The Crash

Libertyville HS

President Warren Harding Washington Naval

Conference, 1921-22 Disarmament conference

focused on Pacific, Asia Freeze naval construction

at current ratio (5:3:1) US focus was to limit

Japan’s naval forces & avoid arms race

Scandals of Admin. Teapot Dome Scandal (oil:

Sec’y of Interior Albert Fall)

Attorney General resigned for taking bribes

Harding’s Death Pres. Harding died on

August 2, 1923, of pneumonia

VP Coolidge became president Former gov. of Mass.

during Boston police strike

“Silent Cal”: dinner story

Small government conservative

Election of 1924 Prosperous times, no

foreign affairs problems = GOP nomination of Pres. Coolidge

Dems split Conservative D = John

Davis Liberal Ds support

Progressive Party nominee: Robert La Follette Sr.

GOP slogan: “Keep cool with Cal” (very popular)

ResultsCoolidge: 382 ECV / 15.7 millionDavis: 136 ECV / 8.3 millionLa Follette: 13 ECV / 4.8 million

Coolidge’s Term Coolidge emerged as

strict Federalist Limited responsibilities

of Federal Gov. (Constitution)

State, local gov. responsibilities = wage / hour laws, safety measures, etc.

Cut income taxes Proposed reducing size

of gov’t, paying off national debt

Election of 1928 Economic prosperity

reigned, and GOP got credit

Memory of Teapot Dome Scandal fading

GOP nominated Sec. of Commerce Hoover

Dems nominated Al Smith, Gov. of NY Results

Herbert Hoover 444 ECV / 21.4 millionAl Smith 87 EXV / 15 million

The Great Depression: Causes Loss of global markets High unemployment Over production Over speculation

(stock market bubble) Deflation in asset,

commodity prices (stock market crash)

Critical reduction of money supply

Dramatic drop in and demand for credit

The Crisis Widens

Run on banks Businesses close Unemployment spiked

1930: 7 million 1932: 12 million (125

million pop.) Foreclosures Unsympathetic Hoover

administration?

New Conditions in US “Hooverville”

Shanty town built in urban area by homeless men

Often close to soup kitchen

“Hoover blanket” “Hoover flag”

“Bonus” Army March 1924: WWI vets

promised $1 / day for stateside (max $500) & 1.25 / day overseas (max $625)

Certificates sent to servicemen to be paid out over 20 years

Great Depression: vets want gov’t to accelerate payments / pay lump sum

“Bonus Army” in DC Summer of 1932: 43k

total people – 17k vets and families – march to DC

Stayed in Hooverville near Capitol

7/28/32: DC police attempt to disperse Bonus Army, shoot and kill 2

Army sent in: cavalry charge, tear gas, bayonets; several more killed, 100s injured

Attempts at Recovery in 1932

$2.2 billion spent on public works projects (ex – Hoover Dam)

Reconstruction Finance Corp. ($ lent to banks)

Home Loan Bank Act ($ lent to help people keep homes)

Election of 1932 1932 Election

Franklin Delano Roosevelt (D)

Herbert Hoover (R) Hoover campaign

slogan: “Time will heal”

FDR slogan: “A New Deal”

ResultsRoosevelt 472 ECV / 22.8 millionHoover 59 ECV / 15.7 million