Emily Gong

AP US History
Period 2
December 20, 2007
Chapter 24: The New Era
DQ #8: Why was the “New Era” of the 1920s a Republican era and one in which
Warren G. Harding and Calvin Coolidge were elected as presidents? Discuss
the ways in which their personalities and policies reflected the times.
I. “New Era” of 1920s---A Republican Era
A. A Return of “Normalcy”---Sense of Disillusionment
• Post- war: a strong distaste against radicalisms & controversial conflicts
• retreat from Progressive ideals denouncement of labor unions
• more sympathetic towards business than general public
B. Labor Unions
• decreased membership & power labor- w/o power to protect their economic interest
• frequent risk of unemployment for the working class & the petty wages received (in
comparison to the money from production & profit)—ex. of the little control workers
had
• the “American Plan”: unionismsomewhat subversiveadvocated “open shop” –
keeping jobs open for non-union workers
• Government Assistance: 1921- Supreme Court ruling: declared picketing illegal;
supported courts to issue injunctions against courts. 1922- Justice Department
intervened to quell a railroad strike. 1924- court refusal to afford protection to the
United Mine Workers members against violent campaign of mine owners to break
strike
C. Consolidation of Corporations
• growing trend toward corporation consolidation- 1929- 200 largest corp. held 49% of
corporate wealth & received 43% corp. income
• oligopoly of two to four firms dominated in most fields; also trade associations-
cooperation among businesses to attempt consolidation in less centralizing business
fields & stabilize economy
• government regulatory agencies- Federal Trade Commission & Interstate
Commerce Commissionpassive; controlled by businessmendidn’t enforce
antitrust laws
• consolidation of banking as well- growth in branch banking 1929- 3.2% of banks
with branch operations controlled 46% of banking resources
D. Foreign Policies
• main focus in international affairs: increase American economic prosperity
• Reparations of war debts from Europe: the Dawes Plan- America loan money to
Germany, Germany pays back to Allies, Allies repays America
• Latin American Investments: increased investments in Latin America --- $5.4 billion
II. Warren G. Harding vs. Calvin Coolidge
Warren G. Harding Calvin Coolidge
Personality: Personality:
• amiable, yet had limited intellectual and • Honest, laconic, taciturn, thrifty – his belief:
organizational abilities “Four-fifths of all our troubles in this world would
• personal weaknesses: heavy gambler, heavy disappear if only we would sit down and keep
drinker, penchant for attractive women--- still.”
regularly played poker, stocked White House • provided no presidential leadership
with bootleg liquor, affair with Nan Britton Policies:
Policies: • believed in limited government that stood aside
• lacked strength to rebel against party bosses while business conducted its own affairs
that helped create his political success • trimmed the federal budget, reduce dramatically
appointed governmental offices for the prime WWI debt
contributors: Harry Daugherty (Attorney • vetoed laws involving veterans’ bonus,
General) & Albert B. Fall (Secretary of government operations on dam projects in
Interior) Tennessee, & McNary-Haugen Bill ( involved
• Scandals: Veterans’ Bureau- Charles R. parity of farm products)
Forbes- stole about $250 million in bureau
funds ; Daughtery- bribes from bootleggers,
 income tax evaders; Teapot Dome Scandal:
Fall- leased reserves to oil companies
• both were passive---achieved very little • reflection of Rep. ideals: little involvement in
• no need for an active president in government business by gov’t, advocating of corporations
• little decision making
CONCLUSION: The “New Era” reflected many Republican principles in the ways that
government dealt with the prospering American economy and attitudes towards unionization
in the country. The conservative Republicans, like the Republicans during the Glided Age,
supported little governmental interference with business growth during the 1920s. A number
of consolidations among companies and banks bloomed during this period, while labor unions,
as a result of increased corporate power and government denunciations, dwindled. Both
Harding and Coolidge were proper presidential roles for this era of passiveness, since neither
of them took on an active role in assisting the government.