Deborah Gray WhiteThe Great Crash Tbe good times of the 1920s were fueled by a booming economy. The grossnational product rose, the stock market expanded, and faith in business and government was high.Yet the decade was also marked by uneven distribution of wealth and the rise of debt. When the

economy slumped at the end of the 1920s, the credit pyramid that had been created by stock market investors, brokers,and banks crumbled swiftly. The American economy, and then the world economy, crashed.Americans Face Hard -times The ripple effect of the stock market crash spread hardship throughout the nation.Bank failures wiped out ordinary people’s savings. Americans went hungry, and as the demand for food decreased,farms foreclosed. Companies failed, causing massive unemployment. Hoboes roamed the country and the unemployedand homeless built shantytowns called Hoovervilles. In the Great Plains region, drought and dust storms compoundedpeople’s misery. Migrants from the Dust Bowl, called Okies, met discrimination as they fled the natural disaster.Hoover As President Hoover’s response to the catastrophe was grounded in his philosophical belief in ruggedindividualism and cooperation between business and government. There was little cooperation, however, as individualslost the means to help themselves and state aud local governments made decisions based on their own interests.Hoover’s actions brougbt little relief. The high tariff, increased incmne taxes, and opposition to paying the veteran’sbonus made Hoover appear unsympathetic to the people’s plight. In 1932 voters went to the polls intent on replacingHoover with a more capable and sympathetic president.

Recent ScholarshipIn Building Hoover Dam: Art Oral History of the Great Depression (1993), Andrew J. Dunar and Dennis McBridemake the experiences of people during the Depression come alive, and at tbe same time give a first person accountof the building of one of America’s architectural wonders. A fascinating look at the social and cultural worlds of menand women of all races, this bottom-up analysis also doubles as a community study of Boulder City and Las Vegas,Nevada, during the depression.

~ Differentiated Instruction Teacher .~ntiated instruction Modified Likez~- Management System Worksheets and Eests CD-ROM Engl[sh-Languag

LeSSon Plans for Differentiated Vocabulary Flash Cards and Activitiestnstrnction , Modified Vocabula~/Builder Activities "I’E =-[Jifl;~eniiat~l’Acti~ities

Different=ated Instructional Modified Chapter ReviewActivity . in theTeacher’s EditionBenchmarking Guides Modified Chapter Test indicators of Pros

Interactive I~eader and Study Guide 0SP Teacher’s One-Stop Planner p. 675~ Spanish Chapter Summaries Audio . ExamViewTestGenerator (English

CD Program and Spanish) "_.~ Online Chapter Summaries in English PuzztePro

~ratiw

Reading Like a HistorianSam Wineburg

Exploring CausalityNot content to chronicle ~vhat happened in the past,historians toil under the weight of u,hy. Why didthings happen as they did? What caused major eventsto occur?Understanding causality poses a perennial stumblingblock to students. Unlike physics, where students canperform a clever experiment to get at the cause of aparticular action, historical events have multiple--often competing--causes, many of which resistsimplification and elimination. Indeed, philosophersof history refer to historical explanations as "over-deternained," by which they mean that for every majorevent there are more causes available than are neededto explain it. An overabundance of causes.A Question of InterpretationCausal explanatious in histo~3, have a greatersimilarity to the grainy and uneven texture of aliterary interpretation than to the cold sleeknessof a mathematical proof. We judge their adequacyby their ability to (a) account for the availableevidence, and (b) cohere into an integrated whole,their "verisi~nilitude" or feeling of tmthfialness andtrustworthiness. ~vo historians can agree on the samefacts about what led up to a historical event, but dis-agree endlessly on how these facts come together asa causal explanation.Oar chapter offers a ripe opportunity to explore theseissues. Cause comes to the forefront in Section 1, un-der the heading "Economic Weaknesses," beginningon page 675 where our authors lay out their expta-natiou for the stock market’s abrupt fall. Two maincauses are adduced: first, the unequal distribution ofwealth between rich and poor, and second, the avail-ability of easy credit ("buying on margin"), which ledto wild speculation. While not a foolproof guide, the

amount of space authors assign an explanation cansignal its relative ilnportance. In our case, the secondcause receives double the coverage as the first.

Comparing ExplanationsWhile the causes given by our authors are acceptedby most historians, some believe that other factorswere equally--or more--important. In econolnistJohn Kenneth Galbraith’s The Great Crash 1929(t954), for example, Galbraith also gives pride ofplace to the unequal distribution of wealth. But hedismisses the availability of credit as a cause, insteadlisting such contributing causes as a flawed corporatestmctme; the 1920s as a time of "an exceptional num-ber of promoters, grafters, swindlers, imposters, andfrauds"; a weak banking structure, in which bmtkersfell victim to the same optimism as ordinary inves-tors; an unfavorable balance of trade (a factor alsonoted by our chapter); and the poor state of economicintelligence, part of which was the widespread beliefthat "ordinary people were meant to be rich."Other writers mention still more contributing factorsto the stock market collapse, including the federalgovernment’s management of monetary policy, acontracting money supply, consumers’ purchasingdecisions, falling demand for products, and more.

Explanation and AmbiguityFaced with competing causal accounts, ourstudents--often intolerant of ambiguity--v,,illdemand to know, "Which one is right?" Thelegitimate retort can be a question of our own: "So,which explanation best accounts for the availableevidence?" It is this question that will lead to morelearning and engage students in building causalaccounts of their own.

Chapter Main IdeasSection 1 The stock market crashof t929 revealed weaknesses in theAmerican economy and helped triggera spreading economic crisis.Section 2 The Great Depression andthe natural disaster known as the Dus~Bowl produced economic sufferingon a scale the nation had never seenbefore.Section 3 Herbert Hoover came tooffice with a clear philosophyof government, but the events ofthe Great Depression overwhelmedhis responses.

l~laryland Voluntary State CurriculumHigh School U,S. History5.2.4 Analyze the cu[tural,econongc, potitical andsocial changes in society dudng We dd War I andtNoughout the 1920s5.3.1 Analyze the consequences and go~emment[esponses to the G~eat Depression

Employees of the C~ica~o ~&ndec an AflkanAmerican newspaper, prepare rood suppliesto donate to needy families at Thanksgiving,1931. Thousa ads of hung p], homeless, and jo b-less America ns had to rely on such generosityto sulvive the Gieat Depression.Interpretin~] Visuals Do these wolkels seemto he victims of the Great Depression? Explain. World

~elow Leve!Basic-level activities designed for allstudents encountering new material

At L~vel i:Intermediate-level activities designedfor average studentsAbove Level

Challenging activities designed forhonors and gifted-and-talented students

l Standard English Mastery ~Activities desigeed to improve standardEnglish usage

The Great Depression Begins1. ~AZrite the following scenario for students to

see. Bm=ks are closed,or’ewe, anti,amitieshave no way to get any money. All workhrgmembers of the family have lost their jobs.Bills are due, and the family has no way topay any bills. How and where are familymembers going to find new jobs? lf theycannotpay rent, where are they going to live?If they lose their cars because they cannotafford the car payment, how will they lookfor work?

Ask: How would you feel if thisoccur? How would you respond? Daringthe DepressiQn people reacted with anger,feelings of de~pair and hopelessness, andthey hoped that the government weald hellTell students that in this chapter they willlearn about the ~reatest economic cris~s ~cU.S. history--the Great Depression.[] Verbal-Linguistic

~ AlternatiVe Assessment Handbook, Rubric 11Discussions

I~ Video Program: The GreatDepression BeginsSee the Video Teacher’s Guidefor strategies for using the videosegment.

Reading Like a Historianinterpreting a Photograph F/ave.students take a moment to examine thekrnage on these pages, Guide students ina discussion about what the appearanceof the people reveals about them. Theydon’t appear" to be suffering fmm theeffects of the Depression.

1931Droughtthat

1931Japanese

Manchuria, J

571

the Time LineSaud ~ecome king of Saudi

did AdolfHitler uecome chancellor of

1933Was president When the stock market

lack Tuesday"? Herbert

began in 1931 that added to theDepression.’? dl~)ught on the

Info to KnowStock Market, 1929 On September 3, 1929, theDew Jones Industrial Average reached its 1929peak. On October 24, 1929, stock prices fellsharply, and a new record was set when ahnosl13 million shares of stock were sold. Then or,October 29, 1929, over 16 million shares ofstock were sold off. This record lasted for 39years.Draw Conclusions Why do you tbJttk so manypeople rushed to sell their stocks on the sameday? possible answer--They were concernedtltat they would lose even more money if theydid not sell.

AnswersInterpreting Visuals (p. 670) No,theyappear to be clean, well-fed, and

ringerInside Story., . Use the Dailyager Transparency to be][} studentser the question.~ily Bellringer Transparency, Section 1

~demic Vocabulary~,w with students the high-use academic; in this section.; zi[i¢ particular (p. 673)C~F: Vocabula~ Builder Activib/,3action 1

,king Notes:sos--uneven wealth distribution; easy~it; buyiag stock on margin; Stock Market~h of 1929; Effects--people in debt; bank’ures; businesses failed

can econornyandhelpedtdggera

BEFORE YOU READMAIN IDEA READING FOCUSThe stock market I. WhaL econornic factors a n,d coodi-c~ash of ]g2g Lions ma de the Amelic~ n ~conornyrevealod weak- appear prosperous in the ] 920s?nesses hl the Amed- 2. Wha L were the t~sic ~conornic

weaknesses in the American econ-omy i~ the late ~ e20s?

