THE HARDING PRESIDENCY Mr. Bermudez

Daily Question  When you get back from a vacation, how do you feel? Are you glad to get back to your normal routines?

Main Idea  Harding appealed to America’s desire for peace after the war, but resulted in scandal

Why It Matters Today?  Government must protect against scandal and corruption to merit public trust.

Warren G. Harding  1921  “return to normalcy”  Appeared presidential  Poor judgment

Harding Struggles for Peace  Post WWI problems:  Arms control  War debts  Reconstruction of war-torn Europe

Washington Naval Conference Sec. of State Charles E. Hughes 5 major naval powers: U.S., Great Britain, Japan, France, Italy No new warships for 10 years 1 st time countries agree to disarm

Kellogg-Briand Pact  15 nations sign  Renounces war as a national policy  Treaty had no means of enforcement

War reparations  Allies to pay back $10 billion in loans  2 ways:  Selling goods to the U.S.  Collect reparations from Germany

Fordney-McCumber Tariff 60% tax increase on imports Protects U.S. business from foreign competition Impossible for Britain and France to sell goods and make good on loan payments

Germany  Suffering from terrible inflation  Defaults on payments and French march in

The Dawes Plan War is imminent Banker Charles Dawes has solution U.S. investors loan Germany $2.5 billion Germany pays G.B. and France G.B. and France pay the U.S. The U.S. repays itself

Scandal Hits Harding’s Administration  Favors limiting government in business affairs and social reform  Ohio Gang: poker-playing cronies who took advantage of their public offices to increase their personal wealth

Harding’s Personal Conduct  A gambler…  A hypocrite...  “I cannot hope to be one of the great presidents, but perhaps I may be remembered as one of the best loved” … - -Warren G. Harding

The Teapot Dome Scandal Oil-rich public lands reserved for the U.S. Navy Teapot Dome Wyoming Elk Hills, California Sec of the Interior, Albert B. Fall Transfers reserves from navy to his department

The Teapot Dome Scandal  Fall leases land to two private oil companies  Receives $400,000  1 st cabinet member convicted of a felony while holding office

Harding’s Death  Died of a heart attack in San Francisco, CA in 1923  Mrs. Harding refused an autopsy...  Rumors circulate...

Calvin Coolidge  Took office on August 3, 1923  Continued Harding’s laissez- faire  Business boomed, wages rose, former luxuries became necessities and people had more leisure time

Consumer Economy  1920’s consumer economy – depends on people spending money  Stock prices go up  The symbol was the Ford automobile – the Model “T” – “Tin Lizzie”

The Impact of the Automobile  Visible Changes  Paved roads  Houses have driveways and a carport/garage  Gas stations, repair shops, public garages, motels, shopping centers  First automatic traffic signals  Holland Tunnel opened in 1927

The Impact of the Automobile  Rural families can go “into town” easily  Families can go on vacations in faraway places  Women/young become more independent  urban sprawl: workers can now live miles from jobs

The Impact of the Automobile  Auto industry symbolized success of free enterprise system- Capitalism  80% of cars owned in the world were in the U.S

The Young Airplane Industry  Gov. used to deliver mail  Henry Ford’s tri – motor plane could carry 10 passengers  The single– engine Vega could carry 6 passengers

America’s Standard of Living Soars  1920’s were very “pro- business”  Pres. Hoover wants taxes low + business profits high  1920 – 1929 very prosperous years for America  Americans owned 40% of the world’s wealth  Annual income: 522 to 705 that’s 35% increase

Electrical Convenience  Gas powers economic boom  Electricity transforms nation  Power spreads to suburbs  Electric appliances made the lives of housewives easier and freed them for other community and leisure activities

The Dawn of Modern Advertising  Advertisers stopped limiting themselves to just providing facts about the product.  Advertisers hired psychologists to study how to appeal to buyers

“Light a Lucky and you’ll never miss sweets that make you fat” Constance Talmadge, Charming Motion Picture Star

 Advertisements meant to make people think they NEEDED the product  Items people formerly considered luxuries, now seemed necessities

A Superficial Prosperity  1920s people felt that prosperity would last forever.  As productivity increased, businesses expanded in size and attitude  Some companies merged, creating larger businesses

 Chain stores that sold groceries, drugs, shoes and clothes sprouted everywhere  Five and dime stores, like Woolworths spread rapidly

 Not all businesses were successful.  Iron and railroad industries  Mining and farming concerns suffered losses

Buying Goods on Credit  Another solution to luring customers – easy credit (the Installment Plan).  Economists worried that installment buying may be a sign of careless and superficial prosperity

 Most Americans focused their attention on the present with little concern for the future