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Ohio Gang
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Ohio Gang
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Ohio Gang
Warren G. Harding and his cabinet, 1921
Founded1886 (1886)
FounderJoseph B. Foraker
Founding locationOhio
Years active1886–1924
TerritoryBased in Ohio, active at national level
EthnicityAmerican citizens of European origin
MembershipMore than 10
LeadersJoseph B. Foraker
Warren G. Harding
Harry M. Daugherty
ActivitiesPatronage, political corruption, bootlegging

The Ohio Gang was a gang of politicians and industry leaders closely surrounding Warren G. Harding, the 29th president of the United States. Many of these individuals came into Harding's personal orbit during his tenure as a state-level politician in Ohio, hence the name.

During the Harding administration, several members of the Ohio Gang became involved in financial scandals. These included the Teapot Dome scandal and apparent malfeasance at the U.S. Department of Justice, some of which ended in prison terms and a suicide. Following Harding's sudden death of a heart attack in 1923, many members of the Ohio Gang were effectively removed from the corridors of power by Harding's vice president and successor, Calvin Coolidge.

Background

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Secretary of the Interior Albert B. Fall, chief perpetrator of the Teapot Dome bribery scandal

Warren G. Harding was elected president by promising to return the nation to "normalcy", and opposing the idealism of his predecessor Woodrow Wilson. He captured 60% of Americans' votes and won by a landslide. After Harding had won the election, he appointed many of his allies and campaign contributors to powerful political positions in control of vast amounts of government money and resources.

Attorney General Harry M. Daugherty and Interior Secretary Albert B. Fall were considered to have been responsible for acts of corruption and cronyism.

Albert Fall was responsible for the Teapot Dome scandal. Teapot Dome was considered America's biggest political scandal up until Watergate. The group met regularly at the infamous Little Green House on K Street. Also associated with the secret hide out was Jesse W. Smith who was said to have committed suicide because he faced scrutiny from Harding's supporters about his activities.

There is no information that proves that Harding knew of the scandals that were going on during his time in office. He may not have learned much of it until the eve of his death. Fall was mainly responsible for the Teapot Dome scandal and was eventually jailed for taking bribes. Later President Coolidge forced the resignation of Daugherty for the same crimes.

Internal opposition

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Attorney General Harry M. Daugherty, one of the leaders of the so-called Ohio Gang

Not every member of the Harding administration was a member of the so-called "Ohio Gang". Among the critics of the clique was Harding's straitlaced Secretary of Commerce, Herbert Hoover, who while generally appreciative of Harding viewed the motivations and behavior of the Ohio Gang with thinly concealed disgust.[1]

In his memoirs, published in 1952, Hoover depicted Harding's Ohio cronies as a reflection of a character flaw:

[Harding] had another side which was not good. His political associates had been men of the type of Albert B. Fall, whom he appointed Secretary of the Interior; Daugherty, whom he appointed Attorney General; Forbes, whom he appointed Director of the Veterans' Bureau; Thomas W. Miller, whom he appointed Alien Property Custodian, and Jesse W. "Jess" Smith who had office room in the Department of Justice.
He enjoyed the company of these men and his old Ohio associates in and out of the government. Weekly White House poker parties were his greatest relaxation. The stakes were not large, but the play lasted most of the night.... I had lived too long on the frontiers of the world to have strong emotions against people playing poker for money if they liked it, but it irked me to see it in the White House.[1]

Although the religious Hoover was invited to the White House poker party only once and never invited back, he was nevertheless held in esteem by Harding, and he was abruptly added to the entourage for the President's July 1923 trip to Alaska, which came in the wake of Jess Smith's suicide.[2]

Even as Harding prepared to leave Washington, D.C., Hoover found him "nervous and distraught", and his mood changed little on board ship to Alaska.[3] Hoover later recalled:

One day after lunch when we were a few days out, Harding asked me to come to his cabin. He plumped at me the question: "If you knew of a great scandal in our administration, would you for the good of the country and the party expose it publicly or would you bury it?" My natural reply was "Publish it, and at least get credit for integrity on your side." He remarked that this method might be politically dangerous. I asked for more particulars. He said that he had received some rumors of irregularities, centering around Smith, in connection with cases in the Department of Justice. He had followed the matter up and finally sent for Smith. After a painful session he told Smith that he would be arrested in the morning. Smith went home, burned all his papers, and committed suicide. Harding gave me no information about what Smith had been up to. I asked what Daugherty's relations to the affair were. He abruptly dried up and never raised the question again.[3]

