Hoover’s Response to the Great Depression

Promoting Recovery On March 7, 1930, President Hoover stated that “the worst effects of the crash upon employment will have passed during the next sixty days” Hoover hoped to downplay the public’s fear and avoid more bank runs and layoffs by urging consumers and businesses to make rational decisions Hoover believed that the government should not step in to help individual people

Promoting Recovery By 1931, Hoover increased funding for public works (government-financed building projects) Hoover could not create enough jobs for unemployed Americans without massive government spending, which he refused to do The American public was not happy with Hoover’s policies, so in 1930, the republicans lost 49 seats in the House of Representatives

Trying to Rescue the Banks President Hoover asked the Federal Reserve to put more currency into circulation, but the Board refused Hoover created the National Credit Corporation (NCC) in October 1933 Created a pool of money that allowed troubled banks to continue lending money in their communities 1932  Hoover set up the Reconstruction Finance Corporation (RFC) to make loans to businesses Both attempts to rescue the banks failed, and the economy continued to decline

Direct Help for Citizens Hoover strongly opposed the national government’s involvement in relief (money given directly to impoverished people) However, by 1932, the state and local governments were running out of money, so Congress approved the Emergency Relief and Construction Act New act called for $300 million in emergency loans to the states for direct relief

Hunger Marches January, 1931  almost 500 residents of Oklahoma City looted a grocery store Crowds began to gather at rallies and organized Hunger Marches, sponsored by the American Communist Party December 5, 1932  A group of 1200 hunger marchers in Washington DC chanted “feed the hungry, tax the rich” Police initially denied the protestors access to food and water until Congress insisted on their right to petition the government

Farmer Protests During WWI boom, farmers had heavily mortgaged their land to pay for supplies and equipment After the war, prices sank and farmers began to lose money Creditors foreclosed on the land, closing almost one million farms between 1930-34 Some farmers began to burn crops in an attempt to raise the prices by reducing supply Some farmers would burn corn to heat their homes, and in Georgia, dairy farmers blocked highways and stopped milk trucks, dumping milk into ditches

Bonus Marchers After WWI, Congress had enacted a $1000 bonus for each veteran, to be distributed in 1945 In 1931, Congressman Wright Patman introduced a bill to authorize the early payment of these bonuses In 1932, veterans began to march to Washington DC to lobby for passage of the bill  became known as the “bonus army”

Bonus Marchers Veterans camped in Hoovervilles with numbers close to 15,000 Senate voted to bill down, but many protesters remained in Washington Hoover ordered the clearing of vacant building, but for the camps to be left alone; the army ignored the request