V. American Homefront
A. Conversion of Industry to War Production

1. Important precedents were set for expanding federal power in a crisis, that later guided federal efforts in dealing with the international economic crisis of the 1930s.
2. The shift from peacetime production to wartime production was hurried and inefficient
   a. Hog Island Shipbuilding Yard spend $65 million and created 34,000 jobs but its first completed ship did not roll off the line until after the war was over.
   b. Building airplanes, tank and artillery was too late to affect the war's outcome.
   c. Most US pilots flew British-made planes; most US soldiers shot European ammo.
B. Creation of Wartime Agencies
1. Wilson's Council of National Defense (six Cabinet members and a 7-member advisory commission) coordinated the manufacture of munitions and war materials
2. It created the War Industries Board July 1917 directed by Bernard M. Baruch
   a. It oversaw all aspects of industrial production and distribution , established priorities for national industrial production and distribution and provided incentives for manufacturers to retool for war-related production.
   b. Temporarily-suspended anti-trust laws encouraging cooperation among industries.
   c. Its director had almost dictatorial powers to allocate scarce materials, standardize production, fix prices and coordinate purchasing, fostering a new cooperation between military and civilian agencies -- Industrial-Military Complex .
3. Lever Food and Fuel Control Act August 1917 headed by Herbert Hoover , whose efforts gained him much public recognition and admiration
   a. It set the price of farm products and formed a corporation to buy all US and Cuban sugar
   b. It encouraged increased production in key areas and coordinated domestic food consumption with the need to export large quantities of food to the Allies.
   c. To avoid rationing, it encouraged voluntary food conservation for the war effort with such observances as "Wheatless Wednesdays" and "Meatless Tuesdays"
   d. Food exports rose from 12.3 million to 18.6 million tons, increasing farm income by 30% between 1915-18.
4. US Railroad Administration 26 Dec 1917
   a. Railroads faced increased traffic and had a tie up in Dec 1917-Jan 1918
   b. To better coordinate transportation nationwide for the efficient distribution of resources and movement of troops and other war-related materiels, US railroads were essentially nationalized during the war, becoming the property of the US government, which spent the necessary money to repair and modernize the system
   c. Secretary of the Treasury William Gibbs McAdoo as Director-General of Railroads ran the trains as a single unit, pooling all railroad equipment, centralizing purchasing, standardizing accounting practices and raising wages and rates.
   d. Railroad Control Act 21 Mar 1918 allowed for compensation to the railroads during the period of government management.
   e. It also extended control over railroad express companies and inland waterway systems.
5. War Labor Board 8 April 1918 -- An agency created to foster the use of maximum man-power at home without the usual antagonism and periodic strikes that characterized the usual relationship between business and organized labor.
   a. It desired to preserve the gains of the labor movement and served as the mediator in industrial disputes which occurred during the war.
   b. It provided for automatic arbitration of labor disputes to avoid strikes, slow-downs, and lockouts during the war, considering 1,200 cases and preventing many strikes
   c. For these efforts, the AF of L enthusiastically supported administration policies, sensing an opportunity to consolidate its gains, increase its membership and win new political influence by loyally supporting the war effort.
   d. Co-chaired by ex-President William Howard Taft and Frank P. Walsh , it considered 1,200 cases, preventing many strikes.
6. War Labor Policies Board 8 June 1918, headed by Felix Frankfurter , set wage and hour standards for industry, encouraged collective bargaining and standardized labor conditions.
C. Benefits of the War
1. Economic - Unemployment virtually disappeared, as wages and the cost-of-living rose.
2. Unprecedented opportunities for disadvantaged groups were found
   a. Black-Americans
   (1) 500,000 Blacks migrated to northern factories from 1914-18
   (2) The draft law was applied equally to both races.
   (3) Black Red Cross nurses were used Some Blacks were elevated to key high-level government posts during the war.
   (4) Although some race riots occurred in the North, protesting the influx of southern blacks, most blacks were optimistic about an improved status after the war; surely the War for Democracy would count for something at home!
   b. Women
   (1) Many women found unprecedented job opportunities, but were expected to give the jobs back to the returning soldiers after the war.
