Hoover & the Great Crash ( )

Labor Unrest Gastonia Strike (1929) S. Textile Mill 1,000 on strike Natl. Guard ; 2 workers killed Vigilante violence Labeled as communists or anarchists Gastonia Strike (1929) S. Textile Mill 1,000 on strike Natl. Guard ; 2 workers killed Vigilante violence Labeled as communists or anarchists

Gastonia Strike (1929)

Republican Leadership Coolidge chooses not to run for re-election Nominate Herbert Hoover Engineer Senator WWI Board appointments Coolidge chooses not to run for re-election Nominate Herbert Hoover Engineer Senator WWI Board appointments

1928 Election

Herbert Hoover “I have no fears for the future of our country.” - Inaugural Address, 1929 Stabilize business ; agriculture “Prosperity is just around the corner…” c “I have no fears for the future of our country.” - Inaugural Address, 1929 Stabilize business ; agriculture “Prosperity is just around the corner…” c. 1932

Hoover & Agriculture Agricultural Marketing Act (1929) Co-Ops Federal Farm Board ; $500 mil. Hawley-Smoot Tariff (1930) Highest duties ever Economists cry for change! Too damaging to foreign market Agricultural Marketing Act (1929) Co-Ops Federal Farm Board ; $500 mil. Hawley-Smoot Tariff (1930) Highest duties ever Economists cry for change! Too damaging to foreign market

Economic Troubles FL real-estate boom; bust “Great Bull Market” “Stock-on-Margin” “Balloon-Style” mortgages “[there is] nothing fundamentally wrong with the stock market or with the underlying business and credit structure.” - Unknown Bank Pres., Oct. 22, 1929 FL real-estate boom; bust “Great Bull Market” “Stock-on-Margin” “Balloon-Style” mortgages “[there is] nothing fundamentally wrong with the stock market or with the underlying business and credit structure.” - Unknown Bank Pres., Oct. 22, 1929

Oct. 29, 1929 “Black Tuesday” Largest 1 day loss 16.4 mil. shares sold 3 mil. on ‘busy day’ Wall St. stocks fall 37% “Black Tuesday” Largest 1 day loss 16.4 mil. shares sold 3 mil. on ‘busy day’ Wall St. stocks fall 37%

Numbers Crash 1929: 452 stock avg. 1932: 52 stock avg. 1933: NYSE stock decline 80% in value 1929: 452 stock avg. 1932: 52 stock avg. 1933: NYSE stock decline 80% in value

Stock Prices,

Numbers Crash : Personal incomes decline by 50% : 9,000 bank closures 1933: 13 mil. unemployed : Personal incomes decline by 50% : 9,000 bank closures 1933: 13 mil. unemployed

Causes of Depression Consolidated 30% of wealth in top 1% Increase in profits ; decrease in purchasing power Mellon Tax Cuts lead to speculation Anti-Labor lowers wages ; low CBAs Gold Standard fails to provide necessary flexibility ; $$ supply tightens Consolidated 30% of wealth in top 1% Increase in profits ; decrease in purchasing power Mellon Tax Cuts lead to speculation Anti-Labor lowers wages ; low CBAs Gold Standard fails to provide necessary flexibility ; $$ supply tightens

“Hoovervilles”

Hoover Responds Expediate govt. construction projects Modest Tax reductions Farm Board & Fed. Reserve reduce interest rates Rejected increased govt. spending No social welfare Expediate govt. construction projects Modest Tax reductions Farm Board & Fed. Reserve reduce interest rates Rejected increased govt. spending No social welfare

Relief Acts Recon. Finance Committee (1932) $500 mil. Budget, $2 bil. Spending power Loans to bank, farms, RRs Fed. Home Loan Bank Act (1932) Discount banks for mortgages Emergency Relief & Construction Act (1932) RFC $300 mil. for state relief loans Recon. Finance Committee (1932) $500 mil. Budget, $2 bil. Spending power Loans to bank, farms, RRs Fed. Home Loan Bank Act (1932) Discount banks for mortgages Emergency Relief & Construction Act (1932) RFC $300 mil. for state relief loans

Civil Unrest Farmers protest foreclosures NE farmers burn crops ; block deliveries “Bonus Expeditionary Force” WWI vets. 43,000 marchers in DC 17,000 vets. Farmers protest foreclosures NE farmers burn crops ; block deliveries “Bonus Expeditionary Force” WWI vets. 43,000 marchers in DC 17,000 vets.

“Bonus Army”

Hoover Reforms Fail Hoover reluctant to abandon passive approach Market crash beyond his control Diminished public trust ; support Reforms not enough to offset “I can’t be Theodore Roosevelt…I have no Wilsonian qualities.” - Hoover, c Hoover reluctant to abandon passive approach Market crash beyond his control Diminished public trust ; support Reforms not enough to offset “I can’t be Theodore Roosevelt…I have no Wilsonian qualities.” - Hoover, c. 1933

“Great Depression”