The Twenties

Post War Problems

1. Return to Normalcy

4 million unemployed

Post War Depression

Factories shut down

Post War Inflation

Results:

Cost of living Doubled (1913-1920)

Unemployment increased (5 Million)

2.  Post War Labor Unrest

A.  Demanded: Higher Wages

6 Day work week

End 12 hr. work day

Management hired Strikebreakers Strike ended  nothing accomplished

B.  Coal Workers Strike

United Mine Workers  John L. Lewis

Government Intervened Miners Accepted 27% wage increase

C.  Boston Police Strike

endangered Public Safety State Militia sent in

               Results:  Labor Unions had a Poor Image

3.  The Red Scare

Bolsheviks  had taken over Russin

Americas saw strikes as part of the Communist movement

Results:

Anti-Foreign sentiment against Southern and Eastern Europeans

A. Mitchell Palmer - organized Raids -6,000 arrested

Deportation of Aliens

A.C.L.U. opposed deportation Rise of the K.K.K.

4.  Restrictions on Immigration

1920 Trial of Sacco and Vanzetti Italian Anarchists accused of murder. Convicted and put to death on circumstantial evidence

Emergency Quota Act of 1921

Immigration from Europe restricted to 3%of the population of the

           nationality living in America in 1910

Immigration Act of 1924

Lowered percentage to 2% and used 1890 census.

1929 Annual Quota lowered to 150,000

132,000        from Northern Europe

  18,000        from Southern Europe

Warren G. Harding

Newspaper Editor who looked like a President

First election with women suffrage

Landslide victory for Harding

Major Appointments made by Harding:

State                 Charles Evans Hughes

Agriculture Henry C. Wallace

Commerce Herbert Hoover

Treasurv    Andrew Mellon

Economic Program

1.  Fordney-McCumber Act 1922 Raised tariffs to protect American business

2.  Revenue Act 1921 Reduced taxes on large incomes to produce the

   Trickle Down Effect

3.  Mellon Reduced the National Debt and Balanced the Budget

4.  Harding Twice vetoed Bonus Bills for WWI vets  but Congress flnally

   passed a bill over a Coolidge veto gave $1000 life insurance policy to

  be paid out in 20 year

Corruption in Harding Administration

1.  Ohio Gang  a group of self-seeking politicians from Hardings home state

    (Poker Friends) who were involved in scandals

2.  Attorney General, Harry M. Dougherty, used his position to protect friends

    and violate prohibition.  (Job  carry out the law)

3.  Thomas ~. Miller  made money off of American seized, foreign-owned

    property, during WWI

4.  Veterans Bureau Corruption, Charles R. Forbes, could not account for

    $200 million.

5.  Teapot  Dome

           Sec. of Interior, Albert B. Fall, transferred the Navy Oil Reserves in

           Teapot Dome, WY and Elk Hills, CA. to the Dept. of Interior

Once in control, Fall leased the Reserves to two oil men, Harry F. Sinclair and Edward L. Doheny.

In exchange, they loaned Fall $400,000.

Fall was 1st ever convicted cabinet official and served 1 year in prison and fined $100,000

Harding died in office before the extent of the Teapot Dome scandal became public.

Coolidge finished Hardings term

Calvin Coolidge

Known as Silent Cal

The Business of America is Business

Friend to Big Business

Business success under Coolidge

Output of Industry Doubled

Wages Increased

Unemployment was low

But:

The Farmer Suffered due to Fertilizer and improved Machinery and a decrease in demand from Europe created a surplus and low Prices.

Farmers created cooperatives but it was unsuccessful.

McNary-Haugen Bill  attempt by the government to help farmers by PARITY

Coolidge vetoed the bill in 1927 and 1929

Herbert Hoover Known for:

Mining Engineer and businessperson

Organized relief in Europe after WWI

US food Administrator

Sec. of Commerce

Election of 1928  Defeated Al Smith

Major Economic Failures Hawley-Smoot Tariff

raised tariffs on incomming goods resulted in foreign contries raising

     their tariffs therefore; US exports suffered

Agricultural Marketing Act

$500 million loan to cooperative farm groups

Theory  farm prices would increase

They did not

Get Rich Quick Fever

Caused by Great success on the Stock Market

Success created more Speculation

Stock sold on Margin (10%)

Buy LowSale HighRe-Invest

Results:  Everybody getting Rich

But:  When the Market crashed, brokers called in the margin (the other 90%)

The Investors could not pay!

Faith in the American Economic System Failed!!

Panic created more selling and more panic

The Market Crashed

October 24, 1929 Black Thursday

October 29, 1929  Terifying Tuesday

16,410,030 shares sold

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