1. The Great Depression: President Hoover’s Policies

2. Hoover’s Policies
At the time of the crash, no one could predict how long the Depression would last
Hoover urged businesses not to cut wages, unions not to strike, and charities to increase their efforts
Hesitated until Summer 1930 to ask Congress for legislative action on the economy
Afraid government assistance would destroy individuals’ self-reliance
As far as relief goes, Hoover believed it should come from the state and local governments
Not the federal govt.

3. The Hawley-Smooth Tariff (1930)
European prosperity closely tied to that of the U.S.
The Hawley-Smooth Tariff (1930) was one of Hoover’s worst mistakes of his presidency
Enacted tariffs rates that were the highest in history % on foreign imports
European nations enacted higher tariffs of their own on U.S. imports
This caused reduced trade for all nations
Global economy sank deeper into the Depression

4. Debt Moratorium
1931- Conditions were so bad in the U.S. that the Dawes Plan could no longer continue
Hoover proposed a moratorium (suspension) on payment of international debts
International economy suffered massive loan defaults
Banks on both sides of the Atlantic lost money or closed altogether

5. Domestic Programs: Too Little, Too Late
1931- Hoover finally convinced some govt. action need to help the economy
Federal Farm Board was created in 1929, but its powers were expanded to deal with the economic crisis
Helped stabilize prices by holding surplus grains and cotton in storage until demand rose again
Program was too modest to handled the amount of overproduction of crops

6. Domestic Programs: Too Little, Too Late
Reconstruction Finance Corporation (RFC) was a federally funded, government-owned corporation
Helped finance faltering railroads, banks, life insurance companies, and other financial institutions
Emergency loans would help stabilize these “key businesses”
Benefits would “trickle down” to other smaller businesses and bring total recovery

7. Unrest on the Farms
Farmers banded together to stop banks from foreclosing on farms and evicting people
Midwest farmers formed the Farm Holiday Association
Tried to stop the entire grain harvest in from reaching the market in order to stabilize prices
The effort collapsed after some violence

8. Bonus March
Summer thousands of unemployed WWI veterans marched to D.C.
Demanded immediate payment of bonuses promised to them later (1945)
Thousands of veterans and their families camped out in shacks and tents near Congress
Congress failed to pass the bonus bill they sought by the deadline

9. Bonus March
After the bill failed to pass, two veterans were killed in a clash with police
Hoover ordered the army, under the command of Gen. Douglas MacArthur, to break up the encampment
The army used tanks and tear gas to destroy the shantytown and drive away the veterans
Caused many Americans to regard Hoover as heartless

10. The Election of 1932
The worst year of the Depression also happened to be an election year
Republicans re-nominated Hoover
Warned a Democrat in the White House would only make things worse
Democrats nominated N.Y. Governor Franklin D. Roosevelt
Pledged a “new deal” for the American people, repeal of prohibition, aid for the unemployed, cuts in government spending

11. The Election of 1932
The only real issue that mattered to voters was the economy
60% of voters thought it was time for a change
Roosevelt carried all but six states
Traditional Republican states in the Northeast
Democrats now also controlled both houses of Congress

12. The “Lame-Duck” Amendment
After the election, Hoover still had four months left in office
Roosevelt wouldn’t be inaugurated until March 1933
As a “lame-duck” president, Hoover was powerless to do anything about the worsening economy in those months
Roosevelt refused to work with him- didn’t want to be associated with his policies
To avoid this being a potential problem again in the future, Congress passed the 20th Amendment in February 1933
Shortened the period between the election and inauguration of the new president to January 20th

13. ?
What were two major mistakes Hoover made in regards to his international economic policies?
What two domestic efforts by Hoover were “too little, too late?”
Give a brief summary of what occurred at the Bonus March in D.C. in 1932.
Who won the election of 1932?
What did the “Lame-Duck” Amendment do? Why was it put into place?