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Presidency of Warren G. Harding
Presidency of Warren G. Harding
from Wikipedia
Warren G. Harding
Portrait, c. 1920–1923
Presidency of Warren G. Harding
March 4, 1921 – August 2, 1923
Vice President
CabinetSee list
PartyRepublican
Election1920
SeatWhite House


Seal of the president
(1894–1945)

Warren G. Harding's tenure as the 29th president of the United States lasted from March 4, 1921, until his death on August 2, 1923. Harding presided over the country in the aftermath of World War I. A Republican from Ohio, Harding held office during a period in American political history from the mid-1890s to 1932 that was generally dominated by his party. He died of an apparent heart attack and was succeeded by Vice President Calvin Coolidge.

Harding took office after defeating Democrat James M. Cox in the 1920 presidential election. Running against the policies of incumbent Democratic President Woodrow Wilson, Harding won the popular vote by a margin of 26.2 percentage points, which remains the largest popular-vote percentage margin in presidential elections since the end of the Era of Good Feelings in the 1820s. Upon taking office, Harding instituted conservative policies designed to minimize the government's role in the economy. Secretary of the Treasury Andrew Mellon won passage of the Revenue Act of 1921, a major tax cut that primarily reduced taxes on the wealthy. Harding also signed the Budget and Accounting Act, which established the country's first formal budgeting process and created the Bureau of the Budget. Another major aspect of his domestic policy was the Fordney–McCumber Tariff, which greatly increased tariff rates.

Harding supported the 1921 Emergency Quota Act, which marked the start of a period of restrictive immigration policies. He vetoed a bill designed to give a bonus to World War I veterans but presided over the creation of the Veterans Bureau. He also signed into law several bills designed to address the farm crisis and, along with Secretary of Commerce Herbert Hoover, promoted new technologies like the radio and aviation. Harding's foreign policy was directed by Secretary of State Charles Evans Hughes. Hughes's major foreign policy achievement was the Washington Naval Conference of 1921–1922, in which the world's major naval powers agreed on a naval disarmament program. Harding appointed four Supreme Court justices, all of whom became conservative members of the Taft Court. Shortly after Harding's death, several major scandals emerged, including the Teapot Dome scandal.

Harding died as one of the most popular presidents in history, but the subsequent exposure of the scandals eroded his popular regard, as did revelations of several extramarital affairs. In historical rankings of the U.S. presidents during the decades after his term in office, Harding was often rated among the worst. However, in recent decades, many historians have begun to fundamentally reassess the conventional views of Harding's historical record in office.

1920 election

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Republican nomination

[edit]

By early 1920, General Leonard Wood, Illinois governor Frank Lowden, and Senator Hiram Johnson of California had emerged as the frontrunners for the Republican nomination in the upcoming presidential election.[1][2] Some in the party began to scout for such an alternative, and Harding's name arose, despite his reluctance, due to his unique ability to draw vital Ohio votes.[3] Harry Daugherty, who became Harding's campaign manager, and who was sure none of these candidates could garner a majority, convinced Harding to run after a marathon discussion of six-plus hours.[4] Daugherty's strategy focused on making Harding liked by or at least acceptable to all wings of the party, so that Harding could emerge as a compromise candidate in the likely event of a convention deadlock.[5] He struck a deal with Oklahoma oilman Jake L. Hamon, whereby 18 Oklahoma delegates whose votes Hamon had bought for Lowden were committed to Harding as a second choice if Lowden's effort faltered.[6][7]

Republican National Convention, Chicago, Illinois, June 8–12, 1920

By the time the 1920 Republican National Convention began in June, a Senate sub-committee had tallied the monies spent by the various candidates, with totals as follows: Wood – $1.8 million; Lowden – $414,000; Johnson – $194,000; and Harding – $114,000; the committed delegate count at the opening gavel was: Wood – 124; Johnson – 112; Lowden – 72; Harding – 39.[8] Still, at the opening, less than one-half of the delegates were committed,[9] and many expected the convention to nominate a compromise candidate like Pennsylvania Senator Philander C. Knox, Massachusetts Senator Henry Cabot Lodge, or 1916 nominee Charles Evans Hughes.[10] No candidate was able to corral a majority after nine ballots.[11] After the convention adjourned for the day, Republican Senators and other leaders, who were divided and without a singular political boss, met in Room 404 of the Blackstone Hotel in Chicago. After a nightlong session, these party leaders tentatively concluded Harding was the best possible compromise candidate; this meeting has often been described as having taken place in a "smoke-filled room."[12] The next day, on the tenth ballot, Harding was nominated for president. Delegates then selected Massachusetts governor Calvin Coolidge to be his vice-presidential running mate.[13]

General election

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Harding's home in Marion, Ohio, from which he conducted his 1920 "front porch" campaign (c.1918–1921)

Harding's opponent in the 1920 election was Ohio governor and newspaperman James M. Cox, who had won the Democratic nomination in a 44-ballot convention battle. Harding rejected the Progressive ideology of the Wilson administration in favor of the laissez-faire approach of the McKinley administration.[14] He ran on the promise of a "return to normalcy," calling for the end to an era which he saw as tainted by war, internationalism, and government activism.[15] He stated:

America's present need is not heroics, but healing; not nostrums, but normalcy; not revolution, but restoration; not agitation, but adjustment; not surgery, but serenity; not the dramatic, but the dispassionate; not experiment, but equipoise; not submergence in internationality, but sustainment in triumphant nationality.[16]

The 1920 election was the first in which women could vote nationwide, as well as the first to be covered on the radio.[17] Led by Albert Lasker, the Harding campaign executed a broad-based advertising campaign that used modern advertising techniques for the first time in a presidential campaign.[18] Using newsreels, motion pictures, sound recordings, billboard posters, newspapers, magazines, and other media, Lasker emphasized and enhanced Harding's patriotism and affability. Five thousand speakers were trained by advertiser Harry New and sent across the country to speak for Harding. Telemarketers were used to make phone conferences with perfected dialogues to promote Harding, and Lasker had 8,000 photos of Harding and his wife distributed around the nation every two weeks. Farmers were sent brochures decrying the alleged abuses of Democratic agriculture policies, while African Americans and women were given literature in an attempt to take away votes from the Democrats.[19] Additionally, celebrities like Al Jolson and Lillian Russell toured the nation on Harding's behalf.[20]

1920 electoral vote results

Harding won a decisive victory, receiving 404 electoral votes to Cox's 127. He took 60 percent of the nationwide popular vote, the highest percentage ever recorded up to that time, while Cox received just 34 percent of the vote.[21] Campaigning from a federal prison, Socialist Party candidate Eugene V. Debs received 3% percent of the national vote. Harding won the popular vote by a margin of 26.2%, the largest margin since the election of 1820. He swept every state outside of the "Solid South", and his victory in Tennessee made him the first Republican to win a former Confederate state since the end of Reconstruction.[22] In the concurrent congressional elections, the Republicans picked up 63 seats in the House of Representatives.[23] The incoming 67th Congress would be dominated by Republicans, though the party was divided among various factions, including an independent-minded farm bloc from the Midwest.[24]

Inauguration

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Inauguration of Warren G. Harding, March 4, 1921

Harding was inaugurated as the nation's 29th president on March 4, 1921, on the East Portico of the United States Capitol. Chief Justice Edward D. White administered the oath of office. Harding placed his hand on the Washington Inaugural Bible as he recited the oath. This was the first time that a U.S. president rode to and from his inauguration in an automobile.[25] In his inaugural address Harding reiterated the themes of his campaign, declaring:

My Countrymen: When one surveys the world about him after the great storm, noting the marks of destruction and yet rejoicing in the ruggedness of the things which withstood it, if he is an American he breathes the clarified atmosphere with a strange mingling of regret and new hope. ... Our most dangerous tendency is to expect too much from the government and at the same time do too little for it.[26]

Literary critic H.L. Mencken was appalled, announcing that:

He writes the worst English I have ever encountered. It reminds me of a string of wet sponges; it reminds me of tattered washing on the line; it reminds me of stale bean soup, of college yells, of dogs barking idiotically through endless nights.[27]

Administration

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Cabinet

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Harding cabinet
OfficeNameTerm
PresidentWarren G. Harding1921–1923
Vice PresidentCalvin Coolidge1921–1923
Secretary of StateCharles Evans Hughes1921–1923
Secretary of the TreasuryAndrew Mellon1921–1923
Secretary of WarJohn W. Weeks1921–1923
Attorney GeneralHarry M. Daugherty1921–1923
Postmaster GeneralWill H. Hays1921–1922
Hubert Work1922–1923
Harry S. New1923
Secretary of the NavyEdwin Denby1921–1923
Secretary of the InteriorAlbert B. Fall1921–1923
Hubert Work1923
Secretary of AgricultureHenry Cantwell Wallace1921–1923
Secretary of CommerceHerbert Hoover1921–1923
Secretary of LaborJames J. Davis1921–1923
Harding and his first Cabinet, 1921
From left: Harding, Andrew W. Mellon, Harry M. Daugherty, Edwin Denby, Henry C. Wallace, James J. Davis, Charles Evans Hughes, Calvin Coolidge, John W. Weeks, Will H. Hays, Albert Fall, Herbert Hoover

Harding selected numerous prominent national figures for his ten-person Cabinet. Henry Cabot Lodge, the chairman of the Senate Foreign Relations Committee, suggested that Harding appoint Elihu Root or Philander C. Knox as Secretary of State, but Harding instead selected former Supreme Court Justice Charles Evans Hughes for the position. Harding appointed Henry C. Wallace, an Iowan journalist who had advised Harding's 1920 campaign on farm issues, as Secretary of Agriculture. After Charles G. Dawes declined Harding's offer to become Secretary of the Treasury, Harding assented to Senator Boies Penrose's suggestion to select Pittsburgh billionaire Andrew Mellon. Harding used Mellon's appointment as leverage to win confirmation for Herbert Hoover, who had led the U.S. Food Administration under Wilson and who became Harding's Secretary of Commerce.[5]

Rejecting public calls to appoint Leonard Wood as Secretary of War, Harding instead appointed Lodge's preferred candidate, former Senator John W. Weeks of Massachusetts. He selected James J. Davis for the position of Secretary of Labor, as Davis satisfied Harding's criteria of being broadly acceptable to labor but being opposed to labor leader Samuel Gompers. Will H. Hays, the chairman of the Republican National Committee, was appointed Postmaster General. Grateful for his actions at the 1920 Republican convention, Harding offered Frank Lowden the post of Secretary of the Navy. After Lowden turned down the post, Harding instead appointed former Congressman Edwin Denby of Michigan. New Mexico Senator Albert B. Fall, a close ally of Harding's during their time in the Senate together, became Harding's Secretary of the Interior.[5]

Although Harding was committed to putting the "best minds" on his Cabinet, he often awarded other appointments to those who had contributed to his campaign's victory. Wayne Wheeler, leader of the Anti-Saloon League, was allowed by Harding to dictate who would serve on the Prohibition Commission.[28] Harding appointed Harry M. Daugherty as Attorney General because he felt he owed Daugherty for running his 1920 campaign. After the election, many people from the Ohio area moved to Washington, D.C., made their headquarters in a little green house on K Street, and would be eventually known as the "Ohio Gang".[29] Graft and corruption charges permeated Harding's Department of Justice; bootleggers confiscated tens of thousands cases of whiskey through bribery and kickbacks.[30] The financial and political scandals caused by the Ohio Gang and other Harding appointees, in addition to Harding's own personal controversies, severely damaged Harding's personal reputation and eclipsed his presidential accomplishments.[31]

Press corps

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According to biographers, Harding got along better with the press than any other previous president, being a former newspaperman. Reporters admired his frankness, candor, and his confessed limitations. He took the press behind the scenes and showed them the inner circle of the presidency. In November 1921, Harding also implemented a policy of taking written questions from reporters during a press conference.[32]

Judicial appointments

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Harding appointed four justices to the Supreme Court of the United States. After the death of Chief Justice Edward Douglass White, former President William Howard Taft lobbied Harding for the nomination to succeed White. Harding acceded to Taft's request, and Taft joined the court in June 1921.[33] Harding's next choice for the Court was conservative former Senator George Sutherland of Utah, who had been a major supporter of Taft in 1912 and Harding in 1920. Sutherland succeeded John Hessin Clarke in September 1922 after Clarke resigned. Two Supreme Court vacancies arose in 1923 due to the death of William R. Day and the resignation of Mahlon Pitney. On Taft's recommendation, Harding nominated railroad attorney and conservative Democrat Pierce Butler to succeed Day. Progressive senators like Robert M. La Follette unsuccessfully sought to defeat Butler's nomination, but Butler was confirmed. On the advice of Attorney General Daugherty, Harding appointed federal appellate judge Edward Terry Sanford of Tennessee to succeed Pitney.[34] Bolstered by these appointments, the Taft Court upheld the precedents of the Lochner era and largely reflected the conservatism of the 1920s.[35]

The Justice Department in the Harding Administration selected 6 judges to the United States Courts of Appeals, 42 judges to the United States district courts, and 2 judges to the United States Court of Customs Appeals.

Domestic affairs

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Revenue Act of 1921

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Secretary of Treasury Andrew W. Mellon

Harding assumed office while the nation was in the midst of a postwar economic decline known as the Depression of 1920–21. He strongly rejected proposals to provide for federal unemployment benefits, believing that the government should leave relief efforts to charities and local governments.[36] He believed that the best way to restore economic prosperity was to raise tariff rates and reduce the government's role in economic activities.[37] His administration's economic policy was formulated by Secretary of the Treasury Mellon, who proposed cuts to the excess profits tax and the corporate tax.[38] The central tenet of Mellon's tax plan was a reduction of the surtax, a progressive income tax that only affected high-income earners.[39] Mellon favored the wealthy holding as much capital as possible, since he saw them as the main drivers of economic growth.[40] Congressional Republican leaders shared Harding and Mellon's desire for tax cuts, and Republicans made tax cuts and tariff rates the key legislative priorities of Harding's first year in office. Harding called a special session of the Congress to address these and other issues, and Congress convened in April 1921.[41]

Despite opposition from Democrats and many farm state Republicans, Congress passed the Revenue Act of 1921 in November, and Harding signed the bill into law later that month. The act greatly reduced taxes for the wealthiest Americans, though the cuts were not as deep as Mellon had favored.[42] The act reduced the top marginal income tax rate from 73 percent to 58 percent,[43] lowered the corporate tax from 65 percent to 50 percent, and provided for ultimate elimination of the excess profits tax.[44][45] Revenues to the treasury decreased substantially.[46]

Wages, profits, and productivity all made substantial gains during the 1920s, and economists have differed as to whether Revenue Act of 1921 played a major role in the strong period of economic growth after the Depression of 1920–21. Economist Daniel Kuehn has attributed the improvement to the earlier monetary policy of the Federal Reserve, and notes that the changes in marginal tax rates were accompanied by an expansion in the tax base that could account for the increase in revenue.[47] Libertarian historians Schweikart and Allen argue that Harding's tax and economic policies in part "... produced the most vibrant eight year burst of manufacturing and innovation in the nation's history,"[48] Recovery did not last long. Another economic contraction began near the end of Harding's presidency in 1923, while tax cuts were still underway. A third contraction followed in 1927 during the next presidential term.[49] Some economists have argued that the tax cuts resulted in growing economic inequality and speculation, which in turn contributed to the Great Depression.[50]

