1. Chapter 9: The Great Depression
Lesson 3: Hoover’s Response to the Depression

2. Promoting Recovery
Hoover attempts to lessen the blow and encourage the country
Prior to the crash Hoover attempted to organize conferences between big businesses to strategize ways to keep workers’ jobs and wages, When economy crashed big business went their own way
Hoover believed in RUGGED INDIVIDUALISM the Government should NOT intervene and help out the individuals (not giving into the ideals of socialism)
Individualism vs. socialism to fix the economy
Hoover was not going to spend big $ to create new jobs- put $ into PUBLIC WORKS, which employed only a fraction of the millions of jobless
EVERYONE BLAMED HOOVER FOR THE CONTINUED FAILING ECONOMY

3. Trying to Help the Banks
To ease the shortage of currency (since Fed Reserve wouldn’t put more $ in circulation) Hoover created the NATIONAL CREDIT CORPORATION (NCC) 1931
Created a pool of money for banks to use to loan within their communities
Failed to meet the nation’s need
Reconstruction Finance Corporation (RFC)- to make loans to businesses
By $238 million loaned to banks, RxRs, and other building-and-loan associations
Failed to sufficiently lend $ and the economy continued to struggle

4. Direct help for citizens
Hoover OPPOSED relief given to individual citizens
Only state and local governments should dole out relief $
This caused state and local government to run out of $
July Emergency Relief and Construction Act- economic support for federal relief increase
$1.5 billion for public works
$300 million in emergency loans to states for relief
This was the first time that the government ever paid $ for DIRECT RELIEF
The damage had already been done and couldn’t fix it

5. Hunger marches Oklahoma City January 1931-looting grocery stores
Minneapolis, February looting grocery stores
American Communism Party rallied to create Hunger Marches
Washington DC December “Feed the hungry, tax the rich”
The Depression was partially a result of the widening gap between the rich and the poor
Farmers
Began destroying crops, trying to raise prices, burned corn to heat their homes, stopped milk trucks and dumped milk

6. The bonus marches
Army veterans were promised a $1,000 bonus for their service during WWI
Texas Congressmen Wright Pittman offered an option of paying the veterans early
Congress did not want to follow through with this proposal
Hundreds of veterans traveled east to Washington DC collecting more as they went
15,000 Bonus Marchers protested at Capitol Hill
Hoover allowed the Vets to protest but finally asked to clear out- eventually he was forced to send troops in after them
General Douglas MacArthur lead the cavalry, infantry and tanks into clear the masses, using teargas and fire
Hoover’s reputation was ruined