   (2) A move was launched to halt the spread of prostitution and venereal disease, both of which experienced a sharp rise during the war.
   c. Labor's cooperation boosted labor union membership to 2.3 million members.
3. Not to be denied again, the long struggle for women's franchise was successfully brought to fruition with the 19th Amendment (1920), in time for the presidential election
D. Opposition to the War -- The only organized political group strongly opposed to US entrance into the war was the American Socialist Party , which sponsored a number of well-attended rallies around the country, drawing enough support to worry Wilson.
1. Although a small but growing party, American Socialists felt part of an international movement called Social Democracy , based on the writings of Karl Marx
   a. It called for a society in which the industrial working class held more power
   b. It characterized capitalism as an exploitative system
   c. It was committed to a peaceful transition to socialism through organizing electoral parties and winning the votes of the growing working class.
   d. American socialism was revolutionary, calling for fundamental changes in the US system, but was tied to a nonviolent strategy for achieving those revolutionary aims.
2. They opposed US intervention, because for them, Europe's war was a product of rival imperial systems, fought for greater profits and larger empires, benefitting the capitalist ruling class at the cost of thousands, maybe millions, of working class soldiers who made up the national armies.
E. Attacks upon American Civil Liberties -- Wilson's desire to destroy Socialist opposition led to several laws which violated guaranteed constitutional freedoms.
1. Committee on Public Information or Creel Committee 14 April 1917
   a. Headed by journalist George Creel , this committee (composed of Secretaries of State, War and Navy) saturated the nation with propaganda that pictured the war as a "Crusade for Democracy" against a savage Germany bent on world domination and subjugation.
   b. It successfully manipulated news to exaggerate fears and printed anti-German pamphlets which contributed to a nationwide anti-German sentiment
   c. Although it served an important function, some members persecuted Americans who were less than enthusiastic about the war, patriots like Robert La Follette, who had opposed actions to prepare the US for war, voting against the war declaration.
   d. Overzealous Practices of the Committee
   (1) Those not buying war bonds were ridiculed publicly, sometimes assaulted
   (2) German-Americans were persecuted, many "Americanizing" the spelling of their last names ("Schmidt" into "Smith").
   (3) It encouraged dropping German language instruction in many high schools
   (4) It removed the use of German words from regular use in America, renaming sauerkraut "liberty cabbage," and German measles "Liberty measles."
   (5) A Cincinnati OH ordinance removed pretzels from saloon lunch counters.
   (6) A Pittsburgh PA ordinance prohibited the public playing of Beethoven
   (7) German books were removed from public libraries and burned
2. Espionage Act 1917
   a. It forbade actions that obstructed recruitment or efforts to promote insubordination in the military and authorized the Postmaster to remove Leftist materials from mails
   b. It levied fines of up to $10,000 and/or prison terms of up to 20 years.
   c. 3 Mar 1919 - Schenk vs US , Supreme Court unanimously upheld it, limiting the first amendment protection, when words used were of such a nature to "present a clear and present danger" to bring about evils which Congress should prevent.
3. Sedition Act 16 May 1918
   a. It became a crime to speak against the purchase of war bonds, or "willfully utter, print, write or publish any disloyal, profane, scurrilous, or abusive language" about this US form of government, the US constitution or the US armed forces or to "willfully urge, incite, or advocate any curtailment of production" of things "necessary or essential to the prosecution of the war . . . with intent of such curtailment to cripple or hinder the United States in the prosecution of the war."
   b. It did not differ between anti-war statements and any statement critical of US policy
   (1) After an anti-war speech, Eugene V. Debs , Socialist, sentenced to 10-yrs
   (2) A 20-year sentence to Ricardo Flores Magon critical of US-Mexico policy
   c.10 Nov 1919 - Abrams vs US - Supreme Court by a 7-2 vote upheld it
   (1) The case dealt with leaflets expressing dissatisfaction with US troops in Siberia, one calling for a general strike against US policy of intervention.
   (2) Clark for the majority cited Holmes' "clear and present danger" doctrine.
   (3) Holmes (+ Brandeis) dissented stating "the best test of truth is the power of the thought to get itself accepted in the competition of the market," denying that a "silly leaflet" published by an "unknown man" constituted such a danger.
