THE HARDING PRESIDENCY MAIN IDEA: The Harding administration appealed to America’s desire for calm and peace after the war, but resulted in scandal.

Harding Struggles for Peace Washington Naval Conference- Russia left out b/c communist At the conference Secretary of State Charles Evans Hughes urged that no more warships be built for 10 years First time in history powerful nations agreed to disarm Kellogg-Briand Pact- renounced war as a national policy Pact did not work b/c it provided no means of enforcement

HIGH TARIFFS AND REPARATIONS Britain and France had to pay back 10 billion they borrowed from America Two ways: selling goods to the US or by collecting reparations from Germany 1922 America adopted Fordney-McCumber Tariff- raised taxes on U.S. imports to 60% Tax made it impossible for Britain and France to sell enough goods in the US to repay debts

Germany was experiencing terrible inflation Germany failed to make a payment and French troops marched into Germany To avoid war Charles G. Dawes-American banker negotiated loans

Dawes Plan- American investors loaned Germany 2 Dawes Plan- American investors loaned Germany 2.5 billion to pay back Britain and France Countries then paid the U.S. The United States arranged to be repaid with its own money U.S. benefited from the defeat of Germany without risking millions of lives

SCANDAL HITS HARDING’S ADMINISTRATION Harding favored a limited role for government in business affairs and social reform Herbert Hoover- Secretary of Commerce Andrew Mellon-Secretary of Treasury- cut taxes and reduced debt

OHIO GANG- president’s poker playing cronies President did not understand many issues Corrupt friends used power to gain wealth Charles R. Forbes- head of Veterans bureau was caught illegally selling government and hospital supplies to private companies

TEAPOT DOME SCANDAL- government had set aside oil rich public lands at Teapot Dome, Wyoming and Elk Hills, California for U.S. Naval usage Secretary of the Interior Albert B. Fall- got oil reserves transferred to the Interior Department Leased the land to two private companies Received more than $400,000 in loans, bonds and cash Became the first American to be convicted of a felony while holding a cabinet position

HARDING DIES August 2, 1923 Harding died of a heart attack or stroke Americans mourned good natured president Calvin Coolidge took over presidency Restore nation’s hope in Republican party Next year elected president