3. What events led to tbe stock ma r-ket c~ash of O~tobe~ ~ g2 g?

4. What were the effeds of the clashon the ec~uomy of the UnitedStatesandthewodd?

KEY TERMS AND PEOPLEgross nationa] productHe~ber~ Hooverbuying on marginFederal Resewe S~temBlack Tuesday

on the ~uses and ef

notes in a graInizer like the

How did Amerieans behave onthe eve of disaster? For many peo-ple in the 1920S, investing in the stock

market Was one big joyride- Week after week, month aftermonth, stock pdces steadily ros& After a while, it see madlike making money on Wall Street was a sure thing.

With so many fortunes being made, it was easy toig note th e wa mine signs that began to appeal in thefall of 1929. The economy had began to slum p. Con-sumetsweren’t buying as much. Froductswere piling upon factory floor~ A ha ndflH of experts whispered thatUou ble lay in store for the stock matket.

On Th u[sday, October 24,1929, those whisp orsbecame leali~ By the end of the day, the value of thestocks t~aded on the New Yo~k Stock Excha nee hadplunged by 9 percent. Years of investment gains--billionsof dollars--were wiped out in a few hour~

Maio~ banks and stockbrokers uied to rally the marketon Friday. They bought large numbers of stocks, hoping to keepprices from d opping still mot& Ove~ the anxiousweekend of Octo-ber 26 and 27, stockbrokers worked quietly to ~eassu re i nvestor~ Theyma de phon e calls and wrote letters to major investors urging them tobuy stocks when the markets reopened on Monday. But nothing couldanswer the questions on everyone’s mind~. On Monday morning, whichway would prices go--up oI down? Were the good times about tocome to an end? a

.~ Stockholders anxio.sly gather outsidethe New York Stock Exchang~

The Great Crash1, Teach Ask students the Reading Focus

questions to teach this section.2. Apply Have students create an outline of

the section using the red and blue headsas main points. Have students identify atleast two main ideas under each of the bluesubheadings. [] Verbal-Linguistic

3. Review Review studeut outlines as aclass. Have students identify the points intheir outlines that they believe are mostimportant. Ask students to explain if the

1920s were a time of true prosperi(y.4. Practice/Homework Haw

make a table with four columns showinghow the stock market crash affected eacbthe following:and the rest of the world. [] Mathematinsl°Logical, Verbal-Linguistic

~ Alternative Assessment Handbook,Charts; and ll: Discussions

~:~ Graphic Organizer Transparencies

/~n/~rspearance of Prosperity~rhe 1920s may not have been good times fore~.eryone- Most farmer~, for i~stance, saw theirincomes drop. But for the economy as a whole,the RoarmgTwen~ies wereapenodofmapres-

very lmv, averagingn~employment, ln tmaa,

slowed the growth of organized labor. Unionmembership dropped as emplayers expandedwe]Jam capitalism progr~as.

As you read earlier, welfare capitalism isa tstna for various benefits, such as emplayer-paid insurance, which compm~Jes provide toemployees as a way oflmproving worker loy-.airy and satisfaction. Such programs helped

being in the 1920s.qTrds feeling of prosperity encouraged many

ing off the nation’s assembly lines. With theirshorter work hours and bigger paychecks,Americans flocked to rao~e theaters, sportingevents, and other l~isure activities. Times, it

Stock market expansion While Amerl-cans generally were feeling good about theeconomy in the 1920s, those who invested inthe st9ck market wore overjoyed. The stockmarket is a place ~vhere sincks are bought andsold. St~ck is ownership in a company, and it issold in shares. I~ other word s, by buying sh aresof stsck, a person is able to buy a piece of a cor-poration. If the corporation succeeds, its valuemay ~e. This means that the value ofita stockalso rises. !£the corporation does not do well,ltmay Nose value. TbJs would drive the value ofthe stock down.

~) What economic factors and conditiomade the American economy appoaprosperous in the 1920s? high grossnational pt~duct; low unemploymen.satisfied workers; pe~ormance of th,stock market

An Appearance ofProsperityDescribe What economic factorto optimism? the growth of the grossnational productExplain How did businesses benefitfrom welfare capitalism? union mem-bership dropped; worker loyalty andsatisfaction greu,Summarize How does the stockmarket work? People buy stocks,which give them a share hz the owner-ship eta corporation; if the cotpora-ties does well, stock values may rise,profith~g stock holders.~ Stockbroker Advertise-merits Have students create an ad fo~a stockbroker in the early 1920s whois trying to get new clients. In their adtstudents should explaiu \vhy investingin the stock market and buying onmargin are good ideas. [] I/erbal- ’Linguistic

in the 1920sthe boom years of the 1920s,

~purred the U.S. economy.class into small groups and

ach group conduct research, or usein the text, to find the most

products of the t920s.~ should include automobiles,

refi’igerators, etc. Have volmtteers~ read items from their lists.

each group. Haveits product and prepare

Research Requiredan illustrated report about it. Groups sl~oulduse the following questions to guide them:How big a part did the product play inthe economy? Is that product ~or a relatedproduct) important today? What brands werepopular then? Are any of those brand namesm existence today?Have volunteers share their reports with theclass. [] Interpersonal

:~ Alternative Assessment Handbook, Rubrics 14:6roup Activity; and 30: Research

THE GREAT DEPRESSION BEGINS

Appearance of~perity~.ll How did Coolidge and:ng view the relationshipeen business and government?*’nment should support, not~ere, with busbtess practices.lyze In what ways did thei>n of 1928 represent a conflict’ shies? Hoover and Smith~ented different backg~vunds,otis, ideas; each appealed to-eat gmups of Americans.e Judgments Do you think:ae president should be responsiblecalamity strikes the nation?

~,te answers--Yes, as the leader~z~’ge, president is respo¢tsible;~’msident cannot be responsible.’i problems within a counny.~F: Economics and History Activity:em "Prosperity" to DepressionF,F: Biography: Jesse Liverrnore

to Knowk investors Many Americans:ed in the stock market because~:ad heard stories of ordinary:as earnir~g fortunes. In one’ar tale, a peddler" turned $4,000:.250,000. In addition, manyie saw the market as a safeo~ make money. In spite of this,tians have estimated that just’,ion Americans, or less thanercent of the nation’s population,-X stocks in 1928.

The American stock market performedspectacularly during the 1920s. Althoughstocks increased at different rates, the gen-eral trend in stock prices was shaqply upward.Between 1920 and 1929 the overall value ofstocks traded at the nation’s stock marketsquadrupled.

qffie steep rise in stock prices changed theway many people thought about buying stocks.Since the market never seemed to go do~a inthe 1920s, mzaay people began to ac~ as thoughit never would.

A growing number of ordinary Americansbegan to make stock investments. To investmeoaas to pu~ money into stocks, land, or someother location in the hope that the value ofthlsmoney will grow.

The number of shares being traded ~n theUnited States rose sharply during the 1920s.The number rose from 318 million in 1920 tomore than I billion in 1929. Many investorswere encouraged by the words of men such asJob3a Raskob, a leader of General Motors.

~he nation was expe riendng an e~a of prosperity unde~ a Republics nadrnJnist~aben during 1928 presidential election.gegle~ Most of tbe nation voted fo~ the candidate of what partyaffiliatiod? In what region was Smith’s support concentrated?See Skills Handbook, p. H20

SkillSelecting a New President in 19281. Organize the class into smatl groups. Have

students develop campaign strategies for the1928 presidential election. Half of the groupsshould represent Republicans campaigningfor Hoover. The other half should representDemocrats campaigmng for Smith.

2. Students should carefully study eachcandidate’s positions on the issues and

HISTORY’S VOICES~’~ If a man saves StS a week and Investscommon stocks, .. at the end of 20 ye~rs, be~have at ]east Se0,000 and.,. $400 a mo~th. He vA

Faith in business and governmentmany Americans, the prosperity ofth~ 1!demonstrated the triumph ofAmel~can ht

policies that gave businessesfreedom to acbJeve and succeed. As (once famously remarked, ~£he cblefof the American people is business,"

This approach was popular withity ofvolem. Harddng had won a clear v~dorythe 1920 electior1924. Coolidge in particular remainedpopular throughout his term in office.confidence in the federal gove~aun e nt and inpro-business policies remained very high.

The election of 1928 Coolidge decided

cans chose Herbert IHoover had never held elective office, but ~had an impressive record of public servkejihad over~een America’~ foodWorld War I m~d later ffirec~ed relief effodslEurope. He also served as the secre~armeree under Harding and Coolidge.

By 1928

of Hoover that it troubled ~im. "Theconviction that I am sort of superman,problem is beyond

upon the nation... I would be saer~iced tounreasoning disappointment of a peopleexpected too much?’

Hoover and theAI Smith, presented thecontrast. Smith was an outgoing and n~ral politician. Hoover was quiet and shycomparison. Smith was a Catholic--tboever to mm forhis support from Oatholk

strategies and stogan~candidate’s base andless willing to vote for their candidate.