F. Financing the War
1. Victory and Liberty Loan Drives - Liberty Loan Act 24 Apr 1917
   a. Five national campaigns sold war bonds to partially finance war costs. [June 1917 - $2 billion/ Nov 1917 - $3.8 billion/ May 1918 - $4.2 billion/ Oct 1918 - $6 billion/ Victory Loan April 1919 - $4.5 billion]
   b. The total war cost was $33.5 billion with pensions and post-war expenses
2. Taxation -- A total of $10.5 billion was raised through taxation for the war
   a. 3 Oct 1917 - War Revenue Act made the income tax the chief revenue source with a 4% tax on personal incomes over $1,000.
   b. The graduated income tax took 75% of the wealthiest US citizens;
   c. Corporate taxes were raised to 6%;
   d. Excess-profits tax was graduated from 20% to 60% on corporations and persons
   e. A 25% inheritance tax was also levied
3. Interfaith religious United War Council raised $200 million for troop recreational programs

VI. Post-War Return to Conservatism
A. Paris Peace Talks

1. His Fourteen Points made him extremely popular among people in Europe, calling him Wilson the Just , but he was highly criticized by politicians like Roosevelt who said "Let us dictate peace by the hammering of guns, not chat about peace to the accompaniment of the clicking of typewriters."
2. Wilson's Mistakes
   a. Bi-Elections of 1918
   (1) Wilson asked voters to elect Democratic majorities to both Houses
   (2) Anything else, he said, would be a repudiation of his leadership.
   (3) After Wilson injected partisan politics into the peace process, Democrats lost 8 Senate seats, giving control to Republicans who also won control of the House for the first time since 1910
   b. American Peace Delegation
   (1) Fearful that Republican criticism would undermine his peace program, Wilson took no Senators or prominent Republicans to Paris with him, thus seeking in reality full credit for whatever treaty was finally negotiated.
   (a) Republican-controlled Senate had to ratify a post-war peace treaty.
   (b) Senate Foreign Relations Committee Chairman Henry Cabot Lodge should have been taken, but the two men personally did not like each other.
   (2) No US President had ever gone to Europe or participated directly in the process which ended a war in which the US was involved.
   (a) His critics accused him of grandstanding, and questioned if it was legal.
   (b) His party included Secretary of State Robert Lansing, General of the Army Tasher Bliss, Col Edward House, his personal Secretary and career diplomat Henry White.
3. Big Four
   a. First peace talks session opened on 18 Jan 1919 at the Versailles Palace near Paris
   b. It was soon clear that it would be dominated by representatives of the major powers
   (1) Prime Minister of Great Britain, David Lloyd George ,
   (2) French Premier Georges Clemenceau who desired revenge
   (3) US President Woodrow Wilson
   (4) Italian Premier Vittorio Orlando who soon felt slighted at the peace talks
   (a) 26 Apr 1915 - At the Treaty of London, Italy was promised some strategic territorial concessions for entering the war
   (b) An estimated 700,000 Italians had died in WWI which cost twice Italy's government's total expenditure (1861-1913).
   (c) Italy gained Trieste and the former Austrian South Tyrol area, but was denied the port of Fiume and Dalmatia on the Adriatic coast, laying seeds for the belief that Italy was denied its "just rewards."
   (d) Orlando withdrew over disagreements with Wilson, reducing the conference to three major powers, although Italy returned on 6 May
   c. Germany and Russia were excluded from the conference.
   d. Wilson soon discovered that the Allies were not interested in a generous peace organized along his Fourteen Points and forced him to compromise on most points
   (1) Wilson's political set back in the US elections hurt his standing with other major world leaders, some of whom had just had major electoral victories.
   (2) Allied leaders grew weary of Wilson's constant references to his Plan
   (3) Clemenceau - "Wilson and his 14 Points bore me. Even God Almighty has only ten."