Fordney– McCumber Tariff

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Like most Republicans of his era, Harding favored protective tariffs—high taxes on selected imports. Before 1920 Harding was a spokesman for the traditional Republican Party stance favoring high tariffs to protect the manufacturing industries and the high wages they paid. In the 1920 campaign and during his presidency, Harding was a strong advocate for protectionism, believing that tariffs were essential to safeguard American jobs and industries. He believed that tariffs would stimulate domestic manufacturing, keep factory wages high, and lead to general prosperity. However, Harding's administration also sought to negotiate reciprocal trade agreements, which involved reducing tariffs on imports from another country in exchange for similar concessions by it. This approach aimed to promote more trade while still protecting domestic industries.[51] [52]

Shortly after taking office, he signed the Emergency Tariff of 1921, a stopgap measure primarily designed to aid American farmers suffering from the effects of an expansion in European farm imports.[53] The emergency tariff also protected domestic manufacturing, as it included a clause to prevent dumping by European manufacturers.[54] Harding hoped to sign a permanent tariff into law by the end of 1921, but heated congressional debate over tariff schedules, especially between agricultural and manufacturing interests, delayed passage of such a bill.[55]

In September 1922, Harding enthusiastically signed the Fordney–McCumber Tariff Act.[56] The protectionist legislation was sponsored by Representative Joseph W. Fordney and Senator Porter J. McCumber, and was supported by nearly every congressional Republican.[55] The act increased the tariff rates contained in the previous Underwood-Simmons Tariff Act of 1913, to the highest level in the nation's history. Harding became concerned when the agriculture business suffered economic hardship from the high tariffs. By 1922, Harding began to believe that the long-term effects of high tariffs could be detrimental to national economy, despite the short-term benefits.[57] The high tariffs established under Harding, Coolidge, and Hoover have historically been viewed as a contributing factor to the Wall Street Crash of 1929.[44][58]

Bureau of the Budget

[edit]
Charles Dawes—the first budget director

Harding believed the federal government should be fiscally managed in a way similar to private sector businesses.[59] He had campaigned on the slogan, "Less government in business and more business in government."[60] As the House Ways and Means Committee found it increasingly difficult to balance revenues and expenditures, Taft had recommended the creation of a federal budget system during his presidency. Businessmen and economists coalesced around Taft's proposal during the Wilson administration, and by 1920, both parties favored it. Reflecting this goal, in June 1921, Harding signed the Budget and Accounting Act of 1921.[61]

The act established the Bureau of the Budget to coordinate the federal budgeting process.[62] At the head of this office was the presidential budget director, who was directly responsible to the president rather than to the Secretary of Treasury. The law also stipulated that the president must annually submit a budget to Congress, and all presidents since have had to do so.[63] Additionally, the General Accounting Office (GAO) was created to assure congressional oversight of federal budget expenditures. The GAO would be led by the Comptroller General, who was appointed by Congress to a term of fifteen years.[64] Harding appointed Charles Dawes as the Bureau of the Budget's first director. Dawes's first year in office saw government spending reduced by $1.5 billion, a 25 percent reduction, and he presided over another 25 percent reduction the following year.[65]

Immigration restriction

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In the first two decades of the 20th century, immigration to the United States had increased, with many of the immigrants coming from Southern Europe and Eastern Europe rather than Western Europe. Many Americans viewed these new immigrants with suspicion, and World War I and the First Red Scare further heightened nativist fears.[66] The Per Centum Act of 1921, signed by Harding on May 19, 1921, reduced the numbers of immigrants to 3 percent of a country's represented population based on the 1910 Census. The act, which had been vetoed by President Wilson in the previous Congress, also allowed unauthorized immigrants to be deported. Harding and Secretary of Labor James Davis believed that enforcement had to be humane, and Harding often allowed exceptions granting reprieves to thousands of immigrants.[67] Immigration to the United States fell from roughly 800,000 in 1920 to approximately 300,000 in 1922.[54] Though the act was later superseded by the Immigration Act of 1924, it marked the establishment of the National Origins Formula.[67]

Veterans

[edit]

Many World War I veterans were unemployed or otherwise economically distressed when Harding took office. To aid these veterans, the Senate considered passing a law that gave veterans a $1 bonus for each day they had served in the war.[68] Harding opposed payment of a bonus to veterans, arguing that much was already being done for them and that the bill would "break down our Treasury, from which so much is later on to be expected."[69] The Senate sent the bonus bill back to committee,[69] but the issue returned when Congress reconvened in December 1921. A bill providing a bonus, without a means of funding it, was passed by both houses in September 1922. Harding vetoed it, and the veto was narrowly sustained.[70]

In August 1921, Harding signed the Sweet Bill, which established a new agency known as the Veterans Bureau. After World War I, 300,000 wounded veterans were in need of hospitalization, medical care, and job training. To handle the needs of these veterans, the new agency incorporated the War Risk Insurance Bureau, the Federal Hospitalization Bureau, and three other bureaus that dealt with veteran affairs.[71] Harding appointed Colonel Charles R. Forbes, a decorated war veteran, as the Veteran Bureau's first director. The Veterans Bureau later was incorporated into the Veterans Administration and ultimately the Department of Veterans Affairs.[72]

Farm acts

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Farmers were among the hardest hit during the Depression of 1920–21, and prices for farm goods collapsed.[73] The presence of a powerful bipartisan farm bloc led by Senator William S. Kenyon and Congressman Lester J. Dickinson ensured that Congress would address the farm crisis. Harding established the Joint Commission on Agricultural Industry to make recommendations on farm policy, and he signed a series of farm- and food-related laws in 1921 and 1922.[74] Much of the legislation emanated from President Woodrow Wilson's 1919 Federal Trade Commission report, which investigated and discovered "manipulations, controls, trusts, combinations, or restraints out of harmony with the law or the public interest" in the meat-packing industry. The first law was the Packers and Stockyards Act, which prohibited packers from engaging in unfair and deceptive practices. Two amendments were made to the Farm Loan Act of 1916 that President Wilson had signed into law, which had expanded the maximum size of rural farm loans. The Emergency Agriculture Credit Act authorized new loans to farmers to help them sell and market livestock. The Capper–Volstead Act, signed by Harding on February 18, 1922, protected farm cooperatives from anti-trust legislation. The Future Trading Act was also enacted, regulating puts and calls, bids, and offers on futures contracting. Later, on May 15, 1922, the Supreme Court ruled this legislation unconstitutional,[44] but Congress passed the similar Grain Futures Act in response. Though sympathetic to farmers and deferential to Secretary of Agriculture Henry Wallace, Harding was uncomfortable with many of the farm programs since they relied on governmental action, and he sought to weaken the farm bloc by appointing Kenyon to a federal judgeship in 1922.[75]

Highways and radio

[edit]
Secretary of Commerce Herbert Hoover listening to a radio

During the 1920s, use of electricity became increasingly common, and mass production of the automobile stimulated industries such as highway construction, rubber, steel, and construction.[76] Congress had passed the Federal Aid Road Act of 1916 to aid state road-building programs, and Harding favored a further expansion of the federal role in road construction and maintenance. He signed into law the Federal Aid Highway Act of 1921, which allowed states to select interstate and intercounty roads that would receive federal funds.[77] From 1921 to 1923, the federal government spent $162 million on America's highway system, infusing the U.S. economy with a large amount of capital.[78]

Harding and Secretary of Commerce Hoover embraced the emerging medium of the radio.[79] In June 1922, Harding became the first president that the American public heard on the radio, delivering a speech in honor of Francis Scott Key.[17] Secretary of Commerce Hoover took charge of the administration's radio policy. He convened a conference of radio broadcasters in 1922, which led to a voluntary agreement for licensing of radio frequencies through the Commerce Department. Both Harding and Hoover believed that something more than an agreement was needed, but Congress was slow to act, not imposing radio regulation until 1927. Hoover hosted a similar conference on aviation, but, as with the radio, was unable to win passage of legislation that would have provided for regulation air travel.[80]

Labor issues

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Union membership had grown during World War I, and by 1920 union members constituted approximately one-fifth of the labor force. Many employers reduced wages after the war, and some business leaders hoped to destroy the power of organized labor in order to re-establish control over their employees. These policies led to increasing labor tension in the early 1920s.[81] Widespread strikes marked 1922, as labor sought redress for falling wages and increased unemployment. In April, 500,000 coal miners, led by John L. Lewis, struck over wage cuts. Mining executives argued that the industry was seeing hard times; Lewis accused them of trying to break the union. Harding convinced the miners to return to work while a congressional commission looked into their grievances.[82] He also sent out the National Guard and 2,200 deputy U.S. marshals to keep the peace.[83] On July 1, 1922, 400,000 railroad workers went on strike. Harding proposed a settlement that made some concessions, but management objected. Attorney General Daugherty convinced Judge James H. Wilkerson to issue a sweeping injunction to break up the strike. Although there was public support for the Wilkerson injunction, Harding felt it went too far, and had Daugherty and Wilkerson amend it. The injunction succeeded in ending the strike; however, tensions remained high between railroad workers and management for years.[84]

By 1922, the eight-hour day had become common in American industry. One exception was in steel mills, where workers labored through a twelve-hour workday, seven days a week. Hoover considered this practice barbaric, and convinced Harding to convene a conference of steel manufacturers with a view to ending it. The conference established a committee under the leadership of U.S. Steel chairman Elbert Gary, which in early 1923 recommended against ending the practice. Harding sent a letter to Gary deploring the result, which was printed in the press, and public outcry caused the manufacturers to reverse themselves and standardize the eight-hour day.[85]

African Americans

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Harding supported the anti-lynching bill proposed by Republican Congressman Leonidas C. Dyer; it was killed in the Senate.

Harding spoke of equal rights in his speech when accepting the Republican nomination in 1920:

"No majority shall abridge the rights of a minority [...] I believe the Black citizens of America should be guaranteed the enjoyment of all their rights, that they have earned their full measure of citizenship bestowed, that their sacrifices in blood on the battlefields of the republic have entitled them to all of freedom and opportunity, all of sympathy and aid that the American spirit of fairness and justice demands.”[86]

In June 1921, three days after the massive Tulsa race massacre President Harding spoke at the all-black Lincoln University in Pennsylvania. “Despite the demagogues, the idea of our oneness as Americans has risen superior to every appeal to mere class and group,” Harding declared. “And so, I wish it might be in this matter of our national problem of races.” He honored Lincoln alumni who had been among the more than 367,000 black soldiers to fight in the Great War. One Lincoln graduate led the 370th U.S. Infantry, the “Black Devils.” Col. F.A. Denison was the sole black commander of a regiment in France. The President called education critical to solving the issues of racial inequality, but he challenged the students to shoulder their shared responsibility to advance freedom. The government alone, he said, could not magically “take a race from bondage to citizenship in half a century.” He spoke about Tulsa and offered up a simple prayer: “God grant that, in the soberness, the fairness, and the justice of this country, we never see another spectacle like it.”[87]

Notably in an age of severe racial intolerance during the 1920s, Harding did not hold any racial animosity, according to historian Carl S. Anthony.[88] In a speech on October 26, 1921, given in segregated Birmingham, Alabama Harding advocated civil rights for African Americans, becoming the first president to openly advocate black political, educational, and economic equality during the 20th century.[88] In the Birmingham speech, Harding called for African Americans to have equal educational opportunities and greater voting rights in the South. The white section of the audience listened in silence while the black section of the segregated audience cheered.[89] Harding, however, openly stated that he was not for black social equality in terms of racial mixing or intermarriage.[90] Harding also spoke on the Great Migration, stating that blacks migrating to the North and West to find employment had actually harmed race relations between blacks and whites.[90]

The three previous presidents had dropped African Americans from several government positions they had previously held, and Harding reversed this policy.[91] African Americans were appointed to high-level positions in the Departments of Labor and Interior, and numerous blacks were hired in other agencies and departments.[92] Eugene P. Trani and Daniel L. Wilson write that Harding did not emphasize appointing African Americans to positions they had traditionally held prior to Wilson's tenure, partly out of a desire to court white Southerners.[93] Harding also disappointed black supporters by not abolishing segregation in federal offices, and through his failure to comment publicly on the Ku Klux Klan.[94]

Harding supported Congressman Leonidas Dyer's federal anti-lynching bill, known as the Dyer Bill, which passed the House of Representatives in January, 1922.[95] When it reached the Senate floor in November 1922, it was filibustered by Southern Democrats, and Senator Lodge withdrew it so as to allow a ship subsidy bill Harding favored to be debated. Many blacks blamed Harding for the Dyer bill's defeat; Harding biographer Robert K. Murray noted that it was hastened to its end by Harding's desire to have the ship subsidy bill considered.[96]

Sheppard–Towner Maternity Act

[edit]

On November 21, 1921, Harding signed the Sheppard–Towner Maternity Act, the first major federal government social welfare program in the U.S. The law was sponsored by Julia Lathrop, America's first director of the U.S. Children's Bureau. The Sheppard–Towner Maternity Act funded almost 3,000 child and health centers, where doctors treated healthy pregnant women and provided preventive care to healthy children. Child welfare workers were sent out to make sure that parents were taking care of their children. Many women were given career opportunities as welfare and social workers. Although the law remained in effect only eight years, it set the trend for New Deal social programs during the 1930s.[97][98]

Deregulation

[edit]

As part of Harding's belief in limiting the government's role in the economy, he sought to undercut the power of the regulatory agencies that had been created or strengthened during the Progressive Era. Among the agencies in existence when Harding came to office were the Federal Reserve (charged with regulating banks), the Interstate Commerce Commission (charged with regulating railroads) and the Federal Trade Commission (charged with regulating other business activities, especially trusts). Harding staffed the agencies with individuals sympathetic to business concerns and hostile to regulation. By the end of his tenure, only the Federal Trade Commission resisted conservative domination.[99] Other federal organizations, like the Railroad Labor Board, also came under the sway of business interests.[100] In 1921, Harding signed the Willis Graham Act, which effectively rescinded the Kingsbury Commitment and allowed AT&T to establish a monopoly in the telephone industry.[101]

Release of political prisoners

[edit]
Eugene Debs after release from prison by President Harding, visits the White House

On December 23, 1921, Harding released Socialist leader Eugene Debs from prison. Debs had been convicted under sedition charges brought by the Wilson administration for his opposition to the draft during World War I.[102] Despite many political differences between the two candidates, Harding commuted Debs' sentence to time served, though he did not grant Debs an official presidential pardon. Debs' failing health was a contributing factor for the release. Harding granted a general amnesty to 23 prisoners, alleged anarchists and socialists, who had been active during the First Red Scare.[44][103]

1922 mid-term elections

[edit]

Entering the 1922 midterm congressional election campaign, Harding and the Republicans had followed through on many of their campaign promises. But some of the fulfilled pledges, like cutting taxes for the well-off, did not appeal to the electorate. The economy had not returned to normalcy, with unemployment at 11 percent, and organized labor was angry over the outcome of the strikes. In the 1922 elections, Republicans suffered major losses in both the House and the Senate. Though they kept control of both chambers, they retained only a narrow majority in the House at the start of the 68th Congress in 1923.[104] The elections empowered the progressive wing of the party led by Robert La Follette, who began investigations into Harding administration.[105]

Foreign affairs

[edit]

European relations

[edit]
By the time Harding took office, several new European states had been established in the Aftermath of World War I

Harding took office less than two years after the end of World War I, and his administration faced several issues in the aftermath of that conflict. Harding made it clear when he appointed Hughes as Secretary of State that the former justice would run foreign policy, a change from Wilson's close management of international affairs.[106] Harding and Hughes frequently communicated, and the president remained well-informed regarding the state of foreign affairs, but he rarely overrode any of Hughes's decisions.[107] Hughes did have to work within some broad outlines; after taking office, Harding hardened his stance on the League of Nations, deciding the U.S. would not join even a scaled-down version of the League.[108]

