1. The Great Depression 1929-1941 “We shall soon be in sight of the day when poverty will be banished from this nation.” -President Herbert Hoover, 1928

2. A Rosy Outlook  After World War I the American economy boomed  In 1923 President Calvin Coolidge said that “The Business of America is Business.”  Industries became more efficient like the automobile industry

3. Weaknesses in the Economy  By 1929, 71% of American families earned less than $2,500.00 a year  Americans began to buy more on credit  Personal debt increased drastically

5. The Great Bull Market  Many people began to purchase stocks by buying on margin-paying a small part of the stock’s price as a down payment and borrowing the rest  If the stock rose in value, buyers could sell their shares and pay off what they owed  Investors also bought on speculation, buying and selling stocks in hoping to make a quick profit  Stock prices soared and this is known as the Great Bull Market

7. The Crash of 1929  People reached the limits of their ability to pay their debts  Buying slowed down; consequently, manufactures could not make enough money to pay for raw materials and labor

8. Black Tuesday  On Tuesday, October 29 th investors needed cash to pay their debts began to sell shares even in the most profitable companies. Prices plunged and the stock market crashed.  This Crash of 1929 was the first event of the a terrible economic depression

10. The Great Depression  People began to withdraw their money from the bank to pay their debts. The banks had also invested and lost in the stock market  By 1933, about 9,000 banks had closed, taking people’s money with them  By 1933, 25% of the nation was unemployed

14. President Hoover Responds  Republicans thought direct relief such as cash payments would make the people too dependent on the government  Hoover persuaded industrial leaders not to drop wages and railroad and utility companies to invest $2 Billion in construction  Tariffs and Taxes were raised- The economy worsened  Empty pockets were called “Hoover Flags” and cluster shacks of homeless people were called “Hoovervilles”

15. “Hoovervilles”

17. The Depression in North Carolina  The Central Bank and Trust Company of Asheville was largest bank failure in North Carolina  Asheville city and Buncombe County governments went completely bankrupt  Textiles and Furniture industries were hardest hit  Families lived off cornmeal mush, fatback, collard greens or pokeweed greens

18. North Carolina’s Governor O.Max Gardner Responds  State took control of all county roads and schools  “Live at Home Program” encouraged farmers to begin raising food for their families instead of growing cash crops  Created a “Council of Unemployment”

21. Reaction to the Bonus Army  Summer 0f 1932, nearly 20,000 World War I veterans arrived in Washington and wanted promised bonuses  General Douglas MacArthur drove the veterans out of Washington  Veterans blamed President Hoover

22. Franklin D. Roosevelt-Democrat  Governor of New York  Nickname: FDR  Inauguration speech: “The only thing we have to fear is fear itself  FDR pledged a “New Deal” for the American people

23. FDR Born: January 30, 1882 - Hyde Park, New York Nickname: "FDR" Education: Harvard College (1903), Columbia Law School Political Party: Democrat Religion: Episcopalian Marriage: March 17, 1905 to Anna Eleanor Roosevelt (1884-1962) Children: Anna Eleanor Roosevelt (1906-1975), James Roosevelt (1907-1991), Elliott Roosevelt (1910-1990), Franklin Delano Roosevelt Jr. (1914-1988), John Aspinwall Roosevelt (1916-1981), (a sixth child died in infancy) Died: April 12, 1945, Warm Springs, Georgia Buried: Hyde Park, New York

28. Eleanor Roosevelt

29. FDR Memorial: Washington, D.C

30. Roosevelt’s New Deal  Radio “Fireside Chats” gave Americans hope  Closed Banks to get them in order and build trust in the banks  In the first 100 days of his administration, he sent 15 bills (potential laws) to Congress  He Stressed the 3 R’s “Relief for the Poor”, “Recovery for Agriculture”, and Reform to Change the Economy”

31. New Deal Programs  Civilian Conservation Corps-control erosion, plant trees, build parks  Tennessee Valley Authority-Build dams along the Tenn. River  Federal Deposit Insurance- Protected Savings Accounts  Workers Project Administration- Provided jobs for writers, authors, and musicians  Social Security Act- Set up pensions and aid the disabled  National Recovery Act- Oversaw labor codes and working conditions  Agriculture Adjustment Administration- Paid farmers not to plant crops so that prices would fail

32. Fontana (TVA) Dam Graham County, NC

34. Local History Events  Black Mountain Tuberculosis Sanitarium was built (now Black Mountain Center)  Lake Tomahawk was built by the FDR New Deal program known as the WPA  City of Asheville and Buncombe County go bankrupt  The Owen family kept Beacon open make a cheap well-made blanket designed in an Indian pattern  1932 Black Mountain High School “Darkhorses” won the county basketball tournament  The First Baptist Church of Black Mountain had to cut Pastor Hagler’ salary from $24.00 a month to $15.00