1. Hoover Struggles with the Depression
Chapter 22
Section 3
Pg 684

2. Hoover’s 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 economy’s 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
World’s 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 government’s treatment of veterans.

10. Hoover’s Response
Hoover’s Responses
???

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