APUSH: Politics of the 20s and the Great Depression

Public Works

projects such as highways, parks, and libraries built with public funds for public use

Fordney-McCumber Tariff

This tariff rose the rates on imported goods in the hopes that domestic manufacturing would prosper. This prevented foreign trade, which hampered the economy since Europe could not pay its debts if it could not trade.

Margin Buying

paying part of the cost and borrowing the rest from brokers

Charles Evans Hughes

A reformist Republican governor of New York, who had gained fame as an investigator of malpractices by gas and insurance companies and by the coal trust. He later ran against Wilson in the 1916 election.

Causes of the Great Crash

1. maldistribution of wealth 2. creditor nation 3. corporate pyramids 4. stock market boom

Robert La Follette

1855-1925. Progressive Wisconsin Senator and Governor. Staunch supporter of the Progressive movement, and vocal opponent of railroad trusts, bossism, WWI, and League of Nations.

Washington Naval Conference

1921 - President Harding invited delegates from Europe and Japan, and they agreed to limit production of war ships, to not attack each other's possessions, and to respect China's independence

Nine Power Treaty

1922. Treaty that was essentially a reinvention of the Open Door Policy. All members to allow equal and fair trading rights with China. Signed by (9) US, Japan, China, France, Great Britain, Italy, Belgium, Netherlands, and Portugal.

Warren Harding

29th president of the US; Republican; "Return to Normalcy" (life as it had been before WWI-peace, isolation); presidency was marred by scandal

Herbert Hoover

31st President of the United States, Republican candidate who assumed the presidency in March 1929 promising the American people prosperity and attempted to first deal with the Depression by trying to restore public faith in the community.

Overproduction

A condition in which production of goods exceeds the demand for them. Greatly impacted the eventual fall of America's economy, as the prices for farm products fell, and as a result, farmers could not afford to pay back bank loans.

Teapot Dome Scandal

A government scandal involving a former United States Navy oil reserve in Wyoming that was secretly leased to a private oil company in 1921

Ohio Gang

A group of poker-playing, men that were friends of President Warren Harding. Harding appointed them to offices and they used their power to gain money for themselves. They were involved in scandals that ruined Harding's reputation even though he wasn't involved.

McNary-Haugen Bill

A plan to rehabilitate American agriculture by raising the domestic prices of farm products *Effects of the protective tariff and burdens of debt and taxation had created a serious agricultural depression and grew steadily worse

Dawes Plan

A plan to revive the German economy, the United States loans Germany money which then can pay reparations to England and France, who can then pay back their loans from the U.S. This circular flow of money was a success.

Describe the effects of the Great Depression on the American people, and analyze President Hoover's attempt to balance his belief in "rugged individualism" with the economic necessities of the time.

A third of all banks failed. 1 Unemployment rose to 25%, and homelessness increased. 2 Housing prices plummeted 67%, international trade collapsed by 65%, and deflation soared above 10%. Hoover had the trickle down philosophy where it still left a good portion of bringing the economy back up into the people's hands but still gave the companies the money to start back up. He did get groups to start jobs but was not super involved in them and they ultimately did not have enough money to make a lasting impact.

Federal Farm Board

Agency of the U.S. Department of Agriculture; it offered farmers insurance against loss of crops due to drought; flood; or freeze. It did not guarantee profit or cover losses due to bad farming.

Kellogg-Briand Pact

Agreement signed in 1928 in which nations agreed not to pose the threat of war against one another

"Al-cohol" Smith

Al Smith, Governor of New York, was a candidate for President of the United States in the 1928 election. His run was notable in that he was the first Catholic nominee of a major party, he opposed Prohibition, and he enjoyed broad appeal among women, who had won the right of suffrage in 1920.

Calvin Coolidge

Became president when Harding died of pneumonia. He was known for practicing a rigid economy in money and words, and acquired the name "Silent Cal" for being so soft-spoken. He was a true republican and industrialist. Believed in the government supporting big business.

How did Hoover go from a symbol of twenties business success to a symbol of depression failure?

Before the depression, the country was going well and was in a good situation with a lot of money, when the depression hit, he refused the pleas of the people to help with the Depression and step in because he believed the people should all work it out themselves. Even when he did step in, his ideas never ended up taking foot and actually helping the economy better itself, instead it worsened the situation.

Hoovervilles

Depression shantytowns, named after the president whom many blamed for their financial distress

Disarmament

Giving up military weapons and the creation of a permanent system of general security

Charles Forbes

Harding's Secretary of Veterans Affairs who sold supplies from veterans hospitals to companies in exchange for bribes. Also gave private businesses government contracts for bribes.

Rugged Individualism

Herbert Hoover's belief that people must be self-reliant and not depend upon the federal government for assistance.

Election of 1928

Herbert Hoover/republican ("A Chicken in Every Pot") vs. Al Smith/democrat (first catholic to run for president) -> Hoover Wins

Laissez-faire

Idea that government should play as small a role as possible in economic affairs. Favored in the 20s

Black Tuesday

October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.

"Old Guard"

One of two major factions largely within the Republican party, composed of the party regulars and professional politicians. They were preoccupied with building up the party machinery, developing party loyalty, and acquiring and dispensing patronage. They were challenged by progressives from around 1896 to the 1930s.

Isolationist

People who wanted the United States to stay out of world affairs, dominant idea in the 20s

Dust Bowl

Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages.

Conservative Politics in 1920s

Republican party was dominant. Don't mess w/ the economy. Help veterans. Nativism.

Albert Fall

The Secretary of the Interior who accepted bribes from an oil company and started the Teapot Dome Scandal.

Harry Daugherty

U.S. attorney general and a member of Harding's corrupt "Ohio Gang" who was forced to resign in administration scandals

Debt Knot

US wants $10 million from Allies, who are broke from war and can't pay it back, partially because of high US tariffs

Bonus Army

WWI veterans who marched on Washington demanding their $1,000 bonus pay before the 1945 due date.

Election of 1924

With Republican Coolidge running against Democrat Davis and Progressive LaFollette, the liberal vote was split between the Democrat and the Progressive, allowing Coolidge to win.

Restruction Finance Corporation

a government corporation administered by the United States Federal Government between 1932 and 1957 that provided financial support to state and local governments and made loans to banks, railroads, mortgage associations, and other businesses.

Hawley-Smoot Tariff

charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation