Hoover Struggles with the Depression

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Hoover Struggles with the Great Depression

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Presentation transcript:

Hoover Struggles with the Depression Chapter 22 Section 3 Pg 684

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.

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.

Boulder Dam Hoover dam was approved to be built in 1928. Boulder Dam World’s tallest dam & second largest dam

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

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

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

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

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.

Hoover’s Response Hoover’s Responses ???

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?