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Terms & Names
Terms & Names
MAIN IDEA
MAIN IDEA
•Warren G.
Harding
•Charles Evans
Hughes
•Fordney-
McCumber Tariff
•Ohio gang
•Teapot Dome
scandal
•Albert B. Fall
The Harding administration
appealed to America’s desire
for calm and peace after the
war, but resulted in scandal.
The government must guard
against scandal and corrup-
tion to merit public trust.
WHY IT MATTERS NOW
WHY IT MATTERS NOW
Warren G. Harding was described as a good-natured man who
“looked like a president ought to look.” When the silver-haired
Ohio senator assumed the presidency in 1921, the public yearned
for what Harding described as “normalcy,” or the simpler days
before the Progressive Era and the Great War. His words of peace
and calm comforted the healing nation.
A PERSONAL VOICE WARREN G. HARDING
“ America’s present need is not heroics, but healing; not nos-
trums, but normalcy; not revolution, but restoration; not agitation,
but adjustment; not surgery, but serenity; not the dramatic, but
the dispassionate; . . . not submergence in internationality, but
sustainment in triumphant nationality.
”
—quoted in The Rise of Warren Gamaliel Harding
Despite Harding’s soothing speeches, his judgment turned
out to be poor. The discord among the major world powers and
the conduct within his own cabinet would test his politics and his
character.
Harding Struggles for Peace
After World War I, problems surfaced relating to arms control, war debts, and the
reconstruction of war-torn countries. In 1921, President Harding invited several
major powers to the Washington Naval Conference. Russia was left out because
of its Communist government. At the conference, Secretary of State Charles
Evans Hughes urged that no more warships be built for ten years. He suggested
that the five major naval powers—the United States, Great Britain, Japan, France,
and Italy—scrap many of their battleships, cruisers, and aircraft carriers.
Conference delegates cheered, wept, and threw their hats into the air. For the
first time in history, powerful nations agreed to disarm. Later, in 1928, fifteen
One American's Story
Politics of the Roaring Twenties 625
▼
Warren G. Harding,
shown here in
1923, looked
presidential, but
he is considered
one of the least
successful
presidents.
The Harding
Presidency
p0625-627aspe-0620s2 10/17/02 9:01 AM Page 625
Page 1 of 3
626 C
HAPTER 20
countries signed the Kellogg-Briand Pact, which
renounced war as a national policy. However, the pact
was futile, as it provided no means of enforcement.
HIGH TARIFFS AND REPARATIONS
New conflicts
arose when it came time for Britain and France to pay
back the $10 billion they had borrowed from America.
They could do this in two ways: by selling goods to the
United States or by collecting reparations from
Germany. However, in 1922, America adopted the
Fordney-McCumber Tariff, which raised taxes on
U.S. imports to 60 percent—the highest level ever. The
tax protected U.S. businesses—especially in the chemi-
cal and metals industries—from foreign competition,
but made it impossible for Britain and France to sell
enough goods in the U.S. to repay debts.
The two countries looked to Germany, which was
experiencing terrible inflation. When Germany defaulted
on (failed to make) payment, French troops marched in.
To avoid another war, American banker Charles G. Dawes
was sent to negotiate loans. Through what came to be
known as the Dawes Plan, American investors loaned
Germany $2.5 billion to pay back Britain and France with annual payments on a
fixed scale. Those countries then paid the United States. Thus, the United States
arranged to be repaid with its own money.
The solution caused resentment all around. Britain and France considered the
United States a miser for not paying a fair share of the costs of World War I.
Further, the U.S. had benefited from the defeat of Germany, while Europeans had
paid for the victory with millions of lives. At the same time, the United States
considered Britain and France financially irresponsible.
Scandal Hits Harding’s Administration
On domestic issues, Harding favored a limited role for government in business affairs
and in social reform. Still, he did set up the Bureau of the Budget to help run the
government more efficiently, and he urged U.S. Steel to abandon the 12-hour day.
HARDING’S CABINET
Harding appointed Charles Evans Hughes as secretary of
state. Hughes later went on to become chief justice of the Supreme Court. The pres-
ident made Herbert Hoover the secretary of commerce. Hoover had done a master-
ful job of handling food distribution and refugee problems during World War I.
Andrew Mellon, one of the country’s wealthiest men, became secretary of the treas-
ury and set about drastically cutting taxes and reducing the national debt. However,
the cabinet also included the so-called Ohio gang, the president’s poker-playing
cronies, who would soon cause a great deal of embarrassment.
