The Harding Presidency WARREN G. HARDING

“Normalcy” Ohio Senator that assumed the Presidency in 1921 Harding yearned for “normalcy” or the simpler days before the Progressive Era and the Great War His words or peace and calm comforted the healing nation

Struggling for Peace After W.W.I. Problems surfaced relating to the arms control, war debts and reconstruction of war-torn countries President Harding invited several major powers to the Washington Naval Conference Russia was left out because of its Communist government Secretary of the State Charles Evans Hughes urged that no more warships be built for ten years Suggested five major naval powers—U.S., Great Britain, Japan, France and Italy– scrap many of their battleships, cruisers, and aircraft carriers

Struggling for Peace Conference delegates cheered Powerful nations agreed to disarm for the first time in history In 1928, 15 countries signed the Kellogg-Briand Pact Kellogg-Briand Pact renounced war as a national policy Had no means of enforcement

Paying the Reparations Britain and France could not pay back money they borrowed from U.S. Do so in 2 ways: By selling goods to the U.S. Collecting reparations from Germany In 1922, America adopted Fordney-McCumber Tarriff Raised taxes on U.S. imports to 60% (highest level ever) Tax protected U.S. businesses (chemical and Metal industries) from foreign competition This made it impossible for Britain and France to sell enough goods in the U.S. to repay its debt

Paying the Reparations France and Britain turned to Germany for Reparations Germany could not pay and French troops marched in To avoid another war, Charles G. Dawes, an American investor negotiated a loan, known as the Dawes Plan The U.S. arranged to be repaid with its own money

Paying the Reparations Dawes Plan caused resentment France and Britain believed U.S. was not paying a fair share of the costs of W.W. I. U.S. had benefited from the German defeat Europeans paid for the victory How did the Europeans pay for the victory? U.S. considered Britain and France financially irresponsible

Scandal Rocks Harding’s Administration Harding’s Cabinet Charles Evans Hughes, Secretary of the State Later became Chief Justice of the Supreme Court Herbert Hoover, Secretary of Commerce Had done a great job handling food distribution and refugee problems during W.W.I. Andrew Mellon, Secretary of Treasury Drastically cut taxes Reduced national debt

Scandal Rocks Harding’s Administration Ohio gang: President’s poker-playing cronies The cabinet included members of President Harding’s poker playing friends They often caused a great deal of embarrassment

Scandal Rocks Harding’s Administration Harding’s administration unraveled as his corrupt friends used their offices to become wealthy through graft Graft: bribe Charles R. Forbes, head of the Veterans Bureau Caught illegally selling government and hospital supplies to private companies Colonel Thomas W. Miller, head of the Office of Alien Property Caught taking a bribe

Scandal Rocks Harding’s Administration Teapot Dome Scandal The government had set aside oil-rich public lands at Teapot Dome, Wyoming and Elk Hills, California for use by the U.S. Navy Secretary of the Interior Albert B. Fall, a close friend of various oil executives Fall said it was in the government’s best interest He later received more than $400,000 in loans, bonds, and cash Later on found guilty of bribery, first American convinced of felony while holding a cabinet position

Scandal Rocks Harding’s Administration In the summer of 1923, Harding declared, “I have no trouble with my enemies…But my friends, they’re the ones that keep me walking the floor nights!” August 2, 1923 President Harding died suddenly The crimes of his Administration came to light as his Vice-President Calvin Coolidge took over