1. Learning Objectives: Section 3 – Hoover Struggles with the Depression
Standard Addressed: 11.6 Students analyze the different explanations for the Great Depression and how the New Deal fundamentally changed the role of the federal government.
CH 14-SEC 3
Learning Objectives: Section 3 – Hoover Struggles with the Depression
1. Explain Hoover’s initial response to the Depression.
2. Summarize the actions Hoover took to help the economy and the hardship suffered by Americans.
3. Describe the Bonus Army and Hoover’s actions toward it.

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3. A BULLDOG ALWAYS
Commitment
Attitude
CARES
Respect
Encouragement
Safety

4. Hoover Struggles with the Depression
Section 3
Hoover Struggles with the Depression
President Hoover’s conservative response to the Great Depression draws criticism from many Americans.
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5. THE GREAT DEPRESSION BEGINS
THE GREAT DEPRESSION BEGINS
Photos by photographer Dorothea Lange

6. Hoover Struggles with the Depression
Hoover Tries to Reassure the Nation
Hoover’s Philosophy
President Herbert Hoover tells Americans economy is sound
Many experts believe depressions a normal part of business cycle
Hoover: government should foster cooperation between competing groups
People should take care of own families, not depend on government
Continued . . .
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7. SECTION 3: HOOVER STRUGGLES WITH THE DEPRESSION
SECTION 3: HOOVER STRUGGLES WITH THE DEPRESSION
After the stock market crash, President Hoover tried to reassure Americans
He said, “Any lack of confidence in the economic future Is foolish”
Herbert Hoover

8. HOOVER’S PHILOSOPHY Hoover was not quick to react to the depression
He believed in “rugged individualism” – the idea that people succeed through their own efforts
People should take care of themselves, not depend on governmental hand-outs
He said people should “pull themselves up by their bootstraps”
Hoover believed it was the individuals job to take care of themselves, not the governments

9. Chapter 14: Section 3 MAIN IDEA QUESTIONS
A – What were some of Hoover’s key convictions about government?
He believed that reason could solve problems,
That govt should foster cooperation between competing groups,
That individuals, charities, and private organizations should help care for the less fortunate.

10. Chapter 14: Section 3 Guided Reading: Philosophy #1 What was Hoover’s philosophy of government?
The chief function of govt was to encourage voluntary cooperation among competing interest groups;
The federal govt should guide relief measures but not directly participate in them

11. Hoover Struggles with the Depression
Hoover Tries to Reassure the Nation
Hoover Takes Cautious Steps
Calls meeting of business, banking, labor leaders to solve problems
Creates organization to help private charities raise money for poor
Continued . . .
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12. HOOVER’S SUCCESSFUL DAM PROJECT
Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam)
The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long)
The dam currently provides electricity, flood control and water for 7 western states

13. Any dam questions?

15. Chapter 14: Section 3 Guided Reading Responses and Economics Results #2 What was Hoover’s initial reaction to the stock market crash of 1929?
He urged CAUTION:
He urged key leaders to work together to provide solutions
To act in ways that would not make the economic situation worse.

16. HOOVER TAKES ACTION: TOO LITTLE TOO LATE
Hoover gradually softened his position on government intervention in the economy
He created the Federal Farm Board to help farmers
He also created the National Credit Organization that helped smaller banks
His Federal Home Loan Bank Act and Reconstruction Finance Corp were two measures enacted to protect people’s homes and businesses
Hoover’s flurry of activity came too late to save the economy or his job

17. For Americans it seemed their was no end to the misery.

18. Chapter 14: Section 3 MAIN IDEA QUESTIONS
B – Why do you think people blamed Hoover for the nation’s difficulties?
Americans look to their leaders for results, and Hoover wasn’t getting results.

19. Chapter 14: Section 3 Guided Reading #3a
Chapter 14: Section 3 Guided Reading #3a. What was the nation’s economic situation in 1930?
It continued to worsen;
More companies went out of business;
Unemployment continued to rise;
Soup kitchens, shantytowns, and hoboes became common;
The misery to ordinary people continued to grow

20. QUIZ!
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21. Congressional Elections
Democrats Win in 1930
Congressional Elections
As economic problems increase, Hoover, Republicans blamed
Farmers try to create food shortages to raise prices
Farmers declared a “farm holiday” and refused to work on their field because of loosing crops and markets
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22. Political Turn
Democrats won the 1930 Congressional Election by taking more seats in the Congress.
Republicans lost control of the House and saw their majority in the Senate dwindle to one vote

23. Problems at a Rise
Widespread criticism of Hoover: shantytowns called “Hoovervilles”
People called the newspapers they wrapped themselves in “Hoover blankets.”
Empty pockets turned inside out were called “Hoover flags”

24. Republicans lost control of the House of Representatives.
Chapter 14: Section 3 Guided Reading 3b. How did voters in 1930 respond to this situation?
Republicans lost control of the House of Representatives.
Republicans saw their majority in the Senate dwindle to one vote.

