HERBERT HOOVER DIKE Herbert Hoover Dike REHABILITATION PROGRAM
Roots of the Great Depression The Rise of Herbert Hoover By the late 1920s, Herbert Hoover was very...
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Roots of the Great
Depression
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The Rise of Herbert The Rise of Herbert HooverHooverBy the late 1920s, Herbert Hoover was very popular
Hoover was became a hero during World War I for his
leadership guiding the
Food Administration
Hoover was Secretary of
Commerce under both Warren G.
Harding and Calvin Coolidge during the ‘20s
“Given the chance to go forward with the policies of the last eight years, we shall soon with the help of God, be in sight of the day when poverty will be banished from this
nation.” – Herbert Hoover, 1928
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Hoover Becomes PresidentHoover defeats Democratic
nominee Alfred E. Smith in the Election of 1928
Two Reasons Two Reasons Hoover wins is Hoover wins is Prohibition and Prohibition and
ReligionReligion
Hoover was for Prohibition and was a Protestant; Smith was against
Prohibition and was a Catholic
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Republicans Keep Control•Hoover was the third Republican president in a rowHoover was the third Republican president in a row
Herbert HooverHerbert HooverCalvin CoolidgeCalvin CoolidgeWarren G. Warren G. HardingHarding
•Followed fellow Republicans Harding and CoolidgeFollowed fellow Republicans Harding and Coolidge•Continued “laissez faire” economic philosophyContinued “laissez faire” economic philosophy
•Felt government should not interfere with the economyFelt government should not interfere with the economy•Hoover called his policy “rugged individualism”Hoover called his policy “rugged individualism”
•People were encouraged to invest in the stock market to help People were encouraged to invest in the stock market to help business business
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The Mellon PlanAndrew Mellon was the U.S. Secretary of the Treasury who Andrew Mellon was the U.S. Secretary of the Treasury who
was important in developing the U.S. economic policy during was important in developing the U.S. economic policy during the 1920s the 1920s
1)1) He reduced government spending He reduced government spending and cut the federal budgetand cut the federal budget
2)2) He refinanced the national debt at He refinanced the national debt at a lower interest rate to greatly a lower interest rate to greatly reduce the U.S. debtreduce the U.S. debt
3)3) He persuaded the Federal Reserve He persuaded the Federal Reserve to lower the interest rate for the to lower the interest rate for the general publicgeneral public
4)4) He worked to reduce taxes with He worked to reduce taxes with the belief that it would allow the belief that it would allow businesses and consumers to businesses and consumers to spend and invest their extra spend and invest their extra moneymoney
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People believed Hoover and Mellon when they said that the economy was healthy.
The Dow Industrial Average was up 30 pts. People rushed to buy stocks.
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Warning signsWarning signsThere were numerous warning signs in the late There were numerous warning signs in the late
1920s that the economy was beginning a 1920s that the economy was beginning a downward turn:downward turn:
There was an uneven distribution of wealth. There was an uneven distribution of wealth.
Large companies dominated economy. Large companies dominated economy.
Too many Americans were buying on credit. Too many Americans were buying on credit.
Overproduction of goods.Overproduction of goods.
People gambling on the stock marketPeople gambling on the stock market
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The Stock Market
Many people in the Many people in the 1920s bought stock ‘on 1920s bought stock ‘on margin’, meaning they margin’, meaning they
paid for a small paid for a small percentage of the stock, percentage of the stock, with the agreement they with the agreement they
would pay it off laterwould pay it off later
The stock market is a system for The stock market is a system for buying and selling shares of buying and selling shares of stock in a company, thus owning stock in a company, thus owning a small piece of the company. a small piece of the company.
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The Stock Market CrashesBeginning on October 29, Beginning on October 29,
1929, the Stock Market 1929, the Stock Market collapsed, losing almost 50 collapsed, losing almost 50
percent of its value in a month percent of its value in a month
The Stock Market The Stock Market crash marked the crash marked the
beginning of the Great beginning of the Great DepressionDepression
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The Great Depression The Great Depression BeginsBeginsThe Great Depression The Great Depression
was a severe economic was a severe economic depression that depression that
dominated the 1930s.dominated the 1930s.
The Great Depression was The Great Depression was the longest, most widespread, the longest, most widespread,
and deepest depression in and deepest depression in United States History.United States History.
