Ch. 32 – 2 notes

Election of 1928 – Rep. Herbert Hoover (conservative and pro-prohibition) took on Dem. Alfred E. Smith (“wet” and Catholic) Hoover preached ‘rugged individualism’ and self-reliance An ugly campaign ensued on both sides, esp. against Smith’s Catholicism Hoover won in a landslide - even carrying Southern Democratic states Hoover was an orphan, self-made millionaire, humanitarian, anti-socialist and ‘dry’ – he had never been elected to anything Yet despite pleas from farmers for lower tariffs, Hoover supported the- Hawley-Smoot Tariff (1930) which raised tariffs to nearly 60%, essentially stopping global trade in the 1930’s By the late 1920’s, corporate stock was out of control, yet the Fed. Gov’t did not interfere – nobody wanted to be responsible for stopping the ‘boom’ of the 20’s

Black Tuesday – Oct. 29, 1929 -- 16 million shares of stock were sold in a panic frenzy, crashing the stock market – nearly $40 B in ‘paper money’ vanished The entire world soon felt the effects as businesses went belly up, 5,000 banks shut down and thousands of savings accounts disappeared by 1932, nearly 12 Million Americans (1 in 4) were unemployed “Brother, Can you Spare a Dime” was heard as breadlines, apple sellers and the unemployed roamed the streets --- individuals, esp. fathers, often blamed themselves, yet it was the system, w/ no safety nets, that failed What caused the Great Depression? many factors: overproduction and under consumption of both industrial and farm goods, too much money in too few hands (not being returned as salaries), the use of credit, technological unemployment, U.S. isolation, drought

‘Hoovervilles’ sprung up in all major cities At first Hoover, convinced America was built on industry, thrift and self-reliance, refused to give gov’t handouts to not weaken the “national fiber” When local agencies proved inadequate, Hoover reluctantly stepped in w/ the fed. gov’t Hoover chose to help the top of the economic pyramid hoping their success would ‘trickle-down’ to the rest of society He secured $2.25 Billion for public works projects like the Hoover Dam outside Las Vegas but opposed public works that conflicted with private companies (Tennessee Valley) In 1932, Hoover convinced Congress to create the Reconstruction Finance Corp (RFC) which gave aid to RR, banks, insurance co., state gov’t and local agencies (not individuals) to use as they see fit Truth is, during Hoover’s last two years in office, a Democratic Congress was not willing to cooperate

Bonus Army - In 1932, WWI veterans marched on Wash. D. C Bonus Army - In 1932, WWI veterans marched on Wash. D.C. to receive an early bonus payment for their services Hoover tried to pass the bill, but when it failed, the vets who would not leave were forced out by the U.S. Army and Douglas MacArthur 1931 - Japan invaded China (Manchuria) by force; League of Nations refused to step in and discipline A precedent was set with this invasion of the weakness of the League with no U.S. involvement The Stimson Doctrine stated the U.S. would not recognize territory taken over by force, a weak and pathetic response to an aggressor In Latin America, in the mist of world-wide depression, Hoover established America being a “Good Neighbor” and removed U.S. troops from Nicaragua and Haiti