Learning Objectives: Section 3 – Hoover Struggles with the Depression Standard Addressed: 11.6 Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the federal government. CH 14-SEC 3 Learning Objectives: Section 3 – Hoover Struggles with the Depression 1. Explain Hoover’s initial response to the Depression. 2. Summarize the actions Hoover took to help the economy and the hardship suffered by Americans. 3. Describe the Bonus Army and Hoover’s actions toward it.

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A BULLDOG ALWAYS Commitment Attitude CARES Respect Encouragement Safety

Hoover Struggles with the Depression Section 3 Hoover Struggles with the Depression President Hoover’s conservative response to the Great Depression draws criticism from many Americans. NEXT

THE GREAT DEPRESSION BEGINS  THE GREAT DEPRESSION BEGINS Photos by photographer Dorothea Lange

Hoover Struggles with the Depression Hoover Tries to Reassure the Nation Hoover’s Philosophy President Herbert Hoover tells Americans economy is sound Many experts believe depressions a normal part of business cycle Hoover: government should foster cooperation between competing groups People should take care of own families, not depend on government Continued . . . NEXT

SECTION 3: HOOVER STRUGGLES WITH THE DEPRESSION  SECTION 3: HOOVER STRUGGLES WITH THE DEPRESSION After the stock market crash, President Hoover tried to reassure Americans He said, “Any lack of confidence in the economic future . . . Is foolish” Herbert Hoover

HOOVER’S PHILOSOPHY Hoover was not quick to react to the depression He believed in “rugged individualism” – the idea that people succeed through their own efforts People should take care of themselves, not depend on governmental hand-outs He said people should “pull themselves up by their bootstraps” Hoover believed it was the individuals job to take care of themselves, not the governments

Chapter 14: Section 3 MAIN IDEA QUESTIONS A – What were some of Hoover’s key convictions about government? He believed that reason could solve problems, That govt should foster cooperation between competing groups, That individuals, charities, and private organizations should help care for the less fortunate.

Chapter 14: Section 3 Guided Reading: Philosophy #1 What was Hoover’s philosophy of government? The chief function of govt was to encourage voluntary cooperation among competing interest groups; The federal govt should guide relief measures but not directly participate in them

Hoover Struggles with the Depression Hoover Tries to Reassure the Nation Hoover Takes Cautious Steps Calls meeting of business, banking, labor leaders to solve problems Creates organization to help private charities raise money for poor Continued . . . NEXT

HOOVER’S SUCCESSFUL DAM PROJECT Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam) The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long) The dam currently provides electricity, flood control and water for 7 western states

Any dam questions?

Chapter 14: Section 3 Guided Reading Responses and Economics Results #2 What was Hoover’s initial reaction to the stock market crash of 1929? He urged CAUTION: He urged key leaders to work together to provide solutions To act in ways that would not make the economic situation worse.

HOOVER TAKES ACTION: TOO LITTLE TOO LATE Hoover gradually softened his position on government intervention in the economy He created the Federal Farm Board to help farmers He also created the National Credit Organization that helped smaller banks His Federal Home Loan Bank Act and Reconstruction Finance Corp were two measures enacted to protect people’s homes and businesses Hoover’s flurry of activity came too late to save the economy or his job

For Americans it seemed their was no end to the misery.

Chapter 14: Section 3 MAIN IDEA QUESTIONS B – Why do you think people blamed Hoover for the nation’s difficulties? Americans look to their leaders for results, and Hoover wasn’t getting results.

Chapter 14: Section 3 Guided Reading #3a Chapter 14: Section 3 Guided Reading #3a. What was the nation’s economic situation in 1930? It continued to worsen; More companies went out of business; Unemployment continued to rise; Soup kitchens, shantytowns, and hoboes became common; The misery to ordinary people continued to grow

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Congressional Elections Democrats Win in 1930 Congressional Elections As economic problems increase, Hoover, Republicans blamed Farmers try to create food shortages to raise prices Farmers declared a “farm holiday” and refused to work on their field because of loosing crops and markets NEXT

Political Turn Democrats won the 1930 Congressional Election by taking more seats in the Congress. Republicans lost control of the House and saw their majority in the Senate dwindle to one vote

Problems at a Rise Widespread criticism of Hoover: shantytowns called “Hoovervilles” People called the newspapers they wrapped themselves in “Hoover blankets.” Empty pockets turned inside out were called “Hoover flags”

Republicans lost control of the House of Representatives. Chapter 14: Section 3 Guided Reading 3b. How did voters in 1930 respond to this situation? Republicans lost control of the House of Representatives. Republicans saw their majority in the Senate dwindle to one vote.

