Depression Hits Texas Chapter 22 Section 1

The Great Depression Begins Herbert Hoover became president of the U.S. in He had been in office for only 7 months when Wall Street stock market prices fell sharply.

Stock Market Crash of 1929 Stock shares represent ownership in companies. People had driven up the price of stocks, and some investors borrowed money to buy them. When prices fell, both they and the banks were wiped out.

Cause & Effect

Bad News Continues… Factories closed Widespread unemployment – loss of jobs Texas farmers’ income suffered – Prices of agriculture products dropped East Texas timber workers were laid off – people could not afford new houses

Depth of Depression President Hoover greatly underestimated the severity, or depth, of the Great Depression. –Called on local churches and charities to increase aid to the poor –Asked people to hire unemployed neighbors to do odd jobs

Too Much Oil Ross Sterling elected as governor in 1930 Wildcatter, Columbus Marion “Dad” Joiner, drilled an oil well in northern Rusk County. –First well of the East Texas Oil Field Provided jobs for farmers and timber workers

Too Much Oil Major oil companies were hesitant to invest in the East Texas field. This left opportunities for small oil drillers called “independents”. Soon the East Texas field was producing more oil than all other fields in TX combined!

Supply and Demand Prices went down as supply increased and demand stayed the same.

Crisis for Cotton Farmers Even though cotton remained the most important crop in Texas, prices declined during the 1920s. Because cotton did not spoil, stored cotton created even larger surpluses.

Governor of Louisiana, Huey Long, pushed a law prohibiting planting of cotton in LA. Texas Governor Sterling did not think the idea would work, and passed a law for partial reduction.

Dust Storms Blanket the High Plains When farmers plowed grasses under, there was nothing left to hold the soil when winds blew. A severe drought occurred in the 1930s. Soil blew away as the residents of the Plains watched.

Dust Bowl Dust Bowl – the geographic area, including the Texas Panhandle, hardest hit by the drought during the 1930s where the soil was so dry it blew away in great clouds of dust.

Difficult Times The Dust Bowl made life harder for people during this time period: –Motorists often could not see 20 feet down the street –People became ill from lung diseases –Farmers lost soil when wind blew –Many families lost their farms because of the difficult economic times

Texans Look for Answers Texans looked to themselves and each other for answers to growing economic problems. –As banks failed, merchants printed coupons that could be used as money –Universities allowed professors to eat in the university dining halls –Churches paid their preachers with eggs, chickens, vegetables, and firewood.

Texas and the New Deal Ch. 22 Section 2

The New Deal Begins President Hoover ran for reelection in 1932, but voters blamed him for the Depression. Hoover’s opponent, Franklin D. Roosevelt, won an overwhelming victory. Almost 90% of Texas votes were for FDR.

“A new deal for the American People” FDR took office in 1933, and his programs became a part of what was called the New Deal. Roosevelt began with a flurry of activity during “the first hundred days.” Ex: Ordered all banks to close to determine the strongest to stay in business.

Texans’ Cooperation Vice President John N. Garner, helped push New Deal programs in Congress. Garner was a former Texas member of the U.S. house of Representatives. Texans occupied some of the most powerful positions in Congress during this time.

Sam Rayburn Proposed the Securities and Exchange Commission to restore confidence in the stock market Proposed the Rural Electrification Administration to help rural residents obtain electrical service Proposed the Federal Communications Commission to regulate radio broadcasting

New Deal Programs in Texas The New Deal created agencies to deal with many problems from the Depression. –Alphabet Agencies - government agencies that came to be known by the first initials of their names.

Alphabet Agencies FERA (Federal Emergency Relief Administration) – gave funds to states and local agencies for unemployed people CCC (Civilian Conservation Corps (CCC) – provided outdoor employment for young men and helped preserve resources NYA (National Youth Administration) – hired high school and college students to perform clerical and maintenance jobs. PWA (Public Works Administration) – built bridges dams, schools, and other structures of value to the state. WPA (Works Progress Administration) – hired 600,000 Texans during the Great Depression

Political Cartoon

Rural Texans and the New Deal The New Deal created programs for farmers, ranchers, and other rural residents. Legislation helped them form Cooperatives – organized groups that borrowed $ from the government to pay for installing electrical services

Rural Texans Continued… Congress passed laws paying farmers to reduce production of crops –Cut down peach trees –Poured excess milk into streams Government paid them to destroy crops in effort to drive prices up

Construction projects during the Great Depression celebrated the 100 th anniversary of Texas independence in It was held at the 185-acre Fair Park in Dallas because the city was able to contribute $10 million to help build facilities. Exhibits highlighted Texas History and proudly displayed examples of Texas products and culture.

Texas Centennial Other cities joined Dallas in observing the Texas Centennial The San Jacinto Monument was erected on the battlefield to the east of Houston. Museums were built at the Alamo grounds in San Antonio, on the UT Campus, at Huntsville, and in other areas.