During his Alaskan trip Harding suffered the first heart attack in what would prove to be his last days.[4] Following Harding's death, Hoover and his co-thinker, Secretary of State Charles Evans Hughes, approached new President Calvin Coolidge and asked him to remove prominent Ohio Gang member Daugherty as Attorney General.[5] Harding's death had done nothing to stem the tide of emerging scandals revolving around his Ohio clique, with the news dominated by the story of Teapot Dome bribery and allegations of wrongdoing in the Office of the Alien Property Custodian, the Veterans' Bureau, and the Office of the Attorney General.[6]

Hoover recalled:

Coolidge was loath to believe that such things were possible. He greatly delayed the removal of Daugherty from the Cabinet. From this man's long-time character, he should never have been in any government.... Coolidge had a high sense of justice and asserted that he had no definite knowledge of wrongdoings by Daugherty and could not remove him on rumors. We urged that Daugherty had lost the confidence of the whole country and himself should be willing to retire for the good of public service.[5]

Finally, on March 28, 1924, Coolidge requested and received a letter of resignation from Daugherty, effectively terminating the Ohio Gang's last leading member.[7]

The term "Ohio Gang", while used as an epithet by some during the decade of the 1920s and subsequently, was embraced by others. In his 1932 memoir Harry Daugherty unabashedly declared:

I was a true son of Ohio, the battle ground of the Nation. I frankly confess to a leadership in the so-called 'Ohio Gang' for about forty years. On the lips of rival politicians the 'Ohio Gang' is an epithet. I wear its badge as a mark of honor.[8]

Members

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Footnotes

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Further reading

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Revisions and contributorsEdit on WikipediaRead on Wikipedia

Ohio Gang

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from Grokipedia
The Gang was an informal coterie of President Warren G. Harding's longtime friends and political allies, many originating from Ohio, who secured key appointments in his administration from 1921 to 1923 and subsequently became embroiled in corruption scandals that severely damaged his legacy after his sudden death in office. Prominent members included , Harding's presidential campaign manager who served as Attorney General and orchestrated much of the group's influence; Albert B. Fall, Secretary of the Interior; and Charles R. Forbes, head of the newly created Veterans Bureau. These figures exploited their positions for personal gain, with Fall convicted for accepting bribes exceeding $300,000 to secretly lease federal naval oil reserves at Teapot Dome, Wyoming, and Elk Hills, California, to private oil companies in the infamous . Forbes engaged in systematic fraud by diverting hospital supplies to bootleggers and accepting kickbacks from construction contractors, resulting in his resignation under Harding's pressure and a two-year prison sentence. Daugherty faced multiple indictments for alleged graft in the disposal of seized alien properties and involvement in illicit protection schemes during , though he avoided conviction due to hung juries and was later impeached but acquitted as a . Other associates, such as Daugherty's aide , were linked to smuggling operations and died by suicide amid investigations, further fueling perceptions of widespread malfeasance within the inner circle. While Harding's cabinet also featured capable administrators like Secretaries , , and , the Ohio Gang's actions exemplified and betrayal of public trust, prompting congressional probes and trials that defined the era's .

Historical Context

Post-World War I Political Landscape

The Armistice of November 11, 1918, concluded U.S. participation in World War I, which had mobilized approximately 4.7 million service members and imposed significant domestic strains including rationing and labor shortages. This triggered widespread public exhaustion with the protracted conflict and President Woodrow Wilson's progressive internationalism, particularly his advocacy for the League of Nations, which the Senate rejected in November 1919 and again in March 1920 amid concerns over entangling alliances. The 1918 midterm elections reflected this shift, with Republicans capturing majorities in both the House (237 seats to Democrats' 193) and Senate (49 to 47), signaling early repudiation of Democratic wartime policies. Compounding political disillusionment was the severe 1920-1921 recession, triggered by the abrupt termination of wartime government spending, tight monetary policy from the newly independent Federal Reserve, and a post-boom inventory liquidation. Industrial production plummeted by 32.5 percent from its May 1920 peak, wholesale prices deflated by 45.9 percent, and unemployment surged to around 11.7 percent by mid-1921. These dislocations amplified calls for deregulation and fiscal conservatism, as businesses and consumers recoiled from the inflationary excesses and interventions of the war economy, prioritizing market-driven recovery over expansive federal programs. The November 1920 presidential election crystallized this desire for respite, with Republican nominee Warren G. Harding's "" pledge—articulated in a speech emphasizing prewar stability over ideological crusades—capturing voter sentiment amid lingering and economic distress. Harding secured 60.3 percent of the popular vote (16,166,126 ballots) and 404 electoral votes against Democrat James M. Cox's 34.1 percent and 127 electors, marking one of the largest margins in U.S. history. This Republican triumph underscored a mandate for inward-focused governance, eschewing Wilsonian globalism in favor of domestic retrenchment.