3. Haveand slogans to the class. Thenin a discussion of the candidates.Spatial

-~l Alternative Assessment Handbook. Rubric

The ecodefine~}ebrat

thosuff

Wealth

assembly

Credit alcredlt wa~prvducts. ]

a QuM~er, and many,fbis supl~r~ers cUd not t~st Cathotcs. His

towns.TSe ~vo men also differed on Prohibition.

alcohol sales, while HooverIn short, the contest

conflictshad divided the nation in the 1920s.

economic prosperity of the 1O20s helped~t whle ninny Americans

good fortune, a town-bubbled just beneath

distribution One troubling aspect

veMth that was beingin business in the

of peoplegroup, the wealthiest

~eenthelr sharepercent between

vork~rs, however, expo-S

pa~culmrly hard.percent of the nation’s

income below the level theylying. 2~e per-

rate declined noticeably during

lecade, the easy availabilityt many Americans to buy

~Pr~ucis rollhng quickly offthe nation’sof the decade, how-

The l g2os prosperity was more illusion than malit~ Theuneven distribution of the nation’s wealth is shown in this bargraph. What share of t~e nation’s wealth did the top 5 percentof workers own? What did the remaining 95 pezcent own?See Skills Ha ndboo~ p. H l 6

stocks. This Hsky practice increased din’trig the1920s as the stock mm’ket rose sharply

Here is how it worked: Imagine an investorwanted to buy lg0 shares ofstockln CompanyAat $I0 a share. The total purchase pHc~ wouldbe $1,000. To make this purchase, the inves-tor weald pay just a portion of the $1,000--say,for example, $500. ~i~ae investor would borrowthe other $500 from a st~kbroken The raider-standing was that the investor would pay offthe loan when he or she sold the stock. Buyingst~cks vdthloans from s~ckbrokers is known asbuying on margin.

THE GREAT DEPIfiSSION BEGINS 67g

~) What were the basic economic wnesses in the American economythe late 1920s? ~even dlstributio,wealth; easy credit; too easy to bzstock on matgin

Economic WeaknessesDescribe How did most Americ~fare during the 1920s? not well;most had only small inctvases irtsaleO,Analyze In what way was the easavailability of credit a blessing anda curse? allou’edAmericans to buyproducts, fiteled economic growth;when consumers could not pay theildebts, purchashzg slowed,, warehotcwem filted with goodsEvaluate Do you think that.advertising played a significant rolem mounting consumer debt? Ye~;people wanted to buy thhzgs that wetadvertised.~ Quick Facts Transparency: Distributic

of Wealth, 1929

AnswersInterpreting Graphs.70%;30%Reading Check Manypeop& began~vestbecause ~eg~ought~emarketwouldnorgodown.

.anguage Learnersinto two groups. Havegroup make a list of thethat the economy was

e 1920s. Have each studentmake a list of the warning

that there were problems instudents in each group

t into a single list,and

~tudents to see. Have

volunteers from each group take turns callingout the signs of prosperity or economicproblems. As students call out their answerswrite them under thee appropriate headmg. ’(See the table for answers.)Make sure that students understand why eachof these economic signs was important.1~ Interpersonal, Logical-Mathematical

~ Alternative Assessment Handbook, Rubric 1~:Groap Activity

Prosperity gross nalonal orod-

oct rose 50%explosive growth ofthe auto ioduslycorporate nrofltsswelledlow unemployment

welfare capitalismworkers purchasednew produc~sstock rna~ke~~edorrnance

eflted Ir~rn tbebusiness boo~

rna~y people Used

buyingfell ’ ~ --" sto~ sold on

mar~in

Neaknesses

,~vas a margin call?.,merit of a margin loan

fell below a certain

y do you thinknored Babson’s warn-tnarket crash? possibletse the economy hadthey probably thought

Hd be temporary

an investment broker,rsday, October 24, 1929--!:e stock market began t°~ad about $3,000 in thewhich was all the money

.ok Friday--Thursday,margin account went out

:/. I may have had aboutwife had a colossal $125 That night, she came

.1 she said, ’Guess what2ay?! I said, ’What?’ SheI was making $60 a weekmaking $125 Two-thirds

:e and all of our~savingsthat day."

~]ORD: 507 CH21

:neck uneven distribution

for $1,500. In this case, the investor wouldget back the original $500 investment, be ableto repay the $500 loan, mad still have a $500profit~Jtoubfing the original hav~tment. Butffthe stock price dropped to $5 a share, the salethen would bring ha just $500. All of this wouldgo to pay off the loan. The investor would haveno profit and be out the original $500 as well.

q2ae terms of a margin loan made the gam-ble even riskier for the investor. Under theseterms, brokers could force investors to repaytheir loans ffthe stock’s vulue fell below ataha point. Such a demand was called a mar-g~n call. In theory, marghx calls ensured thatbrokers would get their loans repaid. Margincalls also meant that bavesto~ could be in bigtrouble ff their stocks lost value sudderd2~

The Federal Reserve The ~ation’s fas-’cination with stocks mrd with buying on

ing board of the Federal Reserve System,which serves as the nation’s central bar&. TheFederal Reserve Board takes actions and senpolicies to regulate the nation’s money supplyhi m’der to promote healthy economic activity.In the late 1920s, the Federal Reserve Boarddeclded to makeit more difficult and more costlyfor brokers to offer margh~ loans to investors.

~lqm Federal Reserve’s move was par fly sue-cessfal, at least at first. Borrowing from banksbybrokers begone todecrease,butit was replaced

corporations began providing brokers with thecash to m~ke margh~ loans Lo investors. As aresult, the ran-up of the stock market contin-ued despite the Federal I/eserqe’s actions.

In September 1929, economist 1%ger Bah-son sounded a wax3alng note. "Sooner or later;he said,"a crash is coming, mad it may be ter- "rific.’~I"ae crash he was anticipating was a sud-den drop in stock prices, which could devastatethose who had borrowed heavily to buy stock.

Mm*y experts, however, dismissed Babeon~swmwles. In October, b amke r Charles lg. Mitchellresponded to the war]~ings of people such asBabson. Mitchell said, famously, "I see no rea-son for the end-of-the-year shunp wbich somepeople are predicting?’ He could not have been

~ Summarizing Whatwelesome of the weaknesses of the economy in the 1920s7

The Stock MarketWhile Babson and Mitchell were makhcontrasting predictionsthe s

steadygiven way to truly astounding gains as t!decade neared its ~the market’s value showedin 1928 alone. During

reaching its high point on September 3.Many people in the financial world

ever, were beginninging signs of trouble i

Rumors spread tlgetting ready to takemarket. Fear~ began to gl-ow

ers noticed thein the selling, afraid to be lel~ bebind.A

buy the millions of stocks

illWhatlf?1. Organize the class into small groups. Tell

students that in the 1920s people began to buystock on margin. The Federal Reserve Boardbecame concerned about the trend and began

3, Have volunteers from each group shareregulations with the rest of the class.

4. Guide the class in a discussion of the, of the

to develop a set of guidelines about stock regulations suggested bybuying in an effort to protect the nation’s what were they? [] Interpersonal, Logical"

Mathematicaleconomy.2. Have each group develop regulations for the .<~ Alternative Assessment Handbook, RubriCS

buying and selling of stocks that could be " Group Activity; and 37: Writing Assignments

lhdeked and howled

of leading bardand prevent

the market s

ling Skil.~ Stock

e blank kvolm

their

,hes

g

2SS.

Economic Factors Poor distribu~oa of wealth Many consumers relied on credit Credit dried op

Consumer spending dropped: Indust~ straggled

Financial Factors Stock markela rise ia mid-1920s Speculation in stock increases Margin buying encouraged by Federal

Reserve policies Stock prices rise to unrealistic levels

Stock MarketCrash

~greaterM~ se)]. One newspaper descrlbedit as"the

Stock Exchange."

ofthls telMble da); a num-joined together to buy

)revent a fiwiher collapse in theirsucceeded in stopping the~he market reP4rned to nor-

lradh~g on Friday, and some stocks actu-

a work on Monday,~ from Friday had

g began thatsmik llke a stone. The next

paaic COmpletely overcame the market%~ damped more thm~ 16 million shares

e sell-otis of earlier days had

affected mainly lhe stocks of weaker busi-nesses, the collapse on Black Tuesday affectedthe steck of even the most solid companies.

The damage was widespread and cata-sirophic. During October, the stock marketdwopped in value by abouh $16 billion. Thisrepresented nemdy one-half of the market’spre-crash value.

"It was Like a thunderclaps" one investmen~banker recalled. ~Everybody was stmmedY

Devices called tlcker-tape ]nachines com-municated a steady stream of falling stockprices. One reporter described ~he scene onOctober 29 as horrified investors watched theticker tape.

EIISTORy’s VOI~ESd~’t’/]he c~owds about the ticker tapes, like friendsabout the bedside of a ~trkken friend, refle~ledin their faces the sto~, the tape was telgng, rhere

to tell his neighbor how much be had lost. Nobody

~) Sequeucing Brieflydescdbethe events of the stock market c~a sh from O~tohe~ 24through O~tober 2S. 1939.

THE GREAT DE PBESSION BEGINS 677

Sldllrket Crashes

zed answers.copy the graphic orgamzer

and have them fill in

~ read the factors from their~iudents

fill in the master graphicZer for students to see. Make sureSteps are in the correct order.

4. Guide students in a discussion of the causesof the stock market crash. Ask: What were thesigns of trouble that worded investors? Whatwas done to try to prevent a further collapsein stock prices? Were efforts to preventfurther collapse successful? Why or why not?[] Visual-Spatial, Logical-Mathematical

~ Alternative Assessment Handbook. Rubrics 11:Discussions. and 13: Graphic Organizers

~ Graphic Organizer Transparencies

t~ What events led to the stoclcrash in October t929? salesumer goods declined; ruralfeat’s grew; b~vestors beganstocks; stock prices plunged

The Stock Market CrExplain Why did some pep]economic trouble in 1929? scdeclining; rumors tttat big inlwere gohtg to take ntoney outntarketSequence How did the bigof stocks begin? Some htvestcsellhzg; otbers johzed h=; withers, stock prices fell.Predict Do you think astodcrash could occur today?possanswers-Yes, large numbers ccould sell stock and prices woplurzge; no, there are safeguat9revent it.

