A Republican Decade



Mr. McCormack

American History II

Central Dauphin High School

Chapter 14 – Politics and Prosperity

I. A Republican Decade

A. The Election of 1920

1. Republicans nominate Ohio Senator Warren G. Harding

a. Dignified speaker, seen as honest and kind

b. Promoted by powerful Republican bosses seeking influence

c. Appeals to the nation’s desire for “normalcy”

i. Americans weary of foreign wars

ii. Americans weary of domestic upheaval

iii. Americans desire return to simpler time

2. Democrats nominate James Cox and Franklin Delano Roosevelt

3. Harding wins in a landslide

4. Republicans control all three branches of government for most of the 1920s

B. The Red Scare

1. The Russian Revolution

a. Czar Nicholas II abdicated his throne in March, 1917, during WWI

b. Russian Republic, led by Alexander Kerensky, holds power between March and November

c. November 6, 1917 – Vladimir Lenin launches Bolshevik Revolution against the republic

i. Bolshevik means “majority” in Russian

ii. Bolsheviks are most popular with peasants and workers, but did not enjoy majority support in 1917

d. 1917-1920 – Bolsheviks fight to suppress opposition in Russia

i. Reds – support Bolsheviks

ii. Whites – oppose Bolsheviks (no unity in purpose – some support Republic, others support the Czar, etc.)

iii. United States and other foreign powers support the Whites

e. Bolsheviks make Communism the official ideology of Russia

i. All land and productive property belongs to the government

ii. The communist party is the only political party in government

iii. Needs of the country are more important than individual rights

iv. Communists suppress religion (atheists)

v. Communists support economic and social equality

f. Russia renamed the USSR (Union of Soviet Social Republics) in 1922

g. Lenin advocates exporting communism to other nations

2. American Fears

a. Americans support private property, religion, individual rights, and competitive politics

b. Communism conflicts with American values

c. Americans fear that Communists will revolt in the U.S.

i. Communists lead an unsuccessful revolt in Germany in 1919

ii. Communists take over Hungary in 1919

iii. Many Americans fear immigrants from Europe support Communism

iv. Series of bombings in 1919 appear to be a plot against the government as some politicians are targeted

v. Series of labor strikes in 1919 appear to be a plot to weaken the American economy

d. Supreme Court seems to support jailing radicals for their opposition

i. Schenck v. U.S. – Radical opposed to WWI jailed despite freedom of speech defense

ii. Gitlow v. New York – First case in which the Supreme Court analyzes a state law (anti-anarchy law) for a violation of the First Amendment (Freedom of Speech) as applied through the Fourteenth Amendment

e. Palmer Raids

i. Attorney General A. Mitchell Palmer receives a bomb and immediately suspects a conspiracy of “subversives” – Communists, Anarchists, and Socialists

ii. Foreigners (immigrants), the poor, and other populations living at the margins of society are suspected of Communist sympathies

iii. December 31, 1919 – Palmer declares a campaign against subversives

iv. January 2, 1920 – Federal agents in 33 cities arrest thousands of suspects with little or no evidence (Palmer Raids)

v. Palmer enjoys wide support

vi. Chief of Staff of the Army – “send them home [most of those arrested were European immigrants] on ships of stone with sails of lead”

vii. Reverend Billy Sunday – “bullets would save money on ships”

viii. Palmer loses influence when predicted May Day revolution fails to occur

f. Sacco and Vanzetti

i. Nicola Sacco and Bartolomeo Vanzetti are arrested for a South Braintree, Massachusetts murder/burglary in a shoe factory

ii. Sacco, a shoemaker, and Vanzetti, a fish peddler, are anarchists

iii. Very little evidence presented to tie them to the crime

iv. Both are convicted and executed in 1927, apparently because of bias against their Italian nationality and radical politics

v. Both men have been viewed as pawns for political purposes

C. Labor Strikes

1. Nationwide, strikes become more common in 1919, helping to fuel the Red Scare

a. Strikes increase from 175 in March to around 370 in August

b. Strikes include telephone operators in New England, machinists in Ohio, and construction workers in Texas, among others

c. Many Americans believe these strikes are inspired by Communists

d. Economic, rather than political, explanations seem more likely

i. Wages had not increased much since WWI

ii. The cost of living had increased to about twice the pre-war levels (inflation)

iii. Strikers wanted economic assistance, not political change

iv. Many labor unions (such as the AFL) were publicly anti-Communist

2. Strikes are organized by “unions” – organizations of workers who agree to collective representation (paid for by members’ dues) in bargaining with their employers