Warren G. Harding's Ascendancy

established his early career in , as co-owner and editor of the Marion Daily Star newspaper, which he purchased in partnership in 1884 and fully acquired by 1891. Through this venture, built local influence and Republican Party connections, never dismissing any employee during his tenure, which fostered loyalty among associates. He transitioned to elected office, serving in the State from 1899 to 1903 and as from 1904 to 1905, before winning a U.S. seat in 1914 for the term spanning March 4, 1915, to March 4, 1921. During these years, cultivated ties with political operatives, including , who had managed his campaigns since the early 1900s and became a key advisor, reflecting 's preference for trusted personal networks over broader ideological coalitions. The , held June 8–12 in , saw a prolonged deadlock after nine ballots, with no —such as General or Governor —securing the nomination amid factional splits. Party leaders, including Senator , convened privately in Suite 404–405 of , later mythologized as the "smoke-filled room," to broker a consensus; they settled on Harding as a palatable , leveraging his experience, base, and lack of polarizing stances. Daugherty, anticipating this outcome, had orchestrated behind-the-scenes efforts to position Harding, who clinched the nomination on the tenth ballot with 692.5 votes out of 984. This selection highlighted Harding's role as a vehicle for established Republican alliances rather than a pre-planned cadre. In the November 2, , general election, Harding and running mate defeated Democrat and , capturing 16,153,038 popular votes (60.3 percent) to Cox's 9,139,661 (34.1 percent), alongside 404 electoral votes to 127. The victory signaled voter exhaustion with Woodrow Wilson's progressive interventions and post-World War I upheavals, favoring Harding's pledge of a "return to normalcy"—a conservative reversion to and business-friendly policies preceding U.S. entry into the war. Harding's roots and interpersonal trusts thus elevated him, paving channels for subsequent reliance on familiar state networks in national office.

Formation and Key Personnel

Origins in Ohio Politics

established his political foundation in , after acquiring the Marion Daily Star newspaper in 1884, which served as a platform for promoting Republican viewpoints and fostering local party loyalty. Through this venture, Harding integrated into the Marion Republican machine, participating in county committee activities and building alliances that propelled his entry into state politics, including terms in the from 1899 to 1903. These networks emphasized personal relationships over strict ideology, aligning with the patronage systems prevalent in and Republicanism, where loyalty to party leaders ensured reciprocal support in elections and appointments. Central to these origins was , a Columbus-based attorney and longtime Harding associate who orchestrated the senator's 1920 presidential bid from its early stages. Daugherty, having managed Harding's prior campaigns for in 1909 and U.S. Senate in 1914, secured financing through his corporate legal connections and coordinated delegate strategies at the , enabling Harding's nomination despite initial underdog status. This effort drew in other Marion-area figures, such as local business associates and campaign aides, forming an informal cadre bound by shared Republican experiences rather than formalized structure. The selection of these individuals reflected Harding's reliance on proven allies from his Marion base, a pragmatic approach amplified by his swift elevation from senator to president without prior national prominence. Biographical accounts of key associates, including Daugherty and figures like , reveal no documented criminal records or illicit activities prior to , underscoring that their roles derived from demonstrated political reliability in Ohio's competitive party machinery rather than conspiratorial intent. This loyalty-driven recruitment mirrored broader U.S. political norms of the era, where rapid administrations often rewarded regional supporters to consolidate power amid post-World War I transitions.

Prominent Members and Their Roles

![President Warren G. Harding's First Cabinet 1921.jpg][float-right] , a longtime political operative, served as from 1921 to 1924. Born in , he managed . Harding's 1920 presidential campaign and had earlier held two terms in the Ohio state legislature from 1890 to 1894. Daugherty's appointment reflected Harding's preference for loyal associates from his , newspaper and political circles. ![Daugherty-Harry-M.jpg][center] held the position of Secretary of the Interior from March 1921 to 1923, with responsibilities including oversight of federal lands and naval petroleum reserves. A former U.S. Senator from , Fall lacked direct Ohio origins but was selected for his alignment with Harding's views on resource development. Charles R. Forbes was appointed the inaugural director of the Veterans' Bureau on August 9, 1921, tasked with consolidating and managing hospitals, insurance, and rehabilitation programs for over 1 million veterans. A decorated and acquaintance of Harding, Forbes directed the bureau's formation from prior agencies like the Bureau of War Risk Insurance. Jesse W. "Jess" Smith, originating from Washington Court House in , functioned as a personal aide and unofficial assistant to Daugherty, handling various administrative duties in the Justice Department. His proximity to Daugherty positioned him within the administration's inner operational network. Thomas W. Miller served as Alien Property Custodian from 1921, administering the liquidation and distribution of enemy assets seized during under the Trading with the Enemy Act of 1917. A former congressman from and founder, Miller's role involved managing properties valued in the hundreds of millions of dollars. These appointments occurred rapidly following Harding's March 4, 1921, inauguration, prioritizing personal loyalty over extensive prior federal experience amid the postwar expansion of government functions.

