1. Hoover’s Response to the Great Depression

2. Voluntary Efforts and Public Works
Hoover brought together the heads of banks, railroads, big businesses, labor and government officials. Agreement: keep factories open and stop lowering wages
Hoover increased public works = replacement jobs for those who were laid off
Hoover refused to increase government spending so there were not enough new jobs being created

3. Putting Money Into the Economy
Hoover formed the National Credit Corporation (NCC)
The NCC created a collection of money that would allow banks in distress to continue lending money to corporations to expand production
Hoover asked Congress to create the Reconstruction Finance Corporation (RFC)
Make loans to banks, railroads, and agricultural institutions
The RFC did not increase its loans enough to meet the needs so the economy continued to decline

4. Help for Citizens
“Relief” was money that went directly to impoverished families
Hoover opposed federal relief; believed relief should be given by state and city governments only
1932: Congress passes the Emergency Relief and Construction Act
Allotted money for public works as well as loans to states for relief; too late to prevent the collapse

5. The Mood of America Hunger Marches by the American Communist party
Looting of grocery stores
Many farmers were suffering due to low prices for crops; couldn’t pay mortgages
Foreclosure on at least a million farmers; families were evicted
Farmers began to destroy their crops on purpose as a means of raising crop prices

6. The “Bonus Army”
After WWI, American soldiers and sailors were promised $1,000 bonus for each veteran beginning in 1945
1932: Veterans from Portland, Oregon began a march to Washington: lobby for early payment
The Senate voted down the legislation
Many veterans who had come to Washington decided to stay in unoccupied buildings downtown

7. Response to Bonus Army President ordered buildings to be cleared
Army Chief of Staff Douglas MacArthur sent cavalry, infantry, and tanks to rid Washington of the veterans: focus on buildings only
Veterans were assaulted by troops using bayonets and tear gas