SCANDAL PLAGUES HARDING
The president’s main problem was that he
didn’t understand many of the issues. He admitted as much to a secretary.
A PERSONAL VOICE WARREN G. HARDING
“ John, I can’t make a . . . thing out of this tax problem. I listen to one side and
they seem right, and then . . . I talk to the other side and they seem just as
right. . . . I know somewhere there is an economist who knows the truth, but I
don’t know where to find him and haven’t the sense to know him and trust him
when I find him. . . . What a job!
”
—quoted in Only Yesterday
A
B
▼
In 1923, a
German man
papers his walls
with money made
nearly worthless
by high inflation
following World
War I.
A. Possible
Answers Their
economies had
been weakened
in the war; they
were unable to
raise money
because U.S.
exports were
limited by high
tariffs; Germany
failed to pay
them expected
reparations.
B. Possible
Answers That
although he
made some
good appoint-
ments, his
appointment of
cronies from his
home state
showed poor
judgement.
Vocabulary
reparations:
payments
demanded from a
defeated enemy
MAIN IDEA
MAIN IDEA
A
Summarizing
What were the
reasons European
countries were not
paying their war
debts?
MAIN IDEA
MAIN IDEA
B
Evaluating
Leadership
What do
Harding’s
appointments
indicate about his
judgment?
p0625-627aspe-0620s2 10/17/02 9:01 AM Page 626
Page 2 of 3
Politics of the Roaring Twenties 627
•Warren G. Harding
•Charles Evans Hughes
•Fordney-McCumber Tariff
•Ohio gang
•Teapot Dome scandal
•Albert B. Fall
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
MAIN IDEA
2. TAKING NOTES
List five significant events from this
section and their effects, using a
table like the one shown.
Which event benefited the country
the most? Why?
CRITICAL THINKING
3. MAKING INFERENCES
How do you think the Harding
administration viewed the role of
America in world affairs? Support
your response with examples from
the text.
4. EVALUATING
How successful was Harding in
fulfilling his campaign pledge of
returning the country to “normalcy”?
Support your opinion with specific
examples.
5. ANALYZING EFFECTS
How do you think the postwar
feelings in America influenced the
election of 1920? Think About:
• the desire for normalcy
• Harding’s image
• the issues Americans wanted to
focus on
Harding’s administration began to unravel
as his corrupt friends used their offices to
become wealthy through graft. Charles R.
Forbes, the head of the Veterans Bureau, was
caught illegally selling government and hospi-
tal supplies to private companies. Colonel
Thomas W. Miller, the head of the Office of
Alien Property, was caught taking a bribe.
THE TEAPOT DOME SCANDAL
The most
spectacular example of corruption was the
Teapot Dome scandal. The government had
set aside oil-rich public lands at Teapot Dome,
Wyoming, and Elk Hills, California, for use by
the U.S. Navy. Secretary of the Interior Albert
B. Fall, a close friend of various oil executives,
managed to get the oil reserves transferred from
the navy to the Interior Department. Then, Fall
secretly leased the land to two private oil com-
panies, including Henry Sinclair’s Mammoth
Oil Company at Teapot Dome. Although Fall
claimed that these contracts were in the government’s interest, he sudden-
ly received more than $400,000 in “loans, bonds, and cash.” He was later
found guilty of bribery and became the first American to be convicted of a
felony while holding a cabinet post.
In the summer of 1923, Harding declared, “I have no trouble with my
enemies. . . . But my . . . friends, they’re the ones that keep me walking the
floor nights!” Shortly thereafter, on August 2, 1923, he died suddenly, prob-
ably from a heart attack or stroke.
Americans sincerely mourned their good-natured president. The crimes
of the Harding administration were coming to light just as Vice-President Calvin
Coolidge assumed the presidency. Coolidge, a respected man of integrity, helped
to restore people’s faith in their government and in the Republican Party. The
next year, Coolidge was elected president.
Event Effects
1.
2.
C
The elephant, shaped
like a teapot here, is the
symbol of the Republican
Party (Grand Old Party).
The cartoonist implies
that Republicans were
responsible for the Teapot
Dome scandal.
▼
C. Answer The
government lost
revenue when
veterans’ hospi-
tals over-
charged it; in
the Teapot
Dome scandal,
public oil
reserves were
leased for pri-
vate gain.
MAIN IDEA
MAIN IDEA
C
Making
Inferences
How did the
scandals of the
Harding
administration
hurt the country
economically?
p0625-627aspe-0620s2 10/17/02 9:01 AM Page 627
Page 3 of 3
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