Administrative Policies and Outcomes

Domestic Economic Initiatives

The Budget and Accounting Act of 1921, signed into law by President Harding on June 10, 1921, centralized federal budgeting under the executive branch by establishing the Bureau of the Budget and providing for independent audits through the General Accounting Office, aiming to impose fiscal discipline amid post-World War I deficits. This reform shifted from decentralized agency submissions to a unified presidential budget proposal, facilitating spending reductions that cut federal outlays from $6.3 billion in 1920 to $3.2 billion by 1922. Under Treasury Secretary , the Revenue Act of 1921 lowered the top marginal rate from 73% to 58%, repealing excess profits taxes while raising the corporate rate modestly to 12.5%, with Mellon arguing that high rates stifled investment and growth. These cuts prioritized revenue stability over punitive taxation, contributing to subsequent economic expansion without initial revenue shortfalls. The Fordney-McCumber Act of raised average import duties to approximately 38%, protecting domestic industries from foreign competition through flexible rates adjustable by up to 50% via presidential authority, enacted to shield American farmers and manufacturers recovering from wartime disruptions. Federal spending reductions, achieved through vetoes of appropriations and executive economies, transitioned the budget from deficits to a surplus by 1923, while plummeted from 11.9% in 1921 to around 3% by 1923 amid the sharp post-recession rebound. This recovery stemmed from minimal intervention, allowing wage and price adjustments to clear markets after the 1920-1921 deflationary contraction, in contrast to prior expansionary policies under Wilson that had inflated debt and delayed liquidation of malinvestments. Reduced regulation and taxation enabled rehiring and production resumption, evidenced by industrial output growth exceeding 50% from 1921 lows.

Foreign Affairs and Isolationism

The Harding administration adopted an isolationist foreign policy, eschewing deep involvement in international organizations and conflicts to prioritize domestic recovery after . Harding's "" slogan captured widespread public fatigue with global commitments, resulting in the U.S. rejection of membership and a focus on bilateral or limited multilateral engagements rather than pacts. This pragmatic restraint stemmed from fiscal caution and skepticism toward European entanglements, viewing them as distractions from internal stabilization. A notable success was the , held from November 12, 1921, to February 6, 1922, which spearheaded to curb post-war naval expansion. The resulting Five-Power Treaty established tonnage ratios—5:5:3 for the U.S., Britain, and , respectively—for capital ships, halting construction of over a dozen battleships and cruisers that would have escalated Pacific rivalries. Additional treaties addressed fortifications in the Pacific and affirmed China's , temporarily stabilizing regional tensions without requiring U.S. military guarantees. The policy extended to non-recognition of the , continuing the stance initiated after the 1917 Bolshevik Revolution amid fears of ideological subversion and refusal to honor pre-revolutionary debts estimated at over $200 million. Harding's government demanded cessation of communist propaganda in the U.S. and protection for American property in as preconditions, reflecting anti-Bolshevik resolve and a broader aversion to legitimizing regimes perceived as threats to private enterprise and democratic norms. Fiscal conservatism underpinned these choices, as evidenced by Harding's veto of the World War Adjusted Compensation Act on September 19, 1922, which would have authorized up to $3.5 billion in veteran bonuses through certificates redeemable in 1945. Harding argued the measure would jeopardize the Treasury's debt-reduction efforts, prioritizing balanced budgets over deferred spending that echoed wartime overextension. overrode the veto in the but sustained it in the , affirming the administration's emphasis on prudent amid isolationist retrenchment. This framework, endorsed by voters seeking respite from global burdens, achieved short-term naval equilibrium without compromising U.S. .