With the Treaty of Versailles unratified by the Senate, the U.S. remained technically at war with Germany, Austria, and Hungary. Peacemaking began with the Knox–Porter Resolution, declaring the U.S. at peace and reserving any rights granted under Versailles. Treaties with Germany, Austria and Hungary, each containing many of the non-League provisions of the Treaty of Versailles, were ratified in 1921.[108] This still left the question of relations between the U.S. and the League. Hughes' State Department initially ignored communications from the League, or tried to bypass it through direct communications with member nations. By 1922, though, the U.S., through its consul in Geneva, was dealing with the League. The U.S. refused to participate in any League meeting with political implications, but it sent observers to sessions on technical and humanitarian matters.[109] Harding stunned the capital when he sent to the Senate a message supporting the participation of the U.S. in the proposed Permanent Court of International Justice (also known as the "World Court"). His proposal was not favorably received by most senators, and a resolution supporting U.S. membership in the World Court was drafted and promptly buried in the Foreign Affairs Committee.[110]

By the time Harding took office, there were calls from foreign governments for the reduction of the massive war debt owed to the United States, and the German government sought to reduce the reparations that it was required to pay. The U.S. refused to consider any multilateral settlement. Harding sought passage of a plan proposed by Mellon to give the administration broad authority to reduce war debts in negotiation, but Congress, in 1922, passed a more restrictive bill. Hughes negotiated an agreement for Britain to pay off its war debt over 62 years at low interest, effectively reducing the present value of the obligations. This agreement, approved by Congress in 1923, set a pattern for negotiations with other nations. Talks with Germany on reduction of reparations payments would result in the Dawes Plan of 1924.[111]

During World War I, the U.S. had been among the nations that had sent troops to Russia after the Russian Revolution. Afterwards, President Wilson refused to provide diplomatic recognition to Russia, which was led by a Communist government following the October Revolution. Commerce Secretary Hoover, with considerable experience of Russian affairs, took the lead on Russian policy. He supported aid to and trade with Russia, fearing U.S. companies would be frozen out of the Soviet market.[112] When famine struck Russia in 1921, Hoover had the American Relief Administration, which he had headed, negotiate with the Russians to provide aid. According to historian George Herring, the American relief effort may have saved as many as 10 million people from starvation. U.S. businessman such as Armand Hammer invested in the Russian economy, but many of these investments failed due to various Russian restrictions on trade and commerce. Russian and (after the 1922 establishment of the Soviet Union) Soviet leaders hoped that these economic and humanitarian connections would lead to recognition of their government, but Communism's extreme unpopularity in the U.S. precluded this possibility.[113]

Disarmament

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Charles Evans Hughes, former Supreme Court Justice and Harding's Secretary of State

At the end of World War I, the United States had the largest navy and one of the largest armies in the world. With no serious threat to the United States itself, Harding and his successors presided over the disarmament of the navy and the army. The army shrank to 140,000 men, while naval reduction was based on a policy of parity with Britain.[114] Seeking to prevent an arms race, Senator William Borah won passage of a congressional resolution calling for a 50 percent reduction of the American Navy, the British Navy, and the Japanese Navy. With Congress's backing, Harding and Hughes began preparations to hold a naval disarmament conference in Washington.[115] The Washington Naval Conference convened in November 1921, with representatives from the U.S., Japan, Britain, France, Italy, China, Belgium, the Netherlands, and Portugal. Secretary of State Hughes assumed a primary role in the conference and made the pivotal proposal—the U.S. would reduce its number of warships by 30 if Great Britain decommissioned 19 ships and Japan decommissioned 17 ships.[116] A journalist covering the conference wrote that "Hughes sank in thirty-five minutes more ships than all of the admirals of the world have sunk in a cycle of centuries."[117]

The conference produced six treaties and twelve resolutions among the participating nations, which ranged from limiting the tonnage of naval ships to custom tariffs.[118] The United States, Britain, Japan, and France reached the Four-Power Treaty, in which each country agreed to respect the territorial integrity of one another in the Pacific Ocean. Those four powers as well as Italy also reached the Washington Naval Treaty, which established a ratio of battleship tonnage that each country agreed to respect. In the Nine-Power Treaty, each signatory agreed to respect the Open Door Policy in China, and Japan agreed to return Shandong to China.[119] The treaties only remained in effect until the mid-1930s, however, and ultimately failed. Japan eventually invaded Manchuria and the arms limitations no longer had any effect. The building of "monster warships" resumed and the U.S. and Great Britain were unable to quickly rearm themselves to defend an international order and stop Japan from remilitarizing.[120][121]

Latin America

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Intervention in Latin America had been a minor campaign issue; Harding spoke against Wilson's decision to send U.S. troops to the Dominican Republic, and attacked the Democratic vice presidential candidate, Franklin D. Roosevelt, for his role in the Haitian intervention. Secretary of State Hughes worked to improve relations with Latin American countries who were wary of the American use of the Monroe Doctrine to justify intervention; at the time of Harding's inauguration, the U.S. also had troops in Cuba and Nicaragua. The troops stationed in Cuba to protect American interests were withdrawn in 1921, but U.S. forces remained in the other three nations through Harding's presidency.[122] In April 1921, Harding gained the ratification of the Thomson–Urrutia Treaty with Colombia, granting that nation $25,000,000 as settlement for the U.S.-provoked Panamanian revolution of 1903.[123] The Latin American nations were not fully satisfied, as the U.S. refused to renounce interventionism, though Hughes pledged to limit it to nations near the Panama Canal and to make it clear what the U.S. aims were.[124]

The U.S. had intervened repeatedly in Mexico under Wilson, and had withdrawn diplomatic recognition, setting conditions for reinstatement. The Mexican government under President Álvaro Obregón wanted recognition before negotiations, but Wilson and his final Secretary of State, Bainbridge Colby, refused. Both Hughes and Secretary of the Interior Fall opposed recognition; Hughes instead sent a draft treaty to the Mexicans in May 1921, which included pledges to reimburse Americans for losses in Mexico since the 1910 revolution there. Obregón was unwilling to sign a treaty before being recognized, and he worked to improve the relationship between American businesses and Mexico, reaching agreement with creditors and mounting a public relations campaign in the United States.[125] This had its effect, and by mid-1922, Fall was less influential than he had been, lessening the resistance to recognition. The two presidents appointed commissioners to reach a deal, and the U.S. recognized the Obregón government on August 31, 1923, just under a month after Harding's death, substantially on the terms proffered by Mexico.[126]

Administration scandals

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When Harding assembled his administration following the 1920 election, he appointed several longtime allies and campaign contributors to prominent political positions in control of vast amounts of government money and resources. Some of the appointees used their new powers to exploit their positions for personal gain. Although Harding was responsible for making these appointments, it is unclear how much, if anything, Harding himself knew about his friends' illicit activities. No evidence to date suggests that Harding personally profited from such crimes, but he was apparently unable to prevent them. "I have no trouble with my enemies", Harding told journalist William Allen White late in his presidency, "but my damn friends, they're the ones that keep me walking the floor nights!"[110] The only scandal which was openly discovered during Harding's lifetime was in the Veteran's Bureau.[127] Yet gossip about various scandals became rampant after the suicides of Charles Cramer and Jess Smith. Harding responded aggressively to all of this with a mixture of grief, anger and perplexity.[citation needed]

Teapot Dome

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Albert B. Fall, Harding's first Secretary of the Interior and the first former Cabinet member sent to prison

The most notorious scandal was Teapot Dome, most of which came to light after Harding's death. This affair concerned an oil reserve in Wyoming that was covered by a teapot-shaped rock formation. For years, the country had taken measures to ensure the availability of petroleum reserves, particularly for the navy's use.[128] On February 23, 1923, Harding issued Executive Order # 3797, which created the Naval Petroleum Reserve Number 4 in Alaska. By the 1920s, it was clear that petroleum was important to the national economy and security, and the reserve system was designed to keep the oil under government jurisdiction rather than subject to private claims.[129] Management of these reserves was the subject of multi-dimensional arguments—beginning with a turf battle between the Secretary of the Navy and the Interior Department.[130] The strategic reserves issue was also a debate topic between conservationists and the petroleum industry, as well as those who favored public ownership versus private control.[131] Secretary of the Interior Albert Fall brought to his office significant political and legal experience, in addition to heavy personal debt, incurred in his obsession to expand his personal estate in New Mexico. He also was an avid supporter of the private ownership and management of reserves.[132]

Fall contracted Edward Doheny of Pan American Corporation to build storage tanks in exchange for drilling rights. It later came to light that Doheny had made significant personal loans to Fall.[133] The secretary also negotiated leases for the Teapot Dome reserves to Harry Ford Sinclair of the Consolidated Oil Corporation in return for guaranteed oil reserves to the credit of the government. Again, it later emerged that Sinclair had personally made concurrent cash payments of over $400,000 to Fall.[132] These activities took place under the watch of progressive and conservationist attorney, Harry A. Slattery, acting for Gifford Pinchot and Robert La Follette.[134] Fall was ultimately convicted in 1931 of accepting bribes and illegal no-interest personal loans in exchange for the leasing of public oil fields to business associates.[135] In 1931, Fall was the first cabinet member in history imprisoned for crimes committed while in office.[136] Paradoxically, while Fall was convicted for taking the bribe, Doheny was acquitted of paying it.[137]

Justice Department

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Harry M. Daugherty, U.S. Attorney General. Photo taken 1920.

Harding's appointment of Harry M. Daugherty as Attorney General received more criticism than any other. As Harding's campaign manager, Daugherty's Ohio lobbying and back room maneuvers with politicians were not considered the best qualifications.[138] Journalist M. R. Werner referred to the Justice Department under Harding and Daugherty as "the den of a ward politician and the White House a night club". On September 16, 1922, Minnesota Congressman Oscar E. Keller brought impeachment charges against Daugherty. On December 4, formal investigation hearings, headed by congressman Andrew J. Volstead, began against Daugherty. The impeachment process, however, stopped, since Keller's charges that Daugherty protected interests in trust and war fraud cases could not be substantially proven.[139]

Daugherty, according to a 1924 Senate investigation into the Justice Department, authorized a system of graft between aides Jess Smith and Howard Mannington. Both Mannington and Smith allegedly took bribes to secure appointments, prison pardons, and freedom from prosecution. A majority of these purchasable pardons were directed towards bootleggers. Cincinnati bootlegger George L. Remus, allegedly paid Jess Smith $250,000 to not prosecute him. Remus, however, was prosecuted, convicted, and sentenced to Atlanta prison. Smith tried to extract more bribe money from Remus to pay for a pardon. The prevalent question at the Justice Department was "How is he fixed?"[140] Another alleged scandal involving Daugherty concerned the Wright-Martin Aircraft Corp., which supposedly overcharged the federal government by $2.3 million on war contracts.[141] Captain Hazel Scaife tried to bring the company to trial, but was blocked by the Department of Justice. At this time, Daugherty was said to have owned stock in the company and was even adding to these holdings, though he was never charged in the matter.[142]

Daugherty hired William J. Burns to run the Justice Department's Bureau of Investigation.[143] A number of inquisitive congressmen or senators found themselves the object of wire taps, rifled files, and copied correspondence.[144] Burns' primary operative was Gaston B. Means, a reputed con man, who was known to have fixed prosecutions, sold favors, and manipulated files in the Justice Department.[145] Means, who acted independently, took direct instructions and payments from Jess Smith, without Burn's knowledge, to spy on congressmen. Means hired a woman, Laura Jacobson, to spy on Senator Thaddeus Caraway, a critic of the Harding administration. Means also was involved with "roping" bootleggers.[139]

Daugherty remained in his position during the early days of the Calvin Coolidge administration, then resigned on March 28, 1924, amidst allegations that he accepted bribes from bootleggers. Daugherty was later tried and acquitted twice for corruption. Both juries hung—in one case, after 65 hours of deliberation. Daugherty's famous defense attorney, Max Steuer, blamed all corruption allegations against Daugherty on Jess Smith, who by then had committed suicide.[146]

The same year, Daugherty and others who had served in the Harding Administration were implicated by Alien Property Custodian Thomas W. Miller for pressuring him to deposit funds in the Midland National Bank, which Daugherty's brother Mally "Mal" S.[147] Daugherty served as president of, when Daughterty refused to investigate the Teapot Dome Scandal.[148] On January 17, 1927, in the McGrain v. Daugherty ruling, the U.S. Supreme Court upheld a contempt conviction against Mally Daughterty which was related to a contempt citation which was issued against him in 1924.[147] for his refusal to cooperate with a U.S. Senate committee investigating his brother's failures to prosecute the perpetrators in the Teapot Dome Scandal.[149] However, the Supreme Court decision to uphold Mal's contempt conviction would also result in the Midland Bank case against Daugherty passing into history.[147]

Jess W. Smith

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Jess Smith

Daugherty's personal aide, Jess W. Smith, was a central figure in government file manipulation, paroles and pardons, influence peddling—and even served as bag man.[150] During Prohibition, pharmacies received alcohol permits to sell alcohol for medical purposes. According to Congressional testimony, Daugherty arranged for Jess Smith and Howard Mannington to sell these permits to drug company agents who really represented bootleggers. The bootleggers, having obtained a permit could buy cases of whiskey. Smith and Mannington split the permit sales profits. Approximately 50,000 to 60,000 cases of whiskey were sold to bootleggers at a net worth of $750,000 to $900,000. Smith supplied bootleg whiskey to the White House and the Ohio Gang house on K Street, concealing the whiskey in a briefcase for poker games.[30][151]

Eventually, rumors of Smith's abuses—free use of government cars, going to all night parties, manipulation of Justice Department files—reached Harding. Harding withdrew Smith's White House clearance and Daugherty told him to leave Washington. On May 30, 1923, Smith's dead body was found at Daugherty's apartment with a gunshot wound to the head. William J. Burns immediately took Smith's body away and there was no autopsy. Historian Francis Russell, concluding this was a suicide, indicates that a Daugherty aide entered Smith's room moments after a noise awoke him, and found Smith on the floor with his head in a trash can and a revolver in his hand. Smith allegedly purchased the gun from a hardware store shortly before his death, after Daugherty verbally abused him for waking him up from a nap.[152][153]

Veterans' bureau

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Charles R. Forbes, director of the Veterans Bureau and convicted of defrauding the government

Charles R. Forbes, the energetic Director of the Veterans Bureau, disregarded the dire needs of wounded World War I veterans to procure his own wealth.[154] After his appointment, Forbes convinced Harding to issue executive orders that gave him control over veterans' hospital construction and supplies.[127] To limit corruption in the Veterans' Bureau, Harding insisted that all government contracts be by public notice, but Forbes provided inside information to his co-conspirators to ensure their bids succeeded.[72] Forbes' main task at the Veterans bureau, having an unprecedented $500 million yearly budget, was to ensure that new hospitals were built around the country to help the 300,000 wounded World War I veterans.[155] Forbes defrauded the government of an estimated $225 million by increasing construction costs from $3,000 to $4,000 per hospital bed.[156]

In early 1922, Forbes went on tours, known as joy-rides, of new hospital construction sites around the country and the Pacific Coast. On these tours, Forbes allegedly received traveling perks and alcohol kickbacks, took a $5,000 bribe in Chicago, and made a secret code to ensure $17 million in government construction hospital contracts with corrupt contractors.[157] Intent on making more money, on his return to the U.S. Capitol Forbes immediately began selling valuable hospital supplies under his control in large warehouses at the Perryville Depot.[158] The government had stockpiled huge amounts of hospital supplies during the first World War, which Forbes unloaded for a fraction of their cost to the Boston firm of Thompson and Kelly.[159][160] Charles F. Cramer, Forbes' legal council to the Veterans Bureau, rocked the nation's capital when he committed suicide in 1923.[161][162] Cramer, at the time of his death, was being investigated by a Senate committee on charges of corruption.[163][164]

Forbes faced resistance in the form of General Charles E. Sawyer, chairman of the Federal Hospitalization Board, who represented controlling interests in the valuable hospital supplies.[165] Sawyer, who was also Harding's personal physician, told Harding that Forbes was selling valuable hospital supplies to an insider contractor.[166] After issuing two orders for the sales to stop, Harding finally summoned Forbes to the White House and demanded Forbes' resignation, since Forbes had been insubordinate in not stopping the shipments.[167] Harding, however, was not yet ready to announce Forbes' resignation and let him flee to Europe on the "flimsy pretext" that he would help disabled U.S. Veterans in Europe.[168][169] Harding placed a reformer, Brigadier General Frank T. Hines, in charge of the Veterans Bureau. Hines immediately cleared up the mess left by Forbes. When Forbes returned to the U.S., he visited Harding at the White House in the Red Room. During the meeting, Harding angrily grabbed Forbes by the throat, shook him vigorously, and exclaimed "You double-crossing bastard!"[170] In 1926, Forbes was brought to trial and convicted of conspiracy to defraud the U.S. government. He received a two-year prison sentence and was released in November 1927.[171]

Other agencies

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Harding as he appears at the National Postal Museum in Washington, D.C.

