1. Why did the Stock Market Crash?

2. What were the 5 main reasons for the Great Depression?
Stock Market Crash
Uneven distribution of income
Bank Failures and Runs
Federal Reserve Mistakes
Loss of Export Sales

3. Republican Candidate (1932)
Herbert Hoover was nominated to run for a second term
Outlook: Republicans knew the Depression had turned many against Hoover

4. Democratic Candidate (1932)
Franklin Delano Roosevelt (FDR)
Flew to Chicago to give acceptance Speech

5. Franklin D. Roosevelt

6. Roosevelt’s Background
Cousin of Teddy Roosevelt
Born in New York into wealth
Attended Harvard and Columbia Law School

7. Polio 1921 Roosevelt came down with Polio
Wore steel braces on legs to assist in walking
Eleanor Roosevelt played a major role in keeping political career alive.

8. “Republican leaders not only have failed in material things, they have failed in national vision, because in disaster they have held out no hope…..I pledge you, I pledge myself, to a new deal for the American People.”
Franklin D. Roosevelt

9. Electoral College 1932
Roosevelt demolishes Hoover with a 472 to 59 margin in the electoral college

10. Fear of Dollar
Many Americans feared Roosevelt would reduce value of dollar.
Gold Standard – one ounce of gold equaled certain dollar amount.
To reduce value U.S. would have to stop exchanging dollars for gold

11. Bank Holidays
Across the nation people stood in lines with paper bags and suitcases waiting to withdraw money.
1933 –
400,000 banks closed
9 million savings accounts closed
Bank Holidays – Close remaining banks before bank runs could put them out of business

12. Roosevelt’s First Day of Inauguration
Most of nations banks were closed
1 in 4 were unemployed (25%)

13. 2009 rate: Percent

14. “Let me assert my firm belief that the only thing we have to fear is fear itself….This nation asks for action, and action now.”
-FDR

15. Bank Closing Article