Scandals and Allegations of Corruption

Teapot Dome Affair

In 1921, Secretary of the Interior secured an from President transferring jurisdiction over naval oil reserves, including Teapot Dome in and Elk Hills in , from the Navy Department to the Interior Department. Fall then proceeded to lease these reserves without competitive bidding to private oil interests: Teapot Dome to Harry F. Sinclair's Mammoth Oil Company in October 1921, and Elk Hills to Edward L. Doheny's Pan-American Petroleum and Transport Company in 1922. These actions were justified by Fall as necessary to protect naval fuel supplies amid concerns over reserve depletion and potential shortages following , though the leases lacked public advertisement or oversight. The scandal emerged during a investigation initiated by Senator in April 1922, which intensified in 1923 after rumors of impropriety surfaced, revealing that Fall had accepted approximately $400,000 in bribes from the lessees—$300,000 from Sinclair in the form of cash and Liberty Bonds shortly after the Teapot Dome lease, and $100,000 from Doheny as a "" secured by . Walsh's probe, continuing into 1924, uncovered no direct evidence linking Harding to the transactions, but exposed the secret nature of the deals and Fall's personal financial gains. In defense, Fall maintained that he possessed discretionary authority under the Mineral Leasing Act of 1920 to negotiate such leases in the interest of , arguing that the arrangements ensured reliable fuel storage for the at favorable terms without depleting government funds. Legal repercussions followed: the invalidated the Teapot Dome lease in October 1927 and the Elk Hills lease in February 1927, restoring the reserves to government control. Fall was convicted of on October 25, 1929, becoming the first U.S. imprisoned, serving nine months of a one-year sentence alongside a $100,000 fine. Sinclair and Doheny were acquitted of charges, though Sinclair served six and a half months for of the and additional time for related to his trial. Revisionist interpretations emphasize Fall's claimed emergency powers amid post-war naval vulnerabilities and the absence of competitive bidding requirements in the enabling legislation, portraying the leases as pragmatic exercises of executive discretion rather than inherent corruption, though the convictions underscore personal misconduct.

Veterans' Bureau Embezzlement

, appointed director of the newly created Veterans' Bureau in August 1921, oversaw a rapid expansion of facilities to accommodate disabled veterans, amid a postwar influx of approximately 4.7 million servicemen returning home, many with severe injuries requiring specialized care. Between 1921 and 1923, the Bureau awarded contracts for hospital construction and medical supplies, but investigations later revealed systematic overcharges and kickbacks, with favoring select contractors in exchange for bribes, leading to inefficient expenditures and substandard outcomes in some projects. This graft exploited the administrative pressures of scaling up services for hundreds of thousands of claimants, though the Bureau's efforts also resulted in the initiation of dozens of hospitals that formed the basis for later federal veteran healthcare infrastructure. A Senate subcommittee investigation launched in 1923, prompted by whistleblower complaints and audits, exposed these irregularities, including rigged bids and inflated costs on construction projects across multiple states. ' close associate, F. Cramer, resigned on March 7, 1923, amid growing scrutiny over his role in approving questionable contracts; one week later, on March 14, Cramer died by in his Washington apartment, reportedly despondent over criticism and potential exposure. The inquiry documented instances of , such as overpayments exceeding $450,000 in a single Western hospital cluster, contributing to broader losses estimated in the millions from corrupt dealings. Under pressure from President Harding and the unfolding probe, Forbes resigned on July 31, 1923, and briefly fled to before returning for legal proceedings. In November 1924, following a federal trial in , he was convicted of conspiracy to defraud the government through bribery in contract awards, receiving a two-year sentence and a $10,000 fine, though he served less than half the term after appeals and health claims. The underscored vulnerabilities in the Bureau's hasty wartime-to-peacetime transition, where urgent demands for hospitals—coupled with decentralized purchasing—facilitated opportunism, yet the underlying framework endured, evolving into the modern Department of despite the leadership failures.

Justice Department Improprieties

The U.S. Department of Justice under Attorney General faced accusations of systemic abuses, including improper handling of seized alien properties from and selective enforcement of laws. These improprieties centered on Daugherty's inner circle, notably and Alien Property Custodian Thomas W. Miller, who allegedly facilitated bribes for returning properties to German-linked entities via dummy corporations. A 1924 Senate investigation uncovered evidence of payments, such as $217,000 allegedly received by Smith in one transaction, contributing to broader claims of illicit gains totaling hundreds of thousands of dollars directed to Daugherty associates. In Prohibition enforcement, the Justice Department issued permits for withdrawing alcohol ostensibly for medicinal or industrial use, but many were diverted to bootleggers through corrupt channels. Daugherty's administration was criticized for lax oversight that favored political allies, with Smith's role in selling such permits and providing protection from prosecution highlighted in congressional probes. This selective approach mirrored national challenges in implementing the , where widespread evasion undermined uniform enforcement, though departmental favoritism amplified perceptions of abuse. Efforts to hold Daugherty accountable included a failed 1922 impeachment push led by Representative Henry T. Keller, which collapsed amid procedural disputes. Senate inquiries in 1924 intensified pressure, prompting President Coolidge to demand Daugherty's resignation on , 1924. Subsequent federal trials in 1926–1927 on conspiracy charges related to alien property fraud and liquor permit sales resulted in acquittals, with juries deadlocking or favoring despite substantial allegations; no convictions occurred on the gravest offenses, underscoring evidentiary hurdles in proving high-level orchestration amid sensational media coverage.

