He championed Republican philosophy and a hands off policy He let big business

He championed republican philosophy and a hands off

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He championed Republican philosophy and a hands-off policy. He let big business do what it wanted, sympathized with Secretary Mellon, and suited the times perfectly. Coolidge tried to cover the Harding administration’s taint with honesty, and the public eventually forgavedue to prosperity. Frustrated FarmersFarmers prospered during the war, as food prices shot up. However, as the demand went down, so too did prices. Machines created overproduction, and in turn led to an agricultural depression in the 20’s.Relief came in the form of the Capper-Volstead Act of 1921, which exempted farmers’ marketing cooperatives from antitrust prosecution. They pushed for the McNary-Haugen Bill from 1924-28, which would keep agricultural prices high by letting the government buy surpluses and sell them abroad.Government losses would be made up through a special tax on the farmers. Congress passed the bill twice, but Coolidge vetoed it. Farm prices stayed low, and it became an issue in the election of 1924.A Three-Way Race for the White House in 1924The Republicans chose Coolidge to run in 1924, while the split Democrats turned to John W. Davis, a wealthy corporation lawyer who was conservative. La Follette led the Progressives and gained the support of the AF of L and shrinking Socialist party. The Progressives were not as strong as the previous party, and called for government ownership of railroads and relief for farmers. They attacked monopoly, antilabor injunctions, and the power of the Supreme Court to invalidate laws passed by Congress.Coolidge easily won, as La Follette’s reform message could not dent the prosperity.Foreign-Policy FlounderingsIsolation continued, as Congress was unwilling to thrust American onto the World Court. The exception could be found in American intervention in the Caribbean and Central America. American troops were withdrawn from the Dominican Republic in 1924, but remained in Haiti until 1934. Coolidge withdrew troops from Nicragua in 1925, but put them back in 1926, where they would remain until 1933. Coolidge was also successful in defusing a Mexican oil dispute in 1926.The issue of international debts and German reparations was more prominent. The war had turned America into a creditor nation, but its loans to Europe could not save the world economy. The U.S. wanted to be paid back its $10 million, the Allies said that this was unfair, as they had paid in casualties. The Allies complained that the tariff made it impossible to earn the money to pay debts.Unraveling the Debt KnotThe Allies had demanded $32 billion from Germany in reparation, believing that they would pay back their American debts with the money from Germany. Pressures on Germany cause hyperinflation, bringing the country to near anarchy. Politicians caused for reduction of the war debts.
Coolidge did not like this idea. In 1924, the Dawes Plan rescheduled German reparation payments and opened the way for American private loans to Germany. U.S. bankers would lend Germany money, Germany would pay Britain & France reparations, and they would pay the U.S. war debts.

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