AnswersReading Check &vestorsbegselling stocks, huge sell-off begzbankers joined together to buy s.and returned the market to normOctober 29, the market crashed

Factors that Caused the Stock Mark~Signs of trouble in. the economy

Investors s~ f stod:s

Stock prices plunge

Panic to sefl more stoc~

:he effects of the crash on~,! of the United States and~:anks failed; investors lost;teners stopped buying;

’ million Americans lost,~st of the world affected

~s of the Crashimpact did the stock

i~ave on individual inves-:l saffered; lost saviags;

’.’ were banks affected~:arket crash? deposi-money; lost money

’ld from loans made to

*aigh tariffs end up2ing world economies?e*~hart more thaa help:s become more e.rpeasive

Pelitical CaReen Activity:Victim of Bank Failures

7dividuals owed money. Jnotpaydebts; Iostall

]’he Effects of the (:rashIn the aftermath of the crash, business andpolitical leaders rushed to calm the panicand reassure tbe nation. One bushaess execu-tive wrote optimistically ha the days followingBlack Tuesday, "The recent collapse of stockmarket prices has no sisnificance as regardsthe ~al wealth of the AraerJcaa people as awhole." President Hoover also downphayed theeffects of the crash. He and many others firmlybelieved that the economy would soon recoverfrom the shock and reborn to prosperity.

The impact on individuals Noonedenied,however, tha~ the st~ck market collapse hadruined many individual investors. Solne hadlost years of gains. Huge forhmes disappearedbefore their eyes.

Margin buyers were particularly hardhit. When stock prices began to fall, brokersdemanded that they pay back the borrowedmoney. To meet these margin calls, investors

wer~ forced to sell their shm~s for farthey had pad for tsavings trying to make up the different

of money to their brokersbeen forced to sell below cost.

Effects on ba]triggered a bamkhag c~sls. F~ightene~t~rs rushed to ,ahag banks of fronds. Wom~themselves invested,the stock market. They had purchase~ stcompares whose shares

to sinckbrokm~, wlm i

ual investors falle~banks absorbed ]o~ses, too.

These loan failures eventually ch~v~breaks ou~ of bushaess. As you will readnew section, the struggles of the breakshave a deep impact o

Reading SkillSaving the World Economy1. Have students revie\v information about

the causes of the 1929 stock market crash.Remind students that President Hooverdownplayed the effects of the crash.

2. Have students develop strategies to protect thestock market and to convince the Americanpeople that the crash was an aberration, thatthe economy is still strong, and that it willquickly recover.

president will deliver to the nationthis information. Have volunteers readspeeches to the class.

4. Have students discuss and analyze thestrategies and plans presented in the sWhich speeches presented an effectiveWhich speech was most convincing?[] Interpersonal, Logical-Mathematical

~_~ Alternative Assessment HandbookGroun Activity: and 37: Writino Assi~,

With cons

workers h~

192

]esses v

i; could ~

~s on business The crash delivered~ blow to already strugglb~g busi-

With money scarce, bm~ks and laves-were suddenly unwilling or unable to

todust~ with the money it needed to

same thne, consumers cut back theireverything but essential pur-

mpaa~es began to lay off workers. Unem-

~d the cycle of layoffs and reducedaccelerated quirkly.

in the year that followed the great crash, a term of

~ bUli0n. Nearly 3 mUlion people lost tlielr~ Fecal w~lh an ~mcertain flit i~re and lower

cons~m~ers, who had ~Mven the pros0fthe 1920s, simply stopped spending.

Musldallzed world. The fragile economiesstill recovering ~om World War I,

heavily to European businesses and.

alike simply did not have tke money to payback the loans. Moreover, with buying powerdown in the United States, foreign businesseswere less able to export their products here.They responded by laying off workers. Justas in the United States, !acing offworkers inEurope meant that there was less moneyin thehand~ of consumers to buy products.

Governments in the U~itod States and incom~trles around the world moved to protecttheir o~n industries by passing high tariffs. Al~gh tariff would make imported goods more

in each comatry hoped that l~gh tm~ffs wmfld

~ IdentifTingCause andEffect How did the stoch market crash a fleet banks?

~r~teNng Ideas, Terms, and PeopleDefine Wdte a brief definition for the left,wing term:

b. Summarize Why did the stock market crash have such apower~Jl impact on the overall economy?¢, Evaluate Defend Hoover’s belM that t he economy would.

Critical ThinkingS, Understanding Ca.se a.d Effect eopythe chart belowand

use informaUon from the section toidenfiF] effects ofthestock market crash on the American econom)4

Effects

6, Persuasive Write a letter to a friend in which you urge him orher to be careful about making stock market investments Useinformation from the chapter to support your position.

Assessment Answerstotal value of goods and services produced

ged them to spends ock market continue~l to growuneven distribution of wealth; overdepen-

on creditost Americans in debt, unable to saveCOnsumers unable to make purchases,

II suffer, cut jobs;rash on October 29, 1929~tock for less than purchase

’ loans

c. Even though they lost mone~, they werenot in debt, Stock prices might rise.

4. a. all lost money, unable to repay loansb. people lost faith in the economyc. economy had been strong; not completelytied to stock market

5. bank and business failures; loss of jobs;consumers in debt

6. possible answer--If you buy stocks onmargin you might owe more money thanyou make.

RetNnd students that a dollarbought far more in 1929 thanit does today. Adjusted forinflation, a 1929 dollar wouldbe worth $11.38 in 2005 dol-lars, so the $16 billion October1929 stock market drop wouldbe equivalent to about $180billion in today’s dollars.

CloseGuide students in a discussion of

a false sense ofprosperity helped lead to the stockmm’ket crash.

ReviewOnline fluiz, Section 1

t~ Daily Test Practice Transparency

AssessSE Section 1 Assessment~’ Progress Assessment: Section 1 Quiz~’AIternative Assessment Handbook

Reteach~ Interactive F~eader and Study Guide,

Section t~ Interactive Skills Tutor CD-ROM

AnswersReading Check banks were drainedwhen investors withdrew funds and byfailed irrvestments; many forced to close

679

IlringerInside Story, . . ~Jse the Daily

-imjer Transparency to help students~er the question.~aily Bellringer Transparency, Section 2

~lernic Vocabulary:w with students the high-use academic

lit this section,~. financial holdings or resources

~t bad situation (p. 6851; qF: Vocabulary Builder Activity,~ction 2

ring Notes~s stock market crash, bank failures;~ unemployment, farm failures,

CHAPTER 21

BEFORE YOU READMAIN IDEAThe Great Depres-sion and the naturaldisaster known asthe Dust 8owl pro-duced economicsuffering on a scalethe nation hadnever seen before.

REAOING FOCUS KEY I~RMS AND PEOPLEt. Howdid the Great Depression hobo and effects 0ft~

develop? Great Depression2. What was the hurnan impact of the foreclosure

Great Depression? HoovervilIe nizer like

Where do you go whenno pl~tce to goy Someofthemdecided on their own toleave home

Others were told to leave by their parents because thaisimplywas no money to care for them. In eithe~of thousands of teenagers fa~ed a stark ma]i~duringGreat Depression, ~hey had to find their ~tum ~ the

At the height of the Groat Depression, as manyasaqua~er of a million teenagers were wandedn~riding the railroads from town to town. With no fa mifi~suppo~ or protect them, thehomeless wanderers known as hoboes.

For the young hoboes of the Degid~ b~ack and whit~ some less than 16daily taskw~communitles with other homelessily adult~ The unluc~ ones fell prey

Young women often disguised themselves as ~i~order to reduce the dangers theyoften had theshipsofthe mad.

Homeless teenagers dding the rails o~ waIking ~eback roads be~me a familiar sight in the,,Depression.Along with millions ofother~ they fo~m~p~of the human face of the economic ~tasnophe thatlowed the c~ash. N

<1 Thousa~lds =;f youths experiencedthe grim life of a hobo.

Americans Face Hard Times1,Teach Ask students the Reading Focus

questions to teach this section.2. Apply Have students create a Web diagram

showing the main points of this section.Have students create a center circle andlabel it the Great Depression. Then havestudents list the effects of the Depression onthe spokes. [] Visual-Spatial

3. Review Review student diagrams as aclass. Then guide students in a discussionof the emotional impact of the Great

Depression. How might it have shapedpeople’s attitudes and expectations for therest of their lives?

4. Practice/Homework Have st~lyrics for a song about living conditionsduring the Great Depression. [] AaditmY-Musical

~ Alternative Assessment Handbook, Rubric 26:Poems and Songs

~ Graphic Organizer Transparencies

Development of theDepression

, the crash of the stock me~rket, the boomss of the 1920s came to an end. The crashits aftermath revealed serious flaws in

g These flaws helpedm a stock market crisis into the

in the b~story of the United States.

eople ddd not have money invested inbut many had entrusted their sa~ngs

to banks.Today, most/hnericans do not have to worry

wL9 lose their sav~gs if tbeir bank~ out of buslness. Insurance from the fed-

~0verrmmnt protects most people’s depos-in the event of bank faih]re. In addition,

: keep a g~eatore offls assets in cash, to be paid out

In 1929 there was no such deposit insur~ance, m~d with httle cash on hand, banks werev~Lner able to "runs.’A run occurred when ner-vous depositors, suspecting a bank might bein danger of failing, r~shed to withdraw theirsavings. A r~n could quickly drain a bank of itscash reserves and force the bank to dose.