Internal Dissent and Investigations

Factions Within the Administration

The Harding administration encompassed competing factions, with Secretary of Commerce Herbert Hoover representing a counterweight to the Ohio Gang's influence centered on Attorney General Harry M. Daugherty. Hoover, appointed for his expertise in economic efficiency, maintained reservations about the gang's informal control over access to the president and involvement in sensitive matters such as the disposition of alien properties from World War I. These properties, managed by Custodian Thomas W. Miller under Daugherty's orbit, generated early whispers of favoritism in patent sales and contracts by late 1921. Secretary of Agriculture Henry C. Wallace similarly advocated for professional administration over cronyism, clashing with Daugherty's gatekeeping role that prioritized Ohio loyalists in appointments and decisions. Cabinet rifts surfaced prominently in 1922, as rumors of undue influence and lax oversight circulated among officials, yet Harding deferred to personal ties forged in Ohio politics, viewing Daugherty as indispensable for his 1920 victory. This loyalty persisted despite informal warnings from figures like Hoover, who urged greater transparency in departmental operations. By early 1923, Harding demonstrated limited intervention amid these tensions through a direct confrontation with Veterans' Bureau Director Charles R. Forbes. Informed of irregularities in supply sales and construction contracts totaling millions, Harding summoned Forbes to the White House in January, physically seizing him by the throat in anger and demanding cessation of questionable practices. Forbes resigned on February 15, 1923, after defying orders to halt depot liquidations, illustrating Harding's reactive awareness of misconduct within his inner circle though broader reforms were not pursued.

Aftermath Following Harding's Death

Upon Warren G. Harding's death from a heart attack on August 2, 1923, in , Vice President assumed the presidency and promptly addressed emerging reports of misconduct within the administration. Coolidge, emphasizing integrity, requested the resignation of on March 7, 1924, amid allegations of graft in the Justice Department, including improper handling of alien property sales and alien enemies' funds. Daugherty, a key Ohio Gang figure, faced federal indictments in 1926 for defrauding the government through sales of seized assets by the Alien Property Custodian, but both trials in 1927 resulted in hung juries, leading to his acquittal and retirement from public life by 1932. Congressional committees, launched in early 1924, intensified scrutiny of scandals like Teapot Dome, revealing bribery in oil reserve leases granted by Interior Secretary . Coolidge supported these probes by appointing to pursue prosecutions, distancing the administration from Harding-era corruption and bolstering his own reputation for probity. Fall resigned in March 1923 before full exposures but was indicted in 1927; on October 25, 1929, he was convicted of accepting approximately $400,000 in bribes from oil lessees and Harry F. Sinclair, marking the first instance of a U.S. cabinet officer imprisoned for crimes committed in office. Fall served nine months of a one-year sentence at State Penitentiary, alongside a $100,000 fine, though lessees like Doheny were acquitted of bribery charges. Investigations under Coolidge's Justice Department recovered limited funds from illicit dealings—primarily through asset forfeitures and fines totaling under $500,000 across cases—yet established legal precedents for holding executive officials accountable, including contempt rulings against non-cooperative witnesses like Sinclair, who served prison time for . No verifiable evidence emerged linking Harding personally to the graft or indicating he profited, as documents seized after his death showed appointees acting independently, though his trust in the Ohio Gang enabled the abuses. Coolidge's decisive actions, including dismissing implicated subordinates like Veterans' Bureau director , mitigated immediate political damage and facilitated Republican continuity in the 1924 election.

