History chapter 14

Dow Jones Industrial Average

Then and now, most widely used barometer of stock market health. Measure based on stock prices of 30 representative large firms trading on New York Stock Exchange. Through most of 20s, it steadily rose. Reached high of 381 points, 300 higher than 5 years earlier.

Hoover dilemma

Opposed federal welfare and intervention in economy, but thought he had duty to help solve probs and ease suffering. What kind of assistance would be proper and effective?

Depression in rural areas

1 advantage to city life: most farmers could grow food for their families. With falling prices and rising debt, though, thousands of farmers lost their land, 1929-1932, 400,000 farms lost through foreclosure- process by which a mortgage holder takes back property if occupant has not made payments. Many farmers did tenant farming and barely made a living.

Industries that struggled

1-3 barely made profit 1. Railroads: due to new transportation 2. Textiles 3. Steel. 4-5 lost demand after war 4. Mining. Especially coal mining due to competition from from new energy like hydroelectric, oil, natural gas. By 30s, new supplied more than half of the energy. 5. Lumbering. 6. Boom industries of 20s like automobiles, construction, consumer goods weakened. Housing starts, new dwelling built, declined. When construction declines, jobs in industries like like furniture and lumbering do. 7. Agriculture.

Causes of Great Depression

1. Tariffs and war debt policies that cut down the foreign market for American goods. 2. Crisis in farm sector. 3. Availability of easy credit. 4. An unequal distribution of income. Led to falling demand for consumer goods, when newly mechanized factories made more products. Government contributed by keeping interest rates low, allowing companies and individuals to borrow easily and have large debts. Some of borrowed money used to buy stocks that later led to crash. Hard to believe. 1929,Hoover encouraged Americans to be confident about the economy. But it was the most severe depression in American history.

Stock market

1929, some economists warned of economy weaknesses, but most Americans had confidence in the economic health. More who could afford it invested in the stock market. Stock market most visible symbol of prosperous american economy.

Business failures

1929-1932, gross national product- nations output of goods and services- in half, $104 bil to $59 bil. 90,000 businesses bankrupt, including automobile and railroad companies.

Hawley-Smoot Tariff

1930, congress passed. Established highest protective tariff in US history. Designed to protect american farmers and manufacturers from foreign competition. By reducing goods going into US, tariff prevented other countries from earring american currency to buy american goods. Made unemployment worse in industries that couldn't export to Europe. Many countries retaliated by raising their own tariffs. World trade fell +40%.

Uneven income distribution, 1929

20s favored big business. Life good for rich- 0.1% of population and had income of more than $100,000. Most had to scrape by. Many earned so little that everyone in family, even children, had to work. 80% families had no savings. 65% under $2,000. 29% $2-5,000. 5% $5-10,000. 1% over $10,000.

Pen and paper operation stock market

20s, order to buy/sell arrived at brokers' booths around edge of trading floor. Then carried by hand or tube to trading post to be traded. NYSE employees called traders recorded every transaction. For each new sale, wrote slip of paper with stock abbreviation, number of shares, price and transmitted it to ticker room. Info typed in keyboard that make keystrokes into electrical impulses that drove clattering print wheels in ticker machines along the network. People read the current display at trading posts.

Hoboes

300,000 transients, hoboes, wandered country, hitching rides on railroad boxcars and sleeping under bridges. Mostly men, sometimes in homeless shelters in big cities. Novelist Thomas Wolfe said about hobos in NYC,"wanderers, freight train riders, uprooted, unwanted males. Gathered in big cities during winter. Hungry, defeated, empty, hopeless, restless, always on the move, looking everywhere for work, for crumbs to support miserable lives, not finding work or crumbs."

Bull market and effects

A period of rising stock prices. Eagerly took advantage and rushed to buy stocks and bonds. " seemed as if economic law was suspended, and success and prosperity was possible without knowledge or industry." By 1929, 4 mil Americans, 3% of population, owned stocks. Many investors already wealthy, but others were average citizens who wanted to get rich.

