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Chapter 22-The Great Depression Begins 1929-1932. Section-3 Hoover Responds. CHAPTER 22-The great depression begins 1929-1932. Section 3-Hoover Responds. Chapter Objectives. Section 3: Hoover Responds. Evaluate President Hoover’s attempts to revive the economy. .
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Chapter 22-The Great Depression Begins 1929-1932 Section-3 Hoover Responds
CHAPTER 22-The great depression begins 1929-1932 Section 3-Hoover Responds
Chapter Objectives Section 3: Hoover Responds • Evaluate President Hoover’s attempts to revive the economy. • Analyze the limitations of Hoover’s recovery plans. Click the mouse button or press the Space Bar to display the information.
Promoting Recovery • In an effort to promote economic recovery, President Herbert Hoover held a series of conferences bringing together the heads of banks, railroads, big business, labor, and government. • Hoover received a pledge from industry to keep factories open and stop cutting wages. • After the pledge failed, Hoover increased public works–government-financedbuilding projects. (pages 668–670) Click the mouse button or press the Space Bar to display the information.
Promoting Recovery(cont.) • Hoover asked the nation’s governors and mayors to increase public works spending. • At the same time, however, Hoover refused to increase government spending or taxes. He feared that deficit spending would actually delay an economic recovery. • Americans blamed the Republican Party for the Depression. (pages 668–670) Click the mouse button or press the Space Bar to display the information.
Promoting Recovery(cont.) • As a result, in the midterm congressional elections of 1930, the Republicans lost 49 seats and their majority in the House of Representatives. (pages 668–670)
Pumping Money Into the Economy • President Hoover tried to persuade the Federal Reserve Board to put more currency into circulation, but the Board refused. • Hoover set up the National Credit Corporation (NCC), which created a pool of money to rescue banks, but it was not enough to help. (page 670) Click the mouse button or press the Space Bar to display the information.
Pumping Money Into the Economy (cont.) • By 1932 Hoover felt the government had to provide funding for borrowers. • He asked Congress to set up the ReconstructionFinance Corporation(RFC) to make loans to banks, railroads, and agricultural institutions. • The economy continued to decline when the RFC was too cautious in its loan amounts. (page 670) Click the mouse button or press the Space Bar to display the information.
Pumping Money Into the Economy (cont.) • Hoover opposed the federal government’s participation in relief–money that went directly to very poor families. • He felt relief was the responsibility of state and local governments. • In July 1932, Congress passed the Emergency Relief and Construction Act to get money for public works and for loans to the states for direct relief. (page 670) Click the mouse button or press the Space Bar to display the information.
In an Angry Mood • By 1931 discontent over the economy led to violence. • Looting, rallies, and hunger marches began. • During a hunger march at the nation’s capital, police denied protestors food, water, and medical treatment. • Congress intervened, stressing the marchers’ right to petition their government. • Congress permitted them to march on to Capital Hill. (pages 670–672) Click the mouse button or press the Space Bar to display the information.
In an Angry Mood(cont.) • Between 1930 and 1934, creditors foreclosed, or took possession of, almost a million farms. • Some farmers destroyed their crops, hoping the reduction in supply would cause the prices to go up. • In 1924 Congress enacted a $1,000 bonus to be paid to veterans in 1945. • In 1931 a bill was introduced in the House that authorized early payment of the bonus. (pages 670–672) Click the mouse button or press the Space Bar to display the information.
In an Angry Mood(cont.) • In 1932 the “Bonus Army”marched to Washington, D.C., to ask Congress to approve the legislation. • After Hoover refused to meet with the Bonus Army and the Senate voted the new bonus bill down, some of the marchers left. • Some marchers stayed, moving into deserted buildings in Washington, D.C. • When Hoover ordered the buildings cleared, disputes between the remaining people and the police (and later the army) resulted in several deaths. (pages 670–672) Click the mouse button or press the Space Bar to display the information.
Economics The growing gap between the rich and poor in the 1920s reveals that many business leaders had forgotten Henry Ford’s insight into the importance of paying workers enough so that they could buy the products they were making.
Music The music of Woody Guthrie gave an uplifting voice to people who struggled through the Depression. Unlike swing or big-band songs. Guthrie’s lyrics told of rough living and fighting back. The guitarist drew upon the traditional times of farmers and workers to write the workers’ anthems for decades to come.
Hobo SignsThe hundreds of thousands of hobos who roamed the country developed intricate symbols that they wrote on trees, fences, or buildings to warn or inform other hobos. Many became a part of American folklore. At the height of the Great Depression there may have been as many as 250,000 teenage hobos.
By 1932 the nation’s manufacturing output stood at 47 percent of its 1929 level.
Some of the country’s leading financiers had tried to avert the crash by pumping money into the market, but others wanted to profit from the panic. The president of Chase National Bank sold 42,506 shares of his own bank’s stock, bought them back later in the year at a lower price, and made a profit of $4 million.
Ironically the board game Monopoly was invented during the Depression. Charles Darrow was an unemployed Pennsylvania engineer when he designed the famous game in the early 1930s.
In 1931 a Christmas tree was placed amid the rubble from some demolished buildings. Workers who still had jobs decorated the tree with tin cans and paper. A few years later at the same site, the official Rockefeller Center tree tradition was inaugurated.