In the months following October 1929,

dreds of bm~ks fMled. In late 1930 the rate offafl~res ~med from fi~ghtoning to disastrous.In December alone ahnost 350 bar~s closed.

Farm failures The hard t~mes farmers hadfaced in the 1920s July worsened with the onsetof the Great Depression. Widespread jobless-hess and poverty reduced Americans’ abilityto buy food. Man), people simply went hungry.With farmers produchng more than they couldsell, farm prices sank. By 1933 prices were

VOCABULARY

t~ How did the Great Depressiondevelop? banks failed; people losttheir savings and theirjobs; man),farmers lost their farms

The Development of theGreat DepressionExplain How did people with motiu banks end up losiflg their savingsWhen banks failed, depositors losttheir savhtgs. Bank deposit h~suramdid not exist.Design What could baflks havedone to prevent failure as a result ofruns?possible ansn,et~They couldhave tried to convince their depositoto leave their money ht the bank andwithdraw only enough for theirhnmediate needs.~ CRF: Giography: John Beecher

I. How did declining income affect Amedcans’ spending babit~?2, C~mpate unemployment rotes in ] 928 and 1933.See Skills Handbook, p. H 16, H17

ng Skillg Bank Failures

zlass into small groups. Have) a financial strategy totoavoid having a community bank fail in

Have each group share its strategiesthe rest of the class.

) yonduct outside researchsafeguards that have been

to help protect depositors fromand unscrupulous

Research Required

3. When students have finished their research,discuss these safeguards and how importantthey are to ail Americans. Have studentsevaluate whether or not these safeguardswould have prevented the type of disasterthat occurred at the beginning of the GreatDepression. I’~ Interpersonal

~_~Aj. Alternative Assessment Handbook, Rubrics 11:Discussions; t4: Group Activity; and 30: Research

~ Economic Impact of~ the Great DepressionYou will notice that fame failuresdecfined from 1928 to 1931, thenbegan to rise again. The ail-time highnumber of farm failures o~cunced in1925, when 7,872 farmers filed forbankruptcy as the farm economycollapsed following World War I.Problems continued until the generaleconomic collapse of 1929, whichwas followed by the Great Depressionthen the drought and Dust Bowl ofthe 1930s.

Quick Facts Transparency: EconomicImpact of the Great Depression

AnswersInterpreting Grbphs 1. Americansspent less. 2, rose from less than 5%to 25%

, othersbecamehoboes. People I :~|l~lled with shame or attger

uman Impact of theDepression! Who provided relief to the ing the Great Depression?:~rities and some municipale governmentsbe How did the Greation affect the minds and,i Americans? many felt that~ failed as individuals; wide-¢~eling that the nation had6 citizensJudgments Consideringgets, why do you think somen~en became hoboes rather thantnd a place to settle? thought,ldd find work; enable to live inand poverty of shantytotvns- Literature Activity: Yonnondio:,m the Thirties by Tillie Olsen": Primary Source Activity: FreeJp, Coffee, and Doughnuts

It was typical for farmers to borrowmoney from bmnks to pay for land m~d equip-menL As lhelr incomes dropped, many farm-

their loans. In 1933 alone, some 364,000farms went bankrupt or sttffered foreclosure.Foredosum occurs when a bank or other lender

owner who has furled to m~ke loan payments.

Unemployment The year following thecrash of October 1929 saw a sharp drop in eco-nomic activity and a steep rise in unemploy-

the Great Depression dlfibrent was the e~en~m~d the stub~m duration of these trends.

By 1933 the ~oss national produc~ haddropped more tlamx 40 percen~ fi-om i~ pre-crash levels. Unempin~ent reached a sing-ge~g 25 percent. ~ some places ~d mnong

the ~ic~ ~e~n neighborho~ of H~lem~ New York City, for ex~aple, ~employmen~roached 50 pe~ent in 1932,

~ Making GeneralizationsWhat happened to the economy in the eady ]930~7

fhelackoflunningwaterand powe~made tasks such aseooklng and dea nine.much mole difficultand messy.

The Human ImlGreat DepressionThtrophe. Yet slat~stics tell only pm~ oftThe true measure of the d~saster liesaffected the American pteop]e.Hoovervilles and hoboes Willof people out of work,became fierce. Tapply for a hand£ul of jobs, m~d theknew they were luck2~

$$1’d get up at fh/e In the mominthe watedront,e~y, out~Jde the gates,men. You know dang well there’s only threiobs.~he guy wouldfor the bull gang. Two guythousand men woulddogs to get through them.y’I

For millions of Amerlcans duri~

into povert2~ To survive,from door to doe

Moit male residentso f Hooverviltes hadbeen used to a lifeidlen~ssled todeepfeelings of useless-hess and despag.

Standard English

g Diffio: one room, no electricity, plumbing, or~. Organize the class into mixed-ability parrs.

Have ~ach group review the descriptions Also remind students to be unbiasedand examine the images of Hoovervitles in article arid their headline.

this ~ectiou, 3. Ask volunteers from each2, Have each pair write a newspaper headline

newspaper articles with the class.

and a brief newspaper article describing the [] Interpersonalliying conditions in a Hoovervitle. Remind .~_~’ Alternative ~,ssessment ~students that Hoovervilte shanties provided - Group Activity; and 23: Newspapers

I 5W~rS only the most basic shelter, usually had onlyiding Cheek seve~b economic ",

~g, or fl~sed in

went williout.the early 1930s, no federal govermment

y to the peer.~ and some mm~iclpal and state

bu% ~hese pro-were ~mble to meet tlie need. In 1932

1 in 4 families needing ~emplo~en%

as Hoove~villes. ’l~ds was a bitter refer-to President Hoover, ~vhom many people

r tbe Great Depression.

hands. Not only was boarding a moving trainvery dm~gerous, it was also illegal. Many rail-roads hired ’~bulls; or guards, to chase hoboesoffthe trains.

"Wherever hoboes went, finddng food wasa constant challenge. Townspeople oRen hadlittle food to spare. App~achlng homes to begor steal, hoboes were sometimes met with vio-lence. Across the country, hoboes developed asystem of s)gu language to aler~ each olher togood opportunities--and warn of possibleget s~m a particular town or home.

Most hoboes were men. Many had leftbehind famfiies that lhey coald no longer carefon During the Great Depression, some fami-lies siraply broke apart under the strains ofpoverty and homelessness.

The emotional toll The greatest toll ofthe Great Depression may have been on themhtds m~d sphlts of tlie !hnerican people. Eventhough millions of people shared the same fate,many oftke unemployod saw their situation asa sign of a personal fallure.A~eptingliandoutsdeeply troubled many proud Americans.

~Shame?You telEn’me?"~ca]]od one personwho lived througk the Depression. "~fhe onlyscar it left on me was my pride, my pride." ’l~ae

For people living in a Hoovewille,

the lives they ~se4 to lead often wereimpo[ta nL Hole, pic~ules plovide atouch ot’beauLy to a n otherwise edrn

Hoover~ilIe shackswefe genelally

with whatever

, could be found.Th%were often leakyanddra~b].

HoovervilIes, like this one in New Yolk, were cobbled togetherwith whateve~ people could salvag&Omwl.g Co.cl.slo~s What hardshi#s might the men in thisphotograph have endured?

torlan Skillthe Great Depression

*a list of at least ten~ for ordinary Americans

Depression. Havo studentsprimm3’ sources that answer

~tudents should record theto each of thoir questions.

read their questions and thethe), found, citing the sources they

the primary sourcesand answers

Research Required

to the questions, or if there were similaritiesamong the sources. Have students proposereasons that might account for the similaritiesand the differences.

3. Guide students in a discussion of theimportance of analyzing and contrastinginformation found in various sources.[] Interpersonal, Verbal-Linguistic

~} Alternative Assessment Handbook, Rubrics I:Acquiring Information; and 30: Research

History Close-UpLife in a HoovervilleConstruction and Looatio~

were built from discarded mat~like crates, cardboard, and flattcans. They sprang up throughoU.S.; one even sat iu the middi.York’s Central Park.

Info to KnowHelp forthe unemployed Alth~city governments and charitiesto provide assistance to poor p~the), simply could not meet theof the unemployed. New York,for example, spent $79 millionrelief in 1932--an amount thatonly one month’s wages for ~tunemployed. In t931 Chicago$100,000 a day on retief in an lreplace lost wages that totaled :$2 milliou per day.

BiographyDorothea Lange (1895-1985) DLange was one of the most talephotographers of the DepressicShe began taking photographs ~homeless men wandering the slSan Francisco and later photogmigrant farm workers in CalifoHer photographs document theand suffering, as well as the di~the workers and their families.

AnswersInterpreting Infographics twork, separation from families,problems, poor health, and hun!

ust Bowl so devastat-,l of drought; destroyedl !ves of farmlng familles

,, in the

.~s the Dust Bowl?la, Kansas, Colorado,Texas that were

-,atght..~sed the Dust Bowl?:tu’al practices that

do you think people:-e hostile to migrants

r. lains? did not wautetition in the job~e others fpom coming

ing the Great~: A New View of

~ ~:y, Professor of- at Marquette

~ echniques to givet etter understanding~ppened during the~cession and why it

:,~e Great Depression: A

~)ene Smiley. Ivan R. Dee,

Z3D: SD7 CH2tDUST BOWL

r/laps 1. California,.:~st;2. Kansas, Oklahoma,

1, Movement To what a[eas of the country did Dust8owl migrants go?

