BUSINESS AND THE 1920s
Lecture One:  "The Great Barbecue"


Introduction
1919 marked the height of so-called "progressive radicalism."  Progressives wanted to reorganize the nation along more socialistic lines, calling for items such as federal old-age pensions, railroad nationalization, government management of natural resources, and a "genuine redistribution" of the nation's wealth.  Moreover, many wanted to make government's wartime management of the economy permanent, and wanted to give Congress "unlimited powers" over industry and commerce, with a national minimum wage and guaranteed full employment.

Talk of revolution--constitutional and peaceful, of course--was everywhere.  At home, there was talk of a new social order, while in Paris, there was hope for a New World Order.  Writers like John Dos Passos remembered the time in glittering terms, a time when young men were climbing out of their uniforms and the whole nation seemed to hold the promise of spring.  Imperial America shone even more brightly when compared to the exhausted nations of the Old Order.  The world only seemed to be waiting, Americans thought, for us to show them the way.

Yet, at the time when hope and expectations seemed greatest, the whole dream began to crumble.  The war had inspired moral dedication; peace brought a return of selfishness.  The brilliant spring of hope died overnight as if by a killing frost--killed by a wave of postwar strikes, the Red Scare , inflation, and disillusionment with the results of war.

"Normalcy":  Warren G. Harding (1921-1923)
warren harding
Warren G. Harding
florence harding
Florence Harding

That return to "normalcy" was nowhere symbolized better than in the Republican nominee for President in 1920, Warren G. Harding .  If Wilson had symbolized the high moral-intellectualism of the progressives, then Warren Gamaliel Harding of Ohio best symbolized main street.  Americans found his easy-going manner and "hail fellow, well met" manner reassuring and comfortable.  Wilson, in contempt, characterized his successor as having a "bungalow mind."  Harding exuded the atmosphere of a sleepy Ohio town--the shady streets, the weekly lodge meeting, golf on a Saturday morning, followed by a fried-chicken dinner and an afternoon nap.  Teddy Roosevelt's outspoken daughter, Alice Roosevelt Longworth, visited the Harding White House and remembered the scene:  the President's study filled with card-playing, cigar-smoking cronies, poker chips on the table and cuspidors on the floor.  She remarked later:  "Harding was not a bad man; he was just a slob."

Truthfully, Harding was amiable, devoted in friendship, and without malice.  He was not a leader, but a booster.   He had no real ambitions for the White House.  But someone did, and that person was Harding's wife, whom he called "the Duchess."  She constantly pushed him on, against his better judgment, until he found himself occupying the house on 1600 Pennsylvania Avenue.  While there, he drank and gambled, and played the stock market, while his Ohio friends lined their pockets.  Almost pathetically, Harding sensed the dignity of the presidency and knew he could never achieve it.  His chief weakness was his amiability and devotion to his friends, who shamelessly took advantage of him.  Harding's father had once observed that it was a good thing Warren had not been born a girl, or else "you'd be in the family way all the time.  You just can't say No."  Harding himself said to Nicholas Murray Butler:  "I am not fit for this office and should never have been here."

"The Great Barbecue"
Be that at is it may, Harding was there, and while Warren gambled, the business of the presidency went on.  There were some able men on Harding's Cabinet:  Charles Evans Hughes was Secretary of State, Andrew Mellon Secretary of the Treasury, Henry C. Wallace Secretary of Agriculture, and Herbert Hoover Secretary of Commerce.  Unfortunately, there was also Harry Daugherty, Attorney General—a small-time fixer with dissolute morals who had no qualms about calling his enemies Bolsheviks, or using his power against strikers.  Harding's Secretary of the Interior was a man of equally dissolute character, Albert B. Fall, whom William Allen White observed likened to a "patent-medicine vendor."  Together, Daugherty and Fall presided over what historian Vernon L. Parrington called "the Great Barbecue"—a wholesale looting of office for personal gain.  In return for a "loan" of $100,000 cash, Fall gave his old friend Edward L. Doheny, the oil millionaire, a lease on naval reserves at Elk Hills in California. 