Depression in cities and shelter

Across nation, lost jobs, evicted and in streets. Slept in parks, sewer pipes. Wrapped themselves with newspapers. Built makeshift shacks out of scrap materials. Soon, lots of shantytowns-little towns consisting of shacks-appeared. Oklahoma man said, "people living in old, rusted car bodies, shacks of orange crates, family in piano box. Living in whatever junk they could put together." Picture of shacks in NYC 1932

Bank failures

After crash, many people panicked and withdrew money from banks. Some couldn't get money because banks had invested it in the stock market. 1929, 600 banks closed. 1933, 11,000 of 25,000 banks failed. Since gov didn't protect or insure bank accounts, millions lost savings in accounts.

Hoover's reassurance

After stock crash, reassured that american economy was a sound footing. "Lack of confidence in economic future is foolish." Thought important thing was to be optimistic and go about business as usual. Believed depressions were normal part of business cycle and that periods of rapid growth were naturally followed by periods of depression. Experts thought best course in slump was to do nothing and let economy fix itself. Hoover thought gov could have limited role in solving probs.

Conflicting ideas

Americans valued rugged individualism- the idea that people should succeed through their own efforts. Should take care of themselves and families, instead of depending on gov to bail them out. Hoover opposed federal welfare, direct relief to needy. Believed handouts weakened people's self respect and moral fiber. His answer was that individuals, charities, local organizations help. Federal gov should direct relief measures, but not through vast federal bureaucracy. It would be too expensive and stifle individual liberties. During depression, people weren't worried about moral fiber, so his response shocked and frustrated sufferers.

Patman Bill

Authorized gov to pay bonus to vets who weren't adequately compensated for their wartime service. Bonus approved in 1924, to be paid in 1945 by cash and life insurance policy. Congressman Wright Patman believed the money, about $500 per soldier, should be paid immediately. Led by Walter Walters, unemployed cannery worker in Oregon, Bonus Army came to DC to support the bill under debate.

Effect of October crash

Blow to hopes and dreams. Prosperity was over.

Herbert Hoover 1874-1964

Born in Quaker family, Iowa. Orphaned young. Rags to riches story. Worked through Stanford university and made fortune as mining engineer and consultant in China, Australia, Europe, Africa. WW1, coordinated relief efforts in Europe, got reputation for efficiency and humanitarian. "Every time we find solutions outside of gov,we strengthen character and preserve our sense of real gov.

Criticism of Hoover

By 1930, shantytowns in American cities called Hoovervilles. Homeless people called the newspaper they wrapped themselves in Hoover blankets. Empty pockets turned inside out were Hoover flags. Many who had liked him as humanitarian, now thought he was cold, heartless. Hoover held firm to his principles and refused to support direct relief or federal welfare. Some went hungry and blamed Hoover, criticism grew. Song "Mellon pulled the whistle. Hoover rang the bell. Wall Street gave the signal. And the country went to hell." Cartoon of farmers and Hoover with heavy loads that need more credit, appreciation and need to work together.

Dreck intervention with banks

By late 1931, measures didn't turn economy back around. Presidential election soon. Hoover asked congress to pass measures that would reform banking, provide mortgage relief, put more federal money into business investment. 1932, he signed Federal Home Loan Bank Act, lowered mortgage rates for homeowners and allowed farmers to refinance (provide new financing, discharge mortgage with new mortgage with lower interest rate) farms loans and avoid foreclosure. After Hoover, congress passed Glass-Steagall Banking Act, separated investment from commercial banking and hopefully prevent future crash.

Unemployment

Millions lost jobs. Unemployment from 3%, 1.6 mil workers in 1929 to 25%, 13 mil workers in 1933. 1 of 4 workers fired. Those with jobs had pay cuts and reduced hours.

Bonus army

Called themselves the Bonus Expeditionary Force. 1932, incident further damaged Hoover's image and public morel. In spring, 10-20,000 WW1 veterans and families came to DC from across the country.

Alfred E. Smith

Career politician who had served 4 terms as New York governor. Personable and enjoyed being in limelight.

Dust bowl map 1933-36

Chicago, Nov. 1933: crowds at Chicago exposition world's fair were caught in 50 mph dust storm. Boston, May 1934: Midwestern dust collected on airplanes at altitudes of 20,000 ft that landed in Boston. NYC, May 12, 1934: dust lowers humidity from normal 57% to 34%. Dust is reported on ships 500 miles out to sea. Nebraska, 1935-37: over 2 years, federal workers helped soil conservation by planting 360,000 trees and making 62 dams, 517 ponds, 500 acres of terracing. Beaver, OK, March 24,1936: grain elevator operators estimate that 20% of wheat crop was blown away by dust storms. Tucumcari, NM, March 30, 1936: clouds of dust blew 50 mph and caused complete darkness. Dust Bowl area, circle in KA, OK, TX, NM, CO. Damage from ND and MT to TX. Area covered by May 1934 dust storm: ND to TN up to NJ, sort of a V.

