1. Hoover’s Handling of the Hardship
How does Hoover’s policies worsen the depression?

2. Hoover’s tries to reassure the country
Hoover says economic downturn is a normal cycle in capitalism & businesses will fix the problem, not the govt
Charities should help the needy, not the govt
Why? Govt should not over-spend during a financial crisis
Discuss: What is the cartoonist opinion of Hoover’s policies?

3. 1) employers, please don’t cut wages or lay off workers
Hoover’s Voluteerism
● Works with leaders of business, banking, & labor asking:
1) employers, please don’t cut wages or lay off workers
2) bankers, please help charities generate money
3) unions, please do not go on strike, since many businesses are suffering & going bankrupt

4. Hawley-Smoot Tariff
To protect American businesses, Congress decides to raise tariff rate
Despite being urged to veto, Hoover signs the bill
Tariff causes worldwide trade to drop 40%, worsens depression

5. Hoover takes some action
Since business isn’t creating jobs, Hoover authorizes construction of Boulder Dam (renamed Hoover Dam)
- Dam provided electricity, water supply, flood control, & construction jobs

6. More Government action
1. Fed. Farm Board: a cooperative (private entities working together) backed by Hoover trying to raise crop prices
2. National Credit Corporation
- loaned $ to smaller banks to prevent failures
3. Federal Home Loan Bank Act (1932)
Allowed people to refinance mortgages at lower rates
4. Reconstruction Finance Corporation (1932)
Additional $2 billion for emergency financing for larger banks & insurance companies
Although these actions helped it was too little, too late

7. Hoover vs. WWI Bonus Army
Bonus Army (WWI Vets), wanted their $500 WW I bonuses (approved in 1924 but to be paid in 1940s)
● Patman Bill (giving bonuses early) is voted down by Congress
Massive protest, Hoover sends Gen. MacArthur to control crowd
1,000 ppl tear gassed, 3 killed, several blinded