On June 13, 1921, Harding appointed Albert D. Lasker chairman of the United States Shipping Board. Lasker, a cash donor and Harding's general campaign manager, had no previous experience with shipping companies. The Merchant Marine Act of 1920 had allowed the Shipping Board to sell ships made by the U.S. Government to private American companies. A congressional investigation revealed that while Lasker was in charge, many valuable steel cargo ships, worth between $200 and $250 a ton, were sold for as low as $30 a ton to private American shipping companies without an appraisal board. J. Harry Philbin, a manager in the sales division, testified at the congressional hearing that under Lasker's authority U.S. ships were sold, "...as is, where is, take your pick, no matter which vessel you took." Lasker resigned from the Shipping Board on July 1, 1923.[172]

Thomas W. Miller, head of the Office of Alien Property, was convicted of accepting fraud in the American Metals case.[173] Miller's citizenship rights were taken away and he was sentenced to 18 months in prison and a $5,000 fine. His conviction would by upheld by the District Court of the United States for the Southern District of New York on February 6, 1928.[174] After Miller served 13 months of his sentence, he was released on parole. President Herbert Hoover restored Miller's citizenship on February 2, 1933.[175] Roy Asa Haynes, Harding's Prohibition Commissioner, ran the patronage-riddled Prohibition bureau, which was allegedly corrupt from top to bottom.[176] The bureau's "B permits" for liquor sales became tantamount to negotiable securities, as a result of being so widely bought and sold among known violators of the law.[177] The bureau's agents allegedly made a year's salary from one month's illicit sales of permits.[176]

Col. Thomas B. Felder, who died by March 1930, would be implicated in the Harding Administration scandals as well.[173]

Life at the White House

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President Harding with his dog Laddie Boy. Photo: 1922

Harding's lifestyle at the White House was fairly unconventional compared to his predecessor. Upstairs at the White House, in the Yellow Oval Room, Harding allowed bootleg whiskey to be freely served to his guests during after-dinner parties at a time when the President was supposed to enforce Prohibition. One witness, Alice Longworth, stated that trays, "...with bottles containing every imaginable brand of whiskey stood about."[178] Some of this alcohol had been directly confiscated from the Prohibition department by Jess Smith, assistant to U.S. Attorney General Harry Daugherty. Mrs. Harding, also known as the "Duchess", mixed drinks for the guests.[151] Harding played poker twice a week, smoked and chewed tobacco. Harding allegedly won a $4,000 pearl necktie pin at one White House poker game.[179] Although criticized by Prohibitionist advocate Wayne B. Wheeler over Washington, D.C. rumors of these "wild parties", Harding claimed his personal drinking inside the White House was his own business.[180] Though Mrs. Harding did keep a little red book of those who had offended her, the executive mansion was now once again open to the public for events including the annual Easter egg roll.[181]

Western tour and death

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Western tour

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Harding aboard the presidential train in Alaska, with secretaries Hoover, Wallace, Work, and Mrs. Harding

Though Harding wanted to run for a second term, his health began to decline during his time in office. He gave up drinking, sold his "life-work," the Marion Star, in part to regain $170,000 previous investment losses, and had Daugherty make him a new will. Harding, along with his personal physician Dr. Charles E. Sawyer, believed getting away from Washington would help relieve the stress of being president. By July 1923, criticism of the Harding Administration was increasing. Prior to his leaving Washington, the president reported chest pains that radiated down his left arm.[182][183] In June 1923, Harding set out on a journey, which he dubbed the "Voyage of Understanding".[184] The president planned to cross the country, go north to Alaska Territory, journey south along the West Coast, then travel by navy ship through the Panama Canal, to Puerto Rico, and to return to Washington at the end of August.[185] The trip would allow him to speak widely across the country in advance of the 1924 campaign, and allow him some rest[186] away from Washington's oppressive summer heat.[184]

Harding's political advisers had given him a physically demanding schedule, even though the president had ordered it cut back.[187] In Kansas City, Harding spoke on transportation issues; in Hutchinson, Kansas, agriculture was the theme. In Denver, he spoke on Prohibition, and continued west making a series of speeches not matched by any president until Franklin Roosevelt. In addition to making speeches, he visited Yellowstone and Zion National Parks,[188] and dedicated a monument on the Oregon Trail at a celebration organized by venerable pioneer Ezra Meeker and others.[189] On July 5, Harding embarked on USS Henderson in Washington state. The first president to visit Alaska, he spent hours watching the dramatic landscapes from the ship's deck.[190] After several stops along the coast, the presidential party left the ship at Seward to take the Alaska Central Railway to McKinley Park and Fairbanks, where he addressed a crowd of 1,500 in 94 °F (34 °C) heat. The party was to return to Seward by the Richardson Trail but due to Harding's fatigue, it went by train.[191]

Arriving via Vancouver Harbor on July 26, Harding became the first sitting U.S. president to visit Canada. He was greeted dock-side by the premier of British Columbia John Oliver and the mayor of Vancouver. Thousands lined the streets of Vancouver to watch as the motorcade of dignitaries moved through the city to Stanley Park, where Harding spoke to an audience estimated at over 40,000. In his speech he proclaimed, "You are not only our neighbor, but a very good neighbor, and we rejoice in your advancement and admire your independence no less sincerely than we value your friendship."[192] Harding also visited a golf course, but completed only six holes before being fatigued. He was not successful in hiding his exhaustion; one reporter deemed him so tired a rest of mere days would not be sufficient to refresh him.[193]

Death

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The funeral procession for President Harding passes by the front of the White House.

Upon returning to the U.S. on July 27, Harding participated in a series of events in Seattle. After reviewing the navy fleet in the harbor and riding in a parade through downtown, he addressed a crowd of over 30,000 Boy Scouts at a jamboree in Woodland Park and then addressed 25,000 people at the University of Washington's Husky Stadium. That evening, in what would be his last official public event, Harding addressed the Seattle Press Club.[194] By the end of the evening Harding was near collapse, and he went to bed early. The next day, all tour stops scheduled between Seattle and San Francisco were cancelled, and the presidential entourage proceeded directly there.[192] Arriving in the city on the morning of July 29, Harding felt well enough that he insisted on walking from the train to the car. However, shortly after arriving at the Palace Hotel he suffered a relapse.[195] Upon examining him, doctors found that not only was Harding's heart causing problems, but he also had a serious case of pneumonia. All public engagements were cancelled.[citation needed]

When treated with caffeine and digitalis, Harding seemed to improve.[192] Reports that the released text of his July 31 speech had received a favorable reception also buoyed his spirits, and by the afternoon of August 2, doctors allowed him to sit up in bed. That evening, around 7:30 pm, while Florence Harding was reading a flattering article to the president from The Saturday Evening Post titled "A Calm Review of a Calm Man",[196] he began twisting convulsively and collapsed. Doctors attempted stimulants, but were unable to revive him, and President Harding died at the age of 57. Although initially attributed to a cerebral hemorrhage, the president's death was most likely the result of a heart attack.[195][197][198]

Harding's death came as a great shock to the nation. The president was liked and admired, and the press and public had followed his illness closely, and been reassured by his apparent recovery.[199] Harding was returned to his train in a casket for a journey across the nation followed closely in the newspapers. Nine million people lined the tracks as Harding's body was taken from San Francisco to Washington, D.C., and after services there, home to Marion, Ohio, for burial.[200] In Marion, Warren Harding's body was placed on a horse-drawn hearse, which was followed by President Coolidge and Chief Justice Taft, then by Harding's wife and father.[201] They followed it through the city, past the Star building where the presses stood silent, and at last to the Marion Cemetery, where the casket was placed in the cemetery's receiving vault.[202][203]

Immediately after Harding's death, Mrs. Harding returned to Washington, D.C. and, according to historian Francis Russell, burned as much of President Harding's correspondence and documents, both official and unofficial, as she could get.[204] However, most of Harding's papers survived because Harding's personal secretary, George Christian, disobeyed Florence Harding's instructions.[205]

Historical views

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Harding memorial issue, issued September 1, 1923

Upon his death, Harding was deeply mourned—not only in the United States, but around the world. He was called a man of peace in many European newspapers. American journalists praised him lavishly, with some describing him as having given his life for his country. His associates were stunned by his demise. Daugherty wrote, "I can hardly write about it or allow myself to think about it yet."[206] Hughes stated, "I cannot realize that our beloved Chief is no longer with us."[207]

Hagiographic accounts of Harding's life quickly followed his death, such as Joe Mitchell Chapple's Life and Times of Warren G. Harding, Our After-War President (1924).[208] By then, the scandals were breaking, and the Harding administration soon became a byword for corruption in the view of the public. Works written in the late 1920s helped shape Harding's historical reputation: Masks in a Pageant, by William Allen White, mocked and dismissed Harding, as did Samuel Hopkins Adams' fictionalized account of the Harding administration, Revelry.[209] These books depicted Harding's time in office as one of great presidential weakness.[210] The publication of Nan Britton's bestselling book disclosing they had had an affair also lowered the late president in public esteem. President Coolidge, wishing to distance himself from his predecessor, refused to dedicate the Harding Tomb. Hoover, Coolidge's successor, was similarly reluctant, but with Coolidge in attendance, presided over the dedication in 1931. By that time, with the Great Depression in full swing, Hoover was nearly as discredited as Harding.[211][212]

Harding reputation has been the subject of debate and re-evaluation. He has traditionally been ranked as one of the worst presidents;[213] in a 1948 poll conducted by Harvard University, historian Arthur M. Schlesinger Sr. conducted a survey of scholars' opinions of the presidents, ranking Harding last among the 29 presidents considered.[214] He has also been last in many other polls since then. However, the prominence of this evaluation diminished, owing partly to later larger scandals, especially Watergate, as well as numerous societal upheavals and major crises since 1923. Some authors and historians began to fundamentally reassess the conventional views of Harding's historical record in office.[215][216]

Reassessment

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Various historians have defended Harding, with many arguing that he was merely below average rather than a total failure.[217] Historian Robert K. Murray wrote that, "in establishing the political philosophy and program for an entire decade, [Harding's] 882 days in office were more significant than all but a few similar short periods in the nation's existence."[217] Authors Marcus Raskin and Robert Spero, in 2007, also believed that Harding was underrated, and admired Harding's quest for world peace after World War I and his successful naval disarmament among strongly armed nations, including France, Britain, and Japan.[218] In 2004, John Dean, noted for his involvement in another presidential scandal, Watergate, wrote the Harding volume in "The American Presidents" series of short biographies, edited by Arthur M. Schlesinger Jr.; Coffey considered that book the most revisionist to date, and faults Dean for glossing over some unfavorable episodes in Harding's life, like his silence during the 1914 Senate campaign, when his opponent Hogan was being attacked for his faith.[219]

Trani faults Harding's own lack of depth and decisiveness as bringing about his tarnished legacy.[220] Ferrell attributes Harding's negative ratings to scholars who read little that is substantive, and who focus more on sensational accounts of Harding.[213] Coffey believes "the academic lack of interest in Harding has cost him his reputation, as scholars still rank Harding as nearly dead last among presidents."[221]

In his 2010 book The Leaders We Deserved (and a Few We Didn't): Rethinking the Presidential Rating Game, presidential historian Alvin S. Felzenberg, ranking presidents on several criteria, ranked Harding 26th out of 40 presidents considered.[222]

For years I shared this general [negative] opinion of Harding. But then I started to study him... Warren G. Harding may not have been a great President, but he was a good man. And as I read more, an oddly modern figure began to emerge. Here was someone sensitive to problems facing women, minorities, and workers, someone who enthusiastically and intelligently embraced his era's technology and culture. Here was a man of considerable gifts, all of them largely forgotten today... Perhaps the most surprising single event of Harding's Presidency was his blunt speech on October 26, 1921, to a segregated crowd in Birmingham, Alabama, stating that democracy would always be a sham until African-Americans received full equality in education, employment, and political life.[223]

See also

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References

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Further reading

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
The presidency of Warren G. Harding spanned from his inauguration on March 4, 1921, to his death in office on August 2, 1923, as the 29th administration of the United States, promising a "return to normalcy" to heal the disruptions of World War I, wartime controls, and progressive interventions by restoring limited government, business confidence, and domestic focus. Harding's economic agenda, led by Treasury Secretary , prioritized slashing federal expenditures—reducing them by nearly 40 percent from postwar peaks—while enacting the Act of to lower rates and eliminate excess profits taxes, fostering rapid industrial recovery and the start of the Roaring Twenties boom through deregulation and incentives for private rather than stimulus. Notable achievements included the , which centralized fiscal oversight under the Bureau of the Budget for greater efficiency; tariff protections via the to shield domestic manufacturers; and foreign policy successes like the of 1921-1922, which curbed naval arms races among major powers without binding U.S. military commitments. The administration featured capable appointees such as , who advanced associations and infrastructure, and , but was marred by among Harding's associates, including the where Interior accepted bribes for reserve leases—a scheme exposed after Harding's , with no implicating the president himself amid his expressed dismay over subordinates' . While early postwar accounts, influenced by sensational journalism and political opponents, emphasized scandals to portray Harding as inept, subsequent analyses highlight his role in transitioning from wartime collectivism to fiscal restraint, yielding tangible prosperity despite the administration's brevity and the revelation of graft by figures like Attorney General Harry Daugherty.