Dust Bowl and causes

Drought began in early 30s, wreaked havoc on Great Plains. In 20s, farmers from Texas to North Dakota uses tractors to plow grasslands and plant millions of acres of new farmland. It removed thick protective layer of prairie grasses. Farmers exhausted the land with overproduction of crops, so grasslands became unsuitable for farming. When drought and winds hit, little grass and few trees couldn't hold soil down. Wind scattered topsoil, exposing sand and grit. Dust went hundreds of miles. Windstorm in 1934 carried millions of tons of dust from plains to East Coast cities.

Farmers deal

Due to low crop prices, they burnt corn and wheat and dumped milk on highway instead of selling at a loss. Declared "farm holiday" and refused to work fields. Some blocked roads to prevent food from going to market, hoping food shortages would raise prices. Some used force to prevent authorities from foreclosing on farms.

Where relief can from

During early years of depression, no federal system of direct relief-cash payments or food provided by gov to poor. Some cities and charities offered relief to poor, but had meager benefits. NYC, weekly payment was $2.39 per family, most relief offered by a city, but below amount needed to feed a family.

Great Depression main idea and relevance

During the depression, Americans did what they had to do to survive. Since the depression, Americans are generally more cautious about saving, investing, and borrowing.

Stock market crash

Early Sept. 1929, stock prices peaked and fell. Confidence in market wavered. Some investors quickly sold stocks and pulled out. Oct. 24, market plunged. Panicked investors unloaded shares.

Depression indicators

Economic indicators that signal trends in economy. Conditions of one can affect another. When banks fail, some businesses may close down, which can cause unemployment to rise, so people have less money and spend less. 32 bank failure down, 33 bank failure up. 32 business failure up, 33 business failure down.

1930 congressional election results

Economy worse, against Hoover and Repubs. Democrats took advantage of the anti-Hoover and won more seats in Congress, Repubs lost control of House and had majority in Senate by 1 vote.

Effects on family

Family source of strength. Some worried depression would undermine morals, but it didn't. Most believed in traditional values and emphasized the importance of family unity. When money was tight, families entertained themselves by playing staying home and playing board games like Monopoly( invented in 1933) and listening to radio.economy put pressure on family life. Making ends meet was daily struggle and some families broke apart under the strain.

Why did consumers spend less?

Farmer's incomes fell, so bought less goods and services. Late 20s, Americans bought less because of rising prices, stagnant wages, unequal distribution of income, overbuying on credit earlier. Production expanded faster than wages, making larger gap between rich and poor.

Results of attack of bonus army

Gassed more than 1,000 people. 11 month old baby died and 8 year old boy was partially blinded. 2 shot many injured. Most citizens stunned and angry at gov's treatment of veterans. Hoover's image suffered. Election in Nov. against formidable opponent, Franklin Delano Roosevelt. When Roosevelt heard of attack, said to friend Felix Frankfurter,"this will elect me." Downturn in economy and Hoover's inability to deal effectively with depression sealed his political fate.

Hoover philosophy

Had been engineer, so great faith in reason. Also humanitarian. "First objective to provide security from poverty and want. Want to see nation built of home owners and farm owners, see their savings protected, them in steady jobs, see more insured against death and accident, unemployment, old age. Want all secure."

Dust bowl

Hardest hit region was parts of Kansas, Oklahoma, Texas, New Mexico, and Colorado- dust bowl. With dust storms and evictions, thousands of farmers, sharecroppers left the land. Took families and few things west by Route 66 to California. The migrants- or Okies ( term that first meant Oklahomans, but then negatively used for all migrants)- worked as farmhands. Others wandered for work. By end of 30s, hundreds of thousands of farm families migrated to California and Pacific coast states. Most severe storms called Black Blizzards. Darkened sky in NYC and DC.

Hoover backs cooperatives how?