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The Great Depression The Great Depression BeginsBeginsThe Great Depression The Great Depression
started in about 1929 and started in about 1929 and lasted until the beginning lasted until the beginning
of World War II.of World War II.
Personal income, profits, Personal income, profits, prices, as well as trade prices, as well as trade dropped dramatically. dropped dramatically. Unemployment in the Unemployment in the
U.S. rose to 25%.U.S. rose to 25%.
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Causes of the Great Causes of the Great DepressionDepression
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1. Overproduction of goods1. Overproduction of goods
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2. Too Many People Buying 2. Too Many People Buying on Crediton Credit
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3. Uneven distribution of 3. Uneven distribution of wealthwealth
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4. Crash of the Stock Market in 1929
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5. Numerous Bank Failures
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Hoover and The
Depression
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Banks Begin to FailBanks Begin to FailBanks were the first
thing hit by the stock market crash as numerous banks closed their doors
When the stock prices fell, many
banks lost money on their
investments.
People who had deposits in these People who had deposits in these banks lost all their savings. banks lost all their savings.
Others took their deposits out as Others took their deposits out as quickly as possible, creating runs.quickly as possible, creating runs.
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A Bank RunA Bank RunA bank run occurred when people, fearing the bank would go bankrupt, rushed to the bank to take out their money
A bank run led to the closing of a bank
because all of the banks money would be gone
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Hoover Responds
Hoover met w/bankers, businessmen,& labor leaders.
He asked employers not to fire workers or lower their pay.
He asked labor leaders not to ask for higher pay or to strike.
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Reconstruction Finance Reconstruction Finance CorpsCorpsThe The Reconstruction Reconstruction
Finance Corporation Finance Corporation was the government was the government agency that gave $2 agency that gave $2
billion in aid to state billion in aid to state and local governments and local governments
and made loans to and made loans to banks, railroads, farm banks, railroads, farm mortgage associations, mortgage associations,
and other businesses.and other businesses. The main purpose of the The main purpose of the RFC RFC was to create jobs for Americans was to create jobs for Americans who wanted to workwho wanted to work
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The Hoover DamHoover used the Boulder Dam project as a model of how Hoover used the Boulder Dam project as a model of how
federal government could encourage cooperation with federal government could encourage cooperation with private groupsprivate groups
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Hoover believed that charities or state and local governments - not the federal government – provide
food & shelter to people who were poor or out of work.
Relief line waiting for commodities, San Antonio, Texas.
Hoover FederalismHoover Federalism
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Despite Hoover’s hope, the economy continued to shrink & unemployment continued to go up
Unemployed workers sit in front of a shack with Christmas Unemployed workers sit in front of a shack with Christmas tree, New York City, in December, 1937.tree, New York City, in December, 1937.
The Depression The Depression WorsensWorsens
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Turning Against Hoover
In the 1930 elections, the Democrats gained more seats in Congress
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Farmers burned crops & dumped milk rather than sell it for less than it cost them to produce it.
Fields of uncut wheat northwest of Great Falls, Montana.
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HoovervillesMany homeless Many homeless
people were forced people were forced to live in shacks or to live in shacks or “shanties” during “shanties” during
the Depressionthe Depression
Because many felt that Because many felt that President Hoover was to President Hoover was to blame, some people called blame, some people called these places Hoovervillesthese places Hoovervilles
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THE BONUS ARMY
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In 1932, WWI veterans came to the Capitol in
Washington, D.C.
These veterans had been promised bonuses to make up for their poor wartime pay.
Congress was about to vote on a bill to give the vets their bonuses so they wouldn’t have to wait.
The Bonus Army
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Thousands of veterans & their families came to
D.C.
This so-called BONUS ARMY set up tents to live in near the Capitol
building.
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At first, Hoover sent the veterans food….But after the bonus was voted down in
Congress, Hoover told the veterans to leave.
• About 2,000 stayed. Hoover ordered the army to use force to remove them.
• The sight of U.S. Army troops using tear gas on U.S. war veterans outraged many people.
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Shacks put up by the Bonus Army on the Anacostia flats, Washington, D.C., burning after the battle with
the military, 1932.
