Assistants William McCracken (left) and Walter Drake (right) with Secretary Hoover (center)
Herbert Hoover was appointed Secretary of Commerce in 1921 by then-President
Warren G. Harding.
[11] Hoover was, by far, the most active secretary in the history of the department until the end of his position in 1928.
[12]
After his election as president in 1920, Warren G. Harding rewarded Hoover for his support, offering to appoint him as either
Secretary of the Interior or
Secretary of Commerce. Secretary of Commerce was considered a minor Cabinet post, with limited and vaguely defined responsibilities, but Hoover, emphasizing his identity as a businessman, accepted the position. In sharp contrast to the Interior Department, there were no scandals at Commerce.
[13]
Hoover envisioned the Commerce Department as the hub of the nation's growth and stability.
[14] His experience mobilizing the war-time economy convinced him that the
federal government could promote efficiency by eliminating waste, increasing production, encouraging the adoption of data-based practices, investing in infrastructure, and conserving natural resources. Contemporaries described Hoover's approach as a "third alternative" between "unrestrained capitalism" and socialism, which was becoming increasingly popular in Europe.
[15] Hoover sought to foster a balance among labor, capital, and the government, and for this he has been variously labeled a "
corporatist" or an
associationalist.
[16]
Hoover demanded, and received, authority to coordinate economic affairs throughout the government. He created many sub-departments and committees, overseeing and regulating everything from manufacturing statistics to air travel.
In some instances he "seized" control of responsibilities from other Cabinet departments when he deemed that they were not carrying out their responsibilities well; some began referring to him as the "Secretary of Commerce and Under-Secretary of all other departments."
[14] In response to the
Depression of 1920–21, he convinced Harding to assemble a presidential commission on unemployment, which encouraged local governments to engage in countercyclical infrastructure spending. He endorsed much of Mellon's tax reduction program, but favored a more
progressive tax system and opposed the treasury secretary's efforts to eliminate the
estate tax.
[17]