This scandal and others were on the verge of being exposed when Harding took a trip to Alaska in the summer of 1923, accompanied by Secretary of Commerce Herbert Hoover.  Hoover, who thought he'd been asked along to talk over policy, found instead that he was more in demand as a bridge player, as the brooding Harding played cards incessantly.  (The trip was so bad that Hoover never played cards again.)  Once back in the Northwest, Harding fell ill, which was attributed to eating bad crabmeat (though none had been on the menu).  On August 3, while his wife read to him an article about himself from the Saturday Evening Post, he suddenly died.

"A Puritan in Babylon":  Calvin Coolidge (1923-1929)

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Calvin Coolidge

Harding's successor could not have been more of a contrast.  Famous for being characterized as looking like he'd just swallowed a pickle, "Silent Cal" Coolidge received a telegram in the dead of night at his father's farm in Vermont, informing him of Harding's death.  Coolidge senior, a notary, gave Coolidge the oath of office be lamplight.  Then Coolidge went back to bed.

The succession of Calvin Coolidge couldn't have come at a better time.  For all his apparent dourness, the image of the sober President was needed to offset the damage from the emerging Harding-era scandals.

Coolidge worshipped business, coining the phrase: "The chief business of the American people is business."  He endowed wealth with a divine character. For Coolidge, business was a religion, and every factory a temple.   But as much as he worshipped business, he detested government.  Inasmuch as the government justified itself at all, it was only to serve business.  "The law that builds up the people is the law that builds up industry."  And the chief way for government to serve business was to diminish itself.  Coolidge thought that only by a rigid system of economy could government accomplish anything.  Economy was his self-confessed obsession; it was "idealism in its most practical form" and the "fullest test of our national character."

As President, he dedicated himself to doing nothing.  One White House usher recalled that no other President had ever slept so much.  He said that "four-fifths of all our troubles in this life would disappear if we would only sit down and keep still."  To his proponents, Coolidge's inactivity was termed "restraint"; to others, it was evidence of a dull and lazy man.  To some, his obsession with the purpose of business represented "character"; to others, it seemed a bankruptcy of mind and soul.  To some he was the best of the American middle class; to others, he was almost the worst.  William Allen White called him "a Puritan in Babylon."  His frugality sanctioned an age of waste, his simplicity an age of luxury, his taciturnity an age of ballyhoo.  He was the moral symbol that the times seemed to demand.

And Coolidge worked to make his strict image a reality.  He fired Daugherty, Harding's crooked Attorney General, and in general, tidied up the administration.  He also quietly moved to take control of the Republican party--or rather, he let his friend, William Morgan Butler, a Massachusetts businessman and mill owner, take control on his behalf.

Butler's takeover symbolizes the transformation of the Republican party in the Twenties.  Before, old patricians like Henry Cabot Lodge had run the party in concert with businessmen, even though the patricians like Lodge privately held the businessmen as politicians in contempt.  Lodge said that watching a "businessman [deal] with a large political question is really a painful sight."  But the partnership between patricians and businessmen shifted in the Twenties.  By the 1924, Lodge, who had led the Republican Party for a quarter of a century, was relegated to the role of ordinary delegate.  He was never once even consulted by the party's new business leaders.  Under Butler's efficient guidance, a calm Republican majority nominated Coolidge for another term.  The Democrats nominated a corporate lawyer, John W. Davis of New York.  Progressives in both parties would have to look elsewhere for a candidate. Some followed young Bob LaFollette of Wisconsin, who took the traditional progressive stance against business.  This was all the Republicans needed for an issue.  The issue, they said, "is whether you stand on the rock of common sense with Calvin Coolidge, or upon the sinking sands with Robert M. LaFollette."  And that was that.

Taft, now Chief Justice of the Supreme Court, mused on the meaning of the Republicans' victory in 1924.  He said that whenever the American people understood the issue to be between radicalism and conservatism, the answer will invariably be conservatism.  "This country is no country for radicalism.  I think it is really the most conservative country in the world."


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©  Kahne Parsons, 2007-08