Election of 1920

Republican Nomination

The 1920 Republican National Convention convened in Chicago from June 8 to 12, amid a field of prominent candidates seeking the presidential nomination. Leonard Wood, Illinois Governor Frank O. Lowden, and California Senator Hiram Johnson emerged as the primary frontrunners, with Wood leading on the initial ballots due to his military prominence and support from Theodore Roosevelt's progressive wing. However, none secured a majority, leading to a prolonged deadlock as delegates shifted allegiances without resolution after nine ballots. Warren G. Harding, , entered the convention with limited delegate support, having won few primaries and relying on his reputation as a affable compromiser without major enemies . His campaign was orchestrated by , a shrewd Ohio political operative and corporate lawyer who anticipated the frontrunners' impasse and positioned Harding as a viable dark horse. Daugherty famously predicted that Harding would receive the nomination around 2:11 a.m. on the final day, foreseeing exhaustion among delegates favoring a safe, uncontroversial figure who appeared presidential. As the balloting continued, party leaders, including figures like Senator , engaged in backroom negotiations to break the , culminating in a consensus around Harding in the early hours of 12. On the tenth ballot, Harding surged to 692.5 votes, surpassing the required of 492, securing the as delegates from Lowden and Wood shifted to him. This outcome reflected the convention's for after and Woodrow Wilson's progressive internationalism, with Harding embodying conservative stability and intervention.

General Election

The 1920 general election campaign contrasted sharply in style between the major-party nominees. Warren G. Harding, the Republican candidate, conducted a subdued "front-porch" campaign from his home in Marion, Ohio, where he delivered over 300 speeches to delegations from across the country between July and November, attracting an estimated 600,000 visitors. This approach emphasized themes of "normalcy" and a return to pre-World War I domestic priorities, appealing to voters weary of Woodrow Wilson's internationalist agenda and the domestic upheavals of the war, including the Red Scare and economic adjustments. In contrast, Democratic nominee James M. Cox, the governor of Ohio, undertook an extensive speaking tour covering more than 30,000 miles across 22 states, actively defending Wilson's League of Nations without reservations. Central to the contest was U.S. foreign policy, particularly membership in of Nations. Harding advocated for an "association of nations" with explicit reservations to safeguard American sovereignty and congressional prerogatives, positioning himself against unconditional entanglement in European affairs. Cox, aligned with Wilson's vision, argued for prompt entry into the League as drafted, framing Republican opposition as isolationist obstructionism. Domestic issues, including enforcement under the 18th and economic recovery from postwar , also featured, though Harding's platform prioritized tariff , tax reduction, and reduced federal intervention to foster business . The election marked the first nationwide participation of women voters following ratification of the 19th on August 18, 1920, though overall turnout was approximately 49 percent, with women comprising about 36 percent of the electorate and voting at rates slightly below men. Held on , , the resulted in a resounding Republican , reflecting widespread repudiation of Democratic rule after eight years of progressive reforms and wartime . Harding secured 404 electoral votes to Cox's 127, carrying 37 states including traditional Democratic strongholds outside the .
CandidatePartyPopular VotePercentageElectoral Votes
/ Republican16,143,40760.3%404
James M. Cox / Democratic9,130,32834.1%127
/ Seymour StedmanSocialist919,7993.4%
OthersVarious282,1141.1%
The Republican Party also gained majorities in both houses of Congress, setting the stage for Harding's incoming administration.

Inauguration and Administration Formation

Inauguration

The inauguration of Warren G. Harding as the 29th president of the United States took place on March 4, 1921, at the East Portico of the U.S. Capitol in Washington, D.C. Harding, accompanied by outgoing President Woodrow Wilson, became the first president-elect to travel to the Capitol by automobile, using a Packard Twin-Six open car for the procession down Pennsylvania Avenue. Despite Wilson's recent stroke and frail health, he insisted on attending to ensure a peaceful transfer of power, marking a rare instance of an outgoing president joining the inaugural ride. The ceremony proceeded amid inclement weather, with cold rain falling and temperatures around 33°F at noon; approximately 0.69 inches of precipitation accumulated between 11 a.m. and 1 p.m. An estimated crowd of 75,000 braved the frigid conditions to witness the events. Chief Justice Edward Douglass White administered the presidential oath to Harding at approximately 12:23 p.m., with Harding placing his left hand on a Bible opened to Proverbs 16:3 while repeating the oath to preserve, protect, and defend the Constitution. Vice President Calvin Coolidge was sworn in separately by Senator Frank B. Willis of Ohio. Harding delivered his inaugural address—the first to be broadcast via an amplified public address system—emphasizing a return to "normalcy" after World War I and domestic upheavals, while pledging fidelity to constitutional principles and limited government. Insisting on maintaining the open-air tradition despite the downpour, Harding rode back to the White House in the same automobile, arriving soaked but resolute. The event symbolized a shift toward modernity in presidential rituals, including the vehicular procession and audio amplification, amid a broader public desire for stability following the progressive era's turbulence.

Cabinet Selection

Harding initiated cabinet selection immediately following his electoral on , , with the stated of assembling a body of the nation's foremost experts to restore stability after and the Wilson administration's . He conducted consultations with Republican leaders, including , to navigate pressures and representation of diverse regional and ideological interests within the GOP, such as Midwestern conservatives and Eastern progressives. This unfolded gradually through late and early , with announcements designed to build ahead of the ; Harding resisted demands from allies, for instance declining to appoint as of War despite Wood's campaign support, opting instead for John W. Weeks of Massachusetts for his fiscal conservatism and senatorial experience. Key appointments emphasized competence in critical areas: Charles Evans Hughes, a former New York governor and Supreme Court justice, was selected as Secretary of State for his diplomatic insight and rejection of isolationism, announced shortly after the election and confirmed on March 5, 1921. Andrew Mellon, a Pittsburgh banker and philanthropist with decades of financial management, took the Treasury post to prioritize debt reduction and tax reform, leveraging his private-sector success in aluminum and banking. Herbert Hoover, renowned for directing the U.S. Food Administration during the war and European relief efforts, was named Secretary of Commerce to promote trade efficiency and industrial recovery. In agriculture, Henry C. Wallace, an Iowa editor and farm advocate, was chosen to address rural distress from postwar price collapses. Harding balanced these luminaries with loyalists from his Ohio political circle, known informally as the "Ohio Gang," including Harry M. Daugherty as Attorney General for his role in securing the nomination and Albert B. Fall as Secretary of the Interior for his Western ties and senatorial tenure. Edwin Denby, a Michigan congressman and Navy veteran, assumed the Navy secretary role, while James J. Davis, a steel industry leader acceptable to organized labor, headed Labor. Will H. Hays, the Republican National Committee chair, initially managed the Post Office to streamline patronage. These personal selections stemmed from Harding's trust in longtime associates, reflecting a pragmatic view that political reliability complemented expertise, though they later facilitated scandals when influence peddling emerged. Senate confirmations proceeded swiftly, with all nominees approved by March 1921, enabling the administration to launch operations amid expectations of competent governance. The resulting cabinet comprised:
PositionAppointeeStart Date
Secretary of State
Secretary of the Treasury
Secretary of War
Attorney General
Postmaster General
Secretary of the NavyEdwin Denby
Secretary of the Interior
Secretary of AgricultureHenry C. Wallace
Secretary of CommerceHerbert C. Hoover
Secretary of Labor
This composition drew contemporary acclaim for its blend of administrative talent, though Harding's deference to confidants over rigorous vetting underscored vulnerabilities to cronyism, as evidenced by subsequent investigations revealing graft in departments like Interior and Veterans' Affairs.

Press Relations and Public Communication

Warren G. Harding, a former newspaper publisher who owned the Marion Daily Star in Ohio, brought his journalistic background to the presidency, fostering an unusually accessible relationship with the press corps. One of his first official acts upon taking office in March 1921 was to restore regular White House news conferences, which had been suspended by Woodrow Wilson during World War I to control information flow. Harding held these public sessions twice weekly, allowing reporters direct access and questions, which marked a shift toward greater openness compared to Wilson's more restricted approach. This policy elevated the status of White House correspondents, ensuring their role could not be easily sidelined by future administrations, and reflected Harding's frank respect for journalists' work despite occasional tensions, such as a 1921 diplomatic gaffe or coverage of labor strikes in 1922. To enhance his administration's messaging, Harding hired Judson Welliver as the first presidential in , professionalizing addresses amid the era's growing media . His interactions with reporters were characterized by cordiality and mutual accommodation, with Harding often easing correspondents' access to while expecting discretion on sensitive matters. This contributed to a generally positive press environment during his tenure, though underlying administrative scandals, later exposed posthumously, these ties toward the end. Harding also pioneered electronic public communication by embracing emerging radio technology. On February 8, 1922, the first radio was installed in the White House, drawing national attention. His voice became the first presidential transmission over radio on June 14, 1922, during a dedication speech for Francis Scott Key's grave in Baltimore, broadcast by station WEAR to an estimated audience of thousands. Later that year, on December 8, 1922, Harding's annual message to Congress was broadcast via the Navy's NOF station, marking the first such transmission of a presidential address to a joint session, which received favorable reception from Congress and the public. These innovations positioned Harding as an early advocate for using radio to bypass traditional media filters and reach citizens directly, aligning with his administration's emphasis on technological progress in governance.

Economic Policies and Recovery

Tax Reduction and Revenue Acts

The Revenue Act of 1921, signed into law by President Warren G. Harding on November 23, 1921, marked the initial major effort to reduce federal tax burdens following World War I. This legislation repealed the wartime excess profits tax, which had imposed rates up to 60% on corporate earnings above a threshold, thereby eliminating a significant distortion on business investment and risk-taking. It also eliminated transportation taxes, certain luxury taxes, and other wartime excises, while providing for slight reductions in income surtax rates and increases in personal exemptions to broaden the tax base and lessen the load on middle-income earners. Under the act, the top marginal income tax rate, combining normal and surtax components, fell from 73% on incomes over $1 million in 1921 to 58% effective for 1922, reflecting Treasury Secretary Andrew Mellon's advocacy for lower rates to incentivize capital formation and economic recovery from the sharp postwar recession. Mellon, appointed in March 1921, argued that high taxes discouraged productive activity and encouraged tax avoidance, proposing cuts to stimulate growth without sacrificing revenue, a view Harding endorsed as part of restoring "normalcy." The act further introduced a preferential 12.5% tax on capital gains, recognizing that taxing realized appreciation at full income rates would hinder asset liquidity and long-term investment. These reforms complemented the Budget and Accounting Act of 1921, signed June 10, 1921, which centralized fiscal planning and enabled spending cuts that generated budget surpluses, providing fiscal space for further reductions. Empirical outcomes supported the policy's causal logic: despite rate cuts, federal revenues rose from $5.6 billion in fiscal year 1921 to $6.6 billion by 1923, driven by economic expansion as gross national product grew 6.5% annually from 1921 to 1923, validating the incentive effects of reduced marginal rates on work, saving, and enterprise. The 1921 act laid groundwork for subsequent Revenue Acts of 1924 and 1926, which deepened cuts under Mellon's plan, but under Harding, it shifted policy from wartime exigency toward sustainable peacetime finance grounded in supply-side incentives.

Tariff Protectionism

The Harding administration prioritized as a core economic to safeguard domestic industries and from postwar foreign , reversing the lower duties established under the Democratic Underwood Tariff of 1913. This approach aligned with Republican principles emphasizing the preservation of American labor markets and productive capacity, as articulated in Harding's first annual message to Congress on December 6, 1921, where he advocated basing s on policies that enhance employment and national wealth rather than revenue alone. Early in his term, Congress passed the Emergency Tariff Act on May 27, 1921, a temporary measure that elevated duties on key agricultural imports such as wool, sugar, meat, and farm implements to counter declining prices caused by European surpluses flooding U.S. markets. The cornerstone of this policy was the Fordney-McCumber Tariff Act, signed by Harding on September 21, 1922, which substantially increased average ad valorem rates on dutiable imports from approximately 27% to 38.5%, with some specific duties reaching 60%. Sponsored by Representative Joseph Fordney and Senator Porter McCumber, the legislation applied higher protections to over 20,000 items, particularly benefiting manufacturers and farmers by insulating them from low-cost European goods produced with depreciated currencies and wartime subsidies. A novel "flexible tariff" provision empowered the president, upon recommendation from the U.S. Tariff Commission, to adjust rates by up to 50% to equalize production costs between domestic and foreign goods, marking a shift toward administrative discretion in trade policy. Harding actively utilized this authority, directing the Tariff Commission in April 1923 to conduct comprehensive inquiries rather than limited reviews, enabling proactive adjustments to maintain protectionist levels. This protectionist framework contributed to economic stabilization by bolstering industrial output and incomes during the early 1920s recovery, though it exacerbated challenges for European debtors seeking U.S. markets to service loans, prompting retaliatory barriers abroad. Proponents, including Harding, viewed the tariffs as essential for sustaining the "home market" against global deflationary pressures, with duties on all imports rising to about 14% overall while targeting dutiable goods more aggressively. The policy reflected a causal prioritization of domestic self-sufficiency over freer trade, prioritizing empirical protection of U.S. wage levels and output amid asymmetric postwar recoveries.

Budgetary Reforms

The Budget and Accounting Act of 1921, signed by President Harding on June 10, 1921, established the Bureau of the Budget within the Treasury Department and required the president to submit an annual consolidated budget to Congress, centralizing executive control over fiscal planning and marking a shift from fragmented congressional appropriations. This reform, advocated by Harding to manage federal finances akin to private enterprise, also created the General Accounting Office for independent audits of government accounts, enhancing accountability. Charles G. Dawes, appointed as the first Budget Bureau director, aggressively scrutinized departmental requests, vetoing excessive expenditures and enforcing cuts across agencies. Harding's appointment of as of the in 1921 further propelled spending , with prioritizing balance through rigorous curtailment of non-essential outlays amid post- fiscal strain. Federal expenditures declined sharply from $6.3 billion in fiscal year 1920 to $5.0 billion in 1921 and $3.3 billion in 1922, representing a near-halving relative to economic output and reversing wartime expansions. These measures, including eliminations of redundant bureaus and trims in administrative overhead, transformed a substantial deficit inherited from the prior administration into surpluses by fiscal year 1922, with revenues exceeding outlays by hundreds of millions. Mellon's strategy emphasized paying down the national debt with surpluses while resisting new spending programs, crediting the cuts for stabilizing finances without relying on tax hikes, though implementation faced resistance from congressional interests protective of pet projects. The reforms laid groundwork for sustained fiscal discipline into the Coolidge era, demonstrating that executive-led budgeting could enforce restraint in a divided government.

Deregulation and Postwar Recession Response

The Harding administration confronted the , characterized by a 7% contraction in gross national product, exceeding 10%, and peaking at approximately 12%, through a emphasizing fiscal and non-intervention in market adjustments. President expansive stimulus, advocating instead for "intelligent and courageous " to restore and wartime distortions, as articulated in his 1920 nomination acceptance speech. This approach aligned with Mellon's philosophy of debt reduction, tax cuts, and balanced budgets to foster private sector recovery. Federal expenditures were slashed nearly in half, from $6.4 billion in fiscal year 1920 to $3.3 billion by fiscal year 1922, contributing to a rapid rebound where declined to 2.4% by 1923. Deregulatory efforts focused on dismantling World War I-era controls, including the repeal of mandates on railroads, shipping, and commodity prices that had inflated costs under the Wilson administration. Harding supported legislative measures to unwind these interventions, such as returning the railroads to private operation via the Transportation Act of 1920, which ended federal seizure and established the Interstate Commerce Commission for rate oversight while promoting efficiency. The administration also prioritized budget discipline over new spending, with Mellon engineering cuts in government payrolls and operations, reducing civilian employment by over 50% from wartime highs. Harding vetoed the Soldiers' Bonus Bill in September 1922, prioritizing fiscal balance amid the recovery over immediate veteran payouts, arguing that such measures would undermine debt reduction efforts. While Secretary of Commerce organized the President's on Unemployment in to coordinate voluntary private efforts, the core eschewed direct federal job creation or price supports, crediting market for the economic upturn. Industrial production rebounded by mid-1921, and wholesale prices stabilized without the prolonged stagnation seen in later depressions, underscoring the efficacy of restrained government amid postwar adjustment. These measures, though criticized by interventionist factions for initial hardship, facilitated a transition to the prosperity of the 1920s by realigning resources to peacetime demands.