Hoover Backs Cooperatives Hoover negotiates agreements among private entities Backs Federal Farm Board (organization of farm cooperatives) - buy crops, keep off market until prices rise Gets large banks to establish National Credit Corporation NEXT

Hoover Takes Action Direct Intervention • Federal Home Loan Bank Act lowers mortgage rates • Reconstruction Finance Corporation—emergency funds for businesses • NEXT

Hoover Takes Action Hoover backed the Federal Farm Board (to raise crop prices) Establishment of a National Credit Corporation Federal Home Loan Bank Act- 1932 lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans to avoid foreclosure Hoover’s measures don’t improve economy before presidential election

Chapter 14: Section 3 Guided Reading 4a Chapter 14: Section 3 Guided Reading 4a. What did Hoover do about the economic situation? Directed federal funds into public works projects, such as Boulder/Hoover Dam, to jump-start the economy and create jobs; Backed a series of federal programs, Federal Farm Board, National Credit Corporation, Glass-Steagall Banking Act, Federal Home Loan Bank Act, and Reconstruction Finance Cooperation.

Chapter 14: Section 3 MAIN IDEA QUESTIONS In what ways did Hoover try to use the government to relieve the Depression? Hoover set up the Reconstruction Finance Corp. to bring federal aid to hard pressed banks and businesses.

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Hoover Takes Action Reconstruction Finance Corporation (RFC)-2 billion dollars for emergency loans to banks, railroads, and other big business Trickle-Down Theory- Hoover argued RFC loans would stimulate the economy and companies would start hiring again, but the poor could not wait for the money or jobs.

Chapter 14: Section 3 MAIN IDEA QUESTIONS C – What were some of the projects proposed by Hoover, and how effective were they? Federal Farm Board; National Credit Corporation; Federal Loan Bank Act; Reconstruction Finance Corporation. These projects and measures were not able to turn the economy around.

For Americans it seemed their was no end to the misery.

The economy continued to deteriorate Chapter 14: Section 3 Guided Reading 4b. How did the economy respond to his efforts? The economy continued to deteriorate

 BONUS ARMY A 1932 incident further damaged Hoover’s image Known as the Bonus Army: 15,000 World War I vets and their families arrived in Washington to support a proposed bill

BONUS ARMY The Patman Bill would have authorized Congress to pay a bonus to WWI vets immediately The bonus was scheduled to be paid in 1945 --- The Army vets wanted it NOW

Thousands of Bonus Army soldiers protest – Spring 1932 BONUS ARMY TURNED DOWN Hoover called the Bonus marchers, “Communists and criminals” On June 17, 1932 the Senate voted down the Putnam Bill Thousands of Bonus Army soldiers protest – Spring 1932

BONUS MARCHERS CLASH WITH SOLDIERS Hoover told the Bonus marchers to go home– most did 2,000 refused to leave Hoover sent a force of 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower

AMERICANS SHOCKED AT TREATMENT OF WWI VETS MacArthur’s 12th infantry gassed more than 1,000 marchers, including an 11-month old baby, who died Two vets were shot and scores injured Americans were outraged and once again, Hoover’s image suffered

Chapter 14: Section 3 MAIN IDEA QUESTIONS How did Hoover’s treatment of the Bonus Army affect his standing with the public? After the Bonus Army incident, Hoover's approval rating started to drop. The public was very disheartened by his actions.

Chapter 14: Section 3 MAIN IDEA QUESTIONS D – What did the Bonus Army want? As Veterans of WWI they had been promised a cash bonus.

Chapter 14: Section 3 Guided Reading #5a Chapter 14: Section 3 Guided Reading #5a. How did Hoover deal with the economic problem posed by the Bonus Army? Opposed immediate payment of bonuses to WWI veterans; Ordered the U.S. Army to close their Capitol Hill shantytown, leading to the gassing of 1,000 people, a baby’s death and public outrage.

Hoover had little chance to be re-elected in 1932

Election of 1932 Franklin Delano Roosevelt Democrat New Deal for American People, lots of government intervention Roosevelt Wins with a landslide Herbert Hoover Republican Government needs to stay out of the economy to protect free enterprise

 1932 Herbert Hoover ran against Franklin Delano Roosevelt (FDR) and lost

NEW DEAL Roosevelts First Hundred Days he took actions to help the economy and created programs to give people jobs and food.

Chapter 14: Section 3 Guided Reading #5b Chapter 14: Section 3 Guided Reading #5b. How did his efforts effect his own political situation? Damaged his public image; Assured the victory of Democratic candidate in the 1932 presidential election Franklin Delano Roosevelt

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