The Harding Presidency

1. The Harding Presidency Mr. Bermudez

2. Daily Question • When you get back from a vacation, how do you feel? Are you glad to get back to your normal routines?

3. Main Idea • Harding appealed to America’s desire for peace after the war, but resulted in scandal

4. Why It Matters Today? • Government must protect against scandal and corruption to merit public trust.

6. Warren G. Harding • 1921 • “return to normalcy” • Appeared presidential • Poor judgment

7. Harding Struggles for Peace • Post WWI problems: • Arms control • War debts • Reconstruction of war-torn Europe

8. 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

10. Kellogg-Briand Pact • 15 nations sign • Renounces war as a national policy • Treaty had no means of enforcement

11. War reparations • Allies to pay back $10 billion in loans • 2 ways: • Selling goods to the U.S. • Collect reparations from Germany

12. 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

13. Germany • Suffering from terrible inflation • Defaults on payments and French march in

14. The Dawes Plan • War is imminent • Banker Charles Dawes has solution • U.S. investors loan Germany $2.5 billion • Germany pays G.B. and France • G.B. and France pay the U.S. • The U.S. repays itself

16. Scandal Hits Harding’s Administration • Favors limiting government in business affairs and social reform • Ohio gang are poker-playing cronies who take advantage of their public offices to increase their personal wealth

17. 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” … WGH

18. The Teapot Dome Scandal • Oil-rich public lands reserved for the U.S. Navy • Teapot Dome Wyoming • Elk Hills, California • Sec of the Interior, Albert B. Fall • Transfers reserves from navy to his department

19. 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

22. Harding’s Death • Died of a heart attack in San Francisco, CA in 1923 • Mrs. Harding refused an autopsy... • Rumors circulate...

23. 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

24. Consumer Economy • 1920’s consumer economy – depends on ppl spending money • Stock prices go up • The symbol was the Ford automobile – the Model “T” – “Tin Lizzie”

25. 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

26. The Impact of the Automobile • Rural families can go “into town” easily • Families can go on vacations in faraway places • Women/young ppl become more independent • urban sprawl

27. 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

28. 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

29. 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%

30. 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

31. 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

32. “Light a Lucky and you’ll never miss sweets that make you fat” Constance Talmadge, Charming Motion Picture Star

33. Advertisements meant to make people think they NEEDED the product • Items people formerly considered luxuries, now seemed necessities

34. 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

35. Chain stores that sold groceries, drugs, shoes and clothes sprouted everywhere • Five and dime stores, like Woolworths spread rapidly

36. Not all businesses were successful. • Iron and railroad industries • Mining and farming concerns suffered losses

37. 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

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