1. Chapter Notes

2. Hoover’s thoughts on the Depression
Herbert Hoover thought it was job of the gov’t help different groups work together not get directly involved
Promoted “rugged individualism” people succeed through their own efforts
Against any form of direct federally funded relief, though private charities and local governments should handle it
Believe handouts weaken people, make them dependent and lazy

3. Hoover’s 1st Actions
Met with heads of business, banking, and labor ask them to find solutions and act in ways that would not make situation worse
Doesn’t help
1930 election Democrats win big, shows public dislikes Hoovers response (or lack there of)

4. Hoover’s 2nd Steps
Federal Home Loan Bank Act: (1932) lowered mortgage rates for homeowners and allowed farmers to refinance their loans and avoid foreclosure
Reconstruction Finance Corporation (RFC): (1932) authorizes up to $2billion for emergency financing for banks and other companies.
Believed money would cause a trickle down effect

5. Bonus Army Made up of 10,000-20,000 WWI veterans
Marched to Washington, DC in support of Patman’s Bill (allowed gov’t to give WWI veterans a bonus for their service in the war)
Senate votes down bill, about 2000 men refuse to leave Bonus Camp
Hoover authorizes 1000 soldiers to clear army out, does so very violently
Ruins Hoover politically

6. Election of 1932 and FDR Election of 1932:
Hoover (Rep) vs Franklin Delano Roosevelt (Dem)
FDR Wins!
Elected in Nov, does not take office until March 1933
In down time forms “Brain Trust”, group of advisors made up of professors, lawyers, etc to help him develop policies

7. The New Deal Calls his program the “New Deal” Fireside Chats
Focuses on the 3R’s
Relief, Recovery, and Reform
Hundred Days:
March 6-June 16, 1933
Passes more than 15 pieces of major legislation

8. Helping the Banks Glass-Steagall Act Federal Securities Act
Bank Holiday (shuts them down)
Emergency Banking Act (federal gov’t can inspect banks for success)
Glass-Steagall Act
Establishes FDIC
Federal Securities Act
Corporations must provide complete reports and stock information

9. Alphabet Soup: New Deal Plans
Agricultural Adjustment Act (AAA)
Tennessee Valley Authority (TVA)
Civilian Conservation Corps (CCC)
National Industrial Recovery Act (NIRA)
Civil Works Administration (CWA)
National Recovery Administration (NRA)
Home Owners Loan Corporation (HOLC)
Federal Housing Authority (FHA)
Federal Emergency Relief Administration (FERA)

10. Other Plans and Disagreement
Unhappiness with deficit spending, FDR sees as necessary evil, others see as bad policy
Supreme Court rules NIRA and AAA unconstitutional, gives executive branch too much power
Court Packing
FDR wants to increase number of Supreme Court justices by 6
Does not pass