THE HARDING PRESIDENCY

Mr. Bermudez

Daily Question

When you get back from a vacation, how do you feel? Are you glad to get back to your normal routines?

Main Idea

Harding appealed to America’s desire for peace after the war, but resulted in scandal

Why It Matters Today?

Government must protect against scandal and corruption to merit public trust.

Warren G. Harding

1921 “return to normalcy”

Appeared presidential

Poor judgment

Harding Struggles for Peace

Post WWI problems: Arms control War debts Reconstruction of war-torn Europe

Washington Naval Conference

Sec. of State Charles E. Hughes

5 major naval powers: U.S., Great Britain, Japan, France, Italy

No new warships for 10 years

1st time countries agree to disarm

Kellogg-Briand Pact

15 nations sign

Renounces war as a national policy

Treaty had no means of enforcement

War reparations

Allies to pay back $10 billion in loans

2 ways: Selling goods to the U.S. Collect reparations from Germany

Fordney-McCumber Tariff

60% tax increase on imports

Protects U.S. business from foreign competition

Impossible for Britain and France to sell goods and make good on loan payments

Germany

Suffering from terrible inflation

Defaults on payments and French march in

The Dawes Plan

War is imminentBanker Charles Dawes has solutionU.S. investors loan Germany $2.5 billion

Germany pays G.B. and FranceG.B. and France pay the U.S.The U.S. repays itself

Scandal Hits Harding’s Administration

Favors limiting government in business affairs and social reform

Ohio Gang: poker-playing cronies who took advantage of their public offices to increase their personal wealth

Harding’s Personal Conduct

A gambler… A hypocrite... “I cannot hope to be one of the great presidents, but perhaps I may be remembered as one of the best loved” … --Warren G. Harding

The Teapot Dome Scandal

Oil-rich public lands reserved for the U.S. NavyTeapot Dome WyomingElk Hills, California

Sec of the Interior, Albert B. FallTransfers reserves from navy to his department

The Teapot Dome Scandal

Fall leases land to two private oil companies

Receives $400,000 1st cabinet member convicted of a felony while holding office

Harding’s Death

Died of a heart attack in San Francisco, CA in 1923

Mrs. Harding refused an autopsy...

Rumors circulate...

Calvin Coolidge

Took office on August 3, 1923

Continued Harding’s laissez-faire

Business boomed, wages rose, former luxuries became necessities and people had more leisure time

Consumer Economy

1920’s consumer economy – depends on people spending money

Stock prices go up The symbol was

the Ford automobile – the Model “T” – “Tin Lizzie”

The Impact of the Automobile

Visible Changes Paved roads Houses have

driveways and a carport/garage

Gas stations, repair shops, public garages, motels, shopping centers

First automatic traffic signals

Holland Tunnel opened in 1927

The Impact of the Automobile

Rural families can go “into town” easily

Families can go on vacations in faraway places

Women/young become more independent

urban sprawl: workers can now live miles from jobs

The Impact of the Automobile

Auto industry symbolized success of free enterprise system- Capitalism

80% of cars owned in the world were in the U.S

The Young Airplane Industry

Gov. used to deliver mail Henry Ford’s tri – motor plane could carry 10 passengers

The single– engine Vega could carry 6 passengers

America’s Standard of Living Soars

1920’s were very “pro- business”

Pres. Hoover wants taxes low + business profits high

1920 – 1929 very prosperous years for America

Americans owned 40% of the world’s wealth

Annual income: 522 to 705 that’s 35% increase

Electrical Convenience

Gas powers economic boom

Electricity transforms nation

Power spreads to suburbs

Electric appliances made the lives of housewives easier and freed them for other community and leisure activities

The Dawn of Modern Advertising

Advertisers stopped limiting themselves to just providing facts about the product.

Advertisers hired psychologists to study how to appeal to buyers

“Light a Lucky and you’ll

never miss sweets that make you fat”

Constance Talmadge,

Charming Motion Picture Star

Advertisements meant to make people think they NEEDED the product

Items people formerly considered luxuries, now seemed necessities

A Superficial Prosperity

1920s people felt that prosperity would last forever.

As productivity increased, businesses expanded in size and attitude

Some companies merged, creating larger businesses

Chain stores that sold groceries, drugs, shoes and clothes sprouted everywhere

Five and dime stores, like Woolworths spread rapidly

Not all businesses were successful.

Iron and railroad industries

Mining and farming concerns suffered losses

Buying Goods on Credit

Another solution to luring customers – easy credit (the Installment Plan).

Economists worried that installment buying may be a sign of careless and superficial prosperity

Most Americans focused their attention on the present with little concern for the future