He gradually softened his view of government intervention and was more activist in the economic troubles. Thought Boulder Dam was model of how federal gov could encourage cooperation. Relieved by negotiating agreements among private entities, belief in small gov. Backed creation of Federal Farm Board, org of farm cooperatives, Farm Board meant to raise crop prices by helping members buy crops and keep them off the market until prices rose. Tried to help banking system by persuading nation's largest banks to establish National Credit Corporation, which loaned money to smaller banks and helped them not go bankrupt.

Hoover struggles main idea and relevance

His conservative response drew criticism and the worsening conditions caused the gov to become more involved in the health and wealth of the people.

Boulder dam

Hoover dam was a project of Hoover's that made a difference. Had proposed the construction of a dam on the Colorado River years earlier as secretary of commerce. Minimizing federal intervention, he planned to finance the construction by using the profits from the electricity. Helped arrange agreement on water rights of 7 states of the Colorado river basin- Arizona, California, Colorado, Nevada, New Mexico, Utah, Wyoming. Massive project got congressional approval 1928 as part of $700 mil public works program when Hoover was elected. Fall of 1929, one year into presidency, Hoover authorized construction. 726 ft high, 1,244ft long. World tallest, second largest dam. Provided electricity, flood control, regular water supply for California's growing massive agricultural economy. Today, provides water for cities like Los Angles and Las Vegas.

Bonus Army disbanded

Hoover worried the angry group would become violent. Decided it had to be disbanded. July 28, 1,000 soldiers under command of General Douglas MacArthur and his aide, Major Dwight D. Eisenhower, was sent. Gov official watching said, "12th infantry in full battle dress. Had gas masks and belt full of tear gas bombs. Thruster bayonets to jab people, make the move. Tear gas bombs exploded. Entire block covered by gas. Flames came up cause soldiers set fire to buildings to drive them out. Whole afternoon, took camp after camp.

Depression and school

Less tax revenue caused school boards to shorten school year and close schools. By 1933, 2,600 schools shut down, leaving 300,000 kids out of school. Thousands worked, often in sweatshops under bad conditions.

Black view of depression

Life already hard for black. "Negro born in depression. Great american depression didn't mean much. Best he could be as janitor, porter, shoeshine boy. Only became official when it hit the white man." Blacks still hard hit by depression. 1932, unemployment adage over 50% while overall rate was 25%.

Depression in cities and Latinos

Mainly Mexicans and Mexican Americans in the southwest were targets. Whites demanded that Latinos be deported, expelled from the country, though they had been born in America. By late 30s, hundreds of thousands of Latinos were relocated to Mexico, some voluntarily, others deported by federal gov.

Men in the streets

Many men had difficulty coping with unemployment since they were accustom to working and supporting their families. Walked streets and searched for jobs every day. Frederick Lewis Allen said in Since Yesterday, "study, self respecting working men could endure unemployment for weeks, months even when families suffer. But for a year(s), it was different. Some stopped trying or abandoned families due to discouragement.

Women jobs and resentment

Many worked outside home, but received less money than men. Later, targets of resentment. Many believed that women, especially married, shouldn't work when when were unemployed. Early 30s, some cities wouldn't hie married women as teachers. Many assumed women had easier time than men because few were seen begging or in bread lines. Rather, many were starving in cold attics and rooming houses. Too ashamed to reveal their hardship. Meriden Le Seure, "lived in cities for months, broke, no help, too shy to get in bread lines. Many lived like this until they fainted in streets. Woman will shut herself in room until it is taken from her, eat a cracker a day, be quiet. Go for weeks starving, through streets ashamed, sit in libraries, parks, without speaking, shut up in terror of own misery."

Congress and agriculture

McNary-Haugen bill. Called for federal price supports for key products like wheat, corn, cotton, tobacco. Gov bought surplus at guaranteed prices to sell on world market. President Coolidge vetoed twice. "Farmers never make money. Can't do much about it."

New York Stock Exchange

Mostly same as opening in 1792. Nations premier marketplace for stocks. Stockbrokers, members, take orders from their customers to buy and sell shares in any of 3,000 companies. Members offer and receive bids in like loud, fast auction. Customers submit 2 types of orders. Limit order: tells broker to buy or sell only if stock reaches certain price. Market order: tells broker to transact immediately, despite price. Change due to computers, internet.

