Hoover Struggles with the Depression

1
Hoover Struggles with the Depression
2
Hoover tries to Reassure the Nation

• Any lack of confidence in the economic futureis
  foolish
• Americans should remain optimistic
• Go about business as usual

3
Hoover tries to Reassure the Nation

• Believed depression a part of the natural
  business cycle
• Periods of growth followed by periods of
  contraction
• Best course of action-do nothing
• allow economy to fix itself

4
Hoover tries to Reassure the Nation

• Andrew Mellon-Sec of Treasury Let the slump
  liquidate itself. Liquidate labor, liquidate
  stocks, liquidate the farmers, liquidate real
  estateIt will purge the rottenness out of the
  system.

5
Hoover tries to Reassure the Nation

• Hoover disagreed with Mellon
• Hoover supported minimal government intervention
  in economy
• believed government could help solve economic
  problems

6
Hoovers Philosophy of Government

• Governments chief function- foster cooperation
  between competing groups and interests in society
• Cooperation should be voluntary rather than
  forced by governent

• Government should encourage and foster
  cooperation, not control it
• Believed in rugged individualism-people should
  succeed on their own

7
Hoovers Philosophy of Government

• Believed that federal handouts would weaken
  peoples self-respect

• Hoover believed charities and local organizations
  should help the less fortunate

8
Hoover Takes Cautious Steps

• Called together leaders of business, banking, and
  labor
• Asked employers not to cut wages or lay off
  workers
• Asked labor leaders not to demand higher wages or
  strike

• Nothing worked
• After a year-economy still sinking
• Unemployment still rising

9
Democrats win in 1930

• Political tide turns against Hoover and
  Republicans
• Democrats win more seats on Congress

10
Democrats win in 1930

• Republicans lose control of House of
  Representatives
• Majority in Senate down to 1 vote

11
Democrats win in 1930

• Americans grew more frustrated by
  Depression-expressed anger
• Farmers destroyed goods rather than sell it at a
  loss

12
Democrats win in 1930

• Many farmers refused to work their fields and
  blocked roads to markets
• -hoped food shortages would raise crop prices
• Used force to prevent authorities from
  foreclosing farms

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Democrats win in 1930

• Hoovervilles
• Hooverblankets
• Hooverflags

14
Hoover Takes Action

• Took active approach to economic troubles
• Directed federal funds into projects-Boulder Dam
• Hoped to jumpstart economy

15
Government Projects

• Built dams, roads, and other large projects
• Congress approved 800 million for these projects
  (thats over 10 billion in todays money)

16
Government Projects

• Created Federal Farm Board
• Supposed to help farmers by keeping crops
  temporarily off the market

17
Government Projects

• National Credit Corporation-give small banks
  loans-save from bankruptcy
• Glass-Steagall Banking Act- made loans easier to
  get

• Federal Home Loan Bank Act- helped farmers
  refinance their mortgages

18
Government Projects

• Reconstruction Finance Corporation- provide
  emergency financing to banks and other large
  businesses

• In first 5 months, agency loaned 805 million to
  large corporations
• Business continued to fail

19
Bonus Army

• WWI vets arrive in DC
• Called themselves Bonus Army
• Came to support bill authorizing govmt to pay WWI
  vets who had not been adequately compensated for
  wartime service

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Bonus Army

• Supposed to be paid in 1945
• Wanted money immediately
• Hoover opposed legislation
• Respected vets right to peaceably assembly

21
Bonus Army

• B.A. built a shantytown in DC
• Senate votes down bill
• Hoover calls marchers to leave
• 2,000 refused to budge

22
Bonus Army

• President decided to disband B.A.
• Infantry gassed more than 1,000 people
• 2 people shot/many injured
• People outraged
• Hurt Hoovers image