1. Hoover Responds to the American People
Chapter 9, Section 3

2. Hoover’s 1st Plan of Action: Inaction
Hoover’s first ingenious plan: tell everyone it’s going to be okay
After the stock market crashed, Hoover assured everyone that things would get back to normal soon
He made no attempt to fix things so as not to panic the public

3. After Hoover realizes that he can no longer lie to the public about the country’s terrible economic state, he gets smart and begins a series of efforts at recovery

4. He encourages state governors to increase public works
Public Works- government-funded building projects, such as new roads, buildings, bridges, etc.
… but it doesn’t really happen.
Why not?
The government simply did not have the money to fund these projects. Hoover didn’t want to have to raise taxes or borrow money from the banks.

5. Then he tried to ask the Federal Reserve Board to put more money into the economy.
They said no.
So he set up the National Credit Corporation (NCC). It encouraged big banks to pool money to help out smaller banks in trouble.
But it just wasn’t enough money to help the nation.

6. In 1932 he finally gets on board with the critics and realizes that the government has to step in and do the lending
He signs the Reconstruction Finance Act which requests that Congress set up the Reconstruction Finance Corporation (RFC)
RFC- makes loans to banks, railroads, and agricultural institutions
They make some progress but like previous efforts, it ultimately failed to help the economy

7. That should be the job of local and state governments!
Relief for Citizens Slowly Making its Way
At first, Hoover didn’t want to directly help citizens. He didn’t believe in “hand outs” from the federal government.
That should be the job of local and state governments!

8. But by mid-July of 1932, there was enough public support for direct relief to change his mind
Hoover reluctantly signed the Emergency Relief and Construction Act
This act directly funded public works. It immediately created thousands of jobs for people. It also became the nation’s first attempt at an unemployment program.

9. The Emergency Relief and Construction Act was much more successful than his past attempts but the help came too late and the depression was worsening at a quicker rate
Depression

10. Angry People Hunger Marches Farmers Revolt
people led hunger marches (supported by Communist Party) on Capitol Hill
Farmers Revolt
Farmers were angry about debt, deflation, and foreclosures (1 million farm foreclosures between )
Burned their own crops to lower supply and hopefully raise demand
Blocked off highways and stopped trucks from delivering crops

11. Bonus Marchers
After WW1, Congress enacted a $1,000 bonus for each veteran
It was to be paid in 1945
Congress began to debate whether they should pay it early, considering the veterans were falling on hard times
Veterans began to march on Washington, hoping to lobby early payment

12. Bonus Marchers cont. 15,000 veterans camped in D.C. Hoovervilles
Hoover refused to meet with them and Congress turned down the prospect of early payment
Many veterans decided to stay in D.C. and camp out peacefully
A troop of 700 soldiers with bayonets and tear gas were sent to clear them out (few veteran casualties)

13. Over half of them were U.S. citizens.
What really grinds my gears about Herbie Hoover…
In an attempt to help with the unemployment problem, Hoover authorized the repatriation of more than 1 million Mexicans Americans to Mexico.
Over half of them were U.S. citizens.