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HOOVER VOTED OUT!! Many people blamed Many people blamed
Hoover for their Hoover for their economic problemseconomic problems
Bonus Army debacle Bonus Army debacle was final blowwas final blow
In 1932 election, In 1932 election, Hoover faced Democrat Hoover faced Democrat Franklin D. RooseveltFranklin D. Roosevelt
Roosevelt, New York’s Roosevelt, New York’s governor, wins in a governor, wins in a landslidelandslide
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The Election of 1932The Election of 1932
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Life During the Life During the DepressionDepression
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The Depression brought suffering &
hardship to many Americans.
Hard economic Hard economic times ruined many times ruined many
people’s lives.people’s lives.
Millions lost jobs, went hungry, or Millions lost jobs, went hungry, or became homeless.became homeless.
Effects of the Effects of the DepressionDepression
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Many people turned to charitable organizations
in order to survive
Many people resorted to soup kitchens and bread
lines for their food
Turning to CharitiesTurning to Charities
Charities became an Charities became an major source of assistance major source of assistance to many who were “downto many who were “down
on their luck.”on their luck.”
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Soup Kitchens
Where charities served meals to the needy
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Bread Lines
Those who couldn’t afford to buy Those who couldn’t afford to buy food stood in bread lines to receive food stood in bread lines to receive
free food.free food.
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New York. Bread line beside the Brooklyn Bridge approach
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THE DUST BOWL
What were the causes?
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Drought Hits the Great Drought Hits the Great PlainsPlains
• There was little rain from Texas to North Dakota
• Much of this area had been grassland that farmers broke up with their plows to grow crops
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Soil was exhausted from over-farming.Grass that had once held the soil in place was
gone.
When winds swept across the Great Plains, the soil blew away.
This dry area of blowing soil called the DUST BOWL.
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Huge dust storms covered the Great Plains and blew dust as far away as the East Coast
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Dust Storm in Rolla, Kansas; "05/06/35; Dear Mr. Roosevelt, Darkness came when it hit us. Picture taken from water tower one hundred feet high. Yours Truly, Chas. P. Williams." Photo: Massive Dark cloud approaching
village in forefront.
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Migrant Workers
Many farmers packed up their belongings & Many farmers packed up their belongings & started for California to look for work started for California to look for work
These farmers became MIGRANT These farmers became MIGRANT WORKERS moving from place to place to WORKERS moving from place to place to
pick cropspick crops
Many came from Oklahoma, so migrant Many came from Oklahoma, so migrant workers were often called Okiesworkers were often called Okies
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Migrant family looking for work in the pea field of California. (Circa 1935)
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While the Great Depression caused
much suffering, sometimes it
brought out the best in individuals, families, and communities.
Many people shared resources with neighbors or gave food & clothing to the needy.
Helping one anotherHelping one another
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Many farm families couldn’t meet their mortgage payments
From 1929 to 1932, about 400,000 farmers lost their land when banks foreclosed
Struggling Farmers
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Penny AuctionsPenny Auctions
When banks began foreclosing on the farmers land, When banks began foreclosing on the farmers land, the farmer’s friends would buy it back at auctions for the farmer’s friends would buy it back at auctions for
a penny. These were called penny auctionsa penny. These were called penny auctions
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Farm foreclosure sale in Iowa. (Circa 1933)
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Families broke apart under the strain of poverty & unemployment.
Many men felt ashamed because they lost their jobs.
Some men left their families & wandered the country looking for work.
Depression leads to Depression leads to depressiondepression
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HobosHobosMany homeless people began to wander around the country, walking, hitchhiking or, most
often, “riding the rails” (hopped on trains).
These men who wandered the country were
called “hobos”
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Toward Los Angeles, California. 1937. Photographer: Dorothea Lange. Perhaps 2.5 million people abandoned their homes in the
South and the Great Plains during the Great Depression and went on the road.
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Unemployed men vying for jobs at the American Legion Employment Bureau in Los Angeles during the Depression
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Depression Literature Depression Literature & Art& ArtNovels such as John Steinbeck’s Novels such as John Steinbeck’s Grapes of Wrath Grapes of Wrath gave gave
readers a vivid account of what life was like during the readers a vivid account of what life was like during the Depression.Depression.
Grant Wood’s Grant Wood’s American Gothic American Gothic showed traditional American showed traditional American
values, particularly those of rural values, particularly those of rural Americans in the Midwest. Americans in the Midwest.
