1. GREAT DEPRESSION

2. GREAT DEPRESSION
Election of 1928
Herbert Hoover Republican candidate
Alfred Smith Democratic
First Catholic to run for President

3. GREAT DEPRESSION
Herbert Hoover Republican

4. GREAT DEPRESSION
Alfred E Smith Democrat

5. GREAT DEPRESSION
Hoover’s Campaign promise
“Chicken in every pot and a car in every garage”

6. GREAT DEPRESSION
Hoover wins in a landslide

7. GREAT DEPRESSION
U. S. Still in prosperity but cracks are showing

8. Over production of inventory
GREAT DEPRESSION
Easy Credit
Over production of inventory

9. GREAT DEPRESSION
Economy was strong based on World War I
Installment buying
Dollar down
dollar a week

10. GREAT DEPRESSION
Made it easy for all to buy
Repossessed if payments were missed
Stock Market opened to all Americans
Some were novice

11. GREAT DEPRESSION
Speculation
Margin
Buyer puts 10% down on a stock
Broker provides rest as a loan or margin

12. GREAT DEPRESSION
Buyer gambles that stock is going to increase

13. GREAT DEPRESSION
If price fell broker called in margin demanded immediate payment
Usually investor or buyer lost everything

14. GREAT DEPRESSION
BUBBLE BURSTS
October 29, 1929
“Black Tuesday”
Stock prices plummeted

15. GREAT DEPRESSION
29th and 30th 16 million shares were sold
By two weeks time index price fell by 50%
30 billion dollars were lost in the next weeks

16. GREAT DEPRESSION
Unsound banking practices led to:
Speculation
risky loans
fake investment schemes

17. CAUSES OF GREAT DEPRESSION
Credit
Too much
People and banks suffered
People could not pay
Banks lost money

18. GREAT DEPRESSION
Not all lost some gained tremendously
Joseph Kennedy Sr. allegedly
Got inside information and sold before the market crashed

20. GREAT DEPRESSION
Agriculture
Depressed for years
Overproduction caused low prices
Agriculture Marketing Act

21. GREAT DEPRESSION
Established loans to farmers
Federal Farm Board
Purchased surplus crops
Could not limit production
Depression in Europe closed a market for surplus food

22. GREAT DEPRESSION
Depression was world wide
Smoot-Hawley Tariff
High tariffs on imported goods to protect U S goods

23. GREAT DEPRESSION Foreign countries flooded market
Prices continued to fall
Farmers continued to grow crops
Prices plummeted depression worsened especially for farmers

24. GREAT DEPRESSION
Banking and Finance
Federal Reserve Board was urged to regulate credit and speculation
They did nothing

25. GREAT DEPRESSION
Deposits shrank
Massive withdrawals
Holidays were declared in Nevada, Louisiana Michigan
Emergency credit pool for relief

26. GREAT DEPRESSION
Bankers formed National Credit Corporation
Failed to help situation
Fearful that loans would jeopardize their banks

27. CAUSES OF GREAT DEPRESSION
Few basic industries
No diversification
2 major industries
Construction
automobile

28. CAUSES OF GREAT DEPRESSION
Uneven distribution of wealth
More than one half of Americans lived on edge of poverty

29. CAUSES OF GREAT DEPRESSION
International debt
Europe could not pay back loans to United States from World War I

30. High Tariffs on American goods
Europe responded with the same high tariffs on American goods

31. GREAT DEPRESSION

33. GREAT DEPRESSION
All failed
Reconstruction Finance Corporation (RFC)
Jan 1932
Provided loans to banks

34. GREAT DEPRESSION
Railroads
Life insurance
Farm Mortgage assistance
It did ease the banking crisis
January banks failed
April 46 failed

35. GREAT DEPRESSION
Unemployment Relief Organization
Stimulate private charities
3 other major measures were passed by Congress

36. GREAT DEPRESSION
300 million dollars were allocated to help liquidate banks loans for public works
Loans to states to help in public projects

37. GREAT DEPRESSION
30 million allocated
Too cautious (RFC) to help
None for Public Works

38. GREAT DEPRESSION
Hoover would not direct aid to unemployed
Private Charities
Opposition to direct relief

39. GREAT DEPRESSION
Cemented his reputation as doing nothing to ease depression
Shack villages were called Hooversvilles

41. Herbert Hoover
Newspapers wrapped around people were called Hoover Blankets
Broken down cars were called Hoover wagons
Pockets turned inside out were called Hoover Flags

43. GREAT DEPRESSION BONUS MARCH 1932 Hunger Marches and unemployed rioted
Bonus Expeditionary Force (BEF)
World War I veterans were able to borrow against life insurance in 1945

45. GREAT DEPRESSION
Technically it was not a bonus
Veterans wanted the money now
Needed the money for necessities

46. GREAT DEPRESSION
Congress could not afford payments
Yet they appropriated $100,000 for the marches return home
½ took offer

47. GREAT DEPRESSION
Others occupied buildings to be knocked down for public work projects
July 28, 1932 police tried to evict squatters
2 veterans killed stalemate continued

48. GREAT DEPRESSION
General Douglas McArthur had orders to move vets
He took it upon himself to drive them farther than President Hoover ordered

49. GREAT DEPRESSION
McArthur along with junior officers Patton and Eisenhower
Used tanks guns and tear gas to remove veterans

50. GREAT DEPRESSION
McArthur disobeyed orders to stop
Hoover while upset did nothing to stop McArthur
Reinforced Hoover’s image as a do nothing President

52. FDR Franklin D. Roosevelt Elected President
GREAT DEPRESSION
ELECTION OF 1932
FDR Franklin D. Roosevelt
Elected President
New outlook for United States