25. Hoover Backs Cooperatives
Hoover negotiates agreements among private entities
Backs Federal Farm Board (organization of farm cooperatives)
- buy crops, keep off market until prices rise
Gets large banks to establish National Credit Corporation
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26. Hoover Takes Action Direct Intervention
• Federal Home Loan Bank Act lowers mortgage rates
• Reconstruction Finance Corporation—emergency funds for businesses •
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27. Hoover Takes Action
Hoover backed the Federal Farm Board (to raise crop prices)
Establishment of a National Credit Corporation
Federal Home Loan Bank Act lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans to avoid foreclosure
Hoover’s measures don’t improve economy before presidential election

28. Chapter 14: Section 3 Guided Reading 4a
Chapter 14: Section 3 Guided Reading 4a. What did Hoover do about the economic situation?
Directed federal funds into public works projects,
such as Boulder/Hoover Dam,
to jump-start the economy and create jobs;
Backed a series of federal programs,
Federal Farm Board,
National Credit Corporation,
Glass-Steagall Banking Act,
Federal Home Loan Bank Act, and
Reconstruction Finance Cooperation.

29. Chapter 14: Section 3 MAIN IDEA QUESTIONS
In what ways did Hoover try to use the government to relieve the Depression?
Hoover set up the Reconstruction Finance Corp. to bring federal aid to hard pressed banks and businesses.

30. QUIZ!
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31. Hoover Takes Action
Reconstruction Finance Corporation (RFC)-2 billion dollars for emergency loans to banks, railroads, and other big business
Trickle-Down Theory- Hoover argued RFC loans would stimulate the economy and companies would start hiring again, but the poor could not wait for the money or jobs.

32. Chapter 14: Section 3 MAIN IDEA QUESTIONS
C – What were some of the projects proposed by Hoover, and how effective were they?
Federal Farm Board;
National Credit Corporation;
Federal Loan Bank Act;
Reconstruction Finance Corporation.
These projects and measures were not able to turn the economy around.

33. For Americans it seemed their was no end to the misery.

34. The economy continued to deteriorate
Chapter 14: Section 3 Guided Reading 4b. How did the economy respond to his efforts?
The economy continued to deteriorate

35.  BONUS ARMY A 1932 incident further damaged Hoover’s image
Known as the Bonus Army: 15,000 World War I vets and their families arrived in Washington to support a proposed bill

36. BONUS ARMY
The Patman Bill would have authorized Congress to pay a bonus to WWI vets immediately
The bonus was scheduled to be paid in The Army vets wanted it NOW

37. Thousands of Bonus Army soldiers protest – Spring 1932
BONUS ARMY TURNED DOWN
Hoover called the Bonus marchers, “Communists and criminals”
On June 17, 1932 the Senate voted down the Putnam Bill
Thousands of Bonus Army soldiers protest – Spring 1932

38. BONUS MARCHERS CLASH WITH SOLDIERS
Hoover told the Bonus marchers to go home– most did
2,000 refused to leave
Hoover sent a force of 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower

39. AMERICANS SHOCKED AT TREATMENT OF WWI VETS
MacArthur’s 12th infantry gassed more than 1,000 marchers, including an 11-month old baby, who died
Two vets were shot and scores injured
Americans were outraged and once again, Hoover’s image suffered

40. Chapter 14: Section 3 MAIN IDEA QUESTIONS
How did Hoover’s treatment of the Bonus Army affect his standing with the public?
After the Bonus Army incident, Hoover's approval rating started to drop.
The public was very disheartened by his actions.

41. Chapter 14: Section 3 MAIN IDEA QUESTIONS
D – What did the Bonus Army want?
As Veterans of WWI they had been promised a cash bonus.

42. Chapter 14: Section 3 Guided Reading #5a
Chapter 14: Section 3 Guided Reading #5a. How did Hoover deal with the economic problem posed by the Bonus Army?
Opposed immediate payment of bonuses to WWI veterans;
Ordered the U.S. Army to close their Capitol Hill shantytown,
leading to the gassing of 1,000 people,
a baby’s death and public outrage.

43. Hoover had little chance to be re-elected in 1932

44. Election of 1932 Franklin Delano Roosevelt Democrat
New Deal for American People, lots of government intervention
Roosevelt Wins with a landslide
Herbert Hoover
Republican
Government needs to stay out of the economy to protect free enterprise

45. 
1932 Herbert Hoover ran against Franklin Delano Roosevelt (FDR) and lost

46. NEW DEAL
Roosevelts First Hundred Days he took actions to help the economy and created programs to give people jobs and food.

47. Chapter 14: Section 3 Guided Reading #5b
Chapter 14: Section 3 Guided Reading #5b. How did his efforts effect his own political situation?
Damaged his public image;
Assured the victory of Democratic candidate in the 1932 presidential election
Franklin Delano Roosevelt

48. QUIZ!
First & Last Name
Fill in your
ID NUMBER!
CH-14-3