APUSH Chapter 32

APUSH Chapter 32 - Chapter 32 The Politics of Boom and Bust...

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Chapter 32 The Politics of Boom and Bust I. The Republican “Old Guard” Returns I. Newly elected President Warren G. Harding was tall, handsome, andpopular, but he had a mediocre mind and he did not like to hurtpeople’s feelings. Nor could he detect the corruption within his adminstration. II. His cabinet did have some good officials, though, such as Secretaryof State Charles Evans Hughes, who was masterful, imperious, incisive,and brilliant, Secretary of Commerce Herbert Hoover, and Secretary ofthe Treasury Andrew W. Mellon. III. However, people like Senator Albert B. Fall of New Mexico, ascheming anti- conservationist, became secretary of the interior, andHarry M. Daugherty took over the reigns as attorney general. These two became the worst of the scandalous cabinet members. II. GOP Reaction at the Throttle I. A good man but a weak one, Harding was the perfect front forold-fashioned politicians to set up for the nation a McKinley-style oldorder. It hoped to further laissez-faire capitalism, and one of theexamples of this was the Supreme Court, where Harding appointed four ofthe nine justices, including William H. Taft, former president of theUnited States. II. In the early 1920s, the Supreme Court killed a federal child-labor law. In the case of Adkins v. Children’s Hospital, the courtreversed its ruling in the Muller v. Oregon case by invalidating aminimum wage law for women. III. Under Harding, corporations could expand again, and anti-trust laws were not as enforced or downright ignored. IV. Men sympathetic to railroads headed the Interstate Commerce Commission. III. The Aftermath of the War I. Wartime government controls disappeared (i.e. the dismantling ofthe War Industries Board) and Washington returned control of railroadsto private hands by the Esch- Cummins Transportation Act of 1920. II. The Merchant Marine Act of 1920 authorized the Shipping Board,which controlled about 1,500 vessels, to get rid of a lot of ships atbargain prices, thus reducing the size of the navy. Labor lost much of its power, as a strike was ruthlessly broken in1919, and the Railway Labor Board ordered a wage cut of 12% in 1922. Labor membership shrank by 30% from 1920 to 1930. III. In 1921, the Veterans’ Bureau was created to operate hospitals and provide vocational rehabilitation for the disabled. Many veterans wanted the monetary compensation promised to them for their services in the war. The Adjusted Compensation Act gave every former soldier a paid-up insurance policy due in twenty years. It was passed by Congress twice(the second time to override president Calvin Coolidge’s veto).
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IV. America Seeks Benefits Without Burdens I. Since America had never ratified the Treaty of Versailles, it wasstill technically at war with Germany, so in July of 1921, it passed asimple joint resolution ending the war. II.
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APUSH Chapter 32 - Chapter 32 The Politics of Boom and Bust...

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