HOOVER RESPONDS TO THE DEPRESSION. Chapter 11 Section 3
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1 HOOVER RESPONDS TO THE DEPRESSION Chapter 11 Section 3
2 HOOVER RESPONDS TO THE DEPRESSION PROMOTING RECOVERY Main Idea Hoover encouraged business to stop laying off workers and created public works projects
3 PROMOTING RECOVERY After the crash Hoover remained optimistic March 7 th 1930 worst of the crash upon employment will have passed during the next sixty days. With optimism Hoover hoped to downplay public s fears Wanted to avoid more bank runs and layoffs by encouraging rational decisions Optimism failed to inspire confidence and economy continued to fail
4 PROMOTING RECOVERY Hoover believed rugged individualism would keep economy moving Didn t believe government should step in the help individuals Hoover had written American Individualism 1922 and how it was the best system, so hard to make policies that involved more government control
5 PROMOTING RECOVERY Even though publicly optimistic, Hoover was worried. To get strategies to improve the economy, called together leaders of banks, railroads, big business, labor leaders and government official to several conferences At conferences, business leaders promised not to layoff workers or cut wages But by 1931 broke pledges
6 PROMOTING RECOVERY With broken pledges, Hoover increased funding for public works government financed building projects to create more jobs This did create jobs but for only a small portion of the millions of unemployed To get more new jobs they would have to increase government spending which Hoover did not want to do
7 PROMOTING RECOVERY Trying to Rescue the Banks To get economy going again, Hoover focused on expanding money supply Believed government should help banks make loans to corporations to rehire workers Asked Federal Reserve Board to put more currency into circulation but they refused Hoover set up the National Credit Corporation in 1931 Created a pool of money that allowed troubled banks to continue lending money in their communities This failed to meet the nations needs
8 PROMOTING RECOVERY Trying to Rescue the Banks 1932 Hoover requested congress to set up Reconstruction Finance Corporation to make loans to businesses Early 1932 RFC had lent $238 million to 160 banks, 60 railroads, and 18 building-and-loan organizations They were overly cautious and failed to increased lending to meet needs
9 PROMOTING RECOVERY Direct Help for Citizens Hoover strongly opposed federal governments participation in relief money given directly to impoverished families Believed only state and government should give relief and everything else done with private charities 1932 support of federal relief increased and Congress passed Emergency Relief and Construction Act Called for 1.5 Billion for public works and 300 million in emergency loans to states for direct relief First time in United States history federal government was supplying direct relief However, new program could not stop the economic collapse
10 HOOVER RESPONDS TO THE IN AN ANGRY MOOD DEPRESSION Main Idea Farmers, veterans, and others who were suffering grew frustrated and demanded the government do something to help.
11 IN AN ANGRY MOOD Hunger Marches and Protests by Farmers January 1931 about 500 residents of Oklahoma City looted a grocery store hunger marches started to be organized by the American Communist party December , hunger march of about 1200 people happened in Washington DC Police herded them into a cul-de-sac and refused them food and water until members of Congress insisted on their right to protest
12 IN AN ANGRY MOOD Hunger Marches and Protests by Farmers A lot of farmers were heavily mortgaged and nearly one million farms were foreclosed on between In protest, farmers began destroying crops to try and raise prices by reducing supply Farmers in Nebraska burned corn to heat their homes Georgia dairy farmers blocked highways and stopped mil trucks, dumped milk into ditches
13 IN AN ANGRY MOOD The Bonus Marchers After World War I, Congress enacted $1,000 bonus for each veteran to be distributed in 1945 In 1931 bill was proposed to release those funds early 1932 veterans in Oregon began marching to loby for passage of the bill As they moved east more veterans joined until their numbers reach about 1,000 The press termed the marchers Bonus Army
14 IN AN ANGRY MOOD The Bonus Marchers (Continued) In Washington DC they camped in Hoovervilles as more joined Final numbers in DC were around 15,000 Hoover recognized their right to protest but refused to meet with them Congress vetoed the early release and some veterans left but others stayed and squatted in vacant buildings
15 IN AN ANGRY MOOD The Bonus Marchers (Continued) Hoover ordered the buildings cleared Police who were clearing buildings panicked and fired into the crowd killing two veterans City Government called in the army to clear buildings but also cleared camps Soldiers chased veterans down street and tear gassed stragglers and burned shacks National Press coverage of the army troops assaulting veterans harmed Hoover s reputation and hurt him in the election of 1932
16 IN AN ANGRY MOOD Hoover failed to resolve the economic crisis, but he did more than any previous president to expand federal governments economic role Reconstruction Finance Corporation was the first federal agency created to stimulate the economy during peace time
17 ANSWER THE FOLLOWING QUESTIONS 1. Why did Hoover oppose a federal relief program? 2. How did American s react as the Depression continued? 3. What two major strategies did President Hoover use to promote economic recovery? 4. What did World War I veterans do to try to get their service bonuses? 5. Explain the Reconstruction Finance Corporation and what it did. 6. What is Public Works? 7. What is Relief?
18 PROPAGANDA POSTER (in Notebook) Choose one of the following programs Hoover supported during his time as president Public Works National Credit Corporation Reconstruction Finance Corporation Draw a propaganda poster that tries to gain support for one of these programs Include a slogan in your drawing for the program
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