1. HERBERT HOOVER “THE GREAT ENGINEER” THE ELECTION OF 1928
HOOVER – DRY, PROTESTANT & NATIVE
SMITH – WET, CATHOLIC & IMMIGRANT
PERSONIFICATION OF DIVISIONS WITHIN AMERICA
HOOVER 58% OF POPULAR VOTE “THE FINAL TRIUMPH OVER POVERTY”
DEMOCRATIC GAINS IN CITIES SHOWS SHIFT IN ELECTORATE

2. HE’S NOT YOUR FATHER’S REPUBLICAN
OPPOSED CUTTHROAT COMPETITION
CORPORATE COOPERATION
WELCOMED WELFARE CAPITALISM
ADVOCATED VOLUNTARISM
250 BUSINESS CONFERENCES
TRADE ASSOCIATION
8 HOUR WORK DAY
DIVISION OF CO. RIVER H2O

3. THE STOCK MARKET AND AMERICAN ECONOMY BEFORE OCTOBER 1929
UNEVEN DISTRIBUTION OF WEALTH – 60% BELOW POVERTY
TRADITIONAL INDUSTRY REPLACED BY NEW CAUSING UNEMPLOYMENT – UMW 500K 1920 TO 75K 1928 – AFL 5.1MILL TO 3.4
FARM PRICES DROP 40%
BANK FAILURES RAMPANT IN MIDWEST ( )
RICHEST 1% OWN APPROX. 40% COUNTRY’S WEALTH
SHAREOWNERS FROM 4 TO 20MILL BUT PRICE DIDN’T = VALUE
BUYING ON CREDIT LED TO DEBT WHICH LED TO LOAN RESTRIC-TIONS & SCARCE CREDIT
REDUCED SPENDING LED TO DEC-LINING PRICES

4. BLACK THURSDAY 10/24/29 & THE ONSET OF THE DEPRESSION
UNDER COOLIDGE 5 YR ARTIFICIAL RISE
MELLON TAX BILL CONTRIBUTED TO RAMPANT CONSUMER SPENDING
HOOVER CLOSES MARKET FRIDAY & MONDAY “BUSINESS OF U.S. IS ON A SOUND & PROSPEROUS BASIS”
Construction industry tanked in 1928
FRB increased interest rates to reduce money supply but banks kept making loans
Tight $ policy in ’30’s reduced $ available for investment & growth & hurt recovery efforts

5. BLACK TUESDAY 10/29/29 DJIA 100 TO 381 1924-28 DJIA 41 IN 1932
DJIA 381 MID 1950’S
EARLY SEPT. PRICES FALTER
BLACK THURSDAY 13 MILL SOLD
BLACK TUESDAY ANOTHER 16MILL SHARES SOLD

6. RUGGED INDIVIDUALISM
Immediate reaction- discount seriousness of depression
Aid to business NOT individuals
Responsibility lies with local government & charities
Public Works: Hoover Dam too little too late

7. SMOOT-HAWLEY TARIFF Keep campaign promise
Raise rates on agricultural products
Passed but raised rates on industrial goods too
“vicious, extortionate & obnox-ious”
Caved under party pressure & passed – led to worldwide tariff retaliation & further economic decline

8. ACTING OUTSIDE THE REPUBLICAN IDEOLOGICAL BOX
FEDERAL FARM BOARD ’29
stabilize prices and to promote the sale of agricultural products. To help farmers stabilize prices by holding surplus grain & cotton in storage. Created before crash & powers expanded afterwards.
RECONSTRUCTION FINANCE CORP – 1932: Lent money to banks, insurance companies, NOT individuals. Helped prevent further decline but…..unemploy-ment reaches 6-7 mill by million out of work
Businesses had no obligation to abide by voluntary restraints & cooperation

9. THE BONUS MARCH 1932 OF THE BONUS ARMY
demand for immediate cash-payment redemption of their service certificates
World War Adjustment Act of 1924 had awarded them bonuses in the form of certificates redeemable in Each Service Certificate bore a face value equal to the soldier's promised payment plus compound interest
AG Wm Mitchell ordered to clear vets from gov’t property – 2 vets killed
D. MacArthur with cavalry & tanks forcibly moved vets & families off of property & burned their makeshift houses

10. DON’T FORGET FOREIGN POLICY!
STIMSON DOCTRINE 1932 as a result of Japan’s invasion of Manchuria in Letters sent to China & Japan that US will NOT recognize legality of seizures made in violation of treaties. HH “We’re not the world’s policeman”
No impact on Japan & they bomb Shanghai in 1932 & withdraw from League
Clark Memorandum The primary point was that the Monroe Doctrine was based on conflicts of interest between the United States and European nations, rather than between the United States and Latin American nations.