Labor Market Outcomes

The Harding administration inherited a severe postwar characterized by sharp and elevated , peaking at approximately 11.7 percent in 1921 amid the transition from wartime production to peacetime markets. To address the crisis, President Harding convened the President's on in 1921, which analyzed structural causes such as overexpansion in certain sectors and recommended private-sector adjustments over federal programs. declined rapidly thereafter, falling to 6.7 percent of the labor force (about 2.8 million workers) by 1922 and further to around 2 percent by 1923, reflecting restored industrial output and labor market flexibility without sustained government intervention.
YearUnemployment Rate (%)Source Notes
192111.7Peak of postwar adjustment; estimates from economic historians like Lebergott.
19226.7Rapid decline amid wage and price adjustments.
1923~2.0Near full employment in manufacturing sectors.
Nominal wages initially fell during the deflationary phase of 1921, enabling employers to rehire workers and avert prolonged joblessness, though real wages stabilized or rose with falling prices. By 1923, average weekly manufacturing paychecks reached $22, with most workers fully employed and working hours gradually declining amid productivity gains. Labor unrest persisted, highlighted by the Great Railroad Strike of 1922 involving 400,000 shop workers protesting wage cuts ordered by the Railroad Labor Board, as well as coal miners' actions seeking to maintain wartime pay scales. The administration responded with court injunctions against strikers for interfering with interstate commerce, rather than concessions, contributing to the erosion of union influence as membership share of the labor force dropped from one-fifth in 1920. This approach aligned with Harding's emphasis on voluntary arbitration and anti-inflationary policies, fostering a recovery where employment growth outpaced union-driven wage rigidities.

Foreign Policy Initiatives

Washington Naval Conference

President Warren G. Harding initiated the Washington Naval Conference to curb the escalating post-World War I naval arms race among major powers and stabilize relations in the Pacific, reflecting his administration's emphasis on international cooperation without formal alliances. The conference opened on November 12, 1921, in Washington, D.C., with invitations extended to nine nations: the United States, Great Britain, Japan, France, Italy, China, Belgium, the Netherlands, and Portugal. Secretary of State Charles Evans Hughes chaired the U.S. delegation and delivered the opening address, proposing immediate cessation of capital ship construction, scrapping of 30 existing warships (totaling over 800,000 tons), and fixed tonnage limits based on ratios of 5:5:3 for the United States, Britain, and Japan, respectively, with France and Italy at 1.75 each. The conference concluded on February 6, 1922, after 10 weeks of negotiations, producing three principal treaties. The Five-Power Naval Limitation Treaty bound the signatories to capital ship tonnage ceilings—525,000 tons for the U.S. and Britain, 315,000 for Japan, and 175,000 each for France and Italy—while permitting limited aircraft carrier construction up to 135,000 tons for the U.S. and Britain, and smaller allotments for others; submarines and cruisers remained unregulated, creating future vulnerabilities. The Four-Power Treaty, involving the U.S., Britain, Japan, and France, pledged mutual respect for existing Pacific possessions and consultation in case of controversies, effectively superseding the Anglo-Japanese Alliance without forming a new military pact. The Nine-Power Treaty reaffirmed the Open Door Policy in China, committing all participants to respect Chinese sovereignty, territorial integrity, and opportunities for trade. Harding viewed the outcomes as a diplomatic triumph, estimating savings of over $ million in U.S. naval expenditures and averting a costly arms that could have strained postwar budgets. The treaties temporarily halted naval expansion, fostering a of relative stability in the Pacific, though Japan's perception of the 5:3 ratio as discriminatory contributed to its 1936 denunciation of the Five-Power Treaty amid rising militarism. Critics within the U.S. Navy argued the agreements compromised fleet parity and ignored qualitative advancements in naval technology, but Harding's initiative aligned with public sentiment for disarmament and economic recovery.

European War Debt Management

The Harding administration confronted the substantial debts owed by European Allied nations to the from loans, amounting to approximately $12 billion as of , primarily to Britain, , , and smaller debtors. Harding viewed these obligations as binding legal and commitments, rejecting proposals for outright or cancellation, which were advocated by some European governments citing postwar economic distress. Instead, the emphasized repayment of principal plus reasonable through extended arrangements tailored to debtors' capacities, while firmly decoupling U.S. from the separate issue of German reparations under the . This approach, led by Treasury Secretary , prioritized fiscal responsibility and U.S. over broader international financial concessions that might undermine domestic balancing efforts. In April 1921, Harding urged Congress to empower the Treasury Secretary with flexible authority to negotiate debt refundings, subject to presidential oversight, arguing that rigid terms could exacerbate European instability but that evasion of repayment would erode global credit integrity. Congress responded with the World War Foreign Debt Commission Act, signed by Harding on February 9, 1922, establishing a five-member commission under Mellon's chairmanship to assess and propose refunding plans requiring congressional ratification. The commission's mandate prohibited principal reductions or interest waivers below market rates, insisting on annuities that ensured full recovery over decades, with initial focus on smaller debtors to build precedents before tackling major powers like Britain and France. Negotiations began promptly, reflecting Harding's directive to affirm debt validity while accommodating phased payments amid Europe's reconstruction challenges. A pivotal early development was the commission's June 1923 proposal for funding Britain's $4.6 billion debt (as of December 1922), which Harding endorsed in a February 7, 1923, address to Congress, highlighting terms of escalating annual payments—from $23 million initially to $175 million by the 62nd year—coupled with 3% interest rising to 3.5%. This settlement, though ratified posthumously after Harding's death in August 1923, underscored the administration's insistence on structured repayment to foster economic stability without U.S. subsidy, despite British reluctance that had strained relations since 1921. Similar principles guided preliminary talks with other nations, yielding no full agreements by mid-1923 but establishing a framework that collected only a fraction of principal (under 20%) in eventual outcomes, as European defaults loomed amid interlocking reparations-debt cycles. Harding's policy thus maintained U.S. leverage in postwar finance, prioritizing verifiable repayment schedules over unproven relief schemes.

Latin American Interventions

The Harding administration pursued a policy of diplomatic conciliation in , emphasizing goodwill and economic leverage over intervention, in contrast to the Wilson era's emphasis on ideological . This approach reflected Harding's campaign pledges to end what he viewed as overreach in the , prioritizing relations to protect U.S. commercial interests without new . In Mexico, the administration addressed unresolved tensions from the revolutionary period by conditioning diplomatic recognition of President Álvaro Obregón's government on protections for U.S. property and citizens. Secretary of State employed economic diplomacy, including threats to restrict silver purchases and withhold oil exports, to pressure Mexico into the Claims Convention of 1923, which settled outstanding American claims totaling approximately $20 million for damages during the revolution. The U.S. formally recognized Obregón on August 31, 1923, following Senate ratification of the treaty on the same day, which facilitated improved bilateral trade and reduced border incidents. Regarding existing U.S. occupations in the Caribbean, Harding inherited Marine interventions in Haiti (since 1915) and the Dominican Republic (since 1916), which he had criticized during his campaign as counterproductive to hemispheric relations. In the Dominican Republic, the administration dispatched Sumner Welles in 1921 to assess conditions and negotiate a provisional treaty for financial oversight and elections, aiming for orderly withdrawal; U.S. forces began phased reductions, with full evacuation completed in 1924 under President Coolidge. In Haiti, troops remained to stabilize finances and suppress unrest, but Harding appointed a high commissioner in 1922 to oversee treaty revisions and local governance reforms, signaling intent for eventual disengagement without immediate pullout. No new military actions were initiated in Central or South America during Harding's term, underscoring a shift toward multilateral diplomacy, such as the 1922 ratification of the Thomson-Urrutia Treaty compensating Colombia $25 million for the 1903 Panama secession.

Social and Domestic Reforms

Immigration Controls

The Harding administration responded to a surge in following , amid economic pressures from , labor , and fears of radical ideologies linked to like the bombings. Annual arrivals had exceeded 1 million in , prompting congressional action to inflows deemed unsustainable for assimilation and job markets. On May 19, 1921, Harding signed the (also known as the Quota Act of 1921 or Per Centum Act), establishing the first numerical limits on by nationality. The capped entries from any at 3 percent of that nationality's U.S. residents as enumerated in the 1910 , yielding a total annual quota of approximately 357,000 immigrants, excluding exemptions for immediate relatives of citizens and certain Western Hemisphere migrants. This disproportionately favored immigrants from Northern and Western Europe, as the 1910 reflected earlier migration patterns, while restricting those from Southern and Eastern Europe, whose numbers had risen sharply prewar. Harding endorsed the measure as a temporary safeguard for American labor and cultural cohesion, aligning with Republican platform calls for restriction without outright prohibition. Enforcement began immediately at ports like Ellis Island, reducing fiscal year 1921 arrivals from over 800,000 to under 300,000 by mid-1922, though critics argued it bypassed diplomatic consultations and ignored humanitarian cases. The act's passage followed failed broader deportation proposals, including one to halt all immigration until 1930, reflecting congressional consensus on quotas as a pragmatic control mechanism. Administrative implementation under Secretary of Labor emphasized literacy tests and health screenings already mandated by prior laws, while the quotas laid groundwork for permanent restrictions. Harding's support stemmed from constituent pressures in industrial states, where union leaders cited wage depression from unchecked inflows, though the policy drew opposition from business interests reliant on cheap labor. By Harding's death in August 1923, the quotas had stabilized entries at levels seen as protective of native-born employment during recovery, influencing successor Calvin Coolidge's 1924 National Origins Act.

Veterans' Benefits and Administration

President signed 67-47, known as Act, into on , , establishing the Veterans Bureau as a centralized federal agency to administer benefits for veterans. This consolidation merged the Bureau of War Risk Insurance, the Rehabilitation Division of the Federal Board for Vocational Education, and the Outpatient Division of the Health Service's hospital operations into a single entity responsible for hospitalization, disability compensation, insurance claims, and vocational rehabilitation services for over 4 million eligible veterans. The creation addressed fragmented postwar administration, aiming to streamline delivery of medical care and financial support amid growing claims from disabled servicemen, with the Bureau authorized to construct and manage hospitals nationwide. Harding appointed , a longtime acquaintance from the Commission, as the Bureau's first director on , , granting him over a $500 million budget for expansion and benefit distribution. Under this framework, the Bureau processed insurance policies under the War Risk Insurance Act, providing adjusted compensation and endowments for dependents of deceased veterans, while expanding vocational training programs to reintegrate disabled individuals into the workforce. By , the agency had initiated construction of 20 new hospitals to alleviate overcrowding in existing facilities, reflecting Harding's pledge to prioritize veterans' welfare through efficient federal coordination rather than ad hoc expenditures. In line with fiscal conservatism, Harding vetoed the proposed World War Veterans' Compensation Bill on September 19, 1922, which sought to provide a $1.00 daily bonus for domestic service and $1.25 for overseas service, totaling an estimated $2 billion cost. He argued that such payments would undermine budget reduction efforts and economic recovery, insisting that tax cuts and stable employment offered greater long-term benefits to veterans than immediate cash disbursements, a stance echoing President Ulysses S. Grant's earlier veto of a Civil War bonus. Congress overrode similar proposals only after Harding's death, enacting adjusted compensation in 1924. The administration's approach emphasized administrative efficiency and insurance-based support over direct bonuses, handling over 3 million claims by mid-1923 while constructing facilities to serve 30,000 hospitalized veterans.

Agricultural Relief Measures

Following World War I, American agriculture faced severe deflationary pressures, with farm commodity prices plummeting by over 50% from 1920 peaks due to overproduction and the loss of European wartime demand as those nations recovered output capacity. President Harding, in his first annual message to Congress on December 6, 1921, highlighted the disproportionate burdens on farmers from postwar readjustment and called for measures beyond mere tariff protection, including enhanced credit and marketing aids. The Emergency Tariff Act, signed by Harding on May 27, 1921, imposed temporary duties on key agricultural imports such as wheat (up to 42 cents per bushel), corn (15 cents per bushel), sugar, wool, and meats, aiming to shield domestic producers from low-priced foreign competition amid the immediate crisis. This measure provided short-term revenue and price support, though its effects were limited by the temporary nature and broader market oversupply. To address monopolistic practices in livestock markets, Harding signed the Packers and Stockyards Act on August 15, 1921, which established federal over stockyards, meatpackers, and dealers in interstate , prohibiting unfair , manipulative , and undue market control to ensure farmers received for their . The act created the framework for ongoing oversight by the Secretary of , targeting the "Big Five" packers' dominance that had exacerbated postwar squeezes. Further enabling collective action, the Capper-Volstead Act, enacted February 18, 1922, exempted agricultural producers' associations from antitrust prosecution when engaging in joint processing, handling, and marketing, thereby legalizing farmer cooperatives to counterbalance industrial buying power and stabilize prices through orderly sales. Secretary of Agriculture Henry C. Wallace, a key advocate, viewed this as essential for farmers to achieve parity with other sectors, though it required compliance with state incorporation and prohibited predatory practices. Harding also endorsed the Grain Futures Act of 1922, signed September 21, which regulated commodity exchanges to curb speculative manipulations that depressed farm incomes, mandating federal licensing and reporting to promote transparent trading. In his second annual message on December 8, 1922, he urged expanded farm credit, including livestock production loans and higher land loan limits, to facilitate recovery, though comprehensive relief awaited subsequent administrations amid persistent overproduction. These initiatives reflected a pragmatic focus on market facilitation and protection rather than direct subsidies, yielding modest price stabilization but insufficient to fully offset the decade's structural challenges.

Infrastructure Development

The Harding administration prioritized targeted federal support for to address postwar transportation needs and promote economic recovery, rather than broad programs. On , , President Harding signed the Federal Act into , appropriating $75 million for to fund the and of rural post roads. The mandated that states designate a connected limited to 7 percent of their total rural road mileage, with at least three-sevenths classified as primary or interstate routes eligible for up to 60 percent of available funds; it also imposed strict maintenance standards, including smooth surfaces and timely repairs, enforced through potential fund withholding. This act shifted federal from scattered projects to a systematic national framework, requiring 50 percent state matching contributions and prioritizing connections between cities of at least 5,000 , which resulted in the approval of approximately 168,881 miles of designated highways by 1923. By focusing federal resources on paving and interconnectivity, the initiative spurred a "third of Building," the development of primarily two-lane paved U.S. highways totaling around 200,000 miles by the mid-1930s and supporting the rapid growth of automobile usage. Complementing the 1921 act, Congress under Harding's administration enacted contract authority provisions in June 1922, authorizing $50 million for fiscal year 1924 and permitting states to secure federal commitments for projects prior to full congressional appropriations, a mechanism that enhanced planning efficiency and persists in modern highway funding. These measures aligned with Harding's emphasis on fiscal restraint and state responsibility, avoiding expansive federal spending while laying groundwork for interstate connectivity amid rising vehicular demand.

