Chapter 32- The Politics of Boom and Bust
The Republican “Old Guard” Returns
Harding inaugurated in 1921.
His “ohio gang” consisted of Hughes, Mellon, Hoover, Albert Fall, and Daugherty.
Hughes was secretary of state, Mellon- sec. Of treasury, Hoover- Sec. of commerce, Fall- Sec. of the Interior, and Daugherty- Attorney General
GOP Reaction at the Throttle
Harding known as an “amiable boob”
He wanted the gov’t to help guide business along the path to profits
Adkins V. Children’s hospital (1923)- court reversed its own reasoning in Muller V. Oregon. They declared that because women now had right to vote, the were legal equals of men and couldn’t be protected
The Aftermath of War
Washington returned the railroads to private management in 1920
Esch-Cummins Transportation Act of 1920- encouraged private consolidation of the railroads and pledged the Interstate Commerce Commission to guarantee their profitability.
Merchant Marine Act of 1920- authorized the Shipping Board, which controlled 1500 vessels , to dispose of much of the war time fleet at bargain prices
La Follette Seaman’s Act of 1915- American shipping couldn’t thrive in competition with foreigners who often provided their workers with wretched food and low wages
Labor board ordered a 12% cut in 1922. 2 month strike occurred
Veterans Bureau created which was authorized to operate hospitals and provide rehabilitation for the disabled
Adjusted Compensation Ac t- gave every former soldier a paid-up insurance policy due in 20 yrs
America Seeks Benefits Without Burdens
Washington “Disarmament” Conference in 1921-1922. Invitations sent to the major naval powers except Bolshevik Russia
Secretary Hughes declared a 10 year “holiday” on the construction of battleships
Five-Power Naval Treaty of 1922embodied Hugh’s idea of the 5:5:3 ship ratio
Four-Power Treaty bounded Britain, Japan, France, and the U.S. to preserve the status quo of the pacific
Coolidge’s secretary of state