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Many families pulled together during the hard time and shared what they earned. Instead of
going out for entertainment, parents & children often stayed home to play games or listen to radio.
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Children suffered terribly during the Children suffered terribly during the DepressionDepression
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Many children had poor diets & no health Many children had poor diets & no health care.care.
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Many children ran away from home, Many children ran away from home, hopping rides aboard freight trains.hopping rides aboard freight trains.
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FDR and the New Deal
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Election of 1932
Democratic Candidate: Franklin Democratic Candidate: Franklin RooseveltRoosevelt• Governor of New YorkGovernor of New York• Reformer/ProgressiveReformer/Progressive• Distant cousin of Teddy RooseveltDistant cousin of Teddy Roosevelt• Believed in government intervention to solve Believed in government intervention to solve problemsproblems
Republican Candidate: Herbert Republican Candidate: Herbert HooverHoover• Presidential incumbentPresidential incumbent• Many people blamed him for DepressionMany people blamed him for Depression• Despised for treatment of Bonus Army Despised for treatment of Bonus Army • Believed economy would recover without Believed economy would recover without government interferencegovernment interference
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VOTED OUT!!• Roosevelt defeats Roosevelt defeats
Hoover in a landslideHoover in a landslide
• Electoral College: Electoral College: 472 to 59472 to 59
• Roosevelt wins every Roosevelt wins every state but sixstate but six
• Roosevelt becomes the Roosevelt becomes the 3232ndnd President of the President of the United StatesUnited States
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ROOSEVELT WINS IN A ROUTROOSEVELT WINS IN A ROUT
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FDR TAKES OVER“The only thing we have to fear is…
fear itself!”
-- Franklin D. Roosevelt
Inauguration speech
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FDR’sFDR’sFIRESIDFIRESIDE E CHATSCHATS
Roosevelt used radio Roosevelt used radio addresses to assure the addresses to assure the nation, keep them nation, keep them informed, and let them informed, and let them know that he was know that he was working for themworking for them
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THE HUNDRED DAYSAmericans wanted the government to take Americans wanted the government to take
immediate action to solve the nation’s immediate action to solve the nation’s economic problemseconomic problems
In his first HUNDRED In his first HUNDRED DAYS in office, FDR has DAYS in office, FDR has Congress pass, and he Congress pass, and he signs into law, numerous signs into law, numerous laws in an attempt to end laws in an attempt to end the Great Depressionthe Great Depression
During those 100 days of During those 100 days of lawmaking, Congress lawmaking, Congress granted every "request" granted every "request" that Roosevelt asked forthat Roosevelt asked for
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Emergency Banking Emergency Banking Relief ActRelief Act
Law passed by Congress that would close down Law passed by Congress that would close down insolvent banks and reorganize and reopen those insolvent banks and reorganize and reopen those
banks strong enough to survive.banks strong enough to survive.
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THE NEW DEALRoosevelt’s
economic plan for the recovery
of the U.S. economy
“…I pledge you, I pledge myself, to a NEW DEAL
for the American people.”
-- FDR Democratic National Convention
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THE FIRST NEW THE FIRST NEW DEALDEALThe First New Deals laws focused on three The First New Deals laws focused on three
things:things:
3. Helping farmers
2. Fixing the banking crisis
1. Putting people to work
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Civil Works Civil Works Administration Administration
Hired workers directly to improve Hired workers directly to improve airports, roads, bridges and airports, roads, bridges and playgroundsplaygrounds
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Securities Securities Exchange Exchange CommissiCommissi
onon
Agency created by the government to Agency created by the government to oversee the stock market and prevent fraudoversee the stock market and prevent fraud
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Federal Federal Deposit Deposit Insurance Insurance CorporatiCorporationon
Government agency created Government agency created to insure bank accounts and to insure bank accounts and
gain confidence in banksgain confidence in banks
The purpose was to inspire people to have The purpose was to inspire people to have enough trust in the banks to start making enough trust in the banks to start making
deposits in the bank rather than withdrawsdeposits in the bank rather than withdraws
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Agricultural Agricultural Adjustment Adjustment
AdministrationAdministrationCongress declared that they had the right to balance Congress declared that they had the right to balance
supply and demand for farm commodities so that prices supply and demand for farm commodities so that prices would support a decent purchasing power for farmerswould support a decent purchasing power for farmers
AAA controlled the supply of seven "basic crops" – AAA controlled the supply of seven "basic crops" – corn, wheat, cotton, rice, peanuts, tobacco and milk – corn, wheat, cotton, rice, peanuts, tobacco and milk – by offering payments to farmers in return for taking by offering payments to farmers in return for taking
some of their land out of farming, not planting a crop. some of their land out of farming, not planting a crop.