2, Region inwhichstateswasit located?

g~m despair people felt was reflectedin a rise h~suicide rates in the early 1930s.

Other people were simply anga’3z There wasa widespread feeling that the nation had failedits hardworking citizens. One popular song ofthe era summed up the mixture of defianceand shame this way:

~60n(e I built a railroad, I made it run, made it

Once I built a railroad; now it’s done. 8tother,(an you spate a dime?~

~ Summarizing lnwhatwaysdid the Great Depression affect rnany Americans?

Devastation in the Dust Bowl

The 9reat dustof a weather cycle, naturally ~ceurrhag ~Great Plains every f~w decades. By th~

left the regdon vulnerable.with g~asses ~ow lay bare to the skyvegetation to hold the soil i~ place.

away the topsoil and

as far as lhe Atlantic Coast. Driftingof dust choked cro~

flaey had mad moved. Babout 2.5 million people had left the

66 to California, Where they settledand sought work ha

684 CHAPTER 21

Reading SkillThe Dust Bowl1, Have each student write a short story

describing what life is like in the 1930s ona farm in the n~ddte of the Dust Bowl. Askstudents to use vivid imagery and accuratedetails. You may wish to assign studentsto conduct additional research to find moredetails to help them with their stories.

they would have left the area toand try to start a new life. What wouldadvantages and disadvantages of each cAs an extension, you maystudents intostudents illustrate the short ~tories. I~ ~Lingaistic~! Alternative Assessment H~

~ Oklmhoma. 23~e

States. It was also

Whatdoyou"

25

orleans ~

sine ans~rage cot

sra public p

#py Ameri~ressio[

up what

after the

a number of dlf-o be insulting.

Great Plains migrants were often me~ by

The pligh~_~ of the migrants captured the ACAOEMKimagination of some of America’s ~reatest VOCAeULARYwriters and artists, including author John PUsht badSteinbeck and singer-songwriter Woody s~tuafionGuthrie. Guthrie’s songs about the Dust Bowldescribe the disaster’s effect on the peopleit touched.

it’s a mighty hard row my poor hands have hoed;My poor feet have traveled this hot dusb] road

;, and PeopleBriefly describe the Great Depression and its

What is the signiflcaace of the fact that them

a bdef definition for the followin~ mrm:

/,’hat can yon infer horn the fact that

~ Elaborate Doyou think those affected bythe Dust 8owlwere victims of nature or responsible for their own fate?

Critical Thinking4, Understand Cause and Effect Copythe chart befow and

use info~matio~ flora the section to identiS] effects of theGreat Depression.

Effects

5, Expository Write an essay in which you descdbe the causes

THE GREAT DEPSESSIO~ BEGINS

:ion 2 Assessment Answers

economic downturn; caused banksfail, massive unemployment

povertyWere forced to fend for

~mselves.nswer~-try to create new jobs;

;umer spendingon outskirts of towna public park

~ny Americans blamed the president for

~ of next electio~

since so many voters are unhappy with hispolicies

3. a. migrants from the Dust Bowlb. they faced resistance and discrimination;struggled to find worku, possible answer--responsible becauseagricultural practices made the region vul-nerable to disaster

4. bank failures; farm failures; unemployment5. Causes--stock market crash, bank failures;

Effects--unemployment, poverty

Devastation in theDust BowlRecall Who were John Steinand Woody Gutba’ie? author;" ;

Analyze Who is the "you" a"your" referred to in the songthe West

-CloseGuide the class in a discussion cdifficulties faced by Americansthe Great Depression.

Review.~ Online Quiz, Section 2~9 Daily Test Practice Traneparenc~

AssessSE Section 2Assessment~ Progress Assessment: Section~} Alternative Assessment Handbm

Retea~hInteractive Reader and Study BuSection 2interactive Skills Tutor CD-ROM

AnswersReading Check left many Ameri,with no way to make an income; m~migrated west& search of work

from The Grapes ofby John SteinbeckH _IP

confused;’x fascinated

rm Write~!nheck Steinbeck is bestr his novels about common/he Grapes of Wrath aroused!’ for the plight of migrant farmand won the Pulitzer Prize);ational Book Award. LikeSteinbeck’s writing before and

:<ely after World War II, The,fWrat/t has elements of social Steinbeck received the Nobel~ literature in 1962.

The "great cross-countryreferred to in this selection

66, which stretched fromto Oklahoma tN:ough largely

,!nmunities. From Oklahoma, it,i a southern course onward to. eles. For the loads, and others;n, Route 66 symbolized the~pportunity.

’3 Like a Historian possib/e,:--yes, because he broughth/and attention to the p/ight ofworkers; possible answer--~ was not limited to a single,.t was shared by an entire

About the Reading Drought, dust sio~mg and newtechnology combined to displacetenant faane~s during the 1930s.ln his Pulitzer Prize-winning 1939 novel The Gropes ofWroth, John Steinbeck tetls the story of the loads, a family who lost everything during theGreat Depression, Like many other fa rallies, the loads beginmigrating from Oklahoma toward California in search bfwolkand a flesh staU,~ Think about the challenges facingfarmers and their families as they leave their homes insearch of new beginnings,

E~cerpt from

by Iohn 5teinbe(kThe cars of the migrant people crawled ou~ of the sideroads onto the great cross-country highway, and theytook fl~e migrant way to the West. In the dayligh~ theyscuttled llke bugs to the westward; and as the darkcaught them, they clustered llke bugs neat" to shel-ter m~d to water: And because they were lonely andperplexed, because they had a~l come from a place ofsadness and worry and defeat, ~d because they wereall going to a new mysterious place, they huddledtogether; they t alke~l together; they shared tbelr lives,their food, and the firings they hoped for in the newcountry. Thus it might be that one family camped forthe spring and for company, and a third because twofamilies had pioneered the place and fmmd it good.And when the sm~ went down, perhaps twenty fami-lies and twenty cars were there.

In th~ evening a strange thing happened: thetwenty fanfilies became one family, the children werethe children of all. 32qe loss of home becmne one loss,and the golden time in the West was on~ dream. And itmight be flint a sick child threw despair into the heartsof twenty famiEes, of a hundred people; that a birththere in a ton~ kept a h~mdr~t people quiet and awe-struck through the l~ight and filled a htmdred people

with birth-joy in the morr&lg. A family whichbefore had been lost ~to find a present for a new baby.ring about the fires, the twenty were one. Theto be units of the campnights. A ~Rar ~apped ~om a b]~e~ ~d~d the songs, which were all of the~ the ~fights.

Reading Like a Historian SkillThe Grapes of Wrath1, Have students reread the passage, taking

notes on the way in which Steinbeckrepresents the time period and historicalsetting of the story. Have students note detailsin the setting, language, actions of characters,and other fictional elements.

2. Have volunteers share items from their notes.Create a class list of images that Steinbeckcreates of life during the Great Depression.

q Clnlrl~ ~mdents in a discussion of the passage

using the following questions asDoes Steinbeck create an accurate

why not? What bias might SIs this passage a validinfom~ation? Why or whyLinguistic

~d}’ Alternative Assessment Haedbook, Rubri~Discussions

liofthe Gre~

i~cardboar~

BEFORE YOU READ

Herbert Hoover~me to office with

READIH6 Focus KEY TERMS1. What was P~esident Hoove(s ~asic assodat~ve state

philosophy about the proper role of H~ver Damgovernment? ~pe~at~ve2, What a~ions di~ Hoover take in R~constmction F~nance

res~n~ to the Great Dep[ession? Corpora~on3. Hew did the natbn ~es~nd to Smear-Hawley Ta~ff Act

How did a ragtag army helpdefeat President Hoover? in 1932the Unffed States was nearing the low

~nowAmedcanshad:enes of homeless, jobless people camped

shacksin public areas But the group ofie 15,000 World War I veterans who set up camp n ear

’ ] 932 was not just another

pay them the veter-bonus a ~ash award they had

$1,25

!~ day for U3. sen~iee, was not

the moneyeir

a order]ystreets and sanita-’turnedto

agreetotheke Bonus

takes notes

Hoove[’s responses to theGreat Depression. Recordyour notes in a graphic

Marchers left town, but a core of them remained, along withwomen and children. In July poffce and U.S. Army soldiersbegan clearing the area of the vetemn~ Violence erupted,and soon the cones Marchers’main camp was i~ flame~Hundreds were injured, and two of the veterans were killed,

Many Am edcans were deeply disturbed by the sis htof US. soldiers using weapons against homeless vetem n~}:or President He~berL Hoover‘ who was akeady facing com-plaints that he did not care enough about the plight of thenation’s poor, the impact was devastating. Asyou will read,tl~e Bonus Marchers incident helped complete the publicview of Hoover as heartless and helpless in the face of thenation’s suffering. ~

their trekto Washington~ D.C,

687

0OVer as Presidenttudents the Reading Focus

~ this section.Divide the class into groups of

students. Have each grouperr Hoover’s philosophy

and government and thenhow his philosophy affected his

tte Great Depression. Have eachts analysis.

Ask volunteers from each group tondings with the class. Guide the

class in a discussion of the ways in whichthe nation responded to Hoover’s handlingof the Great Depression.

