1. Chapter 19 Section 1
The Great Depression

2. I. Introduction
Business began to slow
1. Stocks started to drift
down
2. Investors rushed to sell
before value further
3. The more they sold, the
further they fell

3. Investors panicked
1. Prices tumbled
2. Stockbrokers demanded
payment from people
who bought on margin
(margin = buying stock
with money borrowed
from the broker)

4. Tuesday, October 29, 1929
1. Worst day in Stock
Market history
2. Thousands tried to sell,
but there were few buyers
3. Stocks sold for next to
nothing

5. 4. Many people put all their
in market, they were
ruined

6. II. The Shaky Economy
Stock Market crash
marked the beginning of the
Great Depression
Many problems contributed
1. Gap between rich and
everyone else

7. a. 5% of people had 33%
of the money
2. After the crash, rich
stopped spending which
hurt businesses
3. Poor business practices
4. Overproduction of durable
goods

8. a. Factories slowed
production and laid off
workers
5. People had less money to
spend in stores-stores had
less money to buy goods
from factories-factories
had to cut back production

9. Bank failures
1. Banks invest most of what is
deposited – some in stocks
2. When market crashed, banks
lost money
3. People saw banks in trouble
and rushed to withdraw
money

10. a. Called a run on a bank
b. Banks could not pay all
their depositors
c. Had to close down

11. Run on bank

12. Run on bank

13. III. Unemployment
As banks and businesses
failed people lost their jobs
1. At the height, 25%
unemployed
B. People out of work scared
and ashamed

14. Unemployment

15. Unemployment

16. Unemployment

17. Unemployment

18. IV. Looking for Help Many people were homeless and hungry
Communities tried to help,
but were not prepared for
the numbers
1. People lined up for blocks

19. Food lines

20. Food lines

21. 1. Cut teachers’ salaries,
closed schools
People help themselves
1. “Penny auctions

22. Milo Reno urged farmers to not grow as much to keep prices higher
a. Set up road blocks to stop
farmers from bringing
goods to market
b. Fights broke out

23. Farm Holiday

24. E. People on the move
1. Many homeless “rode the rails” looking for work

25. Some families piled
everything on family car or
truck and went looking for
work
3. Some became migrant farm workers

26. On the Road

27. On the Road

28. “Hoovervilles”
1. Some homeless huddled
together in cardboard
shacks, wooden boxes,
rusty old cars
2. Called their shantytowns

29. Hoovervilles

30. Hoovervilles

31. Newspapers to keep warm were called “Hoover blankets”

32. Pockets turned inside out were called “Hoover flags”

33. G. The Bonus Army
World War I veterans were
looking for help
Congress had promised to
pay $1,000 bonus in 1945

34. Congress proposed paying it
now – Hoover said
government did not have the
money
4. 20,000 veterans marched on Washington D.C. – “Bonus Army”

35. Bonus Army

36. Bonus Army

37. Hoover would not meet with them – ordered Gen
Hoover would not meet with them – ordered Gen. MacArthur to drive them out of town
a. Burned their camp to the
ground

38. Bonus Army

39. V. Hoover Fights the Depression
Hoover saw that people
were losing faith in him
1. Promised a recovery
Called on business and
labor to cooperate

40. 1. Asked business to
keep jobs and wages
2. Asked labor leaders to
stop demanding higher
wages
Spend federal money on
construction

41. 1. Asked business to
keep jobs and wages
2. Asked labor leaders to
stop demanding higher
wages
Spend federal money on
construction

42. Asked Congress to lower
taxes
Resisted doing more
1. Did not want
government to become
too powerful
2. Did not want people to
stop helping themselves

43. The 1932 Election
A. Republicans nominated
Hoover again
B. Democrats nominated
Franklin Roosevelt
1. Promised that
government would work
to find solutions - a new
deal

44. Won 57% of votes
Voters also gave Democrats control of both houses of Congress

45. Election of 1932