The Great Depression Chapter 22

Section 1: Depression Hits Texas The Great Depression Begins Republican Herbert Hoover became the US President in He had been in office for only seven months when Wall Street stock market prices fell sharply. Stock shares represent ownership in companies When the price of stock fell, both inventors and bank lost all the money they had loaned. Economic bad news continued: Domino Effect so… 1.Factories closed so… so… 2.People lost their jobs; Unemployment so… so… 3.People could not buy products so… so… 4.More factories closed so… so… 5.Price of agricultural products dropped so… so… 6.Income of Texas farmers suffered so… so… 7.People couldn’t afford new houses, so… 8.East TX timbers workers were laid off Hoover greatly underestimated the Great Depression.

Section 1: Depression Hits Texas Too Much Oil Texans elected an oil businessman, Ross Sterling, as governor in 1930 In October 1930; a wildcatter named Columbus “Dad” Joiner drilled an oil well in northern Rusk County. This new field was so big that it was named for a whole region- many small towns boomed as thousands of people descended upon East Texas. People could make a lot of money drilling, and lots of other people can make money selling things to the drillers. Independents (or small oil drillers) drilled all over East Texas in hopes of finding oil. -There was TOO MUCH OIL Law of Supply and Demand –Supply increased and demand stayed the same- so Prices when DOWN

Section 1: Depression Hits Texas Too much OilIn early 1930s, the price of a barrel of oil dropped. In April 1931, the Texas Railroad Commission issued an order to limit the production in East Texas, Independents thought this action would only help the Large Oil companies- there was wide-spread cheating. Truckers carried “Hot Oil” at night on the on back roads without using their headlights. “Hot Oil” was petroleum produced in violation of the Railroad Commission’s orders and was smuggled out of the Texas boom towns. Governor Ross Sterling declared Martial Law and sent the Texas National Guard to East Texas. But overproduction continued. By 1935, the state and federal laws had successfully controlled production and oil prices became more stable.

Section 1: Depression Hits Texas Crisis for Cotton Farmers The Great Depression forced the cotton prices lower too. Because Cotton doesn’t spoil like other crops, it could be stored for years. But the stored cotton and the new crop created even larger surpluses! -As with petroleum, the answer was to limit production Nationwide. Huey Long, governor of Louisiana pushed through a law known as “drop-a-crop”- prohibiting the planting of cotton in Louisiana in It had a provision that other cotton- growing states must also prohibit production in order for the law to go into effect. WHY WAS THIS A GOOD IDEA?! Governor Sterling did not think the idea would work, they called for partial reduction, but a state court declared the law unconstitutional, the whole plan collapsed.

Section 1: Depression Hits Texas Dust Storms Blanket the High Plains As with oil and cotton, overproduction drove price of Wheat down. In 20 years, wheat dropped from $2.19 to $.39 per bushel. The High Plains farmers also found when they plowed grasses under, there was nothing left to hold the soil when the winds blew. A severer drought in the 1930s added to the problem. The soil literally blew away. Dust from what came to be known as the Dust Bowl was reported by ship captains in the Atlantic Ocean.

Section 1: Depression Hits Texas Texans Look for Answers As banks failed, some merchant associations printed coupons that could be used as money. Universities that could not pay salaries allowed professors and their families to eat in the university dining halls. Churches paid their preachers with eggs, chickens, vegetables, and firewood. Mexicans Americans and African Americans were especially hit hard by the Great Depression. Between 1929 and 1931 large numbers of Mexicans and Mexican Americans left Texas for Mexico. -Some left voluntarily -Others were deported or forced to leave to open jobs for Texas citizens The percentage of African Americans who were unemployed was approximately twice that of the rest of the population

Section 2: Texas and the New Deal The New Deal Begins 1932 President Hoover ran for reelection in 1932, but voters blamed him for the Depression. Franklin D. Roosevelt won an overwhelming victory- Texans gave almost 90% of their votes to Roosevelt, who promised a “New Deal for the American People” First action: close all banks to determine which ones where strong enough to stay in business. Asked Congress to pass laws to help solve the economic problems Facts about Frank: 1.He got Polio in 1921 which left him paralyzed from the waist down. But the press left this fact out of newspapers 2.Franklin also had to deal with WW2- he delivered the “Infamy Speech” to congress after the Pearl Harbor attacks FOUR 3.He won FOUR terms as President (not possible anymore) 4.He died in office during his 4 th term from a stroke.

