1. The Hoover Response

2. Responding to a Worldwide Depression President Hover believed that prosperity would return Advised voluntary action and restraint Urged businesses to keep wages high, unions not to strike, and charities to increase efforts Didn’t ask for legislative action

3. Responding to a Worldwide Depression Hawley-Smoot Tariff (1930) – Highest tariff in history (31-49%) Satisfied business leaders, Europe retaliated Deepened depression

4. Responding to a Worldwide Depression Dawes Plan couldn’t continue Hoover proposes debt moratorium Britain and Germany accept, France doesn’t

5. Responding to a Worldwide Depression Most programs too little, too late Federal Farm Board – created before crash – Powers enlarged – Helped stabilize prices – Too modest to deal with continued overproduction

6. Responding to a Worldwide Depression Reconstruction Finance Corporation (RFC) – 1932 to prop up railroads, banks, life insurance companies, other financial institutions Benefits would “trickle down” Democrats said it would only help the rich

7. Responding to a Worldwide Depression 1932 - Millions of unemployed workers and farmers decided to take direct action – Farm unrest – farmers banded together to stop foreclosures and evictions Tried to stop all grain shipments, got violent – Bonus Army – WWI vets wanted their bonuses early. Went to DC, camped out at the capitol Congress didn’t pass the bill 2 vets killed by police Gen. MacArthur sent out with tanks and teargas