The Bee's Knees--The Era of American Modernism: Teapot Dome Scandal: From Harding's Election to Oil Companies Controlling Federal Reserves

Harding's election along with his administration was filled with scandals. At the time, winning the Republican nomination for the upcoming presidential campaign seemed unlikely for Harding, but with the help of oil companies he won the nomination. At first Jake Hamon, the prominent leader of the scheme, was hoping to follow through with his plan of stealing the federal oil reserves, established at Teapot Dome and Elkin Hill as a constant supply for the U.S. navy, with the more popular candidate, Democratic nominee James Cox. But Cox refused him. Hamon's plan was to buy the presidency, then acquire the position as the secretary of the Department of Interior so the brought president can conspicuously transfer the control of the oil reserves from the Navy to the Department of Interior. Once he gains the control of the federal reserves he would give no bid contracts to his friends in the oil industry.

Harding then won the election of 1920 by a landslide. He campaigned against Wilson's policies on foreign intervention, which was becoming increasingly unpopular. In addition, he advocated for normalcy and for America's desire to stay home and rebuild family. In Harding's speech at Boston 1920, he said "America's present need is not heroics but healing; not nostrums but normalcy; not revolution but restoration."

But soon after Harding's administration began Hamon was killed by his mistress Clara. Harding, still trapped in the deal transfers the control of the reserves to the Department of Interior, Secretary Albert Fall. This power was then was secretly transferred into the hands of the Mammoth Oil Company in Wyoming and shared by the Pan American Petroleum Company in California.

When this scandal drew to a close the members involved were charged with "Conspiracy to defraud the U.S. government". In addition, Harding suddenly died after Teapot Dome which has evoke many controversial theories. The Teapot Dome instance became a major icon of political corruption and was known as the most notorious scandal in American history next to the Watergate during Nixon's administration.