1. Chapter 15Section 3 Hoover’s Policies

2. Opposing Direct Relief • President Hoover believed the way to economic recovery was through {rugged individualism-the idea that success comes from individual effort} and not from government assistance • American’s began to demand the federal government proved relief for the needy • Despite the pleas, Hoover rejected the idea of direct government aid. He felt it would inflate the budget and reduce self-respect of the people receiving the aid • He also refused to support a bill that would create a {Federal Emergency Relief Board it was not passed} because of his lack of support

3. Encouraging Voluntarism • Hoover believed that voluntary efforts were preferable to governmental aid • In 1930 he created the President’s Committee for Unemployment Relief (PCUR) • {All the PCUR really did was urge people to private relief agencies} and pass out pamphlets because they were poorly funded. • During the entire Hoover administration they were only given $157,000 • Conditions of the depression only worsened

5. Stimulating the Economy • Although Hoover opposed direct relief, he did support governmental intervention in the economy • Secretary of the Treasury, {Andrew Mellon, thought government should let business got out of the depression on its own} • Rejecting Mellon’s advice, {Hoover requested that Congress and state governments funded several public works programs.} • The construction of the Hoover Dam, the building of more than 800 public buildings and 37,000mi of highway, unfortunately had little impact on the depression

7. Coping with the Farm Crisis • Hoover had Congress pass the Agricultural Marketing Act, which established the Federal Farm Board and gave them a budget of $500 million • The FFB offered loans and financed the creation of farmers cooperatives • When crop prices continued to fall, Hoover instructed the FFB to buy up the surplus produce, store them, and sell them when the prices went back up • Farmers refused to limit production and in reaction to the low prices, planted more crops • In 1931 the FFB stopped buying surplus crops having already spent $180 million

9. The Reconstruction Finance Corporation • Hoover also tried to stimulate the economy by creating the Reconstruction Finance Corporation (RFC) in 1932 • The RFC was allowed to lend up to $2 billion of taxpayer $ to stabilize banks, insurance companies, railroad companies and other institutions • Although it did help many large corporations the economy still continued to decline because the RFC was created after the depression was in full swing • Also $ did not trickle down to the ordinary citizens-the ones who needed it most

11. Radical Protests • By 1932, Herbert Hoover was probably the most hated man in America • The Communist and Socialist Parties in the U.S. blamed capitalism for the depression and staged many mass protests • {A.J. Muste gathered the jobless into Unemployed Leagues to demand work} • The Communist Party also helped to expose racial injustice, when they funded a defense for 9 African American teens charge with a very questionable rape, and protested the inevitable verdict. All the men were out of jail eventually

12. On 25th March, 1931, Victoria Price (19) and Ruby Bates (17) claimed they were gang-raped by 12 black men on a Memphis bound train. Nine black youths on the train were arrested and charged with the crime. Twelve days later the trial took place at Scottsboro, Alabama. Their defense attorney was an alcoholic, who was drunk throughout the trial. The prosecutor on the other hand, told the jury, "Guilty or not, let's get rid of these n@#*!^#". After three days all nine men were found guilty: eight, including two aged 14, were sentenced to death and the youngest man, who was only thirteen, was given life imprisonment. Two famous writers, Theodore Dreiser and Lincoln Steffens, publicized the case by writing articles on how the men had been falsely convicted. The Communist Party supplied legal defense for the defendants and organized mass demonstrations against the verdict. In November, 1932, the United States Supreme Court ordered a second trial on the grounds that the men had been inadequately defended in court. Although Ruby Bates testified at the second trial that the rape story had been invented by Victoria Price and the crime had not taken place, the men were once again found guilty. A third trial ended with the same result but a fourth in January, 1936, resulted in four of the men being acquitted. Four more were released in the 1940s but the last prisoner, Andy Wright, had to wait until 9th June, 1950, before achieving his freedom. This was nineteen years and two months after his arrest in Alabama. The nine men were finally pardoned in October, 1976. Only one of the men, Clarence Norris, who had spent 15 years in prison for the crime, was still alive. He commented when he heard the news: "I only wish the other eight boys could be here today. Their lives were ruined by this thing, too." In April 1977 the Alabama House Judiciary Committee rejected a proposal to pay Norris $10,000 in compensation for his time spent in prison.

13. Lawyer Samuel Leibowitz with Heywood Patterson in trial.

14. The Bonus Army • The largest protest was staged in May 1932 when more than 10,000 WWI veterans and their families came to Washington D.C. to support a veterans bonus bill • The bill would have granted veterans early payment of their pension bonuses owed to them for their service in the war • These protesters were soon labeled the Bonus Army • When the bill was rejected, some 2,000 veterans stayed to protest further. In a clash with authorities 2 veterans and 2 policemen were killed • President Hoover called in General Douglas MacArthur, who came in with tanks, machine guns and tear gas. • Hundreds were injured and three died including a 11 week old baby • Those who didn’t already hate Hoover, did now

16. The Election of 1932 • Oddly enough, the Republican Party chose Hoover to run again • The Democratic Party chose Franklin D. Roosevelt • FDR’s wife, Eleanor Roosevelt, was one of his most important political assets • {Roosevelt promised to put the political and economic system “at the service of the people”} • Not only did FDR win the election but the Democrats won decisive majorities in both houses of Congress • Knowing his policies would be passed with the new Democratic Senate, {Franklin D. Roosevelt offered the American public a “new deal”}

17. Review Questions • This is the idea that success comes from individual effort • Was the Federal Emergency Relief Board passed? • This man thought government should let business got out of the depression on its own • What did Hoover request that Congress and state governments funded? • This man gathered the jobless into Unemployed Leagues to demand work • Roosevelt promised to put the political and economic system “at the service of who?