Chapter 12.2 The Harding Presidency
Teapot Dome scandal
A government scandal involving a former United States Navy oil reserve in Wyoming that was secretly leased to a private oil company in 1921
Ohio gang
A group of poker-playing, men that were friends of President Warren Harding. Harding appointed them to offices and they used their power to gain money for themselves. They were involved in scandals that ruined Harding's reputation even though he wasn't involved.
Main Idea
Harding administration appealed to American's desire for calm and peace after the war, but resulted in a scandal
Albert B. Fall
The Harding Cabinet member who profited from and was convicted for the Teapot Dome Scandal first American to be convicted of a felony while holding a cabinet post
Why it matters now?
The government must guard against scandal and corruption to merit public trust.
Charles G. Dawes
banker sent to negotiate loans Dawes Plan - American investors loaned Germany 2.5 billion to pay back Britain and France those countries then paid the US
Warren G. Harding
became president in 1921 wanted normalcy or simpler days words of peace and calm comforted the healing nation judgment turned out poor discord among major world powers problems within his cabinet
Scandal Hits Harding's Administration
favored limited role of government in business affairs and social reform set up Bureau of Budget to help run government more efficiently urged Steel to abandon the 12-hour day his friends in his cabinet caused more scandal and problems for Harding though he wasn't involved in it died of a heart attack Calvin Coolidge assumed the presidency - he was respected man of integrity helped restore people's faith in their government and the republican party
Harding Struggles for Peace
invited several major powers for conference Russia was left out because of Communism Charles Hughes suggested US, Great Britain, Japan, France, and Italy scrap their battleships, cruisers, and aircraft carriers conference delegates cheered, wept, and celebrated 1928 Kellogg-Brian Pact renounced war as national policy no way to reinforce this
High Tariffs and Reparations
new conflicts when Britain and France had to pay back $10 million they borrowed from American they could do this in two ways: 1. sell goods to US 2. collect repayment from Germany Fordney-McCumber Tariff raised taxes on US imports to 60% - highest ever tax protected US businesses from foreign competition chemical and metal industries made it impossible for Britain and France to sell enough goods in US to repay debts they started to look to Germany, which was experiencing high inflation Germany failed to make payments - French troops marched in Charles G. Dawes - banker sent to negotiate loans Dawes Plan - American investors loaned Germany 2.5 billion to pay back Britain and France those countries then paid the US this solution caused resentment Britain and France considered US a miser for not paying fair share of the costs of WW1 US benefited from the defeat of Germany while Europeans paid for the victory with millions of lives US considered Britain and France financially irresponsible
Fordney-McCumber Tariff
raised taxes on US imports to 60% - highest ever tax protected US businesses from foreign competition chemical and metal industries made it impossible for Britain and France to sell enough goods in US to repay debts
Charles Evans Hughes
secretary of state urged no more warships be built for 10 years suggested US, Great Britain, Japan, France, and Italy scrap their battleships, cruisers, and aircraft carriers
