1. The Harding Presidency
Chapter 20, Section 2

2. Warren G. Harding Became president in 1921.
Promised to take America back to “normalcy” (time before the Progressive Era and the Great War)

3. Problems following WWI
After World War I, there were problems relating to:
Arms control
War debts
Reconstruction of war-torn nations

4. Washington Naval Conference
Harding invites several major powers to Washington Naval Conference in 1921.
Charles Evans Hughes (U.S. Sec. of State) urged no more warships be built for ten years.
5 major powers – U.S.A., Great Britain, Japan, France, and Italy.

5. Kellogg-Briand Pact
Signed by 15 nations in 1928, it renounced war as a national policy.
No means of enforcement.

6. Repayment of war debt
Great Britain and France had trouble paying back $10 billion borrowed from U.S. during war.

7. Fordney-McCumber Tariff
Raised taxes on U.S. imports to 60% - highest ever.
Protected U.S. businesses, but G.B. and France couldn’t send goods to U.S.

9. Germany defaults on payments
Germany defaults on payments, and French troops move in.
To avoid war, U.S. banker Charles Dawes comes up with a plan (Dawes Plan) in which American investors loan Germany $2.5 billion to pay back Great Britain and France.
Those countries could then pay back U.S.
U.S. was being repaid with its own money.

10. Resentment
Great Britain and France consider U.S. a miser for not sharing cost of war.
U.S. considers G.B. and France financially irresponsible.

11. Harding’s Cabinet Charles Evans Hughes – Sec. of State
Herbert Hoover (Foods Administration) – Sec. of Commerce
Andrew Mellon – Sec. of Treasury

12. The Ohio Gang
Harding rounded out his cabinet with the “Ohio gang” – his poker-playing cronies
Harding’s corrupt friends began to use their offices to become wealthy through graft.
Veterans Bureau
Office of Alien Property

13. Teapot Dome Scandal
Gov’t set aside oil-rich public land at Teapot Dome, WY and Elk Hills, CA
Sec. of Interior Albert Fall got them moved from Navy to Interior Dept.
He secretly leased the land to 2 private oil companies.
Claimed it was for gov’t’s interest, but he later received more than $400,000.
Found guilty of bribery.

15. Harding’s Sudden Death
Harding died suddenly on August 2, 1923 (probably from heart attack or stroke).
Vice-President Calving Coolidge assumes presidency and is elected to the office the following year.