Daily Question
When you get back from a vacation, how do you feel? Are you glad to get back to your normal routines?
Harding Struggles for Peace
Post WWI problems: Arms control War debts Reconstruction of war-torn Europe
Washington Naval Conference
Sec. of State Charles E. Hughes
5 major naval powers: U.S., Great Britain, Japan, France, Italy
No new warships for 10 years
1st time countries agree to disarm
Kellogg-Briand Pact
15 nations sign
Renounces war as a national policy
Treaty had no means of enforcement
War reparations
Allies to pay back $10 billion in loans
2 ways: Selling goods to the U.S. Collect reparations from Germany
Fordney-McCumber Tariff
60% tax increase on imports
Protects U.S. business from foreign competition
Impossible for Britain and France to sell goods and make good on loan payments
The Dawes Plan
War is imminentBanker Charles Dawes has solutionU.S. investors loan Germany $2.5 billion
Germany pays G.B. and FranceG.B. and France pay the U.S.The U.S. repays itself
Scandal Hits Harding’s Administration
Favors limiting government in business affairs and social reform
Ohio Gang: poker-playing cronies who took advantage of their public offices to increase their personal wealth
Harding’s Personal Conduct
A gambler… A hypocrite... “I cannot hope to be one of the great presidents, but perhaps I may be remembered as one of the best loved” … --Warren G. Harding
The Teapot Dome Scandal
Oil-rich public lands reserved for the U.S. NavyTeapot Dome WyomingElk Hills, California
Sec of the Interior, Albert B. FallTransfers reserves from navy to his department
The Teapot Dome Scandal
Fall leases land to two private oil companies
Receives $400,000 1st cabinet member convicted of a felony while holding office
Harding’s Death
Died of a heart attack in San Francisco, CA in 1923
Mrs. Harding refused an autopsy...
Rumors circulate...
Calvin Coolidge
Took office on August 3, 1923
Continued Harding’s laissez-faire
Business boomed, wages rose, former luxuries became necessities and people had more leisure time
Consumer Economy
1920’s consumer economy – depends on people spending money
Stock prices go up The symbol was
the Ford automobile – the Model “T” – “Tin Lizzie”
The Impact of the Automobile
Visible Changes Paved roads Houses have
driveways and a carport/garage
Gas stations, repair shops, public garages, motels, shopping centers
First automatic traffic signals
Holland Tunnel opened in 1927
The Impact of the Automobile
Rural families can go “into town” easily
Families can go on vacations in faraway places
Women/young become more independent
urban sprawl: workers can now live miles from jobs
The Impact of the Automobile
Auto industry symbolized success of free enterprise system- Capitalism
80% of cars owned in the world were in the U.S
The Young Airplane Industry
Gov. used to deliver mail Henry Ford’s tri – motor plane could carry 10 passengers
The single– engine Vega could carry 6 passengers
America’s Standard of Living Soars
1920’s were very “pro- business”
Pres. Hoover wants taxes low + business profits high
1920 – 1929 very prosperous years for America
Americans owned 40% of the world’s wealth
Annual income: 522 to 705 that’s 35% increase
Electrical Convenience
Gas powers economic boom
Electricity transforms nation
Power spreads to suburbs
Electric appliances made the lives of housewives easier and freed them for other community and leisure activities
The Dawn of Modern Advertising
Advertisers stopped limiting themselves to just providing facts about the product.
Advertisers hired psychologists to study how to appeal to buyers
“Light a Lucky and you’ll
never miss sweets that make you fat”
Constance Talmadge,
Charming Motion Picture Star
Advertisements meant to make people think they NEEDED the product
Items people formerly considered luxuries, now seemed necessities
A Superficial Prosperity
1920s people felt that prosperity would last forever.
As productivity increased, businesses expanded in size and attitude
Some companies merged, creating larger businesses
Chain stores that sold groceries, drugs, shoes and clothes sprouted everywhere
Five and dime stores, like Woolworths spread rapidly
Not all businesses were successful.
Iron and railroad industries
Mining and farming concerns suffered losses
Buying Goods on Credit
Another solution to luring customers – easy credit (the Installment Plan).
Economists worried that installment buying may be a sign of careless and superficial prosperity
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