4. Treaty of Versailles -- did not address the issues which caused the war
   a. Wilson compromised on 2 important issues, inconsistent with the 14 Points:
   (1) War Guilt Clause (Art. 231) made Germany solely responsible for starting the war and for its vast destruction of European landscape;
   (2) A provision for Heavy Reparations to be paid by Germany
   (a) Having admitted guilt for the war, Germany was to pay for damages to civilian property, for future military pensions and numerous indirect costs.
   (b) Although it was suggested initially that the cost would be $15 billion, the actual debt given to Germany was $56 billion.
   (c) Germany was stripped of colonies, Saar Basin (its final disposition determined by a plebiscite in 1935), Posen, parts of Schleswig and Silesia and Alsace-Lorraine went to France
   (d) In addition, a League of Nations mandate system administered German overseas colonies and other Central Powers possessions, but the US accepted none administered by the League, because the US did not belong.
   (3) German imperialism was attacked, but not imperialism in general because the Allies practiced imperialism and would not abandon it
   (4) Not permitted to rearm itself, it reduced Germany to a small military force.
   b. Wilson accepted these proposals to gain support for his pet -- League of Nations
   (1) The League was incorporated directly into the peace treaty, making them inseparable -- if a nation approved the peace treaty, it joined the League.
   (a) All member nations had an equal voice.
   (b) A Council was made of representatives of the US, Britain, France, Italy, Japan and four other nations elected by the Assembly
   (c) A Secretariat was permanently located in Geneva
   (2) League Covenant 's key provision was a new system of collective security pledging League members to respect and preserve each other's territorial integrity
   (a) Attacking one member would be considered attacking all members
   (b) Members pledged to employ military and economic sanctions against nations resorting to war, although this was vague.
   (3) Wilson persuaded the other big powers to exempt the Monroe Doctrine and domestic matters from League jurisdiction.
   c. Wilson returned to the US with a treaty in which only four points remained in tact:
   (1) Italy's territory from Austria contained 200,000 persons not considered Italian
   (2) New states of Poland, Czechoslovakia had German-speaking peoples
   (3) Japan was given the Shantung of China.
   (4) Freedom of the seas, reduction in arms or trade barriers were not addressed.
   d. Germany and other European powers signed the treaty in June 1919.
B. US Ratification Process
1. Opposition to the Treaty of Versailles
   a. Ethnic American group's dissatisfaction with the Treaty.
   (1) German-Americans thought the treaty was too harsh on Germany
   (2) Anti-Germans thought it was too easy on Germany.
   (3) US communists criticized restrictions on Soviet access to the Baltic Sea.
   (4) Irish-Americans wanted Irish independence from Great Britain.
   (5) Jewish-Americans desired an independent state in the Middle East
   b. Critics within the Senate - the Treaty failed to be ratified, however, because of partisan politics, not because of opposition from the American public.
   (1) Wilson, calling critics pygmy minds , proved inflexible on modification.
   (2) From the outset it seemed that, if Wilson would allow Loyal Democrats , led by minority leader Gilbert M. Hitchcock (NE) to accept a few Republican modifications (reservations), it could be ratified.
   (3) Chief reservationist Senate Majority Leader Henry Cabot Lodge , who hated Wilson, had doubts about the treaty, hoping to discredit the Democrats in the approaching Presidential election.
   (a) This Foreign Relations Committee chairman held hearings on the treaty
   (b) To gain support for defeating the treaty, Lodge lengthened the debate over the treaty so the public would gradually lose interest which they did
   (4) Allied with Senate reservationists were irreconcilables , diehard isolationists who opposed US membership in any international organization including Hiram W. Johnson (CA), William E. Borah (IL) and Robert La Folette (WI)
2. Wilson's Appeal to the American People Sept 1919
   a. As the debate wore on, Wilson began to fear that in fact the treaty would fail ratification
   b. He decided to make one last effort to arouse public support for the League, undertaking a 3-week national speaking tour against his doctor's advice.
   (1) 9,500-mile tour (37 major addresses, 29 cities) severely strained his health
   (2) 25 Sept - After a speech in Pueblo CO, he collapsed, physically exhausted
   (3) 2 Oct - Having returned to Washington, he suffered a stroke which paralyzed his left side, leaving him completely incapacitated for six months.
   (4) His recovery was slow -- he did not meet with his cabinet for 7 1/2 months.
