Herbert Hoover. 31 st President. Republican. DiO:
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1 31 st President DiO: Republican Born: August 10, 1874 in West Branch, Iowa Elected from: California Died: October 20, 1964 in New York, VP: Charles Curtis Herbert Hoover
2 (1) The Election of 1928 A. Democrats- 1. ALFRED E. SMITH a. Received votes from urban and industrial areas b. Catholic against prohibition! c. Received 87 Electoral Votes
3 B. Republicans- 1. HERBERT HOOVER a. Received votes from rural and agrarian areas b. The government should be an umpire, not a player in the game. c. Received 444 Electoral Votes and 58% of Popular Votes
4 HOOVER WINS 1928 ELECTION Republican Herbert Hoover ran against Democrat Alfred E. Smith in the 1928 election Hoover emphasized years of prosperity under Republican administrations Hoover won an overwhelming victory
5
6 Young Hoover supporter in 1928
7 C. The radio made this election the first public election 1. Speeches and commentary could be heard by all 2. Prohibition was once again the major issue of the election. 3. The prosperity in the 1920s was seen as the Republican s Doing.
8 D. Prohibition- should it continue even though it was not working? 1. Most people still wanted it to continue. 2. It was called the Noble Experiment.
9 Foreign Troubles on the Horizon
10 (3) The Young Plan REMEMBER: the Dawes Plan was put into operation (1924),but, it became apparent that Germany could not meet the huge annual payments. SO The Young Plan was a program for payment of German reparations debts after World War I Hoover thought it would help end the economic depression in Europe
11 (7) Japan Invades Manchuria In 1931, the Japanese Army attacked Chinese troops in Manchuria in an event commonly known as the Manchurian Incident. Essentially, this was an attempt by the Japanese Empire to gain control over the whole province, in order to eventually encompass all of East Asia. This proved to be one of the causes of World War II. The US told Japan to back out or measures would be taken. Japan didn t care!
12 (9) Manchuria, Hoover- Stimson Doctrine Japan s seizure of Manchuria brought this pronouncement by Hoover s Secretary of State, Henry Stimson, that the U.S. would not recognize any changes to China s territory, by Japan nor any impairment of China s sovereignty.
13 II. Financial Troubles Causes of The Stock Market Crash -1929
14 A. Quick fixes for economic woes 1. Remember Sick Industries? a. Textile Industries b. Coal Industries c. Agriculture d. Railroads e. These industries were dragging the economy down because they were not stimulating enough growth
15 FARMERS STRUGGLE Photo by Dorothea Lange No industry suffered as much as agriculture During World War I European demand for American crops soared After the war demand plummeted.. When the farmers ain t happy Farmers increased production sending prices further downward
16 a. Congress called a special session to discuss the problems i. The government should not get involved in buying and selling and price fixing (2)Agricultural Marketing Act (1929) helped farmers use their organizations to produce more efficiently; Too little Too late
17 CONSUMER SPENDING DOWN By the late 1920s, American consumers were buying less Rising prices, stagnant wages and overbuying on credit were to blame Most people did not have the money to buy the flood of goods factories produced
18 GAP BETWEEN RICH & POOR Photo by Dorothea Lange The gap between rich and poor widened The wealthiest 1% saw their income rise 75% The rest of the population saw an increase of only 9% More than 70% of American families earned less than $2500 per year
19 THE STOCK MARKET By 1929, many Americans were invested in the Stock Market The Stock Market had become the most visible symbol of a prosperous American economy The Dow Jones Industrial Average was the barometer of the Stock Market s worth The Dow is a measure based on the price of 30 large firms
20 Playing the Market a. Investors poured millions of dollars into the stock market i. Bull market- upward trend in stocks ii. Bear marketdownward trend in stocks
21 STOCK PRICES ROSE THROUGH THE 1920s Through most of the 1920s, stock prices rose steadily The Dow reached a high in 1929 of 381 points (300 points higher than 1924) By 1929, 4 million Americans owned stocks New York Stock Exchange
22 SEEDS OF TROUBLE The Stock Market s bubble was about to break (4) Causes of the stock market crash: By the late 1920s, problems with the economy emerged Speculation: Too many Americans were engaged in speculation buying stocks & bonds hoping for a quick profit Americans were buying on margin paying a small percentage of a stock s price as a down payment and borrowing the rest
23 (4)THE 1929 CRASH In September the Stock Market had some unusual up & down movements On October 24, the market took a plunge...the worst was yet to come On October 29, now known as Black Tuesday, the bottom fell out 16.4 million shares were sold that day prices plummeted People who had bought on margin (credit) were stuck with huge debts
24 By mid-november, investors had lost about $30 billion
25
26 (5) THE GREAT DEPRESSION Alabama family, 1938 Photo by Walter Evans The Stock Market crash signaled the beginning of the Great Depression The Great Depression is generally defined as the period from in which the economy plummeted and unemployment skyrocketed The crash alone did not cause the Great Depression, but it hastened its arrival
27 After the crash, many Americans panicked and withdrew their money from banks Banks had invested in the Stock Market and lost money In banks fail By ,000 of the 25,000 banks nationwide had collapsed FINANCIAL COLLAPSE Bank run 1929, Los Angeles
28 GNP DROPS, UNEMPLOYMENT SOARS Between , the U.S. Gross National Product (GNP) the total output of a nation s goods & services fell nearly 50% from $104 billion to $59 billion 90,000 businesses went bankrupt Unemployment leaped from 3% in 1929 to 25% in 1933
29 The U.S. was not the only country gripped by the Great Depression Much of Europe suffered throughout the 1920s In 1930, Congress passed the toughest tariff in U.S. history called the Hawley- Smoot Tariff It was meant to protect U.S. industry yet had the opposite effect Other countries enacted their own tariffs and soon world trade fell 60% (6) HAWLEY- SMOOT TARIFF
30 (5) CAUSES OF THE GREAT DEPRESSION (1) Tariffs & war debt policies (2) U.S. overproduction of products and low demand (3) Farm sector crisis (4) Easy credit (5) Unequal distribution of income
31 III. Hoover s Policies (8) Reconstruction Finance Plana move away from Laissez Faire, it attempted to provide relief (immediate help) by loaning state governments $ 1. He refused to provide Federal Aid to citizens because he thought is would inflate the Federal Budget.
