1. Hoover & The Great Depression

2. Hoover’s First Response
Held optimism, urged consumers to make smart decisions & claimed would turn around quickly
American Individualism- published , Hoover claimed “rugged individualism” was the best social, political, spiritual, & economic system
Claimed European countries that were not doing well economically after WWI was a result of switching to socialism

3. Industry Pledges
Hoover organized conferences with bank & business leaders
Industry leaders pledged to keep factories open & to stop slashing wages
By 1931, pledges broken

4. Public Works Hoover forced to increase public works
Fraction of unemployed given jobs
Needed massive government spending, Hoover refused
If government raised taxes, consumers would have less money to spend
If taxes kept low, would run budget deficit—borrowing more money leaving less to give as loans to public

5. 1930 Congressional Election
Poor economy blamed on Republican party in power
Republicans lost majority in House, kept majority by one seat in Senate

6. Rescuing Banks
Hoover wanted to increase money supply to help banks make loans to corporations—could expand production & rehire workers
Fed Reserve Board refused
National Credit Corporation (NCC)- created pool of money that allowed troubled banks to continue lending to communities
Did not meet nation’s needs

7. Rescuing Banks
Reconstruction Finance Corporation (RFC)- made loans to businesses
By ‘32 had lent about $238 mil
Was overly cautious & failed to increase its lending sufficiently

8. Direct Help for Citizens
Opposed relief- money given directly to families in need
Believed for states/ local government or charities
By spring ‘32, running out of money

9. Direct Help for Citizens
Emergency Relief & Construction Act- July 1932, called for $1.5 bil for public works & $300 mil in emergency loans to states for direct relief

10. Marches & Protests Looting of grocery stores began
Crowds at rallies and “hunger marches” organized by American Communist Party
“Feed the hungry, tax the rich”

11. Marches & Protests
Creditors foreclosed on nearly one mil farms
Some farmers destroyed their crops, trying to raise prices by reducing supply
NE, farmers burned corn to heat homes
GA dairy farmers blocked highways and stopped milk trucks to dump milk

12. “Bonus Army” March
After WWI, Congress enacted a $1,000 bonus for each veteran, to be distributed in 1945
1929, Texas congressman Patman introduced bill that would authorize early payment of bonuses
May 1932, march across country began beginning in OR toward D.C., picking up about 1,000 total

13. “Bonus Army” March In D.C., vets camped in Hoovervilles—more joined
Hoover refused to meet but acknowledged right to petition
Senate voted down bill
Many returned home, some stayed in Hoovervilles or vacated buildings

14. “Bonus Army” March July, Hoover ordered buildings cleared
Police tried, but an officer panicked, fired into crowd, killed two vets
Secretary of War asked if army troops could be sent
General Douglas MacArthur ignored Hoover’s orders to clear buildings but to leave camps alone
Sent in cavalry, infantry, & tanks to clear camps
Unarmed vets ran away pursued by soldiers who tear gassed stragglers and burned shacks

15. “Bonus Army” March
National press coverage of troops assaulting vets harmed Hoover’s reputation

16. Homework
It has been argued that Hoover’s actions after the Stock Market crash were either too much, insufficient, premature, or tardy. It has also been argued that Hoover’s actions were responsible for the length of the Depression.
Review Hoover’s actions and write at least half a page explaining your views. Were they too severe or weak, or too early or late?
Due tomorrow