   (5) In reality the presidency was run by his wife, Edith Bolling Galt Wilson, physician Cary Grayson , Secretary of the Treasury and son-in-law Wm McAdoo and White House aides Edward House and Joseph Tumulty
   c. With no one else of his political stature to fight for the Treaty, it was doomed in the Senate, but the stroke only reinforced his determination to accept no major modifications.
3. Senate Vote
   a. As many as 45 different reservations, amendments and treaty revisions were proposed.
   (1) 6 Nov 1919 - Lodge introduced 14 major revisions, a slap at Wilson's Fourteen Points, which were adopted in total in committee but to which Wilson objected.
   (2) Most reservations and alterations limited US obligations to the League of Nations, preserving Congress's right to determine how to deal with aggression.
   (3) Because the heart of the Covenant was the collective security provision, Wilson remained adamantly opposed to any alteration of this part of the Treaty
   b. 19 Nov - three votes:
   (1) Treaty + Lodge reservations rejected 39-55 (Democrats + irreconcilables)
   (2) Treaty with five minor reservations, rejected 41-51.
   (3) Treaty as originally proposed, rejected 38-53.
   c. 19 Mar 1920 - Final vote -- treaty + Lodge's reservations + Irish independence rejected, failing by 7 votes 49-35 (21 Democrats voted yes).
4. His strong opposition to any revision earned him the slogan He kept us out of peace!
5. 20 May 1920 - Congress rescinded the April 1917 war resolutions, but Wilson vetoed them to make the Treaty and the League of Nations an issue in the 1920 presidential election.
   a. The war resolutions were finally rescinded by Congress in April 1921.
   b. Wilson received the Nobel Peace Prize in 1920, but died embittered in 1924.
   c. Unfortunately, his predictions of future problems for Europe were prophetic.
C. Domestic Issues After the War
1. Demobilization
   a. Millions of veterans returned home to the US job market.
   b. Controls established by the War Industries Board ended overnight.
   c. Railroads were returned to private control.
   d. Consumers spent savings on goods, in short supply during the war, producing further shortages and inflation, the cost of living doubling between 1912-20.
2. Labor Problems
   a. Post-war strikes in 1919 involved 20% of the labor force or 4 million workers.
   b. Work stoppages yielded more shortages yielded more inflation yielded more strikes
   c. An economic depression occurred between July 1920 - March 1922.
   d. Unionism remained associated in the popular mind with radicalism.
D. Red Scare - A Response to Events Abroad
1. Wartime Hysteria Against the Germans Abated
   a. The hysteria against Germany and German culture was redirected against the Reds or Russian communists (Bolsheviks) who had overthrown democracy in late 1917.
   (1) The success of the Bolshevik Revolution and the founding of the Third International (Comintern ) in 1919 to coordinate all activities of radical parties around the world, created a backdrop against which some American politicians generated widespread fears of a communist conspiracy against the US government
   (2) The media aided this new hysteria with several reported incidents:
   (a) While labeling wartime dissenters as Socialists toward the end of the war, such dissenters were called increasingly Reds ("Bolsheviks")
   (b) Mayer Ole Hausen of Seattle called striking workers Bolsheviks
   (c) Apr 1919 - when 36 bombs were discovered in packages mailed to various political and business leaders, members of the IWW were blamed, although the actual guilty parties were never discovered
   (d) Sept 1919 - When 1,117 of 1,544 Boston policemen went on strike, the leaders were characterized as "communists," and Gov Calvin Coolidge sent in the National Guard to break the strike
   i) He stated "There is no right to strike against the public safety by anybody, anywhere, any time"
   ii) He gained national notoriety in a presidential election season
2. Government Reaction
   a. Palmer Raids 2-5 Jan 1920
   (1) Attorney General A Mitchell Palmer and Secretary of Labor William B. Wilson authorized simultaneous raids in 33 cities.
   (a) Numerous "illegal aliens," suspected radicals or members of radical groups, were rounded up, with 4,000 arrests most of whom were released for lack of evidence
   (b) 556 were deported, many on a ship to Russia dubbed Soviet Ark
   (c) Numerous homes of the radicals were ransacked without search warrants or cause, recovering only 3 pistols but tons of printed material.
