The Election of 1925
What my opponent has failed to understand...what he has failed to comprehend, is that the chief business of America is business.
And what you cannot understand you cannot make prosper." ~Caleb Walters
Many historians say Thomas Henderson could have been a great President. However, they also make sure to emphasize the
could have. If anything, he was a victim of his predessors, both charismatic individuals that the people followed on a whim, while he was more soft-spoken and cool. The perpetual political pendulum swing of the American people did not help either, who by thier fifth term of a Republican president, had a serious case of incumbent fatigue.
This was shown during the fight over the progressive income tax. The United States had been in desperate need of money since the shooting war in Europe started in 1919. The Republican policy of preparedness took a toll on the bank accounts, with annual deficits increased at a staggering rate. While the economy had rebounded since 1919, it still wasnt giving the United States the revenue it needed. And so, Henderson spoke out in support of an income tax amendment. This actually was not very controversial. Many mid-western Democrats and the few elected Whigs were in support of an income tax, because it was an easier way to tax farmers, whose incomes varied highly, and whose property taxes were too high. Roosevelt Republicans also favored the act since it would allow them to pay for America's protection against foreign interests.
The 17th Amendment, which stated that the federal government could lay and collect taxes on incomes without apportionment passed in 1923, after a year and a half of negotiations in Congress and amongst the states. This is when the real debate began however. Republicans had been looking to implement a progressive tax, while the opposition was vehemently against it, preferring a small flat tax. The debate was a fierce one, but eventually the Republican party won out, and the bill was signed into law. The inital tax rates were extremely low by todays standards, but the extra money filled the federal coffers, producing the first surplus in almost a decade.
The surplus was helped by an increase in economic activity. The war was finally over, and America was increasingly the world's factory. Reconstruction efforts all over Europe bought American finished goods, and in places like Germany and Austria, American motowagens could be seen on the streets, filling the market niche left by the damaged industry. But while America was becoming increasingly tied to the economies of the world, Americans believed that they still should keep their distance. Stories from the war about horrible atrocities shook nerves in many Americans, especially those who were first or second generation immigrants. They were glad America was spared the decisions of war, and that the continent did not become another Europe. President Henderson did not agree, wishing to engage what he liked to call "The New World Order," instead of trying to shy away from it. He envisioned a global version of the League of American States, that promoted peace and diplomatic solutions over military force. But his idea was farfetched, and in some cases the speeches he made on the subject became laughing stock to many Americans.
And so 1925 rolled around, and the race was on again. The Whigs, who had dropped the New from the name once it became clear they were here to stay, had gained a significant congressional following. Not yet did they overtake the Democrats as lead opposition, but they were a force to be reckoned with, after the previous congressional elections and some mutinies from the Democratic Party.
As in 1921, the Whig Party nominated Caleb Walters, the former Governor of Massachusetts that had lost in a nail biter. His campaign was summarized in his slogan "The business of America is business." Riding the bull market wave sweeping America, he decried the progressive tax, instead asking to implement a flat income tax, while decreasing property taxes and military spending. He also advocated reducing tarriffs, to allow more trade to flow between the United States and the rebuilding European countries. This attracted farmers, even those who had previously supported the progressive tax, because the upbeat economy and the inflation of food prices resulted in them paying higher income tax rates.
He used President Henderson's views on foreign policy and the recent trend in radical governments popping up in Europe to his advantage, warning America could become subject to such influences should the United States become entangled in European affairs. His point was underlined by using examples like Italy, which helped him with Catholic voters, a weak point in his 1921 campaign.
Using his wide base of support, the former Governor overcame the speedbump of the loss of conservative Democrats, who nominated the forgetful Georgian Howard Fielding, and won the election over Henderson. This cemented the Whigs as a major American political party, and ended the Republican hegemony on the Presidency. But no one could foresee the challenges Walters would face during his time in the Oval Office.