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National Recovery National Recovery AdministrationAdministrationPut limits on prices, set minimum wages, set Put limits on prices, set minimum wages, set
maximum amounts of hours one could workmaximum amounts of hours one could work
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Public Works Administration Public Works Administration (PWA)(PWA)
Gave contracts to businesses to build highways, dams and facilities Gave contracts to businesses to build highways, dams and facilities
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Civilian Conservation Civilian Conservation CorpsCorps
Created jobs such as Forest Rangers and Game WardensCreated jobs such as Forest Rangers and Game Wardens
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Federal agency that revitalized the Tennessee River valley Federal agency that revitalized the Tennessee River valley by building 16 dams to control flooding, generate hydraulic by building 16 dams to control flooding, generate hydraulic
power, and increase agricultural production. power, and increase agricultural production.
Tennessee Valley Tennessee Valley AuthorityAuthority
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FDR’s Second FDR’s Second TermTerm
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The Second New The Second New DealDealDemocrats made further Democrats made further
gains in the House and the gains in the House and the Senate in the 1934 Senate in the 1934
electionselections
Roosevelt saw the Roosevelt saw the results of the mid-term results of the mid-term elections as a mandate elections as a mandate
to continue with his to continue with his New Deal planNew Deal plan
Party Total seats (change)Seat percentage
Democratic Party
322 +9 74.0%
Republican Party
103 -14 23.6%
Wisconsin Progressive Party
7 +7 1.6%
Farmer-Labor Party
3 -2 0.6%
Totals 435 +0 100.0%
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Works Progress Works Progress AdministrationAdministration
Under the WPA, 8.5 million workers built miles of Under the WPA, 8.5 million workers built miles of highways, roads, public buildings, parks. highways, roads, public buildings, parks.
The WPA was The WPA was the largest New the largest New Deal agency; it Deal agency; it
created created construction construction
jobsjobs
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Works Progress Works Progress AdministrationAdministrationThe WPA also created The WPA also created
jobs in artwork and jobs in artwork and writingwriting
Posters and slogans Posters and slogans were created to promote were created to promote the general welfare of the general welfare of
citizenscitizens
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Federal Housing Federal Housing AuthorityAuthority
Its intent was to regulate the Its intent was to regulate the interest rate for people interest rate for people buying houses, which buying houses, which
increased the amount of increased the amount of people who could afford a people who could afford a down payment on a house.down payment on a house.
The National Housing The National Housing Act of 1934 was passed Act of 1934 was passed
and the Federal and the Federal Housing Administration Housing Administration
was created. was created.
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Birth of Social Security
• Passed to give unemployed and elderly a safety netPassed to give unemployed and elderly a safety net• Gave unemployed people money until they got a jobGave unemployed people money until they got a job
• Gave elderly a check after they retired from work at the Gave elderly a check after they retired from work at the age of 65age of 65
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Birth of Social Birth of Social SecuritySecurity
The act was a milestone in American history The act was a milestone in American history because it acknowledged the responsibility because it acknowledged the responsibility of the federal government to take care of of the federal government to take care of
the less fortunatethe less fortunate
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The early 1930s were marked by intense industrial unrest, The early 1930s were marked by intense industrial unrest, large-scale strikes, and social turmoil. large-scale strikes, and social turmoil.
Congress responds to the labor unrest with the Wagner Bill.Congress responds to the labor unrest with the Wagner Bill.
Labor UnrestLabor Unrest
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Wagner Act helps Wagner Act helps unionsunions
The Wagner Act (also known as the National The Wagner Act (also known as the National Labor Relations Act) guaranteed workers Labor Relations Act) guaranteed workers
the right to organize unions, and to strike, the right to organize unions, and to strike, boycott and picket their employers.boycott and picket their employers.
