History Exam 3 ch. 26

Great Depression

(HH) , starting with collapse of the US stock market in 1929, period of worldwide economic stagnation and depression. Heavy borrowing by European nations from USA during WW1 contributed to instability in European economies. Sharp declines in income and production as buying and selling slowed down. Widespread unemployment, countries raised tariffs to protect their industries. America stopped investing in Europe. Lead to loss of confidence that economies were self adjusting, HH was blamed for it

Herbert Hoover

1928 Republican president who was largely blamed for the Great Depression.

Reconstruction Finance Corporation

Agency established in 1932 to provide emergency relief to large businesses, insurance companies, and banks (2 billion)

Alfred E. Smith

He was the Democratic presidential candidate in the 1928 election. He was the first Catholic to be elected as a candidate., Former governor of New York who ran for President against Herbert Hoover. He was anti-Prohibition and the son of Irish-immigrants (reasons that contributed to his loss.

"normalcy"

It won the presidential election for Warren G. Harding in 1920: normalcy, a word that he rescued from obscurity. After the disruption of the World War, Harding said on the campaign trail, it was time to get back to normal

Black Tuesday

October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.

Dust Bowl

Parts of Oklahoma, Kansas, Colorado, New Mexico, and Texas that were hit hard by dry topsoil and high winds that created blinding dust storms; this area of the Great Plains became called that because winds blew away crops and farms, and blew dust from Oklahoma to Albany, New York.

Warren G. Harding

Pres.1921 laissez-faire, little regard for gov't or presidency. "return to normalcy" after Wilson + his progressive ideals. Office became corrupt: allowed drinking in prohibition, had an affair, surrounded himself w/ cronies (used office for private gain). Ex) Sec. of Interior leased gov't land w/ oil for $500,000 and took money himself. Died after 3 years in office, VP: Coolidge took over

Election of 1928

Republican: Herbert Hoover and Democrat: Al Smith. Republicans identified themselves with the booming economy of the 1920s, and Smith's campaign, partly because he was a Roman Catholic, the son of Irish-immigrants, and anti-prohibition, was not favored in the 1928 Presidential race. Hoover won in a landslide victory.

Buying stock on margin

purchasing stocks by borrowing some of the purchase cost from the brokerage firm, Paying only part of the cost of the stock and borrowing the rest from investors. In the 1920s this worked because prices were rising but in the late 20s prices were falling and brokers were demanding the money they loaned to investors back. Investors couldn't repay the loans