1. Notes part 1: The Great Depression and new deal

2. Stock Market Crash of 1929
Herbert Hoover became President of the U.S. in 1929.
He had been in office for only 7 months when Wall Street stock market prices fell sharply—culminated on Oct. 29, aka “Black Tuesday”.

3. Stock Market Crash of 1929
Many investors, hoping to make quick fortunes, drove up the price of stock.
Some investors borrowed money heavily to buy stocks, and when stock prices fell, those investors and the banks that loaned them money were wiped out.

4. The Great Depression Factories closed Widespread unemployment
Low morale
Hoover greatly underestimated the severity of the crisis and believed that relief efforts should begin at the state and city levels.
“Hoovervilles” emerge—shanty towns built by homeless people

5. Overproduction Overproduction caused oil prices to drastically drop.
TRC issued an order for operators to limit production, but they still pump oil anyway
Governor Sterling declared martial law and sent Texas National Guard to enforce it
oil prices stabilize

6. The Dust Bowl
Farmers plowed under the grasses of the plains to plant crops, but nothing could hold the soil down from strong winds.
A severe drought occurred in the 1930s and dust storms made the area into a “Dust Bowl”.

7. Lasted for seven years
Generally covered a five-state area: Colorado, Kansas, Oklahoma, New Mexico, and Texas
Motorists often could not see 20 feet down the street
People became ill from lung diseases
Many families lost their farms because of the difficult economic times

8. The New Deal Begins
1932 – Franklin D. Roosevelt won the presidential election, with almost 90% of Texans supporting him.
1933 – FDR starts reform programs called the “New Deal” to get America back to work and out of the Great Depression.
“The First 100 Days” he orders all banks to close to determine the strongest to stay in business.

9. The New Deal Begins
VP John Nance Garner, a former Texas congressman, helped push New Deal programs in Congress.
Another Texas congressman, Sam Rayburn, became Speaker of the House.
He proposed the Securities and Exchange Commission (SEC) to restore confidence in the stock market.

10. New Deal Programs
FDR’s New Deal created agencies to deal with many problems from the Depression.
Alphabet Agencies - government agencies that came to be known by the first initials of their names.

11. New Deal Programs
New Deal programs tried to slow down soil erosion to help farmers in the Dust Bowl regions.
New planting and contour plowing techniques helped farmers protect the topsoil from blowing away.
The federal government also paid farmers to plant trees as windbreaks and reduce production of crops in effort to drive prices up.

12. 1930s Governors: Sterling and Ferguson
Miriam Ferguson defeated Ross Sterling in 1932 for governor
2nd term as governor was controversial
Fired many TX Rangers
Used pardon power to release criminals
Asked FDR to lend farmers money to help make up for lost income from low cotton prices

13. 1930s Governors: Allred and O’Daniel
James Allred 1935
Reorganized TX Rangers
Helped found Board of Pardons and Paroles
Created retirement systems for state employees
W. Lee O’Daniel 1938
Sales manager and radio host
Wrote unofficial state song “Beautiful Texas”
Unable to deliver on many of his campaign promises

14. African American Rights
Dr. Lawrence Nixon
African American Texan physician who presented his poll tax receipt and tried to vote in the Democratic primary, but was turned away
Filed suit to win the right to vote: Nixon v. Herndon (1927):The Supreme Court justices declared his rights under the 14th and 15th amendments had been violated

15. Mexican Americans Rights
League of United Latin American Citizens (LULAC)
Founded at Corpus Christi in 1929 with Ben Garza as the first president
Worked for Mexican American rights in court system, hiring, and education