Notes part 1: The Great Depression and new deal

Stock Market Crash of 1929 Herbert Hoover became President of the U.S. in 1929. He had been in office for only 7 months when Wall Street stock market prices fell sharply—culminated on Oct. 29, aka “Black Tuesday”.

Stock Market Crash of 1929 Many investors, hoping to make quick fortunes, drove up the price of stock. Some investors borrowed money heavily to buy stocks, and when stock prices fell, those investors and the banks that loaned them money were wiped out.

The Great Depression Factories closed Widespread unemployment Low morale Hoover greatly underestimated the severity of the crisis and believed that relief efforts should begin at the state and city levels. “Hoovervilles” emerge—shanty towns built by homeless people

Overproduction Overproduction caused oil prices to drastically drop. 1931 - TRC issued an order for operators to limit production, but they still pump oil anyway Governor Sterling declared martial law and sent Texas National Guard to enforce it 1935 - oil prices stabilize

The Dust Bowl Farmers plowed under the grasses of the plains to plant crops, but nothing could hold the soil down from strong winds. A severe drought occurred in the 1930s and dust storms made the area into a “Dust Bowl”.

Lasted for seven years Generally covered a five-state area: Colorado, Kansas, Oklahoma, New Mexico, and Texas Motorists often could not see 20 feet down the street People became ill from lung diseases Many families lost their farms because of the difficult economic times

The New Deal Begins 1932 – Franklin D. Roosevelt won the presidential election, with almost 90% of Texans supporting him. 1933 – FDR starts reform programs called the “New Deal” to get America back to work and out of the Great Depression. “The First 100 Days” he orders all banks to close to determine the strongest to stay in business.

The New Deal Begins VP John Nance Garner, a former Texas congressman, helped push New Deal programs in Congress. Another Texas congressman, Sam Rayburn, became Speaker of the House. He proposed the Securities and Exchange Commission (SEC) to restore confidence in the stock market.

New Deal Programs FDR’s 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.

New Deal Programs New Deal programs tried to slow down soil erosion to help farmers in the Dust Bowl regions. New planting and contour plowing techniques helped farmers protect the topsoil from blowing away. The federal government also paid farmers to plant trees as windbreaks and reduce production of crops in effort to drive prices up.

1930s Governors: Sterling and Ferguson Miriam Ferguson defeated Ross Sterling in 1932 for governor 2nd term as governor was controversial Fired many TX Rangers Used pardon power to release criminals Asked FDR to lend farmers money to help make up for lost income from low cotton prices

1930s Governors: Allred and O’Daniel James Allred 1935 Reorganized TX Rangers Helped found Board of Pardons and Paroles Created retirement systems for state employees W. Lee O’Daniel 1938 Sales manager and radio host Wrote unofficial state song “Beautiful Texas” Unable to deliver on many of his campaign promises

African American Rights Dr. Lawrence Nixon African American Texan physician who presented his poll tax receipt and tried to vote in the Democratic primary, but was turned away Filed suit to win the right to vote: Nixon v. Herndon (1927):The Supreme Court justices declared his rights under the 14th and 15th amendments had been violated

Mexican Americans Rights League of United Latin American Citizens (LULAC) Founded at Corpus Christi in 1929 with Ben Garza as the first president Worked for Mexican American rights in court system, hiring, and education