Crash

1
Crash Depression

• Chapter 22

2
Review Stock Market Boom

3
SummaryStock Market Bust

4
Black ThursdayOctober 24, 1929

• The Dow Jones Industrial Average peaked at
  in September
• By October 24th, stock prices began to fall
• Example - GE went from 400 to

5
Black Thursday - October 24, 1929

• Pres. Hoover - business is on a sound and
  prosperous basis
• Group of bankers bought shares to stabilize
  prices
• Not enough to stop the panic

6
Monday October 28, 1929

• Investors continued to sell
• Prices continued to drop

7
Black Tuesday October 29, 1929

• Tried to sell stocks at any price
• Bankers called in their
• Losses totaled billion dollars

8
The Ripple Effect of the Crash

• Less people able to buy goods (decline of GNP)
• Leads to
• Severe contraction
• This contraction was so severe, it is known as
  the

9
The Great Depression -Stock Market Crash to WWII

• Approximately of US banks
  failed
• Unemployment reached
• GNP went from 103 billion to billion

10
The Worldwide Impact

• Countries depended on the USA for capital,
  markets, and goods
• Contractions began in Europe
• Result - they could not buy American products
• (Germany was particularly hard hit)

11
Underlying Causes of the Depression

• All of the warning signs that were ignored from
  the 1920s.
• Lack of government oversight
• Lack of government response
• Note Natural disasters did not cause the Great
  Depression but effected severity of it

12
Social Effects of the Depression

• Section 2

13
Social Effects of the Depression

• Hoovervilles
• Hobos - approx. 1 million
• Farm distress
• low prices due to low demand
• evictions and foreclosures

14
The Dust Bowl (1931-1940)

• Drought and poor environmental practices
• Effected Great Plains and the Midwest
• Hardest hit were Oklahoma, Kansas, and Nebraska
• Top soil blew into the Atlantic Ocean
• Created a desert in the center of the USA
• Displaced millions of farmers

15
Poverty Increased Social Problems

• 
  
  increased
• Health and nutrition decreased
• Hoover claimed that no one starved but historians
  estimate as many as _____________ people died
  from the effects of the Depression

16
Poverty Increases Social Problems

• Divorce, marriage, and birth rates declined
• Homeless people moved in with relatives
• Last hired, first fired
• Lynchings increased
• Japanese Mexicans
• were deported

17
Scottsboro Boys

• March, 1931 - 9 African Americans were accused of
  raping two white women
• They were convicted and sentenced to die without
  even seeing a defense attorney
• They were later exonerated but not until four of
  them had spent many years in jail

18
Surviving the Great Depression

• Section 3

19
Survival

• People helped one another
• States provided relief
• ______________ assisted millions
• Those that survived never completely forgot what
  it was like to live through the Great Depression

20
Surviving the Great Depression

• People helped each other
• Farmers assisted each other
• ____________________
• Violence prevented some ________________________

21
Surviving the Great Depression

• Estimated 1,000,000 hobos rode the rails
• Approx. 250,000 of them teenagers

22
Surviving the Great Depression

• Political movements like the Socialist and
  Communist Parties gained membership
• Entertainment
• like this new
• board game
• provided a
• pleasant diversion

23
Signs of Change

• Prohibition was repealed
• in 1933

The Chrysler building was overshadowed by
the Empire State Building in 1931
24
Signs of Change

• By 1935
• Calvin Coolidge died
• _____________ was convicted of tax fraud
• Babe Ruth retired
• Lindbergh baby was kidnapped and found dead
• Americas heroes were changing

25
The Election of 1932

• Section 4

26
President Hoover

• Assured the American people the economy was
  improving
• Insisted it was a
• Thought direct relief should come from
• Asked business leaders to maintain wages
  voluntarily

27
President Hoovers Response

• Agricultural Marketing Act of 1929 - was supposed
  to buy excess crops from farmers to increase
  demand
• Hawley - Smoot Tariff - largest tariff in history
  (1930)

28
President Hoovers Response

• Reconstruction Finance Corp. - (1932)
• Trickle down economics

29
President Hoovers Response

• Public works projects like new buildings,
  bridges, and roads

30
President Hoovers Response

• No (federal) government handouts
• Gave little direct relief until 1932

31
President Hoovers Response

• 1932 signed the Home Loan Bank Act to lower
  interest rates on mortgages
• 1932 allowed the federal government to give money
  to the states for relief programs

32
Peoples Responses to Hoover

• Too little, too late
• People blamed him for the Depression
• Called him heartless and cold

33
The Bonus Army

• World War I veterans promised a bonus but not
  until 1945
• 1932 - 20,000 went to Washington to demand
  immediate payment
• Stayed in Washington in Hoovervilles to embarrass
  the President

34
The Bonus Army

• March to the White House led to a confrontation
  with the army
• ________________________________ was called in to
  quell the uprising
• He used tanks, gas, and 4 Calvary units against
  unarmed marchers

• US Army burned the shantytown and caused a riot

35
Election of 1932
This campaign is more than a contest between two
men.It is a contest between two philosophies of
government. Herbert Hoover, October 1932
36
Election of 1932

• Herbert Hoover

• Franklin D. Roosevelt

37
Election of 1932

• Franklin D. Roosevelt won by 7,000,000 votes
• Herbert Hoover only won 6 states
• FDR would start the New Deal upon his
  inauguration in March, 1933
• The End