1. Warm-Up Nov 17
4. October 29, 1929, the day when stock prices took the steepest dive of that time, is known as A. Black Thursday B. Black Tuesday C. Bloody Monday D. Panic Tuesday

2. Warm-Up Nov 18
5. Beginning in 1932, American pastures and wheat fields from the Dakotas to Texas became a vast A. Bread Basket B. Mud Basin C. Dust Bowl D. Prairie

3. Economic Troubles on the Horizon
Problems began threatening economic prosperity by the end of the 1920s
Farm debt - many farmers were forced to sell in the 1920's
Consumer debt - many people were buying goods on credit
More goods then buyers - prices rose faster than wages
Declining Trade 's U.S. raised tariffs other countries raised tariffs to retaliate
Important industries struggled
Income disparity - Consumers & farmers went steadily deeper into debt

4. Industries in Trouble
Key industries like railroads, textiles, steel barely made profit
Replaced by other forms of transportations
Mining, lumbering expanded during were no longer in high demand
Coal especially hard-hit due to availability of new energy sources
- Hydroelectricity, fuel oil, & natural gas
Boom industries - automobiles, construction, consumer goods weakened
Housing starts declined
- Affected many related industries

5. Farm Troubles International demand for U.S. grain declined after war
- prices dropped by 40% or more
Farmers boosted production to sell more
- Caused prices to drop further
Farm income declined & farmers defaulted on loans
Rural banks failed
Congress attempted to pass the McNary- Haugen bill to help farmers
- Price-supports - government bought surplus crops at guarantees prices
- President Coolidge vetoed price-support bill

6. Consumers Problems 1920s - rich got richer & poor got poorer
Prices rose faster that wages
70% of families earned less than minimum for decent standard of living
- $2500 annually
Most couldn’t afford flood of products factories produce
Many people had been purchasing goods on credit (buy now, pay later)
Businesses gave easy credit & consumers piled up large debts
Consumers had trouble paying off debt & cut back on spending

7. The Election of 1928
Democrat Alfred E. Smith - four times governor of New York
Republican Herbert Hoover has served as secretary of commerce under Warren Harding & Calvin Coolidge
U.S. had experienced prosperity under Republicans in 1920s
Hoover won an overwhelming victory

8. Dreams of Riches in the Stock Market
Late 1920s – Some economist warning of weaknesses in the economy
- Most Americans ignored them
People began investing in stock market
- Looked like an easy way to make money
Dow Jones Industrial Average was used as barometer of the market’s health
- Measure based on the stock of 30 representative large firms trading on the New York Stock exchange tracks state of stock market

9. Company  
Symbol  
Industry  
Date Added   3M
MMM
Diversified industrials
Alcoa AA
Aluminum
American Express
AXP
Consumer finance
AT&T T
Telecommunication
(as SBC Communications)
Bank of America
BAC
Institutional and retail banking
Boeing BA
Aerospace & defense
Caterpillar
CAT
Construction and mining equipment
Chevron Corporation
CVX
Oil and gas
Citigroup C
Banking
(as Travelers Group)
Coca-Cola KO
Beverages
DuPont DD
Commodity chemicals
ExxonMobil
XOM
Integrated oil & gas
(as Standard Oil (N.J.))
General Electric GE
Conglomerate
General Motors GM
Automobiles
Hewlett-Packard
HPQ
Diversified computer systems
Home Depot HD
Home improvement retailers
Intel
INTC
Semiconductors
IBM
Computer services
Johnson & Johnson
JNJ
Pharmaceuticals
JPMorgan Chase
JPM
Kraft Foods
KFT
Food processing
McDonald's
MCD
Restaurants & bars
Merck
MRK
Microsoft
MSFT
Software
Pfizer
PFE
Procter & Gamble PG
Non-Durable household products
United Technologies Corporation
UTX
Aerospace, heating/cooling, elevators
(as United Aircraft)
Verizon Communications VZ
Walmart
WMT
Broadline retailers
Walt Disney
DIS
Broadcasting & entertainment

