1. Hoover Struggles with the Depression Chapter 22 Section 3

2. I Hoover Tries to Reassure the Nation Americans believed depressions werenormal part of business cycle Some believed the best thing to do was NOTHING and let the economy fix itself Hoover believed gov’t could play a limited role in helping solve econ. Prob.

3. A. Hoover’s Philosophy of Government Believed gov’ts chief function was to foster cooperation between competing groups and interest in society Gov’ts proper role was to encourage coop not control it Believed in “rugged individualism”= idea that ppl should succeed through their own efforts Should not depend on gov’t or direct relief Gov’t should direct and guide relief not control it

4. B. Hoover Takes Cautious Steps Beliefs led Hoover to take cautious approach to depression Org. group of key leaders in diff. industries Org. special org. to help private charities None of these made a big diff.

5. C. Democrats Win in 1930 Congressional Election Econ. Worsened  political tide turned against Hoover & Rep. party Helped democrats win seats in Congress Farmers went as far to refuse to sell their crops in hope that food shortage would raise prices Ppl begin to call shantytowns=Hoovervilles Hooverflags/hooverblankets

6. II Hoover Takes Action As depression worsened Hoover softened his position and directed fed. Funds into gov’t projects

7. A. Boulder Dam & Other Gov’t Projects Hoovers 1 st maj. Initiative is public works prog. To build roads & dams meant to stimulate the econ. Fed. Farm Board attempted to raise crop prices Nat’l credit Corp. loaned $ to smaller banks to help them from going bankrupt Glass-Steagall Act= increased bank reserves & made laons easier to getr Fed. Home Loan Act= lowered mortgage rates for homeowners and allowed farmers to refinance to avoid forclosure Reconstruction Finance Corporation (RFC)= provided emergency financing to banks and other large businesses in order fuel business expansion and kick start the econ Hoover believed $ would trickle down to citizens via job growth

8. B. Gassing the Bonus Army Bonus Expeditionary Force= WWI vet. Who demonstrated support of Patman Bill Patman bill would disperse money imediatley Patman Bill did not pass and the Bonus Army was aske dto leave Hoover sent soldiers to disband the veterans Ppl were gassed, a baby died, boy partially blinded This incident together with failing econ. Sealed Hoovers political fate  Dem. FDR wins election