Hoover s Attempts to End the
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1 Hoover s Attempts to End the Depression Chapter 9, Lesson 3 Front side of pages 89 and 90 Rugged Individualism Basically Americans fend for themselves no matter the obstacles. We could fix the economywithout government help. He tried to work with business leaders and increased public works projects in an effort to spur economic recovery. Managing the Money Supply Hoover asked The Federal Reserve to add money to circulation They refused for fear ofinflation National Credit Corporation (NCC) and Reconstruction Finance Corporation (RFC) to provide loans to individuals and business. Helped some but not enough Direct Relief Hoover did not believe in federal relief assistance. Private charities and state and local governments should provide it. But these groups also faced funding challenges Reluctantly he signed the Emergency Relief and Construction Act authorizing federal relief. 1
2 02/25/2014 American Response Hunger Marches Looting and protests over hunger took place during 1931 and Some 1,200 protesters held a hunger march on Washington D.C., Washington, D C in Farm Foreclosures Many farmers had low profits and high debts. Lenders foreclosed on mortgaged farms and evicted families. Farmers destroyed crops in an unsuccessful effort to raise prices. In May 1932, veterans from WWI, calling themselves Bonus Expeditionary Force marched on Washington, D.C., to demand early payments of the $1,000 bonuses Congress had promised them. By June 1932, the number of marchers had reached an estimated 15,000. when the bill to authorize the early payment of the bonuses failed in the Senate, the atmosphere surrounding the marchers grew extremely tense. Troops under the command of Army Chief of Staff Douglas MacAuthur and aided by Major George S. Patton, Jr., advanced on the marchers with swords drawn and began destroying their camps. MacArthurs ss forced pursued the marchers across the bridge spanning the MacArthurs Anacostia River to their main encampment, which was coon engulfed in flames. President Hoover s reputation was thoroughly damaged after national news showed footage of the veterans being assaulted. 2
3 The New Deal Chapter 10, Lesson 1 Back side of pages 89 and 90 Early Life Franklin Delano Roosevelt privileged background he worked kdhard to fight for what he believed in. He attended Harvard and Columbia Law School. Politics elected to the New York Senate won the vice presidential nomination for the Democratic Party Lost the election and withdrew from politics. Polio 1921 stricken with polio Fought against the disease by maintaining a vigorous exercise program. Wait! What is polio? Polio is a viral disease that can affect nerves and can lead to partial or full paralysis How does it spread? Symptoms? Vaccine Affects the central nervous system (brain and spinal cord) Disability (paralysis) is more common than death Return to Politics 1928 ran for governor of New York and narrowly won 1930 Won re election in a landslide Back to FDR 3
4 The Election of 1932 Republicans Herbert Hoover dramatic cutbacks in federal spending promoted high tariffs thinking foreign competition would hurt American sales thought too much government aid or assistance would make the people dependent on it. Democrats Franklin D. Roosevelt A new deal for the American people promoted a competitive tariff that raised revenue pushed for reform in both the financial and the banking industries favored programs for farmers and saw a necessity for immediate government assistance Run on Banks First Hundred Days depositors who feared their savings would lose value By March of 1933, more than 4,000 banks had collapsed Emergency Banking Relief Act = est. financially sound banks The Securities Act Glass Steagall Act Hundred Days Benchmark Required investment companies to provide truthful and complete information to their investors. Commercial banks cannot operate as investment banks Also created the Federal Deposit Insurance Corporation (FDIC) = insured bank deposits (up to $2,500) fireside chat told the public that banks were safe accomplishments in his first 100 days in office became a benchmark for subsequent administrations 4
5 HOLC FCA Debt Relief Home Owners Loan Corporation (HOLC) Help home owners facing foreclosure Government backed mortgages with lower interest rates and better terms became available to employed home owners Farm Credit Administration (FCA) Put the government in the role of lending banks which had been reluctant to lend money to farmers over preceding years Helping farmers refinance their mortgages saved many farms from foreclosure. Farming Agricultural Adjustment Act (AAA) addressed the oversupply problem among farmers gave government funds to farmers whodidnot grow certain crops or raise certain livestock farmers were also paid to leave acres of land fallow over time, farm surpluses dropped and prices rose, which increased farmers income Recovery Recovery Industrial National Industrial Recovery Act (NIRA) to help both labor and management set prices and wages, and limited workers hours also allowed unions into workplaces was unpopular with employers industrial production actually fell during the NIRA CCC FERA PWA CWA Unemployment Relief Civilian Conservation Corps (CCC) Paid young men $30 a month to plant trees, fight fires, and build reservoirs. Also offered literacy programs Federal Emergency Relief Administration (FERA) Provided federal funds for job creation projects at state and local levels Public Works Administration (PWA) Provided funds to construction companies for large scale projects from highways to dams to government facilities. Prohibited from discriminating against minorities. Civil Works Administration (CWA) Hired workers to build or improve roads, schools, airports, and parks. Eventually shut down by FDR because he did not want people to become accustomed to the federal government providing jobs. 5
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