Question 84 Describe the relationship between American tariff policy, war debts and reparations, and the Great Depression. Explain why the federal government adopted the tariff and debt-repayment policies as it did. Assess the wisdom of these policies.
American Tariff Policy in the 1920s American businessmen did not want European nations to take over the market with cheap goods after the war. Both President Harding and President Coolidge were in favor to raise the tariffs Congress passed the Fordney- McCumber Tariff Law; raised tariffs from 27% to 35% Europe needed to sell goods to the U.S in order to repay debts for the war When they could not sell than they could not repay the debts
War Debts and Reparations America demanded that France and Britain pay their debts for the war. France and Britain than forced Germany to pay their reparation payments to them. Germany printed out their own money which caused inflation to raise. 1924 Charles Daws came up with the Dawes Plan which Rescheduled Germany’s repayment
The Great Depression October 29, 1929 during Hoover’s term as President Caused because of the stock market crash and bank failures And because of the Smoot-Hawley Tariff in 1930 which charged a high tax for imports leading to less trade between America and foreign countries
Question 85 Account for Herbert Hoover’s election victory in 1928. Consider the liabilities and advantages of the two candidates, the state of the economy, and the public mood. What were the campaign issues? Why was Hoover so popular?
Liabilities - Herbert Hoover Shy, stand-offish and stiff, which made it harder for him to appeal to the masses. Had never before been elected to public office, so he lacked experience and required more time to adapt to the political atmosphere. Not used to the idea of asking for people to vote for him.
Liabilities – Alfred E. Smith Being a New York native, the country saw him as being too “abrasively urban,” as they had only recently been a society which moved to the cities. He was prejudiced against due to his Roman Catholic Religion. He was not the typical “American” man in comparison to Hoover. Was seen as being too affliated with alcohol, or “wet” when the country was still involved with prohibition
Advantages – Herbert Hoover Ideal American man- he was the image of the American dream and a self- made millionaire. Understood the relevant ideas of thrift, industry, and self-reliance. Believed extensively in American individualism, free enterprise, and small government. Appealed to the businessman.
Advantages – Alfred E. Smith He was a four-time governor of New York, giving him more experience than Herbert Hoover Had. Had a “colorful personality,” making him more interesting to the public than his opponent.
The Economy During 1928 During the election of 1928, the economy was coming toward the abrupt end of a good run. It was the year before the stock market crash of 1929, and there was a false sense of security among American citizens.
The Public Mood in 1928 In 1928 the Public Mood in America was optimistic with a false sense of security, especially with their money. Being through with World War I gave America a new kind of growth in the country of fashion, industry, art, economy and fashion.
1928 Election Campaign Issues REPUBLICAN PLATFORM: Continued opposition of the McNary-Haugen Farm Bill. Instead, it favored a farmer-owned stabilization corporation. Strict and continued enforcement of the 18 th Amendment High protective tariff to benefit farmers and manufacturers Continue the initiatives which began in the Coolidge-era. DEMOCRATIC PLATFORM: A farm policy which would give American farmers support, without directly supporting the McNary-Haugen Farm Bill. Enforcement of the prohibition laws. Opposition of the bank use of injunctions and support for the collective bargaining rights for American workers. A transformation in government to escape the scandals in government, such as those under Warren G. Harding
Why was Herbert Hoover so popular? Herbert Hoover was so popular during the 1928 election because he represented the hope that everyone in America needed. He did not come from money, and was a self-made millionaire. He worked his way up from the bottom, and was the perfect image of the American dream.