Hoover Struggles with the Depression: #4 Ch.14.3 NOTES Hoover Struggles with the Depression: OBJECTIVE: Understand how President Hoover’s conservative response to the Great Depression drew criticism from many Americans.    

I. Hoover Tries to Reassure the Nation Hoover believed in voluntary cooperation Hoover tells Americans the economy is sound. He encouraged key leaders in business to work together on solutions. Experts believe depression is a normal part of business cycle. Hoover believed the government should guide relief measures but not directly participate in them.

Hoover’s Boulder Dam on Colorado River is massive project Hoover’s Boulder Dam on Colorado River is massive project. Later renamed Hoover Dam. Provided electricity, flood control, water to states on river basin.

Democrats win in 1930 Congressional Elections. Hoover and Republicans blamed for economic problems. Widespread criticism of Hoover: shantytowns called Hoovervilles.

II. Hoover Takes Action Hoover backed the creation of the Federal Farm Board. Buy crops, keep off market until prices rose. Gets large banks to establish National Credit Corporation, helps small banks survive. Hoover setup the Home Loan Act to lower mortgage rates. Reconstruction Finance Corporation provided emergency funds for businesses. Hoover’s programs do not improve the economy. The U.S. economy continued to worsen.

III. Gassing the Bonus Army Bonus Army---WWI veterans go to DC in 1932 to support the Patman Bill (war bonuses). Hoover opposes bill; Senate votes down bill. Most WWI veterans leave DC; only 2,000 stay. Hoover fears violence, calls on U.S. Army to disband Bonus Army. Infantry tear gas over 1,000 people, including children. Public is stunned, outraged by government’s actions.

Hawley-Smoot Tariff Act Chapter 14 Pro’s and Con’s List one pro and con argument for each topic. Pros Topic Cons Speculation Buying on Margin Hawley-Smoot Tariff Act Voluntary Cooperation Direct Relief