4. Practice/Homework Select one ofHoover’s responses to the Great Depression.Have each student ’,;,rite a short newspaperarticle discussing the ways in which itreflected his philosophy. [] Interpersonal,Verbal-Linguistic

~!AlternativeAssessment Handbook, Rubrics 14:Group Activity; and 23: Newspapers

The Inside Story... Use the’ency to help st

answer the question.~ Daily Bellringer Transparency, S

.Academic VocabularyReview with students the high-use ac~term in this section.clause separate section of writing (o.~I CRF; Vocabulary Builder Activity,

Section 3

g Notesassociative state, Reconstruction FinerCorporation, Federal Home Loan Ban~,Smaot-HawleF Tariff

THE GREAT DEPRESSION BEGINS

~s President Hoover’s basic:by about the proper role of~iect? favored governmentthat h~terfered as little asin business

t Hoover’sphy~ow was the associativesed to work? Businessesn vohmtary associations,~ment specialists would

:erenees How might~ction of the Hoovertested Hoover’s belief

~ciative state? possible:"he amount of cooperation

’.~t companies was huge,ever beenfuced before by

~ What do you think Hoover"’ragged individualis~n"?

msibilityfor his or her ownid for oneself~imary Source Activib/: A,.] Activist Describes Migrant~g in Californialisffiry and Geography Activity:~ Hoover’s Dam

E’{WORD: SD7 CH21 C: THE HOOVER DAM

ers

Herbert Hoover’s PhilosophyHerber~ Hoover came te the presidency with aset of core beliefs that he had formed over a longcareer in business and governmen~ service. He

"Rugged Individualism" Hoover had~

Reading SkillHerbert Hoover’s Philosophy1. Have each student write a few sentences

explaining President Hoover’s philosophyconcerning the proper relationship amongcompanies designed and bugt

governmentprovided funding; government, business, and working peopleided electricity and water to~voa statesI Cheek government:,/as lii~le a role as possibleArs of business; voluntary,~s between business-ns and government

"rugged individualism"; tmnecessarygovermnent threatened prosperity; privatebusinesses arid federal government couldwork together

2. Have students review the information m

~’~ One of the great Idetermine to whatshall interfere with (ommerce and irhow much itBy adherence to the principles of... o

iment has yielded a degree of well-helne[eled [n all the wodd.)’~

Hoover did not reject the idea

hess. Nor did he advocate lettingbusinesses do exactly as theybefieved deeply that it was vlfal for iwelLbe~ng not to desireown responsibfiit~y a~xd power.

The associativenot role out cooperation h~ Hoover’snesses, he believed, should formassociations that wouldfairer and more efficient. Skilledspecialists would ~hen "cooperate

b~gh public purposes.~ lfeover had

ccdled it the associative state.

and Coolidge administrationsput these beliefs into practice. He otogether meetings

provided funding for the project,

Hoovei’s main beliel3 about govern menC :

supporting or opposing Hoover’sthe roles of government, business,people. Have volunteers read theirpapers.Organize a classsupported Hoover’s economicphilosophy and students who e[] Logical-Mathematical, VerbaI-Lin

.~’ Alternative Assessment Handbook, RuDiscussions; and 37: Writing Assign=the chapter and then write a position paper

.r s Res teatcore beliefs

aofloans to c~

6. Coopera~

;s, and t~

)oliciespposed i

poose to

Great Depression

cooperation l~(~ver put thesehate practice before lhe stock market

n he looked for ways to assist thefarmers. IIe pushed for a

ould help farm-’s that would rMse crop

increase farlners’ income.

tlnued to rely on his basic bellefia voltmtary

government. He called together raany of thenation’s top business and government leadersand urged them not to lay offworkers or cut

sorted, workers would have plenty of raoney tospend on consunmr goods, m~d the worst of the

Direct action Unfortunately, the presidentfound it difficult to rally cooperation. In theface of economic dJsastor, indi~dduals madedecisions according to their own economicinterests. Businesses cut jobs and wages. Statemad local govemmente ~tepped their buildingprograms, throwing many people out of work.Consttmers stopped spendhag. As a result, theeconomy plunged into the Great Depression.

The growing crisis eventually persuadedHoover to break somewhat with his beliefs.At Iris urging, Congress created in early 1932

effectsof~e Creat Crash would eventealIy‘ ease without

ySecCetaryspecially relucla nt to ~ nd

ppeared thleele 1932 presidential election.

President Herbert

bY tralning’is uasule ihow to put the carbacktogether again. I

Ogden L Mills attempts

Interpreting Political Cartoons Whatr~es-sage is the ~atteonist t~ing to convey, and whatdetaiisin the drawing support that message?

THE GREAT DE PRESSION B[GINS 689

Learners/GATEresearch the cooperative

each student develop a list~t kinds of cooperatives that

voluuteers name the types of, have found. Create a list for

into small groups anda different type ofeach group research its

purpose,

Research Requiredho~v it works, examples, aod other pertinentinformation,

4. Have volunteers share the group’s findings.Students may wish to use various media intheir presentations.

5. Guide the class in a discussion of thesimilarities and differences among thedifferent cooperatives, their advantages anddisadvantages. [] Interpersonal

~j’Alternative Assessment Handbook, Rubrics 22:Multimedia Presentations; and 30: Research

What actions did Hoover taresponse to the Great Deprpushed for loans for fm.m crives; ut~ed Congress to esReconstruction Fb~ance Coand the Federal Home Loa~signed the Smoot-Hawley Z

Hoover’s ResponseGreat DepressionExplain How were cooperasupposed to help farmers? b3ing groups to buy materialsvrices; market crops to get b,~ricesEvaluate Why did cooperalmovements backfire in the fa,nomic disaster? Individualshtterested in their own well-bhr cooperath~g for the commc~’ U.S. History Political Cartoor,

Cartoon 42: Hoover and the

Primary Source"Econoinic depression canuot 1by legislative action or executi,nouncenrent. Economic woundbe healed by the action of the cthe economic body--the produ~consumers themseh,es."

HerberMessage to Congress, Dece

AnswersReading Like a Historian [Ioformer engineer, does not know tsolve the problem; looking ar partputting them together

aLien respond to Hoove(s

~Responds

~lid Hoover have aedibility? He contin-

: iufistic claims abouttize nation slid deeper

ents Do you thinkLfld have been moret: a balanced federaloverspending and

mment to help people?

,:ould be balanced

t poorlv;heseomedor fix problemshe pushed for

~s, urged businesseaders notre cutes. authorized the/aance Corporation andHawley Tariff Act

the Reconstruction Finance Co}potation (RFC),A key clause in the RFC legislation autho-rlzod up to Sg billion in direct governmentloans to struggling banks, insurance compa-nies, and other institutions. Later that yeagHoover asked Congress to create the FederalHome Lom~ hank. The ~ew program encour-aged home buildhag and roduced the mmaberof home foreclosures. These measures markeda Nstorle expansion of the role of the federalgovernment in the business of the Americanpeople. Still, for many citizens, Hoover’s actionswere too little, too late.

Tire Sntoot,Hawley Tariff Act One of

crisis backfired badly. In 1930 he signed the

the cost of imported goods for Ammfema con-stuaers, making it more likely that tlmy wouldpurchase the chexper Amertcm~ goods.

The Smoot-Hawley TmfffAct was a dlsas-tea The tariffrat~ were set at histm~cally bJghlevels.When European nations responded wlthtmSffs on American goods, trade plunged. By1934 global trade was down roughly two thirdsfi~m 1929 levels.~ Summarizing Whatac[ionsdid Hoover take to improve the economydudng theGreat Depression?

Few president~ haveentered office seem-ingly as well preparedand qualified as HelbertHoover, yet the Great

could not solve through sheer btillia nee and dogged bard work Buthis failure to make headway againt the Depression combined with hi!~eluc~ance to provide punk teliefsoelled ele~oral disaste~

Following his defeat, Hoove~ wrote book~ and continued to ser~e

Hiswork streamling the executive branch for presidents Tiuman and

eadier public service?

The Nation Respondsto HooverHoover had entered office believing thaier~ment should seek to avoid directment in the lives ofindlviduals and

beliefs mad bega~ to push for some form~direct relle£ In spite of his effortHoover increasingly came under attack forhandling of the Great Depression.

"rite president loses favor }quent optimistic claimsslowly unde~minod his credibility withEmqy in the crJsls, as millions oflosing their jobs, he proclaimod the basi~nomic foundation of the nation to be~1 am convh~cod," he told the nation, ~thathaveyet to come.

Hoover later spoke glowinglyeflhrts being"Industry madsocial obligation," he said in Februar"Never before in a great depression hasbeen so systematic atress.’* Millions of jobless Americanshare Hoover’s

ing direct relief to people became harder

Hoover fmally broke with his statod l~and pushed for programs such

wondered why he wasof dollars to banks ato indi~duals

Bonus March The Bonu~further dmnaged Hoover’s reputation.photographs of armed soldiers tunarmedbled many obsmwers.time obsmwed, "If the Armyupon to make war on unto’reed citizensno longer America."

