US History 14.3
What was Hoover's initial reaction to the stock market crash of 1929?
He urged them to work together to find solutions to the nation's economic woes and to act in ways that would not make a bad situation worse. For example, he asked employers not to cut wages or lay off workers, and he asked labor leaders not to demand higher wages or go on strike. He also created a special organization to help private charities generate contributions for the poor.
What was Hoover's philosophy of government?
Hoover believed that the federal government could not give direct aid to individuals. He believed in free market capitalism and did not think the constitution gave the federal government the power to set prices.
How did Hoover deal with the economic problem posed by the Bonus Army?
Hoover thought that the Bonus Marchers were "communists and persons with criminal records" rather than veterans. He opposed the legislation, but he respected the marchers' right to peaceful assembly. He even provided food and supplies so that they could erect a shantytown within sight of the Capitol.
Explain the the main purpose of the Reconstruction Finance Corporation (RFC)
It authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses. Hoover believed that the money would trickle down to the average citizen through job growth and higher wages.
How did Hoover disband the Bonus Army?
On July 28, a force of 1,000 soldiers gassed more than 1,000 people, including an 11-month-old baby, who died, and an 8-year-old boy, who was partially blinded. Two people were shot and many were injured. Most Americans were stunned and outraged at the government's treatment of the veterans.
What is direct relief?
cash payments or food provided by the government to the poor.
Federal Home Loan Bank Act
lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.
What is the Patman Bill?
lt authorized the government to pay a bonus to World War I veterans who had not been compensated adequately for their wartime service. This bonus, which Congress had approved in 1924, was supposed to be paid out in 1945 in the form of cash and a life insurance policy, but Congressman Wright Patman believed that the money—an average of $500 per soldier—should be paid immediately.
Did the RFC succeeded in achieving that goal?
the RFC loaned more than $805 million to large corporations, but business failures continued.
What was the nation's economic situation in 1930?
Continued to worsen; More companies went out of business; Unemployment continued to rise; Soup kitchens, shantytowns, and hobos became common; The misery to ordinary people continued to grow.
Boulder Dam
At 726 ft. high and 1,244 ft. long it would be the world's tallest dam and the second largest. In addition to providing electricity and flood control, the dam also provided a regular water supply, which enabled the growth of California's massive agricultural economy. Today, the dam also helps to provide water for cities such as Los Angeles and Las Vegas.
How did the economy respond to his efforts?
Economy continued to deteriorate
What did Hoover do about the economic situation?
President Hoover gradually softened his position on government intervention in the economy and took a more activist approach to the nation's economic troubles, however, Hoover continued to hold firm to his principles. He refused to support direct relief or other forms of federal welfare.
How did voters in 1930 respond to this situation?
The Republicans lost control of the House of Representatives and saw their majority in the Senate dwindle to one vote.
Bonus Army
between 10,000 and 20,000 World War I veterans and their families arrived in Washington, D.C., from various parts of the country. They came to the nation's capital to support the Patman Bill under debate in Congress.