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Birth of the CIOThe Congress of The Congress of
Industrial Industrial Organizations (CIO) Organizations (CIO) was the large union was the large union created in 1935 as created in 1935 as an organization for an organization for industrial laborers industrial laborers
The CIO’s first leader The CIO’s first leader was famed labor was famed labor
leader John L. Lewisleader John L. Lewis
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Father Charles Coughlin was Father Charles Coughlin was a Catholic priest who used a Catholic priest who used
radio broadcasts to slam radio broadcasts to slam Roosevelt for not doing Roosevelt for not doing
enough for the poorenough for the poor
Opponents to the Opponents to the New DealNew DealU.S. Senator Huey Long U.S. Senator Huey Long
(left) of Louisiana had a (left) of Louisiana had a plan of heavily taxing the plan of heavily taxing the
rich and giving anyone out rich and giving anyone out of work $200 a month.of work $200 a month.
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FDR vs. the Supreme Court
The Supreme Court had been a roadblock to some portions of Roosevelt’s New Deal programs.
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FDR vs. the Supreme FDR vs. the Supreme CourtCourt
The Supreme Court had ruled that The Supreme Court had ruled that parts of Roosevelt’s New Deal were parts of Roosevelt’s New Deal were
unconstitutionalunconstitutional
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Court-Packing Court-Packing ScandalScandal
• To overcome the Supreme Court declaring his New Deal policies unconstitutional, Roosevelt wanted to increase
the amount of judges on the U.S. Supreme Court
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The ploy hurt FDR’s reputation because it interfered The ploy hurt FDR’s reputation because it interfered with the Constitution's Separation of Powerswith the Constitution's Separation of Powers
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FDR FDR OvercomeOvercome
s Polios Polio
• Contracted polio in 1921Contracted polio in 1921• With leg braces, FDR learned With leg braces, FDR learned
how to “appear” to walkhow to “appear” to walk• Wife Eleanor made public Wife Eleanor made public
appearances on his behalfappearances on his behalf
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March of Dimes March of Dimes FoundedFoundedRoosevelt having polio Roosevelt having polio
raised national raised national awareness of the disease awareness of the disease and a drive to find a cureand a drive to find a cure
In 1938, the National In 1938, the National Foundation for Infantile Foundation for Infantile Paralysis is founded. It Paralysis is founded. It
later changes its name to later changes its name to the March of Dimes.the March of Dimes.
A vaccine for polio was A vaccine for polio was discovered by Dr. discovered by Dr.
Jonas Salk in 1955.Jonas Salk in 1955.
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Women of the Women of the DepressionDepressionThe most influential woman The most influential woman
during the Depression was during the Depression was Eleanor RooseveltEleanor Roosevelt
She was a tireless worker for She was a tireless worker for the poor and minorities, and the poor and minorities, and pushed her husband’s ideaspushed her husband’s ideas
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Women of the Women of the DepressionDepressionFrances Perkins was Frances Perkins was
the first woman in U.S. the first woman in U.S. History to hold a History to hold a
Cabinet position (she Cabinet position (she was FDR’s Secretary of was FDR’s Secretary of
Labor)Labor)
Perkins played Perkins played a large part in a large part in the passage of the passage of
the Social the Social Security ActSecurity Act
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Minorities in the Minorities in the DepressionDepression
Mexican woman and children looking over side of truck which is taking them to their homes in the Rio Grande Valley from Mississippi where they have been picking cotton. Filling station, Neches, Texas)
As unemployment rose during the Depression, many Mexicans were
deported back to Mexico
Even Mexican-American children
who were U.S. citizens were sent
back to Mexico with their parents
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During the Depression, most African Americans became Democrats.During the Depression, most African Americans became Democrats.Blacks still did not benefit as much as whites during the DepressionBlacks still did not benefit as much as whites during the Depression
Minorities in the Minorities in the DepressionDepression
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Depression Era Depression Era PastimesPastimesGoing to movies like Going to movies like
“The Wizard of Oz”:“The Wizard of Oz”:
Taking part in novel things Taking part in novel things such as Dance Marathonssuch as Dance Marathons
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Will RogersWill Rogers
The humor of Oklahoma cowboy The humor of Oklahoma cowboy Will Rogers helped many people Will Rogers helped many people
find a smile during the Depressionfind a smile during the Depression
Among Rogers’ Among Rogers’ famous quotes: “I famous quotes: “I never met a man I never met a man I
didn’t like.”didn’t like.”