10. How the DJIA is Calculated
Calculation
To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor. The divisor is adjusted in case of splits, spin offs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. The initial divisor was the number of component companies, so that the DJIA was at first a simple arithmetic average; the present divisor, after many adjustments, is less than one (meaning the index is actually larger than the sum of the prices of the components). That is:
where p are the prices of the component stocks and d is the Dow Divisor.
Events like stock splits or changes in the list of the companies composing the index alter the sum of the component prices. In these cases, in order to avoid discontinuity in the index, the Dow divisor is updated so that the quotations right before and after the event coincide:

11. Dreams of Riches in the Stock Market
1920s - stock prices rose steadily “Bull Market”
People rushed to buy stocks & bonds to make a quick profit
- Many engaged in speculation - buy on chance of a quick profit
- Began Buying on margin - pay small percent of price, borrow rest

12. The Stock Market Crashes
September 1929 stock prices peaked & then fell
Many investors lost confidence & began selling
October 24, Market took plunge & many panicked investors unloaded their shares

13. The Stock Market Crashes
October 29, Stock market crashed (Black Tuesday)
- Shareholders sold frantically
- Millions of shares had no buyers
- People who bought on credit were left with huge debts
- Others lose most of their savings

14. Financial Collapse
Great Depression - economy plummeted & unemployment skyrocketed
- lasted from 1929–1940
After crash, people panicked & withdraw money from banks
Banks that invested in stocks failed& people lost their money
1929 to gross national product was cut nearly in half
- 90,000 businesses went bankrupt
% of workers were unemployed
Those with jobs received cuts in hours & pay

15. Worldwide Shock Waves
Great Depression limited U.S. ability to import European goods
Hawley-Smoot Tariff Act set highest protective tariff ever in U.S.
Other countries couldn’t earn American currency to buy U.S. goods
- Many countries retaliated by raising their own tariffs
International trade dropped & unemployment soared around world

16. Causes of the Great Depression
Factors leading to Great Depression:
Declining Trade - Tariffs & war debts cut down the foreign markets for American goods
Farm problems - Many farmers were forced to sell
Easy credit – Borrowed money to invest in market
Income disparity
Federal government kept interest rates low & encouraged borrowing

17. The Depression Devastates People’s Lives
People lost jobs & were evicted from homes
Had to live in parks or sewer pipes
Shantytowns - settlements consisting of shacks, arose in cities

18. The Depression Devastates People’s Lives
People dug through garbage & begged
- Soup kitchens offered free or low-cost food
- Bread lines - people lined up for food from charities & public agencies
African Americans & Latinos had higher unemployment & lower pay
Minorities were also targets of violence (Lynching or deportation)

19. The Depression in Rural Areas
Most farmers could grow food for their families
About 400,000 farms were lost through foreclosure
- Many became tenant farmers

20. The Dust Bowl
Farmers in Great Plains exhausted land through overproduction
1930s - drought & windstorms scattered for hundreds of miles
Dust Bowl - area from North Dakota to Texas that was hardest hit

25. The Dust Bowl
Many farm families migrated to Pacific Coast states (Route 66)
- California towns became overcrowded
- Many people who moved west were from Oklahoma (Okies)

26. Men in the Streets
Many men used to working & supporting families had difficulty coping
Couldn’t find jobs
Manny stopped trying
Some men even abandoned their families
- About 300,000 hoboes wandered country on railroad box cars
No federal system of direct relief - cash or food from government

27. Women Struggle to Survive
Women worked hard to help their families survive the adversity
Homemakers budgeted carefully, canned food, & sewed clothes
Women worked outside home & were resented by unemployed men

28. Women Struggle to Survive
Early 1930s – Some cities refused to hire married schoolteachers
Many women suffered in silence & were ashamed to stand in bread lines

29. Hoover Tries to Reassure the Nation
President Herbert Hoover told Americans the economy was sound
Many experts believed depressions were normal part of business cycle
- Believed that it was best to do nothing & let the economy fox itself
Hoover believed government should foster cooperation between competing groups

30. Hoover Tries to Reassure the Nation
Many believed that people should succeed through their own efforts
People should take care of own families & not depend on government
Hoover opposed any form of federal welfare or direct relief to the needy
- Believed that hand-outs would weaken people’s self respect & moral fiber
- Said that charities & local organizations should help the less fortunate