Civil Liberties Restorations

Following the repressive measures of the Woodrow Wilson administration, which included widespread prosecutions under the Espionage Act of 1917 and Sedition Act of 1918 for antiwar speech, President Warren G. Harding initiated efforts to restore civil liberties by reviewing and commuting sentences of political prisoners. These laws had led to the imprisonment of over 2,000 individuals, many for expressing dissenting views during World War I, including Socialist leader Eugene V. Debs, convicted in 1918 for a speech obstructing military recruitment and sentenced to ten years. Harding's approach marked a shift toward leniency, emphasizing a return to prewar norms of free expression amid the First Red Scare's waning intensity. On December 23, 1921, Harding commuted Debs' sentence to time served, allowing his release from the Atlanta Federal Penitentiary on Christmas Day, along with 23 other political prisoners convicted of similar offenses, including members of the and other socialists. Debs, who had campaigned for president from prison in 1920, subsequently visited the White House on January 7, 1922, where Harding greeted him cordially, symbolizing reconciliation over retribution. Throughout his presidency, Harding granted clemency to at least 39 additional individuals imprisoned under the Espionage Act, prioritizing those whose offenses involved speech rather than direct sabotage, thereby mitigating the wartime erosion of First Amendment protections. These actions contrasted sharply with Wilson's to Debs despite appeals, including from Harding himself prior to his , and reflected Harding's commitment to constitutional principles over punitive excess. While not a , the commutations addressed specific injustices, such as disproportionate for non-violent , and contributed to the broader of federal overreach in suppressing post-Palmer Raids. Historians note that Harding's pardons, though politically risky given Debs' radicalism, underscored a pragmatic realism in recognizing that prolonged incarceration for ideological expression undermined public trust in governance.

Racial and Social Policies

Harding advocated for federal anti-lynching legislation, endorsing the Dyer Bill introduced by Representative Leonidas C. Dyer in 1920, which aimed to make lynching a federal crime punishable by fines up to $10,000 and imprisonment up to ten years. The bill passed the House of Representatives on January 26, 1922, by a vote of 230 to 88, but was blocked in the Senate by a filibuster led by Southern Democrats in May 1922. Harding's support aligned with Republican efforts to address the 3,436 lynchings recorded between 1882 and 1921, predominantly targeting Black Americans in the South. On October 26, 1921, in , Harding delivered a speech to a segregated of approximately 20,000 whites and 10,000 Blacks, marking the first instance of a sitting president publicly condemning and calling for in political rights. He stated, "I would say let the black man vote when he is fit to vote; prohibit the white man voting when he is unfit to vote," emphasizing non-discriminatory and an end to "the determination of the white man to hold the black man in political subjection." Harding qualified , asserting it should arise naturally rather than by force, while affirming "the absolute equality of races—physical, political and opportunity for development" as essential for . The administration established the first formal presidential engagement with the , with Harding meeting leaders shortly after inauguration in March 1921 to discuss civil rights advancements. co-founder initially praised Harding's openness in an but later criticized unfulfilled promises, reflecting tensions over implementation amid congressional opposition. Harding appointed Black individuals to federal positions, including as consul to the in 1921, signaling intent to integrate qualified into government roles. Social policies under Harding emphasized moral reform through Prohibition enforcement via the , with the Justice Department prosecuting over 4,000 violations in 1921 alone, though personal inconsistencies emerged as Harding hosted private alcohol consumption at the . The era's broader intersected with eugenics-influenced immigration restrictions, but Harding's direct involvement remained limited to signing the of 1921, which capped entries at 3% of each nationality's 1910 census population to preserve cultural homogeneity. These measures reflected nativist priorities over explicit eugenic programs, prioritizing national stability post-World War I.

Judicial Appointments

Supreme Court Nominations

During his presidency, nominated four individuals to the , filling vacancies created by the death of and the resignations of associate justices John H. Clarke, , and ; all nominations received confirmation. These appointments contributed to a conservative shift on the Court, emphasizing intervention and protection of property rights, aligning with Harding's "normalcy" agenda of reduced federal oversight post-World War I. The initial vacancy arose from White's death on May 19, 1921. Harding nominated former President as on June 30, 1921; the confirmed him by the same day, and Taft was commissioned on July 11, 1921. Taft, who had long desired the position after his executive tenure, brought prior judicial experience as a federal circuit judge and a reputation for efficient administration, though critics noted his prior antitrust enforcement as president. In September 1922, anticipating Clarke's resignation (effective October 4, 1922), Harding nominated , a former senator and attorney with conservative views on constitutional limits to federal power, on September 5, 1922; confirmation followed the same day by , with commissioned October 2, 1922. Following Day's retirement on November 13, 1922, Harding nominated , a railroad attorney and Catholic Democrat known for defending corporate interests, on November 21, 1922; the Senate took no action initially, prompting a renomination on December 5, 1922, which was confirmed December 21, 1922, by a 61-8 vote despite opposition from progressives like Robert La Follette over 's anti-labor stance. was commissioned January 2, 1923. To succeed Pitney, who resigned effective December 31, 1922, Harding nominated , a circuit judge with experience in antitrust cases, on January 24, 1923; the confirmed him January 29, 1923, by voice vote, and he was commissioned February 19, 1923.
NomineePositionNominatedConfirmedReplacing
William H. TaftChief JusticeJune 30, 1921June 30, 1921Edward D. White
AssociateSep. 5, 1922Sep. 5, 1922John H. Clarke
Pierce ButlerAssociateDec. 5, 1922Dec. 21, 1922
AssociateJan. 24, 1923Jan. 29, 1923

Lower Federal Courts

During his presidency from March 4, 1921, to August 2, 1923, nominated six judges to the and 44 to the United States district courts, with all receiving confirmation. These appointments addressed vacancies primarily from resignations, retirements, and deaths among judges appointed under prior administrations, amid a Republican-controlled that facilitated rapid approvals averaging under two months per nomination. Senatorial courtesy dominated the selection process for district court seats, whereby home-state senators recommended candidates, often prioritizing party loyalty, legal experience, and local prominence over ideological tests. For the courts of appeals, Harding's nominees included figures like former U.S. Senator William S. Kenyon to the Eighth Circuit, confirmed May 27, 1922, who brought prior congressional and prosecutorial background. Appointments emphasized conservative jurists aligned with Republican principles of intervention and business interests, though Harding exercised less personal oversight than in cabinet selections, deferring to Harry M. Daugherty and judicial committees. The resulting bench reinforced a pro-business tilt in federal during the early , handling cases on , labor disputes, and antitrust with deference to over expansive . Harding also issued recess appointments to several district court vacancies to maintain judicial operations during congressional breaks, including William Eli Baker to the District of Montana on April 4, , and Claude Z. Luse to the Western District of Wisconsin on April 1, . Such interim commissions, a practice permitted under Article II of the Constitution, were later formalized through Senate-confirmed nominations, though a few transitioned under successor after Harding's death. Unlike executive branch scandals, these judicial placements faced minimal controversy, with no filibusters or rejections, underscoring the era's deference to presidential prerogative in routine lower-court staffing.

Administration Scandals

Teapot Dome Affair

![Albert B. Fall c. 1923.jpg][float-right] The Dome Affair centered on the illicit leasing of U.S. naval oil reserves at Dome in and Elk Hills in to private oil companies without competitive bidding. These reserves, established by in 1915 and 1920 to ensure fuel for the Navy's fleet, were under Navy Department control until President Harding issued Executive Order 3479 on May 31, 1921, transferring authority to the Department of the Interior under Secretary . Fall, a former New Mexico senator with ties to the oil industry, proceeded to negotiate secret deals with oil executives Harry F. Sinclair of Mammoth Oil (a Sinclair Oil subsidiary) and of Pan American Petroleum. On October 25, 1921, Fall leased the Elk Hills reserve to Doheny's company, followed by the Teapot Dome lease to Sinclair on April 7, 1922; both agreements allowed immediate drilling and extraction in exchange for a royalty on production but bypassed public bidding requirements. Fall received substantial bribes for these favors, including $100,000 in cash from Doheny shortly after the Elk Hills deal and approximately $269,000 in Liberty Bonds and cash from Sinclair post-Teapot Dome lease, totaling over $400,000 in illicit payments that enabled Fall's personal financial gain while compromising interests in reserve preservation. Harding had approved the Interior transfer at Fall's recommendation to consolidate management but showed no direct involvement in the leases or knowledge of the bribes, though his administration's reliance on personal appointees like Fall contributed to lax oversight. Public suspicion arose in April 1922 when the Wall Street Journal reported the Teapot Dome lease, prompting Democratic Senator of to lead a Public Lands and Surveys investigation starting in , after Harding's . Walsh's exhaustive hearings, spanning 1923–1924, uncovered the no-bid processes, Fall's unexplained wealth surge (from near-insolvency to affluence via ranch improvements and loans), and the bribe trails, revealing how Fall had prioritized private interests over federal conservation mandates. Fall resigned on March 4, 1923, amid unrelated rumors but before the full scandal erupted; President Coolidge later revoked the leases in 1924, returning sites to government control. Legal repercussions followed: Fall was indicted in 1927, convicted of in 1929 for the Doheny payments—becoming the first U.S. cabinet officer imprisoned for crimes in office—and served nine months of a one-year sentence before pardon eligibility. Sinclair faced contempt convictions for and destroying evidence but avoided charges, while Doheny was acquitted in his 1926 , highlighting evidentiary challenges in proving amid claims of legitimate "loans." The affair underscored vulnerabilities in executive resource management and fueled demands for transparency, influencing later reforms like competitive laws, though it did not directly implicate Harding in .

Justice Department Abuses

, a longtime political associate of from , served as U.S. from March 4, 1921, to March 28, 1924. During his tenure, the Justice Department faced allegations of systemic corruption, particularly involving the illegal sale of liquor permits under the , which permitted limited medicinal alcohol but was exploited for bribes and bootlegging protection. Daugherty's aides, including Jesse W. Smith, operated from informal offices within the department, facilitating influence peddling and the collection of graft estimated in the millions from Prohibition-era violators seeking leniency or permits. A central figure in these abuses was , Daugherty's and a member of the so-called "Ohio Gang," who handled much of the department's extralegal dealings, including the destruction of incriminating documents. On May 30, 1923, Smith died by suicide in Daugherty's Washington apartment, reportedly after President Harding informed him of an impending arrest for ; prior to his death, Smith burned papers related to ongoing probes. Smith's demise intensified scrutiny, revealing patterns of bribery tied to the release of seized alien properties from , where Daugherty's brother, Mally S. Daugherty, allegedly laundered funds through a family-controlled bank in exchange for influencing DOJ decisions. Senate investigations, prompted by figures like Democrat Burton K. Wheeler, exposed these irregularities in 1923, focusing on the department's refusal to prosecute certain cases and its role in selling pardons and permits. Daugherty defied subpoenas for records, leading to contempt proceedings upheld by the Supreme Court in McGrain v. Daugherty (1927), which affirmed Congress's investigative powers. Although Daugherty was tried twice on charges of defrauding the government through his brother's bank—acquitted both times in 1927—the scandals contributed to his resignation under President Calvin Coolidge amid bipartisan pressure, marking a significant erosion of public trust in the Harding administration's law enforcement apparatus.

Veterans' Bureau Corruption

The Veterans' Bureau was created by an on August 9, 1921, consolidating the Bureau of War Risk Insurance, the Rehabilitation Division, and other agencies to administer benefits for veterans. President Harding appointed , a longtime associate lacking extensive administrative experience, as its first director, granting him broad authority over a $500 million annual budget for hospitals, insurance, and supplies. Forbes quickly engaged in fraudulent schemes, awarding lucrative contracts for veterans' hospital construction to select firms in exchange for bribes and kickbacks, often at costs far exceeding market rates. He orchestrated the sale of surplus government medical supplies and hospital furnishings—valued at millions—to political allies and middlemen at fractions of their worth, while laundering defective or substandard goods through rigged inspections. Bureau attorney F. Cramer facilitated these deals, receiving payments funneled through sham corporations, until his suicide on September 19, 1923, amid mounting evidence of his involvement. A investigation launched in early 1924, following Harding's death, exposed systemic corruption, estimating that and his associates had defrauded the government of approximately $200 million through inflated contracts and illicit sales. resigned under pressure in February 1923 and fled to , but was extradited for trial; on January 30, 1925, he was convicted in federal court of conspiracy to defraud the and bribery. Sentenced to two years in Leavenworth Penitentiary and fined $10,000, served 19 months before pardon in 1927, while subsequent probes led to convictions of several contractors and officials, though the full extent of losses remained disputed due to destroyed records.

Other Agency Irregularities

The Office of the Alien Property Custodian, responsible for managing assets seized from German nationals during , experienced significant irregularities under Harding appointee Thomas W. Miller, who served from May 1921 until the scandals emerged after Harding's death. Miller facilitated the sale of valuable seized German chemical patents, including those for synthetic dyes, to private American interests in exchange for bribes totaling at least $50,000, arranged through intermediaries linked to Harry Daugherty's circle. These transactions violated procedures for liquidating enemy properties under the Trading with the Enemy Act of 1917, prioritizing insider profits over government revenue or fair competition. A related scheme involved the American Metal Company, where Miller's office seized stock valued at approximately $7 million as German-owned property in 1918, sold it at auction, and later approved its repurchase by conspirators at undervalued terms, yielding kickbacks including $391,000 in bonds to Miller for expediting the deal. Investigations revealed that Miller, Daugherty, and associates like Gaston B. Means and profited from manipulating claims and sales, defrauding the government of millions. Charles F. Cramer, to the custodian's office, committed on July 18, 1923, hours after receiving a related to questionable checks from Smith tied to these property dealings, further exposing the graft. Miller was indicted in October 1925 on charges of conspiracy to defraud the , convicted in 1927, and sentenced to 18 months in , serving time from 1928 to 1929 before a pardon under President Hoover. These abuses, uncovered primarily through probes and Justice Department successor investigations after Harding's August 1923 death, highlighted lax oversight in disposing of over $500 million in alien assets, though Harding himself faced no direct charges in this matter. Irregularities extended to the U.S. Shipping Board, which oversaw the disposal of World War I-era merchant fleet surplus; appointees sold vessels at below-market prices to political allies, including instances of ships transferred for "pennies on the dollar," contributing to losses estimated in the tens of millions amid allegations of favoritism and inadequate bidding processes. While less documented than core scandals, these practices reflected broader in agency operations, prompting congressional scrutiny but fewer convictions.

Harding's Oversight and Unawareness

Harding's administrative style relied heavily on delegation to cabinet members and personal associates, many from his Ohio political network, fostering an environment of limited direct supervision that enabled irregularities to persist undetected during his tenure. This approach stemmed from his belief in loyalty and efficiency, but it resulted in oversight failures, as evidenced by multiple agency scandals that surfaced primarily after his death on August 2, 1923. No contemporary evidence implicates Harding in personal financial gain or active participation in corrupt acts, with investigations confirming his appointees' independent misconduct. In the Veterans' Bureau, Harding became aware of Director Charles R. Forbes's misappropriation of funds, including the resale of stolen medical supplies and acceptance of vendor kickbacks, following a New York World exposé in April 1923. He had earlier ordered in 1922 to investigate and halt irregularities after initial suspicions, but Forbes concealed the extent of the , leading to Harding's direct confrontation and demand for Forbes's on April 27, 1923. This action demonstrated reactive oversight once evidence emerged, though Forbes's prior evasion highlighted gaps in proactive monitoring. Regarding the Teapot Dome leases, Harding approved the transfer of naval reserves to the Interior Department on May 31, 1921, and endorsed Secretary Albert B. Fall's subsequent emergency leasing policy in a June 1922 letter to , viewing it as a safeguard against reserve depletion amid production concerns. When rumors of impropriety arose in late 1922, he commissioned a naval review affirming the leases' propriety and defended the administration's stance to the , but full bribery evidence against Fall only materialized post-mortem in Senate hearings starting October 1923. Harding's unawareness of Fall's $400,000 in illicit payments from lessees aligns with the timeline, as Fall resigned in March 1923 without attached to his name during Harding's life. Harding similarly lacked detailed knowledge of Justice Department abuses under Harry Daugherty, involving alien and influence peddling, though private accounts indicate he grew uneasy with persistent rumors in mid-1923. During his final western tour, he confided concerns about administrative integrity to aides, signaling emerging awareness of broader issues, but his sudden death precluded comprehensive reforms or prosecutions. Historians note this pattern—trust in appointees delaying detection—contrasts with deliberate malfeasance, underscoring Harding's in personnel choices over intentional neglect.