3. The Boston Police Strike

a. Boston police, having not received any pay increase since the start of the WWI, tried to organize a union in September, 1919

b. Nineteen officers were fired by the commissioner for union activity, a violation of police rules

c. The rest of the police force walked off the job in protest

d. Mass rioting occurred in Boston

i. Mayor called for volunteer police to restore order

ii. Massachusetts Governor Calvin Coolidge activated the National Guard

e. Public reaction to the strike was very negative

i. President Wilson called it a “crime against civilization”

ii. Governor Coolidge said “There is no right to strike against the public safety by anybody, anywhere, anytime.”

4. U.S. Steel Strike

a. Late September, 1919, steelworkers go on strike in hopes of getting an easier work week

i. Average worker had 12 hour shifts, 65 hour weeks

ii. Strikers wanted 8 hour shifts and 48 hour weeks

b. American Federation of Labor (AFL) supported the strike

c. 350,000 workers left their jobs

d. U.S. Steel claimed the strike was the work of Communists and fought back

i. Company hired private police force to protect its property

ii. Clashes between police and strikers resulted in 18 deaths and hundreds of injuries

iii. Company hired thousands of African-American workers from the South to run its plants

e. Federal and state governments supported U.S. Steel over the strikers

f. AFL canceled the strike after 10 weeks as workers give up

5. Coal Strike

a. United Mine Workers (UMW) demanded higher wages at the end of WWI

b. No-Strike Agreement made during the war ended with the armistice

c. Strike begun in November, just as cold weather threatens

d. Fearing shortages of coal used for home-heating, Attorney General Palmer got a court to order the miners to return to work

e. Miners refused to obey the order, risking jail

f. A government commission ends the strike by granting the miners a 14% raise

6. Strikes Decline

a. Strikes, seen as un-American, were generally unpopular

b. Union membership declined as economic conditions improved

i. Peaked around 5 million workers in 1920

ii. Leveled off around 3.5 million workers from 1923-1929

iii. Today only around 12% of workers are in unions

D. Republican Leadership

1. Americans favored Republicans for social stability and economic growth

2. Republican presidents were in office from 1920-1932

3. Republicans dominated the Supreme Court, led by Chief Justice (and former President) William Howard Taft

4. Republicans controlled Congress during the 1920s

5. Unified Republican control produced a fairly consistent approach to government

E. The Harding Presidency

1. Warren G. Harding was selected to run for President because he was seen as pro-business, conservative, isolationist, and easily influenced

2. As President he put a great deal trust and responsibility in his cronies from Ohio (The Ohio Gang)

3. Foreign Policy

a. Harding pursued a policy of isolationism – avoiding long-term alliances with foreign nations and closely guarding American interests

b. Isolationism

i. Refused to join the League of Nations

ii. Supported high, protective tariffs (Fordney-McCumber Tariff)

iii. Worked on some international agreements such as reducing war debts (Dawes Plan for Germany, etc.), but generally withdrew from world affairs

c. Disarmament

i. Nations voluntarily reduce the size of their militaries

ii. Washington Conference of 1921 aimed at preventing a naval arms race between the US, Japan, and Britain

iii. Several major powers do agree to limit their navies after this conference

d. Disarmament and Isolationism, although popular at the time, leave the country unprepared for the hostilities in Europe in the 1930s

4. Domestic Issues

a. Many Americans become more Nativist, favoring native-born Americans over immigrants

b. Reasons for the growth of Nativism

i. Patriotism – immigrants’ loyalty is questioned

ii. Religion – immigrants, unlike most native-born, are usually non-Protestant (Catholics, Orthodox, Jews, etc.)