Enduring Legacy

Short-Term Political Repercussions

The short-term political repercussions of the Ohio Gang scandals manifested primarily in the 1924 presidential election, where incumbent President secured a despite ongoing revelations of corruption under . Coolidge received 54 percent of the popular vote, totaling 15,719,068 votes, and 382 electoral votes against Democrat John W. Davis's 136 and Progressive Robert M. La Follette's 13. This outcome demonstrated voters' willingness to separate Harding's administration from Coolidge's emerging record of integrity and , as Coolidge actively distanced himself from scandal-tainted figures and emphasized clean . Within the Republican Party, the scandals prompted immediate personnel changes, including the ouster of on March 28, 1924, following Senate investigations into Justice Department improprieties such as graft and influence-peddling. Coolidge demanded Daugherty's resignation amid refusals to provide documents, signaling a purge of Harding's inner circle to restore without disrupting core policy frameworks. The party retained congressional majorities, enabling continuity in Harding-era initiatives like Andrew Mellon's tax reductions and the protective Fordney-McCumber Tariff of 1922, which the 1924 Republican platform reaffirmed for fostering economic recovery from the 1920-1921 recession. Causally, the scandals damaged Harding's personal reputation but spared the Republican economic agenda, as evidenced by Coolidge's mandate amid a mild postwar adjustment rather than severe downturn, contrasting with later eras' deeper crises. This voter endorsement reflected prioritization of policy efficacy over administrative malfeasance, with Democrats unable to capitalize on the exposures due to their own internal divisions.

Long-Term Historical Reappraisals

In historiographical assessments, Warren G. Harding's presidency and the Ohio Gang have conventionally been portrayed as exemplars of administrative venality, with Harding frequently ranked among the lowest-performing U.S. presidents in scholarly surveys. For instance, in the 2021 Historians Survey of Presidential Leadership, Harding scored 26.9 out of 100 in and 33.4 in administrative skills, placing him near the bottom across multiple categories. This negative consensus was amplified by sensational publications, such as Nan Britton's 1927 memoir The President's Daughter, which alleged an extramarital affair and child with Harding, generating widespread and contributing to a of personal and political moral failure despite lacking contemporaneous corroboration at the time. Such views, dominant in mid-20th-century histories, often emphasized the Ohio Gang's improprieties as uniquely corrosive, overshadowing broader contextual factors like the era's patronage-based politics. Revisionist scholarship since the late has challenged this scandal-dominated framework by prioritizing empirical economic indicators and Harding's non-involvement in proven graft. Under Harding's administration, the U.S. gross national product rose 16 percent from 1921 to 1922, fell from 11.7 percent in 1921 to 2.4 percent by 1923, and federal spending was reduced from 6.5 percent to 3.5 percent of GNP through budget cuts and tax reductions, facilitating a swift recovery from the 1920-1921 without fiscal interventionism. Historians like those cited in the Center's analysis argue that Harding himself faced no indictments or direct evidence of , positioning the Ohio Gang's issues as outliers amid policy successes in and , rather than defining traits. This reexamination highlights patronage norms prevalent across administrations—evident in Ulysses S. Grant's era, where similar in credit and whiskey rings occurred without equally staining the president's legacy—and contrasts with less scrutinized graft in Franklin D. Roosevelt's networks, suggesting selective amplification in Harding's case possibly influenced by academic and media predispositions favoring progressive narratives. These empirical reappraisals underscore that while the Ohio Gang exemplified risks of personalistic appointments, Harding's term delivered verifiable macroeconomic stability and reduced overreach, outcomes attributable to restrained policies rather than . Comparative analyses note parallels to trusting delegation to flawed subordinates, debunking claims of exceptional by evidencing that such dynamics were systemic in pre-reform eras, not idiosyncratic to Harding. Recent works, including rehabilitative accounts from the onward, contend that mainstream rankings undervalue these achievements due to overreliance on post-hoc retrospectives, advocating a causal focus on administration efficacy over moralistic framing.