31. Hoover Takes Cautious Steps
Hoover’s authorized the construction of the Boulder Dam on the Colorado River
- later renamed Hoover Dam
- Provided electricity, flood control, water to states on river basin

33. Democrats Win in 1930 Congressional Elections
People began blaming Hoover & Republicans for the economic problems
Democrats won House of Representatives
Republican Senate majority down to 1 vote
People Grew frustrated with the Depression

34. Democrats Win in 1930 Congressional Elections
Farmers tried to create food shortages to raise prices
Burned fields rather than sell crops at a loss
Some declared a farm holiday
People began calling shantytowns “Hoovervilles”

36. Hoover Takes Action
Hoover softened his stance on no government intervention in the economy
Hoover negotiates agreements among private entities
Backs Federal Farm Board (organization of farm cooperatives)
- buy crops, keep off market until prices rise

37. Hoover Takes Action
Got large banks to establish National Credit Corporation
- Loaned money to smaller banks to prevent bankruptcy
Late Hoover persuaded Congress to pass measures reform banking, provide mortgage relief, & funnel federal money into business investment
- Federal Home Loan Bank Act lowered mortgage rates

38. Hoover Takes Action
Reconstruction Finance Corporation – Authorized emergency funds for businesses
- Hoover believed that the money would tickle down to average citizens through job growth & higher wages
- Critics said people couldn’t wait for the money to trickle down
Hoover’s measures didn’t improve economy before presidential election

39. Gassing the Bonus Army
1932 – Incident with World War I veterans further damaged Hoover’s image & public morale
1924 – Congress agreed to pay a bonus to WWI vets who had not been adequately compensated for wartime service
- Bonus was to be paid in 1945 in the form of cash & a life insurance policy

40. Gassing the Bonus Army
Bonus Army – WWI veterans went to D.C. in 1932 to support Patman Bill:
- called for immediate payment of bonus to WWI vets ($500 per soldier)

41. Gassing the Bonus Army Hoover opposed bill
Believed they were communists
He respected their right to protest (Provided food & supplies for shantytown)
June 17, Senate voted down Patman Bill
Most veterans left Washington
About 2,000 stayed to speak to Hoover

42. Gassing the Bonus Army
Hoover feared violence & called on U.S. Army to disband Bonus Army
- Led by General Douglass Macarthur & Major Dwight Eisenhower

43. Gassing the Bonus Army
Infantry tear gassed over 1,000 people, including children
Many people were injured (11 month old baby died)
Public was stunned & outraged by government’s actions

44. Election of 1932
Democrats nominated NY governor Franklin Delano Roosevelt
- reform-minded;
projected friendliness & confidence
Democrats overwhelmingly won presidency, Senate, & House

46. Warm-Up Nov 19
6. What was the period called between march 9 and June 16, 1933, when Congress passed 15 major acts to meet the economic crisis? A. the First New Deal B. the New Nationalism C. the New Freedom D. the First Hundred Days

47. Election of 1932 Roosevelt had to wait 4 months to take over
20th Amendment wasn’t rarified until 1933 (Move inauguration to January)
FDR worked with advisors known as “Brain Trust,” to formulate policies to alleviate problems
New Deal – FDR’s program to alleviate the problems of the Great Depression focused on 3 Rs
Relief for needy
Economic recovery
Financial reform

48. The Hundred Days
March 9 to June 16, FDR took office & launched Hundred Days
Congress passed over 15 major New Deal laws that expanded the federal government’s role in the nation’s economy

49. Bank Holiday
March 5, 1933 – one day after taking office FDR declared a bank holiday & closed all banks to prevent further withdrawals
Emergency Banking Relief Act - Permitted Treasury Dept. to inspect banks
Sound banks were allowed to reopen
Banks that needed help received loans
Insolvent ones remained closed (unable to pay bills)
Bank Holiday revived public confidence in banks
- Believed that the banks remained open were in good shape

50. An Important Fireside Chat
FDR gave fireside chats - radio talks explaining New Deal measures
March 12, 1933 – FDR gave 1st fireside chat the day before the banks reopened after holiday
- Discussed need for public support of government, banks