iii. Urban Conditions – cities are dangerous and dirty, and that leads to a bias against those who live there (immigrants and minorities) – conditions are not seen as a result of poverty but of personal faults

iv. Jobs – Immigrants are willing to work for less and provide a lot of competition for jobs

v. Red Scare – Many immigrants come from lands where communism is popular and are suspected of supporting communism

c. Results of Nativism

i. Immigrants face discrimination and hostility

ii. Groups like the KKK become more popular

iii. Congress passes immigration restrictions

iv. National Origins Act of 1924 links immigration quotas to the 1890 census in an effort to limit immigration from southern and eastern Europe

v. Exclusion acts keep out all Chinese (1882) and Japanese (1924)

vi. Republican party benefits from nativism since the Democrats are seen as allies of the immigrants (many of whom belong to labor unions)

d. Harding speaks out for equality for minorities, but doesn’t accomplish much for his efforts

5. Scandals

a. Harding once said, “I am not worried about my enemies. It is my friends that are keeping me awake nights.”

b. Most famous scandal was Teapot Dome

i. Secretary of the Interior Albert B. Fall leased oil drilling rights on federal lands in Teapot Dome, WY, and Elk Hills, CA to private companies that gave him $300,000 in bribes

ii. Fall resigned in 1924 and eventually became the first Cabinet secretary to be sentenced to prison

iii. Secretary of the Navy Edwin Denby also resigned for his role in transferring the oil reserves from the Navy to the Interior Department

c. Director of Veterans Affairs Charles Forbes stole money from the government

d. Attorney General Harry Daugherty made money on the illegal sale of alcohol

e. Harding began to learn the details of these scandals before his death from a heart attack in San Francisco, CA

F. The Coolidge Presidency

1. Calvin Coolidge took the Oath of Office on August 3, 1923, after learning of Harding’s death

2. Coolidge was on vacation at his parents Vermont farm at the time, and his father, a justice of the peace, administered the oath

3. Coolidge is the only president born on July 4th

4. Coolidge, known as “Silent Cal,” believes in a limited role for government – a policy called “Laissez Faire” (“Let it Be”)

a. Coolidge was quoted as saying “The business of America is business.”

b. This continues Harding’s “hands off’ approach – “We need less government in business and more business in government.”

c. Lower taxes, smaller federal budgets, reduced federal debt, and higher tariffs all result from this business-friendly policy

d. Failure to regulate the economy eventually leads to instability and collapse

e. Failure to act on other occasions (i.e. flood relief) leads to some criticism

5. Coolidge, enjoying a period of prosperity, is reelected in a landslide victory over Democrat John W. Davis and Progressive Robert M. La Follette in 1924

6. The Kellogg-Briand Pact, negotiated in 1927, was a major initiative of the Coolidge presidency

a. Proposed by French Foreign Minister Aristotle Briand

b. Negotiated by Secretary of State Frank B. Kellogg

c. Originally a pledge between 15 nations not to declare war on each other or even threaten war

d. Eventually 62 nations join the Pact

e. No enforcement mechanism makes the Pact a hollow promise, and by 1939 many signatories are fighting one another

7. Coolidge is credited with restoring the honor and dignity of the White House

8. Coolidge famously declares “I choose not to run for President” at the end of his term, even though his popularity was still very high

G. The Election of 1928

1. Republicans nominate Herbert Hoover

a. Former head of the Food Administration during WWI

b. Secretary of Commerce under Harding and Coolidge

c. Supports Prohibition

d. Believed to be the best candidate to continue the Coolidge prosperity

2. Democrats nominate Al Smith

a. Governor of New York

b. First Roman Catholic nominee of a major party

c. Opposes Prohibition

3. Hoover wins in a landslide

a. Election shows split in women’s and men’s votes (women are more likely to support Hoover and Prohibition)

b. Election shows Rural/Urban divide, with Smith winning the cities and Hoover winning the countryside

II. A Business Boom

A. The post-WWI economic slump quickly gives way to economic growth

1. Gross National Product (GNP) is the measure of the economy – the total value of goods and services produced in a year

a. Between 1921 and 1929 average annual growth in GNP was 6%

b. Growth between 1910 and 1920 had averaged around 1%

c. Today we enjoy growth of around 2-3%

d. Periods of contraction (shrinkage, not growth) are recessions

2. Much of the growth is attributed to a rise in productivity

a. Productivity is a worker’s level of output

b. Productivity is improved because of new technologies

c. Productivity is improved by the adoption of assembly line manufacturing

d. Productivity is improved by new management methods championed by Frederick Winslow Taylor and Frank and Lillian Gilbreth