References

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  3. https://origins.osu.edu/article/donald-j-trump-scandal-history-american-political-wrongdoing-russia-burr
  4. https://history.state.gov/milestones/1914-1920/league
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  16. https://ohiomemory.ohiohistory.org/archives/5227
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  21. https://www.britannica.com/biography/Albert-Bacon-Fall
  22. https://department.va.gov/history/featured-stories/veterans-bureau/
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  24. https://www.chillicothegazette.com/story/news/local/2023/06/05/looking-back-when-jesse-smith-worked-close-to-the-presidency/70280696007/
  25. https://www.ebsco.com/research-starters/history/scandals-harding-administration
  26. https://budgetcounsel.com/cyclopedia-budgetica/cb-budget-and-accounting-act-of-1921/
  27. https://www.brookings.edu/articles/brookings-role-in-1921-budget-reform/
  28. https://itrfoundation.org/the-forgotten-word-in-politics-restraint/
  29. https://www.cato.org/pubs/tbb/tbb-0302-13.pdf
  30. https://diversification.com/term/revenue-act-of-1921
  31. https://www.cato.org/commentary/1920s-income-tax-cuts-sparked-economic-growth-raised-federal-revenues
  32. https://eh.net/encyclopedia/the-fordney-mccumber-tariff-of-1922/
  33. https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/fordney-mccumber-tariff
  34. https://fee.org/articles/warren-harding-the-us-president-who-reduced-federal-spending-by-nearly-50-in-just-two-years/
  35. https://isi.org/warren-harding-and-the-forgotten-depression-of-1920/
  36. https://manhattan.institute/event/the-forgotten-depression-1921-the-crash-that-cured-itself
  37. https://fee.org/articles/the-two-presidents-whose-economic-policies-are-most-misunderstood-by-historians/
  38. https://pimaopen.pressbooks.pub/ushistory2/chapter/republican-ascendancy-politics-in-the-1920s/
  39. https://history.state.gov/milestones/1921-1936/naval-conference
  40. https://www.usni.org/magazines/naval-history-magazine/2022/february/template-peace
  41. https://www.jstor.org/stable/44195182
  42. https://www.loc.gov/exhibits/archives/sovi.html
  43. https://www.presidency.ucsb.edu/documents/message-the-house-representatives-returning-without-approval-bill-provide-adjusted
  44. https://millercenter.org/node/66866
  45. https://www.khanacademy.org/humanities/us-history/rise-to-world-power/x71a94f19:politics-in-the-1920s/a/republican-ascendancy-politics-in-the-1920s-cnx
  46. https://www.senate.gov/artandhistory/senate-stories/one-hundred-years-since-teapot-dome.htm
  47. https://teachdemocracy.org/wp-content/uploads/2025/06/bria24_4.pdf
  48. https://www.history.com/this-day-in-history/october-25/cabinet-member-guilty-in-teapot-dome-scandal
  49. https://academic.brooklyn.cuny.edu/history/johnson/teapotdome.htm
  50. https://www.britannica.com/event/Teapot-Dome-Scandal
  51. https://www.wyohistory.org/education/toolkit/teapot-dome-scandal
  52. https://www.tampabay.com/archive/1994/11/11/fewer-than-25000-world-war-i-vets-remain/
  53. https://www.ebsco.com/research-starters/history/us-senate-investigates-veterans-bureau-chief-fraud
  54. https://www.nytimes.com/1923/03/15/archives/worried-by-critics-cramer-takes-life-former-counsel-for-veterans.html
  55. https://www.nytimes.com/1924/02/10/archives/chicago-grand-jury-acts-calls-for-contractors-books-in-450000.html
  56. https://brainly.com/question/41661762
  57. https://www.u-s-history.com/pages/h1379.html
  58. https://www.history.com/articles/warren-harding-scandals
  59. https://millercenter.org/president/coolidge/essays/daugherty-1921-attorney-general
  60. https://www.americanheritage.com/tempest-over-teapot
  61. https://www.britannica.com/topic/Ohio-Gang
  62. https://ganglandwire.com/crooked-interview-about-a-corrupt-1920s-attorney-general/
  63. http://downfalldictionary.blogspot.com/2010/10/harry-m-daugherty.html
  64. https://www.americanheritage.com/harding-and-teapot-dome
  65. https://millercenter.org/president/harding/warren-g-harding-administration
  66. https://www.nytimes.com/1931/06/17/archives/hoover-on-harding.html
  67. https://www.nytimes.com/1923/11/08/archives/tells-how-harding-ousted-col-forbes-for-defying-him-general-sawyer.html
  68. https://www.history.com/this-day-in-history/august-2/harding-dies-before-scandals-break
  69. https://uselectionatlas.org/RESULTS/national.php?year=1924
  70. https://virginiahistory.org/learn/getting-message-out-presidential-campaign-memorabilia-collection-allen-frey/elections-1924-1964
  71. https://www.politico.com/magazine/story/2019/04/06/calvin-coolidge-scandals-donald-trump-226576
  72. https://www.justice.gov/ag/bio/daugherty-harry-micajah
  73. https://www.presidency.ucsb.edu/documents/republican-party-platform-1924
  74. https://www.c-span.org/presidentsurvey2021/?personid=39813
  75. https://www.nytimes.com/2015/08/13/us/dna-is-said-to-solve-a-mystery-of-warren-hardings-love-life.html
  76. https://millercenter.org/president/harding/the-american-franchise
  77. https://millercenter.org/president/harding/impact-and-legacy
  78. https://www.enotes.com/topics/warren-g-hardings-presidency/questions/compare-postww1-corruption-under-grant-harding-250634
  79. https://www.independent.org/pdf/tir/tir_18_04_08_moore.pdf
  80. https://www.nytimes.com/1972/03/26/archives/a-sort-of-rehabilitation-of-warren-g-harding-harding-rehabilitated.html
  81. https://www.coolidgereview.com/reviews/harding-reconsidered
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