1. CHAPTER 24
The Great Depression,
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2. The Election of 1928 Herbert Hoover campaigns as self-made man
The Great Engineer, the Boy Wonder
both run the Food Administration in America following the war; and served as Secretary of Commerce under two presidents
Alfred Smith loses, mostly because of his Catholicism and anti-Prohibition stance
As governor of New York, he had championed moderate social welfare policies, administrative efficiencies, and public works

3. Hoover wins landslide victory, in part due to prosperity of country
breakup of the “Solid South” in voting
Stock Market rose 109 points in one year

4. ©2004 Wadsworth, a division of Thomson Learning, Inc
©2004 Wadsworth, a division of Thomson Learning, Inc. Thomson Learning™ is a trademark used herein under license.
Election of 1928

5. The Stock Market Crash of 1929
Crash of October 1929
Negative economic factors
Land prices collapsed
Corporations too dependent on stocks to raise cash
Crash had additional causes
Risky ventures for quick profits
“margin” trading: practice that allowed an investor to buy stock on credit
lack of government control

6. Black Thursday: day the stock market crashed
More Americans had been investing, often with little knowledge
16 million shares changed hands
Gross national product went from 88 to 76 billion

7. The Great Depression Factors of the depression
Vastly unequal distribution of wealth: 80% did not have any savings
Poor agriculture: overproduction, falling prices
European loans: could no longer make payments on those loans

8. Congress made unsuccessful attempts to deal with crisis
no government programs in place to ease the situation
Smoot-Hawley Tariff: raised custom duties to high levels
Made it difficult for European nations to sell goods in US.
Depression closes thousands of businesses and left millions unemployed
By the end of 1930, 16 percent were unemployed.

9. Hoover’s Programs to Fight the Depression
Hoover made wide use of presidential power
National Credit Corporation: private agency would underwrite banks that had failed and would safeguard their deposits
President’s Organization of Unemployment Relief: organization was a presidential committee designed to coordinate volunteer relief efforts for the unemployed
Unemployed face discrimination
Blacks, women, and Native Americans faced hardships

10. Mexican Population in the United States, 1930

11. Farmers’ situation became desperate
Agricultural Marketing Act: created a Federal Farm Board that was to stabilize farm prices.
Homelessness and dissatisfaction with government increased
Hoovervilles: Great Depression-era shantytowns
Hoover Flag: wearing your pants with the pockets turned inside out
Movies and music offer small amount of comfort
Soap operas, movies, and swing music
Amos ‘n’ Andy: popular radio program emphasized the stereotypes of African-Americans

12. A Darkening World Hoover came to White House with definite policy
Good Neighbor Policy: withdrew Marines from Nicaragua and Haiti
London Treaty of 1930: sponsored promoted more American investment in Europe

13. League of Nations unable to do anything when Japan invaded Manchuria
they had bombed one of their own railroads to give them the pretext of protecting their property
direct violation of Nine Power Treaty, Open Door Policy
Hitler and Mussolini begin menacing in Europe
National Socialists: Adolf Hitler – a follower of Benito Mussolini

14. Japanese Invasion of Manchuria
©2004 Wadsworth, a division of Thomson Learning, Inc. Thomson Learning™ is a trademark used herein under license.
Japanese Invasion of Manchuria

15. A Political Opportunity for the Democrats
Democrats capitalized on economic depression
Franklin D. Roosevelt (FDR)
Polio left legs paralyzed
Married to TR’s niece Eleanor
FDR pledges “New Deal” for Americans

16. Bonus Army damages Hoover’s re-election
World War I veterans who marched on Washington to lobby for immediate cash payments of their veterans’ bonuses
Douglas MacArthur, troops razed the camps of the bonus marchers in Anacostia Flats
Scottsboro boys: a group of African American men who were unjustly accused of raping 2 white women in Alabama.
FDR defeats Hoover: haunted by his role in Great Depression
Depression worsens during interim period

17. ©2004 Wadsworth, a division of Thomson Learning, Inc
©2004 Wadsworth, a division of Thomson Learning, Inc. Thomson Learning™ is a trademark used herein under license.
Election of 1932
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18. Discussion Questions What were the causes of the Great Depression?
What programs did Herbert Hoover implement to deal with the depression?
What was the role of economic hardship in the rise of authoritarian powers such as Germany and Japan?
What was FDR’s approach to dealing with the Great Depression? What did he do in his early administration to instill Americans with hope?