2. Harding favors Big Business
● Upon his election, Harding immediately
began putting in policies that favor big
business
o Biggest impact: Named Andrew Mellon his
Secretary of Treasury
o Mellon immediately reduced income taxes and
reduced spending drastically, from $18 during WWI
down to $3 billion
3. Harding favors Big Business
● Harding passed a 25% Tariff, increasing
American Business
o Europe responded with their own Tariff on American
goods, hurting American Business abroad and the
overall world economy
● Worked to reduce Government regulation of
business
4. Ohio Gang Cashes In
● Harding was, by all accounts, a very likeable
and friendly man
o He was also, by most accounts, not a very good
President
o He relied on his friends, the “Ohio Gang,” to make
decisions for him
o Many of them were extremely corrupt, known for
taking bribes.
5. Teapot Dome Scandal
● Secretary of the Interior Albert Fall arranged for a transfer of vital oil
reserves from the Navy to the Interior Department
o These were meant to be for the Navy’s use in times of
emergency
● Fall immediately signed the reserves over to private oil companies
in exchange for “loans,” (aka bribes)
o Fall ended up sentenced to a year in prison for his crimes
6. The End of Harding
● Harding was worried about his friends, but
never did see the extent of the damage they
did
o Harding died of a Heart Attack on August 2, 1923. His Vice
President, Calvin Coolidge, would take the Presidency
o At first, Harding was mourned like no President since Lincoln,
until the true depth of the corruption of his administration came
to light
7. Silent Cal Takes Over
● Coolidge was different than his predecessor, Harding
o Was much quieter, and took a much more measured tone with
his speeches and interactions
o Very honest, and while he trusted businesses and business
men implicitly, he quickly threw out those in the administration
who may be corrupt or activists bent on massive reforms
8. Coolidge and Business
● Coolidge held great admiration for business leaders
o He cut the national debt and budget, lowered
taxes, gave benefits to businesses
o For his six years in office, the economy grew
dramatically in a massive boom
9. All is not Well
● Farmers continued to struggle, their incomes decline as
Urban incomes grow
● Jim Crow laws in the south continued to enforce
segregation
o Regardless of problems, Silent Cal remained silent;
He believed the Government had no place to
regulate social change
10. America’s Role in the World
● The specter of World War I still loomed over the US
o The Washington Naval Disarmament Conference
settled disputes between Japan and the West, and
convinced nations to limit construction of huge
warships
o The Kellogg-Briand Pact “outlawed” war “as an
instrument of national policy.”
It was basically powerless, useless, and quickly forgotten
by all who signed it
11. War Debts
● Coolidge insisted on the repayment of loans given to
France and Britain during WWI
o In order for Britain and France to repay debts, they had
to be paid reparations by Germany, as laid out in the
Treaty of Versaille
o The US came up with a plan to try to make everything
work, called the Dawes Plan
12. War Debts - The Dawes Plan
● The US gave loans to Germany
● Germany took said money and paid their reparations to
Britain and France
● Britain and France took said money and paid back their
War Debts to the US
o The result was Germany owing the US money while
Britain and France would be able to pay back.
● This entire thing made the US look heartless to the
world, and cost the US in international standing
