1921-1923

Britain and France wanted to pay back the US by sending goods, but the tariff prevented it

US lent money to Germany for reparations to Britain and France

B and F used this money to repay the US

All countries were upset!

Harding himself was a good-natured man

Kept taxes low and government out of business affairs

Hired his friends to be on his Cabinet – became known as the Ohio Gang

“I have no trouble with my enemies…But my friends, they’re the ones that keep me walking the floor at night!”

Numerous members of the Ohio Gang were caught accepting bribes

Largest scandal: the Teapot Dome Scandal• Oil rich land in Wyoming was set aside for use

by the Navy• Albert Fall had it transferred to the Interior

Department• Secretly leased the land to private oil

companies• Claimed it was in government’s best interest• Then received $400,000