51. Regulating Banking and Finance
Congress took another step to reorganize the banking system
Glass-Steagall Act - Established Federal Deposit Insurance Corporation (FDIC)
insured individual bank accounts up to $5000
Regulates banking practices ( forced them to act cautiously with money)

52. Regulating Banking and Finance
Federal Securities Act – Required companies must give all information on stocks
Securities and Exchange Commission (SEC) created to regulate stock market
FDR got law allowing production of some alcoholic beverages
21st Amendment repealed prohibition by end of 1933

53. Helping the American People
Roosevelt administration implemented programs aimed at helping farmers & other workers to stimulate economy
Agricultural Adjustment Act (AAA) raised food prices by lowering supply
- Government paid farmers not to plant crops

54. Helping the American People
Tennessee Valley Authority - Created jobs renovating & building dams
- Also provided flood control & hydroelectric power to region

56. Helping the American People
Civilian Conservation Corps (CCC) - public works jobs for young men 18 to 25
- Built road, planted trees & helped in soils erosion & flood control projects
- Men sent $25 out of $30 home to family each month

59. NIRA
National Industrial Recovery Act - established codes of fair practice for industries
Created National Recovery Administration (NRA)
NRA sets standards, prices, limits production

60. NIRA
Public Works Administration (PWA) was established as part of the NIRA
– It provided money to states to create jobs chiefly in the construction of schools & other community buildings

61. Food, Clothing, and Shelter
Home Owners Loan Corporation gave loans to prevent foreclosures
Federal Housing Administration gives loans for mortgages & repairs (FHA)

62. Food, Clothing, and Shelter
Federal Emergency Relief Administration -direct relief to needy

63. The New Deal Comes Under Attack
Deficit spending - spending more money than government takes in
- funded New Deal
Opposition rose when the New Deal didn’t stop the Depression
Liberals didn’t think New Deal did enough to help poor, & fix economy
Conservatives believed Roosevelt used the New Deal to control business & socialize economy

64. The Supreme Court Reacts
Supreme Court struck down NIRA & AAA as unconstitutional
FDR proposed “Court-packing bill”
Change the Supreme Court from 9 to 15 justices
Would enable FDR to appoint 6 new justices
Congress & press protested
Starting in justices retire & FDR appointed seven new ones

65. Huey Long Attacked the New Deal
Governor of Louisiana "King Fish"
Built schools and hospitals
Ruled Louisiana like a dictator
Wanted to be president
Decided to challenge FDR
Offered new deal "Share our wealth"
- Called for every family to get yearly income money to buy food and housing
- Taxed the rich heavily
Made enemies in his attempt to become president
- Shot and killed in 1935

66. The Second Hundred Days
By 1935, economic recovery not as great as FDR had expected
Unemployment remained high
Work programs & productions still behind 1920s levels
FDR launched second phase
Provided more relief for farmers, workers

67. The Second Hundred Days
First Lady Eleanor Roosevelt a social reformer prodded president
She traveled the country observing the social conditions & reminding FDR about the suffering
She also pushed for him to appoint women to government positions

68. Election of 1936
Democrats won presidency & large majorities in both houses
First time most African Americans voted Democratic
First time labor unions supported presidential candidate
Election was a vote of confidence in FDR & the New Deal

69. Helping Farmers
Soil Conservation and Domestic Allotment Act replaced AAA
- Rewarded farmers for practicing soil conservation
New Agricultural Adjustment Act avoided unconstitutional provision
Resettlement Administration gave loans to small farmers to buy land
Farm Security Administration - loaned to tenant farmers to buy land
- FSA hires photographers to shoot pictures of rural towns & farms

70. Roosevelt Extends Relief
2nd New Deal established a series of programs to help youths, professionals & other workers
Works Progress Administration (WPA) created many jobs for unskilled workers
- WPA workers built airports, roads, public buildings
- Women workers sewed clothes for the needy
- WPA employed professional writers, artists, performers
- Gave aid to students in exchange for part-time work

71. Roosevelt Extends Relief
National Youth Administration (NYA) - provided education, jobs, counseling & recreation to young people

72. Improving Labor and Other Reforms
Wagner Act - replaced NIRA
- Protected right to join unions & collective bargaining
- Prohibited unfair labor practices (threatening workers or firing union members)
- Established National Labor Relations Board that heard testimony about labor practices
- Held elections to determine if workers wanted unions
Fair Labor Standards Act sets maximum hours & minimum wage
- 44 hrs per week decreasing to 40 in two years & 25 cents per hr.