Hoover’s cArmy marchers stemmed partly from a

to End the Depressionbrainstorra and develop two

;ures that they believe mighteconomic recovery in the

!’hen have students revie~v~n in the [ext about Hoover’s:lp end the Depression.rns understand how the Hoover

copy and ;omptete it.3. Guide the class in a discussion of Hoover’s

" attempts to help the nation recover. Howsuccessful were they? How did they comparewith the ideas students came up with duringtheir brainstorming session? [] Intrapersonal,Verbal-Linguistic -

tried to bring the United States ~ Alternative Assessment Handbook, Rubric 7:at Depression, copy the chart Charts ’r students to see.Have stiMents " - -

Hoover and the Great DepressionEffort Descriptionassociative state

cooperatives

Federal HomeLoan BankSmoot-Haw~ey

order to a

a lm’ger tmunpopula~

publicwit

controlled C,

Republicans bthe 1932 pra that the v

i~!deodfy What

in

th his stateds

usinesses but

To meet th~s goal,pushed for and got a~increaseln 1932.At a

react q"ne 1930

with Hoover’sRepublican Party

~ of the 1920s. ha 1930, how-

the I~S. House of Representatlves.

in the Senate.it seemed

it the votel~ wotfld reject Hoover at

m~d Hoover’s ability to iafluence

until October, little

more than a month before the election. Themain question now was who the Democratswould pick to run against him, mad what thatcap.date would do to end the nation% grie£

Ideas, Terms, and People, What were ~,vo key ideas that helped shape

In what ways were Hoover’s basic beliefs similarof Presidents Ha[cling and Coolidge?

your epinion about Hoover’s belief in the

! De fend Hoover’s corn mitment to avoi6ing direct

general reaciion of the Americanpedo~mance?

iefs contrast with what

v. aeslgn Whataresome~eliefprogramsthatHoove(sDemocratic opponent might suggest?

Critical Thinking4, Understanding Cause and Effect ~opythe chart below

an d use inrolmation from the section to identify effect~ ofHoove(s pmsonal philosophy on gore mmenL

S, Persuasive Wdtealeffer totheeditorinwhkhyoueithe~defend o~ citicize Herbert Hoover’s a pploach to the stockrna[ket ~ash an d the depression that followed. Use 6etailsflora the section to support you~ position.

TH E GREAT DE PRESSION B£GINS 691

gged ~ndw dual sm associative stategovernment should not interfere

r--Hoover placed too,ottance on individualism.

,ization owned, controlled by its mem-~ggling banks; raised the cost

~ineffective because most indivi-de decisions based on their own

interestsaten the

principle of individuality, the spirit of America.3. a. blamed and attacked him

b. Americans favored direct governmentrelief; Hoover favored little direct governmenthelp.c, possible answer--direct aid program forthe poor; government subsidies and roans

4. Hoovervilles; farm losses, unemployment5. possible answers--Americans need to help

themselves; uncaring government resulted infinancial disasters for most Americans

Info to KnowThe Bonus Army One oflas MacArthur’s aides pr,of troops against the Bonaide, Dwight D. Eisenho,manded Allied forces dulinvasion of Normandy, F~War H, and served as pre:t953 to 1961.-~_~VI’ CRF: Biography: Bonus

CloseHave students semmarizewhich Herbert Hoover aUwith the Great Depressiol

Review~2 Online Quiz, Sect on 3~ Daily Test Practice Trans

AssessBE Section 3 Assessment~’ Progress Assessment:.~’ Alternative Assessment I

Reteach~’ Interactive Reader and

Section 3interactive Skills Tutor

AnswersPhoto by voting Hoover aRepublicans out of officeReading Check possibhHoover pushed for the RecFinance Corporation, whic,and businesses, but did noindividuals.

During the~at Depression

Helpmunal shared

, to KnowOne Has Starved" In 1932 artistaald Marsh made an etchinging men standing in a breadHe gave it the title "No One Has’ed," after a comment that had been~ by Herbert Hoover. His etctdng,:he photograph in Document 1,:Fated the dehumanizing andiiating aspects of unemployment.,er’s comment also served as thevf an article in the Septemberissue of Fortune magazine.

"rding to the article, "The directore President’s Organization on~ployment Relief, Mr. Walter S.rd of the American Telephone?zlegraph co., was forced to~wledge before a subcommittee: Senate in January, 1932, that heot know, nor did his Organization’ how many persons were out ofand in need of assistance in thenor even how many persons were~!ly receiving aid at the time of:stimony."

to Know";ise of Social Work At the begin-*f the Great Depression, most so-~ork was done by private charitableizations. As the number of unem-

:d people grew, private agenciesthemselves overwhelmed. Local

r.aments tried to step in, but had~?eal to the states, which in turn:2ed to the federal government.

Historical Context The documents below provide different types of information onthe life during the Great Depression,Task Examine the documents and answer the questions that follow. Then you will beasked to write an essay about life during the Great Depression, using facts from thedocuments and from the chapter you just read to support the position you take in yourthesisstatement,

During the Depression many £m~filies found them-selves standing helplessly h~ lilies to gel donated foodmM clot biog. A great many of these people never imag-ined~ {’hey would be in such a sltua~ion. 23ae photographbelow shows people stmedJng in a relieflh]e hx SanAaato~io, Texas, to receive aid.

Charities did what, they could to help the needy, but iiwas often not enough. Social worker Nel

women, and children would come and go through thesoup line once a day--it was bad. They had a blacksoup line, of cours~ There was no such thing as just

you were black and they were whit~ They would havehot soup and sometimes just coffee and bread thadonated flora some of the bakeries...

[As part era government program,] I had to b~for the families Even bad to buy c]othe~ We wouldthe mothers to the stores on Edgewood Avenee...Wewould buy the clothing,then older andtwenty.five.cent bags of coal.

I remember the [ea~ of 2t0 Buger Sneer. Thiswasalong tenement house. I would have to go get some glo-cedes in the house, eL take coal to give them to makesfile in those l~le ~oom~ Sometimesseven or eiple would live in one room. They had a comrnunal toileioulside. It was a deplorable [holdble] sell of thing. Andthat’s wh ere our die nts lived, this is the kind of ~eliefand wolk with families that I started off doi

692 CHAPTER 2t

Social Work in the Great DepressionI. Divide the class into small groups. Have each

group make a needs assessment, or a list ofproblems that people faced during the GreatDepression. Then have students make a reliefplan, or a list of services to provide relief foreach of the problems.

2. Have each group share its needs assessmentand relief plan with the class. Create a classlist on the board.

3.Have each student write a letter to a memberof Congress from the perspective of a social

worker during the Great Depresshould use their needs assessmentsplans to help convince their congresspersoa iivote to fund relief efforts.

4. Have volunteers read their letters to[] Interpersonal, Verbal-Linguistic

~i Alternative Assessment Handbook, Rubric 43:Writing to Persuade

People showed remarkable generosity dining the hardtimes. Ki/~y McCull~ch, a yotmg seamstress, recalledher experiences.

~There were many beggars, who w~u#d come to you rbackd°or, and they would say they Were hungr~ iwouldn’t give them money beta use I didn’t have it. ButI did take them in and put them in my kitch en and givethem something to eat.

One eldedy roan that ha d white whiskers and all,h e ca me to my back doo~. He was pretty much of a phi-los~pher. He was just charming. A man probably in hissixtie~ And he did look like St. Nkholas, l’tl tell you that.I gave him a good, wamn mea!. He said, ’bring me a pen-d] and pape~ and 111 draw you a piCture: So he sketched.And was really good. He was an adist‘

Ama n cam e to my doo~.. He said, ~(o11 don~t sup-pose you could have a couple of shirLs you could giveme, old shids ofyour husba nd’s71 said,’Ob, l’m so verysor~ my h usba~d hasn’t a nythi~g but o~6 shirts, ~eag)~That’s al~ he has dght now and lie weals those,’ He said,

ady, ffl get some extra ones, 11~ ~ome back and givethem toyouF

Info to KnowCalifornin’s Migrants Many migrantworkers faced discriminatory attitudesfrom California fanne~. As new whiterefugees anived from the Dust Bow!,fataners and other employers oftenreplaced Latino and Asian workerswith whites. In attswer to pressure fromwhite farm owners, state and localgovermnents began to "repatriate"Mexicaus, sending them back to Mexicoby the busloed. The authorities did notdistinguish behveen Mexican citizensand Mexican American U.S. citizens Many of the Latino workers whoremained organized labor unions withAsian Americans attd members of other~ees in an attempt to protect their jobsfrom discri~ninatory practices.

L a, eestribe ~efer to Document I Descdbe the e×pres.

k Elab0tate H°wdoyouthinkthesepeoplefeltabout

3, a. Identi~ Re~e to Do~ment 3. What a e "

4. a, Identify Refer to Document 4.What were the beg-gars who came to McCollu~’s door seeking?

~ding Like a Historian SkillWorkers in the Great Depression

1. Orgaaize the class into small groups. Haveea.cb group look for five photographs of

~ C:~ Students write a caption for each hoto!,!lens Shah d attem,-t ,^ --- , . - p "

pr~::2 in he pbotograph, or they may"uniUng Commentery that will link

Research Required

the photographs, turning it into a graphicessay or Story.

3. Have volunteel~ share their photos and theirpaptions with the class. Then guide the classm a discussion of what images these photoscieate of life for migrant workers during theGreat Depression I~ Visual-Spatial, Verbal.Linguistic

~Alternativo Assessment Handbook, Rubric 14:Groep Activity

Reading Like a Historian1. a. possible answer--frustrated‘anxioos;b, possible answer--embarrassed, humiliated,.2, a. Shehad to buy milk, clothing, and coal, anddeliverthem to families on relief, b. soupfines ware segregated,. 3. a. pickingbroccol~’b. Families appearto beworking together and looking after oneanother, 4. a, food, clothing; b. kind;trying to help each other;5, possibleanswer--many people relied on relieffrom the communily and government;families lived together, worked together,and helped one another to survive