B. A Consumer Economy

1. A consumer economy’s health is sustained by heavy spending by consumers

2. Consumer spending increases for several reasons

a. Higher wages – workers have more money to spend

b. Lower prices – goods are cheaper and more available

c. New Products become available – especially electric appliances (sewing machines, vacuum cleaners, washing machines refrigerators, radios, etc.)

i. In 1913 only 16% of homes have electricity

ii. In 1927 about 63% of homes have electricity

iii. Rural inhabitants don’t enjoy the revolution (only 4% have electricity in 1925) because running power lines for a few customers is too expensive

iv. General Electric, formed in 1892 to take over Thomas Edison’s light business, becomes one of the world’s largest companies

v. By 1929, the value of electric products is $2.3 billion

d. Consumer credit is more available

i. “Buy Now, Pay Later”

ii. Installment Plans – pay a little each month until the entire cost and interest is paid off

iii. Credit is a win-win situation if handled wisely – consumers get their goods sooner, producers make more profit from interest

iv. If handled unwisely credit can lead to debt or bankruptcy

v. In 1929, installment plan purchases accounted for 60% of car sales, 70% of furniture sales, 80% of all vacuum cleaners, radios, and refrigerators, and 90% of all washing machines

e. Mass-media advertising becomes more sophisticated

i. Companies take advantage of the national media (magazines, newspapers, etc.) to market their products

ii. Old ads promoted a product for its features, new ads promote the image of the product (you’ll be cool if you buy this)

iii. New advertising played on insecurity and fear, relied on emotional pitches and celebrity endorsements

C. Ford and the Automobile

1. The first automobile is made in Germany in the 1880s

2. Most automobile pioneers are eccentric tinkers and hobbyists

3. The first marketable automobile in America is made by Frank and Charles Duryea in Springfield, Massachusetts, in 1892

4. From 1892-1920 about 8 million automobiles are sold in the US

a. Cars are generally too expensive for most Americans

b. They are considered toys for the wealthy

5. Henry Ford “Democratizes the Automobile” – makes it something more people can afford to buy

a. He begins pioneering the automobile while working as an engineer for a lighting company in the 1880s

b. He produces his first car (“quadricycle”) in 1896

c. He opens his automobile company in 1903

d. In 1908 he sells 30,000 Model Ts

i. Model T was nicknamed Tin Lizzy

ii. Model T was a very basic, utilitarian automobile

iii. Model Ts come in one color, black, until 1925, because it is cheapest

iv. Model T production is halted in 1927 when the Model A is introduced

6. Ford’s Great Innovation: The Assembly Line

a. Assembly Line manufacturing existed before Ford, but he perfected it

b. Complicated tasks (like building automobiles) are broken down into simple steps

c. Each worker in a long line becomes responsible for performing just one or a few of those steps instead of all of them

i. Specialization increases worker efficiency

ii. Work becomes routine and boring

iii. No special skill is required to work on the assembly line

d. On the early lines workers moved, on later lines, the line is automated

e. Task becomes so streamlined that the cars are finished quickly and much more cheaply

i. Between 1908 and 1927, Ford builds more than half of all of the cars produced in the world – more than 15 million!

ii. One of Ford’s factories produced a new Model T every 24 seconds!

iii. A load of iron ore could be turned into a car in less than 48 hours

iv. The price of a car falls from about $800 in 1910 to $490 in 1914 and $390 in 1915

7. Ford supplied most of his own needs – coal, iron, wood, etc.

8. Ford’s failure to introduce new models and colors allows competitors to surge ahead – he’s only in third place by 1936