Worldwide depression

Much of Europe suffered through the 20s. Europe trying to recover from the war faced high war debts. Germany had to pay war reparations, payments to compensate the allies for the damages Germany caused. Depression compounded the problems by limiting America's ability to import European goods. Difficult to sell american farm products and manufactured goods abroad.

Oscar Ameringer's story

Newspaper editor in Okalahoma City who travels across the nation in 1932 to collect info about the economic and social conditions. Testified in unemployment hearings about people inpatient with gov. "Unless something is done for them and soon, you will have revolution. Picked up family of hungry hitchhikers. Mother holding dead chicken under coat found dead on road. They promised me a chicken in the pot, and now I have mine." Hoover's 1928 campaign pledge, "chicken in every pot and car in every garage" citizens disillusioned and wanted help from gov

Effects of cautious steps

None made much difference. Year after crash, economy still shrinking, unemployment still rising. More companies went out of business, soup kitchens common, misery grew. Shantytown in every city, hobos roamed.

Black Tuesday

Oct. 29, market and confidence fell. Shareholders sold before prices went lower. Number of shares dumped that day was record 16.4 mil. More millions of shares couldn't find buyers. People who had bought on credit had huge debts as prices dropped. Others lost most of their savings. Mid-Nov, investors lost $30 bil, equal to amount America spent in WW1. Eyewitness, Frederick Lewis Allen, said "big bull market dead. Billions of dollars of profits gone. Everyone lost savings. From showy to debt. Altered world with new adjustments, ideas, thoughts, order of values."

Hoover philosophy of gov

One of gov's chief functions was to foster cooperation between competing groups and interest in society. If business vs. labor conflict, gov should step in and help find solution for mutual interests. Cooperation must be voluntary, not forced. Gov's role to encourage and facilitate cooperation, not control it.

Trouble with stock market

People engaging in speculation- bought stocks and bonds on the chance of a quick profit and ignored risks. Many were buying on margin- paying small percent of stock price as down payment and borrowing the rest. Easy money available to investors, so unrestrained buying and selling fueled the market upward spiral. Government did little to regulate or discourage such buying. But rising prices didn't reflect company worth. If stock value declined, people who bought on margin couldn't pay off loans.

Great Depression

Period from 1929-40 in which the economy plummeted and unemployment skyrocketed. Crash alone didn't cause the depression but it quickened the economy collapse and made the depression more severe.

Gordon Parks

Photographer, author, film maker, 16 in high school. Busboy at country club and heard about stock market rising until the crash of October 1929. " didnt think it would affect me. Lost job, quit school."

Children suffer

Poor diets, no money for health care led to serious health problems. Milk consumption declined. Clinics reported rise in malnutrition and related diseases like rickets, cause by vitamin D deficiency and causes defective bone growth. Child welfare programs were slashed when cities and states cut their budgets because of small resources.

Depression in cities and food

Poor dug through trash and begged. Soup kitchens offered free or low-cost food and bread lines, lines of people waiting to receive food provided by charitable organizations or public agencies, were common. Bread line in NYC, "2,3 blocks along Times Square. Silent, shuffling men in line. Handout of coffee, doughnuts from trucks. Expressionless, human disaster. Had responsible positions. Lost jobs, homes, families. Destroyed men."

Hoover's most ambitious measure

Reconstruction Finance Corporation (RFC) approved by congress in Jan. 1932. Authorized $2 bil for emergency financing for banks, life insurance companies, railroads, large businesses. Hoover believed the money would trickle down to average citizen through job growth and higher wages. Criticism: program would only benefit corporations and poor still needed direct relief. Hungry couldn't wait for benefits to trickle down to their tables. 1st 5 months, RFC loaned +$805 mil to large corporations, but business failure continued. Was unprecedented federal involvement in peacetime economy, but was too little, too late.

Depression in cities and blacks

Relief programs largely discriminated blacks, but some black organizations like the National Urban League gave private help. Conditions for blacks and Latinos especially hard. Their unemployment rates were higher and had the lowest pay. Dealt with more racial violence from unemployed whites competing for the same jobs. 24 blacks died by lynching in 1933.

