Hoover Struggles with the Depression (Ch. 14, Sec. 3)

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Presentation transcript:

Hoover Struggles with the Depression (Ch. 14, Sec. 3)

How did Hoover respond to the stock market crash & depression? He reassured America the economy was sound & stressed “rugged individualism” He opposed any form of federal welfare or relief programs (individuals, charities, organizations) He urged business, banking, & labor leaders to cooperate to solve economic problems Hoover refused federal help even as “Hoover flags” (empty pockets), “Hoover blankets” (newspapers), & “Hoovervilles” (shantytowns) mocked his name

What actions did Hoover take to restore the economy? Authorized construction of Boulder (Hoover) Dam (California agriculture, LA & Las Vegas) Hoover backed creation of cooperatives (Federal Farm Board, National Credit Corp.) He signed Federal Home Loan Bank Act (lowered mortgage rates, farmers refinanced) The Reconstruction Finance Corp. supplied emergency financing for banks, railroads, and other large businesses (trickle down effect)

How did Hoover handle the Bonus Army problem? Bonus Army (WWI vets & their families) showed up in Wash., D.C. in 1932 looking for help They pushed for passage of the Patman Bill ($500 bonus to WWI vets) Hoover opposed the bill (called vets communists & criminals) & it failed to pass in the Senate Hoover sent in 1,000 soldiers to disperse the Bonus Army (1,000 were gassed, two shot, many more injured)