32 2. A plan proposed by Sens. La Follette, Jr. and Costigan would give states $375 million for direct aid to unemployed. 3. Hoover rejected the bill on his idea of rugged individualismsuccess comes through individual effort and private enterprise.
33 THE Midst of the GREAT DEPRESSION Photos by photographer Dorothea Lange
34 C. Fear of Revolution 1. The American people began to get restless - blamed the depression on bankers and industrialists. 2. Radical alternatives: The unrest in society led to the rise of socialism and communism. 3. Both alternatives claimed to be the best for America. 4. Most Americans clung to their democratic traditions and expressed their anger at the ballot box
35 HARDSHIPS DURING The Great Depression brought hardship, homelessness, and hunger to millions Across the country, people lost their jobs, and their homes Some built makeshifts shacks out of scrap material Before long whole shantytowns (sometimes called Hoovervilles in mock reference to the president) sprung up DEPRESSION
36 Breadlines and Soup Kitchens Unemployed men wait in line for food this particular soup kitchen was sponsored by Al Capone One of the common features of urban areas during the era were soup kitchens and bread lines Soup kitchens and bread lines offered free or low-cost food for people
37 CONDITIONS FOR MINORITIES Conditions for African Americans and Latinos were especially difficult Unemployment was the highest among minorities and their pay was the lowest Increased violence (24 lynchings in 1933 alone) marred the 1930s Many Mexicans were encouraged to return to their homeland As conditions deteriorated, violence against blacks increased
38 RURAL LIFE DURING THE Between almost ½ million farmers lost their land DEPRESSION While the Depression was difficult for everyone, farmers did have one advantage; they could grow food for their families Thousands of farmers, however, lost their land Many turned to tenant farming and barely scraped out a living
39 EFFECTS OF DEPRESSION Suicide rate rose more than 30% between Alcoholism rose sharply in urban areas Three times as many people were admitted to state mental hospitals as in normal times Many people showed great kindness to strangers Additionally, many people developed habits of savings & thriftiness
40 HOOVER STRUGGLES WITH THE DEPRESSION After the stock market crash, President Hoover tried to reassure Americans He said, Any lack of confidence in the economic future... Is foolish He recommended business as usual Herbert Hoover
41 HOOVER S PHILOSOPHY Hoover believed it was the individuals job to take care of themselves, not the governments Hoover was not quick to react to the depression He believed in rugged individualism the idea that people succeed through their own efforts People should take care of themselves, not depend on governmental hand-outs He said people should pull themselves up by their bootstraps
42 HOOVER S SUCCESSFUL Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam) The $700 million project was the world s tallest dam (726 feet) and the second largest (1,244 feet long) The dam currently provides electricity, flood control and water for 7 western states DAM PROJECT
43 Any Dam questions?
44 HOOVER TAKES ACTION: TOO LITTLE TOO LATE Hoover s flurry of activity came too late to save the economy or his job Hoover gradually softened his position on government intervention in the economy He created the Federal Farm Board to help farmers He also created the National Credit Organization that helped smaller banks His Federal Home Loan Bank Act and Reconstruction Finance Corp were two measures enacted to protect people s homes and businesses
45 A 1932 incident further damaged Hoover s image That spring about 15,000 World War I vets arrived in Washington to support a proposed bill The Patman Bill would have authorized Congress to pay a bonus to WWI vets immediately The bonus was scheduled to be paid in The Army vets wanted it NOW (10) BONUS ARMY
46 BONUS ARMY TURNED DOWN Thousands of Bonus Army soldiers protest Spring 1932 Hoover called the Bonus marchers, Communists and criminals On June 17, 1932 the Senate voted down the Patman Bill
47 Hoover told the Bonus marchers to go home most did 2,000 refused to leave Hoover sent a force of 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower BONUS MARCHERS CLASH WITH SOLDIERS
48 AMERICANS SHOCKED AT TREATMENT OF WWI VETS MacArthur s 12 th infantry gassed more than 1,000 marchers, including an 11-month old baby, who died Two vets were shot and scores injured Americans were outraged and once again, Hoover s image suffered
49 Hoover had little chance to be re-elected in 1932
Name Hour. FARMERS STRUGGLE No industry suffered as much as During European demand for American crops soared
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