Coolidge’s Vision of Prosperity Through Free Trade

The first in this series citing guidance given by our 30th President Calvin Coolidge drew upon his remarks made in Philadelphia 100 years ago in celebration of the 150th anniversary of the Declaration of Independence.

How could that address have addressed topics relevant today regarding trade policy and the accumulation of wealth? Let’s take a look…

In that speech which praised the Declaration as the document that set out the ideals of Democratic government Coolidge went on to say…(in 1926)
“We live in age of science and of abounding accumulation of material things. Those did not create our Declaration. Our Declaration created them. The things of the spirit (as proclaimed in the Declaration) come first. Unless we cling to that, all our material prosperity, overwhelming though it may appear, will turn to a barren scepter in our grasp”

Coolidge believed in free and open trade. The country had largely benefited from that policy. Factors such as electrification and the mass introduction of automobiles had increased productivity leading to a decade of prosperity following World War 1.

Coolidge had used that prosperity to reduce the national debt by one-third, having balanced budgets every year of his Presidency all the while cutting taxes. Until recently those actions were bedrock principles of the Republican Party. Does it appear that only tax cuts are a priority today?

One part of the economy that did not benefit from this rapid progress toward the automotive age was farmers. When nearly 1/4th of farm production was no longer needed to feed horses and mules it’s conversion to producing food for humans resulted in a surplus of agricultural products and a steep drop in prices a farmer could charge. Foreign competition in agriculture products made it even worse.

As Coolidge prepared to leave office in 1928, Candidate Hoover campaigned on helping farmers avoid foreign competition. Republican Senators Smoot (Utah) and Hawley (Washington) advocated protectionist policies in the form of tariff on nearly 20,000 foreign imports.

Over 1000 economists argued against this policy change as did business leaders such as Henry Ford and J. P. Morgan’s Chief Executive Thomas W. Lamont said he “almost went down on [his] knees to beg Herbert Hoover to veto the asinine Hawley–Smoot tariff”.

Hoover signed the bill and other nations then retaliated with there own tariffs. The Great Depression followed. Most economists today will cite the passage of Smoot-Hawley as one of the primary reasons.

Likely Coolidge would have vetoed Smoot-Hawley. In 1930 he wrote in a newspaper column. “Our example of a free and prosperous people has been the sovereign remedy for world oppression. The truth is our trade partner regulations are more fair to others than theirs are to us….The higher our standards, the greater our progress, the more we do for the world”

He was arguing that we were taking the high ground on free trade and  still continued to prosper more than those who were protecting their industries.

In 2026 even after the Supreme Court ruled that tariffs are the purview of Congress not the Executive Branch. But still the Executive Branch finds ways to implement retaliatory tariffs for childish grievances such as Canadian smoke crossing our border.

Is that any way to find common ground with not only our allies but with all of us who ultimately pay the tariff taxes as we consume necessary goods from other countries?

Editor’s Note: Common Ground with Coolidge is a weekly feature connecting the words and principles of our 30th President, Calvin Coolidge, 100 years ago to modern civic life. The column is written by Lake Frederick resident and Coolidge family member Calvin(Cal) C. Coolidge, an eighth cousin of the president and Trustee Emeritus of the Calvin Coolidge Presidential Foundation, with a focus on civility, constitutional principles, and finding common ground.