Chapter 7 Section 2
Section Focus Question: How
did domestic and foreign policy
change direction under Harding
The Harding Administration:
What three things could the Harding
Administration meant when it
campaigned for a “return to
1.) a retreat from world affairs
2.) Rejection of Progressive reform
3.) Returning to Laissez-faire
New Policies Favor Big
Andrew Mellon: a wealthy banker who was
Harding’s Secretary of Treasury.
Harding raised protective tariffs, which made it
easier of U.S. producers to sell goods at home.
In response, European nations also raised
tariffs, making American goods harder to sell
The tariff war weakened the world economy.
Harding did not like laws designed to protect
workers and reform business. Harding and
Mellon worked to limit government regulation of
New Policies Favor Big
– Secretary of Commerce for the Harding
administration worked to get business
to make voluntary advancements.
The Ohio Gang Clashes In:
Name an example of the corruption
from the “Ohio Gang”?
Example- Charles Forbes (head of
Veterans affairs) spent $70,000 on
The Teapot Dome Scandal
Teapot Dome Scandal:
scandal during the Harding
administration in which the Secretary
of the Interior (Albert Fall) leased
government oil reserves to private oil
men in return for bribes.
How did President Harding die?
Suffered from a heart attack
Coolidge Prosperity: p.220
Calivn Coolidge: Harding’s vice
president, who became president
after his death
How was Harding’s personality
different than Coolidge’s?
Known as silent Cal, quiet honest
Silent Cal Supports Big
Coolidge believed that the creation of
wealth benefited the nation as a
Coolidge saw a spectacular boom in
the national economy.
Troubles Brew Beneath the
Name three problems that were
facing the nation at this time?
1.) Farmers struggled to keep their
land as prices fell.
2.) Labor unions demanded higher
wages and better working conditions.
3.) African Americans faced severe
NOTE TAKING Reading Skill: Compare and Contrast
America’s Role in the World:
U.S. foreign policy had been shaped
by reaction to WWI.
No previous war had been as deadly.
Citizens of all nations agreed: It
must never happen again.
Seeking an End to the War:
Washington Naval Disarmament
Conference: In 1921 & 1922 diplomats
met in Washington, D.C. to halt the naval
arms race before it got out of control.
Kellogg-Briand Pact: agreement which
many nations agreed to outlaw war.
The Kellogg-Briand Pact was ratified by 62
nations. But, in reality, the pact was
Collecting War Debts:
U.S. loaned money to Germany so
that Germany could make their
payments to Britain and France and
then Britain and France could repay
the United States.