   (2) Such a media event fueled a public paranoia about radicals in general, that continued through most of the 1920s.
   b. At the first meeting with his cabinet, Wilson said "Don't let the nation see red!"
   (1) Wilson saw Bolshevik ideology and programs as a direct challenge to himself and the American system
   (2) Lenin offered such slogans as Land, Bread, and Peace and ideals as self-determination of peoples, but the European Allies had no such idealistic goals, which was why Wilson offered his Fourteen Points
   (3) Suddenly another city on a hill existed, this one wholly secular, claiming that its system was the most just and equitable and that it should be the model for oppressed peoples in the world, exactly as Wilson claimed for the American system
   c. In 1920 Palmer suggested that radicals planned a May Day terrorist demonstration
   (1) When it failed to materialize, Palmer appeared ridiculous and ended his chance of being the Democratic nominee for president in 1920.
   (2) When no revolutionary outbreaks occurred, protests against the abuses of civil liberties were heard gradually and the Red Scare subsided.
E. Presidential Election of 1920
1. Candidates
   a. Republicans in Chicago through eight ballots, remained hopelessly deadlocked between General Leonard Wood, head of the Rooseveltian faction and Gov. Frank Lowden (IL).
   (1) Several Republican political bosses met in a smoke-filled room, Lodge's room #404, in the Blackstone Hotel to pick an alternate nominee
   (a) Political bosses from OH led by Harry M. Daugherty steered them to OH's junior Senator Warren Gamaliel Harding (1865-1923)
   (b) A newspaper editor by profession, Harding had been a state senator, Ohio's LT Governor and a single term as US Senator (since 1914).
   (2) Gov Calvin Coolidge (MA) was added as Vice-Presidential nominee
   b. Democrats in San Francisco, rejecting Wilson's quiet offer to run for a third term, citing the two-term tradition and his health, nominated on the 38th ballot, Governor James M. Cox (OH) for President, adding Assistant Navy Secretary, Franklin D. Roosevelt , for Vice-President
   c. Socialist Party nominated for a 5th time, Eugene V. Debs , in prison in Atlanta for violations of the Sedition Act, and Seymour Stedman (OH)
2. Campaign
   a. The ailing Wilson and Treaty of Versailles were a millstone around Democrat necks
   b. Harding cautiously promised to work for "a" League, but not "the" League
   c. Republicans played on public dissatisfaction with the results of World War I
   (1) Harding coined a phrase, Return to Normalcy , in response to the public's disillusionment with the recent "Crusade for Democracy" which had failed at Versailles.
   (2) "America's need is not heriocs, but healing; not nostrums, but normalcy; not revolution, but restoration; not agitation, but adjustment; not surgery but serenity; not the dramatic, but the dispassionate; not experiment but equipoise; not submergence in internationality, but sustainment in triumphant nationality."
3. Results
   a. Women voted for the first time, having gained the right to vote in August.
   b. Harding won 16,152,200 (61% popular, 404 electoral) votes,to Cox's 9,147,353 popular (127 electoral) votes.
   c. Solid South voted Democrat as usual, although Tennessee went for Harding.
   d. Eugene Debs, although serving a ten-year prison term, polled 919,799 votes.
4. Harding (29th President) the man
   a. A former newspaper man, owner of the Ohio Marion Star , and loyal Republican party man, Harding relied upon a friendly smile and firm handshake.
   b. Ohio's political bosses soon discovered that he had difficulty saying no and was willing to grant any favor asked of him, so he was elected to Ohio's state senate, then as LT Gov and to the US Senate in 1914
   c. As president, he helped many of his old cronies find government jobs in his administration, whether qualified or not.
   d. He enjoyed golf, burlesque, and "bloviating" or swapping stories with his cronies and spent hours at all night poker parties with his old pals --drinking bourbon in prohibitionist America (his second favorite pasttime)
   e. His favorite pasttime were his mistresses, which he enjoyed without scandal, because the newspapers were more restrained then than now
   f. He fathered an illegitimate daughter by Nan Briton without scandal.