttackChina(cont.)
– YetWashingtonrebuffedLeagueattemptstosecureU.S.cooperationineconomicpressureonJapan
– WashingtonandSecretaryofStateHenryL.Stimsondecidedtofireonlypaperbullets• So-calledStimsondoctrine(1932):
– Declared United Stateswould not recognize anyterritorialacquisitions achieved by force
– Righteous indignation—or preach-and-run policy—wouldsubstitute forsolid initiatives
– VerbalslapnotdeterJapan'smilitarists• BombedShanghai(1932)killingmanycivilians
XIX.JapaneseMilitaristsAttachChina(cont.)
– Norealsentimentforarmedinterventionamongdepression-riddenAmericans,whoremainedstronglyisolationistduringthe1930s
– CollectivesecuritydiedandWorldWarIIbornin1931inManchuria
XX.HooverPioneerstheGoodNeighborPolicy
• Relations wAmerica's southern neighbors:– Hooverinterestedinoften-troublednationsbelowRioGrande
– Afterstockmarketcrashof1929:• EconomicimperialismlesspopularathomeinU.S.A.
– Hooveradvocatedinternationalgoodwill• StrovetoabandoninterventionisttwistgivenMonroeDoctrinebyTheodoreRoosevelt
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XX.HooverPioneers theGoodNeighborPolicy (cont.)
– NegotiatedwithHaitiforwithdrawalofU.S.troopsby1934
– In1933,lastU.S.marinesleftNicaraguaafteralmostcontinuousstayofsometwentyyears
– Hooverengineered foundationstonesofGoodNeighborpolicy• Uponthem,roseimposingedificeundersuccessor,FranklinRoosevelt
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