Hoover Struggles with the Depression

1
Hoover Struggles with the Depression

• Chapter 22
• Section 3
• Pg 684

2
Hoovers Philosophy

• Tried to reassure Americans that the economy was
  on strong footing.
• Felt the gov. should play a limited role in
  helping to solve the economys problems.
• Gov. role to encourage facilitate cooperation.
• Direct relief efforts not support them finacially.

3
Hoover takes Cautious Steps

• Cautious approach to the depression
• Asked employers not to cut wages or layoff
  workers
• Asked labor leaders not to demand higher wages or
  go on strike.
• Created a special organization to help private
  charities generate contributions for the poor.
• None of these steps made much of a difference.

4
Boulder Dam

• Hoover dam was approved to be built in 1928.
  Boulder Dam
• Worlds tallest dam second largest dam

5
Democrats Win in 1930 Congressional Elections

• Political tide turned
• Republicans lost control of the House of
  Representatives only remained in control by
  only 1 vote in Senate.
• Farmers burned crops rather than sell at a loss.
• Declared a farm holiday refused to work in
  fields.
• Calling Shantytowns Hoovervilles
• Hoover blankets
• Hoover Flags

6
Hoover Backs Cooperatives

• Attempts to relieve the depression involved
  negotiating agreements among private entities
  reflecting his belief in small gov.
• Tried to prop up banking system by establishing
  the National Credit Corporation.
• Loaned money to smaller banks

7
Direct Intervention

• Appealed to Congress to pass a series of measures
  to reform banking.
• Provide mortgage relief
• Funnel more money into business investment
• Federal Home Loan Bank Act lowered mortgage
  rates allowed farmers credit
• Glass Steagall Act separated investment from
  commercial banking
• Reconstruction Finance Corporation authorized
  2 billion for emergency financing for banks

8
Patman Bill Denied

• 10,000-20,000 WWI veterans went to Washington
  D.C. Bonus Army
• Patman Bill authorized the gov. to pay a bonus to
  WWI veterans.
• Was supposed to be paid out in 1945
• Wright Patman believed money should be paid
  immediately.
• Hoover opposed legislation
• Called on Bonus Army to leave - refused

9
Hoover Disbands the Bonus Army

• Hoover called for the infantry to gas 1,000
  people who were injured.
• Most Americans were stunned outraged at the
  governments treatment of veterans.

10
Hoovers Response
11
Critical Thinking Questions

1. Why was Hoover reluctant to help people during
   the Depression?
2. What types of action did Hoover take to remedy
   the effects of the Depression?
3. What measures did Hoover take and what results
   did he achieve to help the economy?
4. Why did Hoover use to force against World War I
   veterans?
5. What was the Patman Bill and what happened when
   it failed in the Senate?
6. What happened to the Bonus Army?
7. How did the treatment of the Bonus Army affect
   President Hoover?