White House Life and Final Months

Personal Routine and Health

Harding's routine blended presidential duties with frequent leisure activities, including regular poker games with cabinet members and aides, during which he consumed whiskey despite national , smoked cigars and pipes, and chewed . These sessions, often held twice weekly and extending into late hours, involved high-stakes play where Harding reportedly won items such as a $4,000 pearl pin. He also played regularly, fished on vacations, and maintained a social demeanor emphasizing storytelling and camaraderie over rigorous scheduling. Harding's health deteriorated progressively during his presidency, marked by high blood pressure, an enlarged heart, and recurrent fatigue from overstrain. In January 1923, he endured a prolonged gastrointestinal illness initially attributed to influenza, involving abdominal pain and weakness that confined him for weeks. By early 1923, symptoms escalated to include shortness of breath, chest pain, and general enervation, consistent with underlying congestive heart failure exacerbated by longstanding habits like heavy tobacco use—averaging two cigars daily plus snuff—and limited prior exercise. Medical examinations revealed cardiac enlargement and hypertension, though Harding downplayed these, attributing discomfort partly to nervous strain from administrative pressures.

Western Tour

The Western Tour, dubbed the "Voyage of Understanding," began on June 20, 1923, as President Harding departed Washington, D.C., by special train for a transcontinental journey spanning the Midwest, Rocky Mountain states, and Pacific Northwest to promote Republican policies, assess local conditions, and rebuild public confidence amid whispers of administrative irregularities. The itinerary featured over 14 major addresses and informal stops in cities like St. Louis, Kansas City, and Salt Lake City, with excursions to Yellowstone National Park to view Old Faithful and Zion National Park's sandstone formations, where Harding examined irrigation systems and Native American settlements to inform federal resource management. Reaching in early July, the party sailed aboard the USS Henderson, arriving at , on July 8—the first visit by a sitting U.S. president to the . Over two weeks, Harding toured coastal towns including Ketchikan, Wrangell, Juneau, Skagway, and Seward, then ventured inland to Fairbanks, driving the ceremonial completing the at Nenana on July 15 amid celebrations marking enhanced territorial connectivity. He advocated for Alaskan development, including potential statehood and resource exploitation, while observing glaciers and engaging residents on economic prospects. The tour's physical demands exacerbated Harding's preexisting conditions, including an enlarged heart, recent influenza recovery, overweight frame, and heavy smoking habit, despite medical advisories against the rigor. Departing on July 23 after stops in Sitka, the entourage visited , , reviewing troops before returning to on July 27 and proceeding southward. En route to , Harding suffered acute , fever, , and respiratory distress—initially attributed to ptomaine but indicative of worsening cardiac strain—culminating in his collapse upon arrival. The journey, intended to extend to the and , was truncated by these health deteriorations.

Death and Immediate Aftermath

On August 2, 1923, President died suddenly at 7:30 p.m. local time in his suite at the Palace Hotel in , , during the final stop of his "Voyage of Understanding" western tour. Attending physicians, including five specialists who had been monitoring his health, pronounced the cause as (a ), though contemporaneous reports noted preceding symptoms of and dating back to late July, initially attributed to ptomaine from seafood consumed in . Modern medical analysis, based on Harding's documented , arrhythmias, and cardiovascular strain exacerbated by his robust frame (over 200 pounds) and heavy , points to congestive heart failure or as the likely terminal event, rather than or . First Lady refused an autopsy, citing her husband's wishes to avoid public dissection, a decision that fueled subsequent speculation but aligned with era norms for high-profile figures. Contemporary rumors of foul play, including unsubstantiated claims of poisoning by the First Lady to conceal infidelities or by political rivals over emerging scandals, circulated in gossip columns and later books like Gaston Means' 1930 memoir The Strange Death of President Harding, but lacked forensic evidence and were refuted by physicians' observations of natural decline and by Harding's prior complaints of chest pain and fatigue. Harding's death occurred while Mrs. Harding read to him from The Ten Times One Is Vermillion, a magazine serial; he reportedly gasped, clutched his chest, and expired moments later, with no signs of external trauma or deliberate intervention noted by witnesses. News of the death reached via telegraph that evening, prompting his swearing-in as the 30th president at 2:47 a.m. on August 3, 1923, in his father's farmhouse by the elder Coolidge, a and , using a family under kerosene lamp light. Coolidge, previously seen as a low-profile figure, assumed duties seamlessly under the Constitution's succession clause, issuing a brief statement mourning Harding as "a great and good man" and emphasizing continuity in governance. The cabinet, en route from the West Coast, convened in Washington to manage transition, with no immediate policy disruptions reported. Harding's body was embalmed in and transported eastward by special , arriving in Washington on August 8 after stops for viewing in multiple cities, where thousands lined tracks in mourning. in the on August 8–9 allowed private viewings by and dignitaries, followed by a procession to the Capitol Rotunda on August 10, where over 90,000 citizens paid respects amid national grief. The funeral service on August 10, presided over by Episcopalian Bishop James E. Freeman, marked one of the first major events broadcast via nascent radio technology, with stations like KDKA in airing eulogies to an estimated millions, fostering widespread solidarity despite underlying political tensions. Interment occurred on August 11 at , in a temporary , with final reburial alongside Mrs. Harding in ; immediate reactions focused on loss of a popular "" leader, though posthumous revelations of administration corruption soon tempered the eulogies.

Historical Reassessment

Early Negative Narratives

Following Harding's on August 2, 1923, revelations of within his administration surfaced through congressional probes and media scrutiny, rapidly shifting public and historical perceptions from admiration to condemnation. Initial investigations, such as Senator Thomas J. Walsh's October 1923 Senate inquiry into naval oil reserves, exposed the , where Secretary of the Interior had accepted bribes exceeding $400,000 in Liberty Bonds and cash for no-bid leases on federal oil fields in and . This led to narratives framing Harding's presidency as emblematic of "graft" and favoritism toward the so-called —his Ohio-based political allies appointed to key posts—despite limited evidence of Harding's personal involvement. Contemporary press accounts in outlets like and sensationalized these developments, portraying administrative scandals as pervasive and Harding as negligent for selecting unreliable subordinates. For instance, irregularities in the Veterans' Bureau under director , involving overpriced hospital construction and kickbacks totaling millions, were investigated starting in April 1923 after Harding ordered an audit, but posthumous indictments and Forbes's 1925 conviction for conspiracy amplified depictions of unchecked malfeasance. Justice Department probes under Harry M. Daugherty, accused of protecting bootleggers and extorting funds, further fueled stories of a "corrupt cabal," with Daugherty's 1924 and subsequent 1927 failing to mitigate the damage. Personal allegations compounded the institutional critiques. In July 1927, published The President's Daughter, claiming a romantic relationship with Harding from 1911, resulting in daughter born July 22, 1919, and detailing alleged trysts; the depicted Harding as emotionally vulnerable and politically immature. Though Harding's executors contested the claims, paying Britton $20,000 in equivalents, and a 1927 Ohio court dismissed her paternity suit for lack of evidence, the book's salacious details—banned in some cities for —ingrained images of presidential immorality, drawing on unverified diaries and letters. These elements coalesced in early biographical treatments, such as Samuel Hopkins Adams's The Incredible Era (1939), which synthesized trial records, journalistic exposés, and anonymous sources to narrate Harding's tenure as a "tragic" yet avoidable descent into venality, attributing it to Harding's poor judgment in appointments and aversion to . Adams, a muckraking , emphasized dramatic anecdotes over economic metrics like the 1921-1922 recession's end or budget surpluses, influencing subsequent rankings that placed Harding among the least effective presidents. Such accounts often prioritized timelines—conveniently unfolding after Harding's prevented rebuttals—over contemporaneous evidence of his directives against irregularities, reflecting a partisan media environment where Democratic critics and Republican distancing under Coolidge amplified guilt by association.

Economic Achievements Reappraised

The presidency of Warren G. Harding coincided with a swift economic recovery from the severe postwar depression of 1920–1921, during which gross national product declined by 17 percent in 1920 and unemployment reached nearly 12 percent. Harding's administration eschewed expansionary interventions advocated by some advisors, such as Secretary of Commerce Herbert Hoover, in favor of fiscal restraint, allowing market forces to adjust wages, prices, and production costs freely. Federal spending was reduced nearly in half between 1920 and 1922, dropping from 6.5 percent to 3.5 percent of GDP, while tax rates were slashed across income groups, with the top marginal rate lowered from 73 percent under prior law. These measures, informed by Treasury Secretary Andrew Mellon's philosophy that lighter tax burdens on businesses would foster broader prosperity, initiated what became known as the Mellon Plan. Key legislative achievements included the Budget and Accounting Act of 1921, signed on June 10, which established the Bureau of the Budget for centralized executive fiscal planning and the General Accounting Office for independent audits, enhancing government efficiency. The Revenue Act of 1921 further dismantled wartime excess profits taxes, reducing the top rate to 58 percent and broadening the base to capture untaxed high earners. Protective tariffs were raised via the Emergency Tariff Act of May 1921 and the of 1922, shielding domestic industries amid global competition. These policies contributed to a rapid rebound, with falling to 6.7 percent by 1922 and 2.4 percent by 1923, alongside gross national product growth of 16 percent from 1921 to 1922. Reappraisals by economic historians emphasize that Harding's non-interventionist approach—contrasting with later Keynesian paradigms—facilitated recovery by permitting necessary liquidations of malinvestments from wartime credit expansion, avoiding prolonged stagnation or inflation. While scandals overshadowed his tenure contemporaneously, empirical outcomes underscore the efficacy of retrenchment: federal expenditures were cut by over $1.5 billion (a 30 percent reduction) from 1921 to 1922, and tax revenues rose despite rate cuts due to expanded economic activity. This episode, often termed the "forgotten depression," challenges narratives privileging government stimulus, as the U.S. economy transitioned to boom conditions by mid-1921 without fiscal deficits or monetary easing. Such reassessments, drawing on Austrian economic analysis, highlight causal links between policy restraint and swift private-sector-led growth, though mainstream academic sources have historically underemphasized these successes amid focus on administrative corruption.

Scandal Contextualization

The scandals that emerged during and after Warren G. Harding's presidency, including the Teapot Dome affair and irregularities in the Veterans' Bureau, involved corrupt practices by several appointees but lacked direct evidence implicating Harding himself in bribery or personal gain. Harding appointed figures like Interior Secretary , who secretly leased naval oil reserves at Dome and Elk Hills to private interests in exchange for approximately $400,000 in bribes and no-interest loans by October 1921, actions concealed from the president and only fully exposed after Harding's death on August 2, 1923. Similarly, Veterans' Bureau Director defrauded the government of up to $15 million through overpriced hospital contracts and sales of surplus supplies between 1921 and 1923, prompting Harding to dismiss him in April 1923 upon learning of discrepancies, though the full scope emerged posthumously. Harding's correspondence and actions, such as confronting Fall in December 1922 after rumors surfaced and ordering investigations into Justice Department graft, indicate awareness of potential issues but no complicity, as confirmed by Senate probes that found no records of his involvement or profiteering. Historians have noted that the administration's corruption stemmed from Harding's reliance on personal loyalty over rigorous vetting, a common practice in the patronage era following Woodrow Wilson's progressive reforms, which expanded federal agencies vulnerable to abuse during rapid post-World War I demobilization. This "Ohio Gang" of cronies, including Attorney General , exploited access for illicit gains estimated in the low millions—dwarfed by later scandals like Watergate or modern excesses—but amplified by sensational press coverage after Harding's death, when figures like Fall were convicted (Fall receiving a one-year term in 1929) and Daugherty indicted (though acquitted). No contemporary indictments targeted Harding's inner circle until after his passing, and his own finances showed no unexplained wealth, with assets largely from pre-presidential newspaper holdings. In reassessment, the scandals' outsized role in Harding's legacy reflects a post-1923 narrative shift, where media and academic sources, often critical of his economic policies, emphasized graft to overshadow achievements like budget surpluses and tax reductions that fueled prosperity. While corruption was real and reflected poor oversight—Harding privately lamented "the surprise of the extent of the wrongdoing" to friends like —the absence of presidential directives or benefits distinguishes it from participatory schemes in other administrations, such as Ulysses S. Grant's . Recent analyses argue this contextualizes the events as episodic failures amid effective governance, rather than systemic rot defining the entire term.

Broader Legacy and Rankings

Harding's presidency is often remembered for the corruption scandals that emerged after his death in 1923, such as Teapot Dome, which overshadowed his administration's contributions to postwar economic recovery and normalization of government operations. Despite these events, empirical evidence from fiscal records shows his policies facilitated a sharp reduction in federal spending from $6.4 billion in 1920 to $3.3 billion by 1923, alongside tax cuts enacted under Treasury Secretary Andrew Mellon that lowered the top marginal rate from 73% to 58% and spurred industrial output growth of over 60% during his term. These measures, rooted in reducing wartime interventions, correlated with the onset of the Roaring Twenties prosperity, including unemployment dropping from 11.7% in 1921 to 2.4% by 1923 and GNP rising 7% annually. On , Harding directed the commutation of Eugene V. Debs's sentence on December 26, 1921, releasing the Socialist leader imprisoned under the Espionage Act, and pardoned over 800 other political prisoners by 1923, effectively dismantling Wilson-era suppressions of dissent. In foreign affairs, his support for the of 1921-1922 achieved arms limitations among major powers without binding treaties, preserving U.S. sovereignty while stabilizing Pacific tensions. Revisionist analyses argue these actions demonstrate competent leadership in transitioning from progressive-era expansions to , though mainstream historiography, influenced by contemporaneous exposés like those in The New York Times following Harding's death, has prioritized narratives. In presidential rankings by historians and political scientists, Harding consistently places near the bottom. The 2021 Survey of Historians ranked him 40th overall out of 44 presidents, with low scores in (26.9/100) and administrative skills (35.2/100), though higher in economic (44.7/100). Similarly, the 2018 survey placed him 42nd, citing scandals as the primary drag on his evaluation. Recent scholarly reassessments, such as in Ryan Walters's 2022 analysis, contend these rankings undervalue causal links between Harding's and subsequent growth, estimating his true standing closer to mid-tier when scandals are contextualized as isolated to subordinates rather than systemic. from 20th-century polls, including Arthur Schlesinger Sr.'s 1948 survey, have perpetuated his low position, but econometric studies of impacts suggest a more favorable legacy in promoting voluntary economic coordination over state direction.
SurveyYearOverall Rank (out of presidents evaluated)
C-SPAN Historians Survey202140th (of 44)
Siena Research Institute201842nd (of 44)
Schlesinger Poll1948Near bottom (specific rank 31st of 35 in some aggregates)
Harding's broader legacy thus reflects a tension between verifiable successes in restoring prewar fiscal and the enduring from post-mortem revelations, with ongoing debates centering on whether scandals represent inherent administrative or misattributed blame amid after Wilson's overreach.

References

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