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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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