Section 2: Texas and the New Deal New Deal Programs in Texas The New Deal greatly increased the activity of the federal government in people’s lives Before 1930s 1.Collect taxes 2.Print money 3.Set up courts NOW: New Deal created the Alphabet Agencies Alphabet Agencies to deal with the many problems faced by the nation as a result of the depression.

Section 2: Texas and the New Deal New Deal Programs in Texas Federal Emergency Relief Administration (FERA): Gave funds to state and local agencies for distribution directly to unemployed people. Civilian Conservation Corps (CCC): Provided outdoor employment for young men while helping to preserve the nation’s resources. Nearly 50,000 Texans participated in the CCC. Living in camps: 1.Planted trees 2.Built erosion control structures 3.Helped conserve natural resources a. Garner, Bastrop and Palo Duro state parks, which are still in use today! 4. They were paid $30 a MONTH and were to send $25 of that home to their families

Section 2: Texas and the New Deal New Deal Programs in Texas National Youth Administration (NYA): Hired High school and college students to perform clerical and maintenance jobs. Students would: 1.Work at school 2.Work on playgrounds 3.Help build roadside parks 4.Spread gravel on highway shoulders Head of the NYA in Texas: Lyndon B. Johnson Public Works Administration (PWA): 1.Built bridges 2.Built dams 3.Schools 4.Other structures of permanent value to the state

Section 2: Texas and the New Deal New Deal Programs in Texas Works Progress Administration (WPA): Hired 600,000 Texans who built: 1.Swimming pools 2.Recreation centers 3.Stadiums 4.Parks Others: 1.Artists to paint murals 2.Theater and musical groups were hired to provide entertainment in several Texas cites. 3.Historians were given jobs writing community histories.

Section 2: Texas and the New Deal New Deal Programs in Texas

Section 2: Texas and the New Deal Rural Texans and the New Deal New Deal legislation helped rural people form Cooperatives, or organized groups, that borrowed money from the government to pay for stringing electrical wires. (the cities had electric lights, but the farms did not) Farmers in the Dust Bowl regions planted alternating strips of wheat and grain sorghum. The sorghum was taller and protected the topsoil from being blown away. In the cotton fields of Texas, the federal government encouraged farmers to: 1.fill up gullies with brush to slow the water as it ran downhill 2.to plowed around hills in a method called contour plowing rather than going straight up and own hills. 3.Paid to plant crops, such as clover that would enhance the soil This is sorghum

Section 2: Texas and the New Deal Texas Centennial Dallas was chosen to be the site of the Centennial Celebration in 1936 because it was able to contribute almost $10 million to help build the facilities. The Texas Legislature and the U.S. Congress each provided $3 million. The main celebration was help at the 185 acre Fair Park in Dallas. The San Jacinto Monument was erected on the battlefield to the east of Houston Museums were built at the Alamo grounds in San Antonio, on the campus of UT and at the Canyon, Huntsville, Goliad and Gonzales.  San Jacinto Monument

Section 3: Politics in the 1930s 1930s Governors Despite economic problems in his term, Ross Sterling ran for re- election in Miriam Ferguson won the election. Controversy: 1.Fired experienced Texas Rangers 2.She used her pardon power to release many criminals from state prisons James Allred was sworn in as governor in Restored Texas Rangers 2.Made Texas Rangers apart of Department of Public Safety 3.Allred founded Board of Pardons and Paroles 4.Created retirement systems for teachers and state employees

Section 3: Politics in the 1930s Mexican Americans fight for their rights The Pecan Shellers’ Strike The League of United Latin American Citizens (LULAC) was founded in Corpus Christi in In 1930 it supported Jesus Salvatierra in his lawsuit against the Del Rio Schools. Mostly Mexican Americans worked for the Pecan Industry and their working conditions were inhumane. In 1938, the company cut their wages. Emma Tenayuca Brooks and other organizers led more than 10,000 workers on a strike that lasted three months! Workers later went back to work for higher pay.