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

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

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 1932- $238 million loaned to banks, RxRs, and other building-and-loan associations Failed to sufficiently lend $ and the economy continued to struggle

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 1932- 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

Hunger marches Oklahoma City January 1931-looting grocery stores Minneapolis, February 1931- looting grocery stores American Communism Party rallied to create Hunger Marches Washington DC December 1932- “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

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