73. Social Security Act
Social Security Act created Social Security system
Provided insurance for retirees 65 or older
Unemployment compensation
Aid to disabled & families with children

74. Expanding and Regulating Utilities
Rural Electrification Administration (REA) brought electricity to farms
- Rose from 12.6 % in 1935 to 48% in 1945 to 90% in 1949
Public Utility Holding Company Act aims to stop financial corruption

75. The New Deal Brings New Opportunities for Women
Several women were named to important government positions
Frances Perkins became first female cabinet member (Secretary of Labor)
- FDR also appointed 2 women as diplomats & 1 as a federal judge
Women still faced discrimination in workplace from male workers
National Recovery Administration (NRA) set some lower minimum wages for women
Federal work programs hired far fewer women than men

76. African-American Activism
FDR appointed more than 100 African Americans to government
Educator Mary McLeod Bethune headed Division of Negro Affairs of NYA
Helped organize “Black Cabinet”
Group of influential African-American who advised FDR on racial issues

77. The President Fails to Support Civil Rights
FDR was afraid of upsetting white Southern Democratic voters
Refused to approve antilynching law & end to poll tax
New Deal agencies discriminated against African Americans
- pay them lower wages & favored whites
African- Americans generally supported Roosevelt administration & New Deal
- Saw them as the best hope for the future

78. The Lure of Motion Pictures and Radio
About 65% of population went to movies once a week
- Movies were still affordable
- People watched them to escape real life
- Grapes of Wrath
- Gone With the Wind
- The Wizard of OZ

79. The Lure of Motion Pictures and Radio
90% of households had a radio
Families listened together every day
Dramas, variety shows played in evening
- Soap operas for homemakers broadcast in middle of day
- Children’s shows after school hours
- Immediate news coverage became customary

80. The Lure of Motion Pictures and Radio
Orson Welles - actor, director, producer, & writer

81. The Arts in Depression America
Federal Art Project paid artists to make art, & teach in schools
Aim to promote art appreciation & positive image of America
Murals typically portrayed dignity of ordinary people at work
Federal Theater Project hired actors & artists
Singer, songwriter Woody Guthrie sung songs about the of plight of poor

82. Diverse Writers Depict American Life
Federal Writers’ Project supported many who become major writers
Richard Wright - African-American author who wrote Native Son
John Steinbeck wrote The Grapes of Wrath about Dust Bowl migrants

83. The New Deal Ends
By 1937, economic improvement convinced many that Depression was ending
Congress wanted to cut back programs
By New Deal was over

84. Supporters and Critics of the New Deal
Supporters Believed the New Deal helped country recover from economic difficulties
Conservatives though FDR made federal government too large
- stifled free enterprise & individual initiative
Liberals thought New Deal didn’t do enough to socialize economy end inequalities

85. Effects of the New Deal
Expanded power of federal government & president
Social Security Act - Federal government takes responsibility for citizens’ welfare
- Provided aid for aged, disabled & needy
FDIC still protects individual investors in case of bank failure
SEC still monitors stock market, enforces laws on stock, bond sales
New Deal laws set standards for wages & hours
- banned child labor
- Permitted unions
Civilian Conservation Corps (CCC ) - planted trees, built hiking trails, & fire lookout towers

86. Effects of the New Deal
Soil Conservation Service taught farmers how to preserve soil
- Contour plowing, terraces, & crop rotation
Taylor Grazing Act reduced grazing on public lands
- Grazing had contributed to erosion that caused the dust bowl
Tennessee Valley Authority (TVA) created electricity, & prevented floods
New Deal reduced suffering & gave people hope
- Provided jobs, food & money
New Deal didn't end depression WWII did