9. Ford also made tractors, airplanes, machine tools, etc.

10. Ford’s Legacy

a. Raised workers’ salaries to $5 a day when most only earned half as much

i. Intended to make his workers more loyal to him and less supportive of unions

ii. Allowed his workers to afford to afford the cars they was manufacturing

b. Tried to bring peace to Europe by traveling there in 1915

c. Reputation for being an inventive businessman tarnished by a few personal flaws

i. Seen as an anti-Semite for articles he published in the Dearborn Independent when he owned the paper from 1918 to 1927

ii. Developed very hostile relations with unions in his life

iii. His WWI-era program to “Americanize” his workers (train them in English, Civics, etc.) is viewed as paternalistic

d. Endowed charities, museum of American artifacts, and other worthy projects

11. Growth of the automobile hampered by poor driving conditions

a. City roads were too narrow, country roads were unpaved

b. States worked together to build interstate routes (Dixie Highway, 1915-1926, 5000 miles, connected North and South)

c. No Federal interstate highway system will be developed until the 1950s, despite an Army proposal to build one in 1922

d. By 1929 the country was spending nearly $2 billion on roads and bridges

12. By 1927, about 54% of American families own automobiles

D. Industrial Growth

1. Much industrial growth is credited to the automobile industry

a. Automakers consume 15% of America’s steel, 80% of its rubber, 65% of its leather upholstery, 50% of its glass, and 7 billion gallons of gasoline in the late 1920s

b. Many new businesses are spawned by the automobile culture – dealerships, motels, repair shops, gas stations, and restaurants

c. The housing market benefits as more people move to the suburbs and commute to work

d. Some industries, such as the railroad, decline from competition with the automobile

2. Other booming industries include movie-making, radio broadcasting, and publishing (mass media)

3. First domestic airlines begin and “take off” with the development of air mail

4. Top 200 American businesses nearly double their total worth between 1919 and 1929

5. Major industries (steel and oil) become more competitive as “monopolies” decline in market share

E. Bypassed by the Boom

1. Farm economy particularly hard hit during the 1920s (overproduction, less demand)

2. Minorities and migrant workers remain poor

3. Post-war economies have less need for some materials, such as cotton (no need for uniforms) and coal (less need for steam transport)

III. The Economy of the Late 1920s

A. The Economy Appeared Healthy

1. Stock market value increased from $27 billion in 1925 to $87 billion in 1929

2. Workers’ wages increased 40% from 1914 to 1929

3. Unemployment was just under 4%

4. Americans were highly confident of continued prosperity

a. Business success took on aspects of religion

i. “The Man Nobody Knows” (1925) by Bruce Barton

ii. Retells the story of Jesus in business terms

b. Business leaders encourage Americans to invest

i. “Everybody Ought to be Rich” (1929) by John J. Raskob

ii. Saving $15 a week for 20 years guarantees financial security

5. Businesses begin practicing Welfare Capitalism

a. Attempt to meet workers’ needs and keep them happy and loyal

b. Undermine organized labor unions

c. Voluntarily provide benefits like paid vacations, health plans, recreation, and education

B. Economic Danger Signs

1. Uneven Prosperity

a. Rich enjoyed greater advances in prosperity than did the poor (A rising tide lifts all boats, but not evenly)

b. Large corporations benefited more than small businesses

c. 71% of families made less than the theoretical “poverty line”

d. 80% of families had no savings

e. In many families every member (including children) worked to survive

f. Government policies of cutting taxes continued to benefit the wealthy

2. Personal Debt Grew Dangerously High

a. Americans, confident of future earnings, incurred ever larger personal debts

b. Total private debt approaches $75 billion in 1929

3. Playing the Stock Market

a. Many risked money in “get-rich-quick” gambles

b. Speculation – practice of making high risk investments in hopes of getting a huge return

c. Buying on the Margin – Purchase a stock for a fraction of its price and borrow the rest – as long as the stock goes up you can cover your loan and still profit

4. Too Many Goods, Too Little Demand

a. Assembly line manufacturing allowed producers to make more than consumers could purchase

b. Inventories filled warehouses – businesses could cut back on their workforce and still have stock to cover sales

c. Workers who lost jobs couldn’t cover their debts, jeopardizing the whole economic system

d. Automobile industry slumps in 1925, sending ripple effects through other industries

5. Trouble for Farmers and Workers

a. Economic hardship on farms left many unable to pay their debts

b. Many rural banks (6000) fail as a result

c. Congress tries to provide relief (McNary-Haugen Bill) through increasing farm prices, but Coolidge vetoes it both times it passed (1927 and 1928)

d. Workers in distressed industries work very long hours for very little pay – often as little as $10 a week

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