Unbalanced distribution of income

Rich richer, poor poorer. 1920-29 income of wealthiest 1% rose 75%, compared to 9% increase for all Americans. More than 70% of families earned less than $2,500, minimum amount needed for decent standard of living. Families earning $5,000 could not afford many household products from manufacturers. Average person bought new outfit once a year. Half of homes in cities had electric lights or furnace. 1 in 10 city homes had electric refrigerator. The inequality meant most Americans could not fully participate in economic advances of 20s. Didn't have money to purchase all the goods. Prosperity on fragile foundation.

Herbert Hoover

Secretary of commerce under Harding and Coolidge. Mining engineer from Iowa who had never run for public office. Quiet and reserved. Many believed him when he said, " we in America are nearer to final triumph over poverty than ever before. Overwhelming victory for Hoover. Most Americans were happy with republican leadership.

Hobo symbols

Shared hidden language to help meet challenges on road. Over time, developed to alert one another where food, work, place to sleep was, and what houses to avoid. Marked on sides of houses, fences, railroad yards. Pi= sit down meal, cell=only bread given! circle with x= good handout place, T and little circle= sleep in barn! water and oxo= good water, box with inside circle=danger

Dust bowl story with Ann Marie Low and the states of the dust bowl

She lived on parents' North Dakota farm when stock market crashed and depression hit. Familiar with hard times. Early 30s, drought hit the Great Plains, destroying crops and leaving earth dry and cracked. Deadly dust storms. April 25, 1934 wrote, "air full of dirt for hundreds of miles. Rehash dishes before eating. Deaths of babies and elderly from breathing so much dirt. Droughts and winds lasted more than 7 years. Dust storms in Kansas, Colorado, New Mexico, Nebraska, the Dakotas, Oklahoma, and Texas.

Social and psychological effects

Some so demoralized that they lost their will to survive. 1928-32, suicide rate rose +30%. 3X the people were admitted to state mental hospitals. Had to accept compromises and make sacrifices that affected their remaining life. Adults stopped visiting the doctor and dentist due to cost. Youth gave up dream of going to college. Others put off marriage, raising large families, or having any children. For many, stigma of poverty and saving didn't disappear. Having financial security became primary focus in life. "Ever since 12 years old, major goal to never be poor again." Many showed great kindness to strangers, gave food, clothing, place to stay. Families helped others, shared resources, strengthened community bond. Many saved more and became thrifty, needed as Hoover struggled with the depression. The habits shaped a generation. Picture: ozark sharecropper family in Arkansas 1930s

Lucky people

Some speculators sold their stocks and made money before the crash. Joseph P Kennedy, father of JFK, sold his. Most not so lucky and shrewd.

Problems of late 20s

Some wealthy but many in poverty. Important industries struggled. Farmers grew more and raised more to sell for profit. Consumers and farmers going more into debt.

Hoover's cautious steps

Soon after crash, called key leaders in business, banking, and labor together. Urged them to work together to find solutions to economic woes and not make bad situation worse. Asked employers not to cut wages or lay off workers. Asked labor leaders not to demand higher wages or strike. Created organization to help private charities generate contributions for poor.

Effects of depression

Statistics like unemployment only tell part of story. More important was the impact on lives. Hardship, homelessness, hunger to millions.

Financial collapse

Stock market crash signaled beginning of Great Depression.

Agriculture

Suffers most. During war, prices rose, international demand for crops like wheat and corn soared. Farmers planted more and took out loans for land and equipment. Demand fell after war, so prices dropped 40% or more.

Teens and depression

Teens looked for way out. Hundreds of thousands of boys and some girls went of freight trains across country for work, adventure, escape from poverty. "Wild boys" from everywhere. Sons of farmers, fired miners, wealthy turned poor. Called "Hoover tourists", eager to tour America for free. 11-17 years old, George Phillips rode rails, first form hometown of Princeton, MI. "No feeling like sitting in side door and watching world pass,listening to wheels, hearing whistle." Eugene Williams, "if leave mother, one less mouth to feed"

Farmers make it worse

They boosted production to sell more, but it further depressed prices. 1919-1921, annual farm income declined from $10 bil to $4 bil. Farmers in debt couldn't pay loans. May lost farms to foreclosure for the debt. When farmers defaulted on loans, rural banks failed. Auctions recouped some of banks' losses.

Hoover's view and actions toward Patman bill

Thought Bonus Marchers were communists and criminals instead of vets. Opposed legislation, but respected their right to peacefully assemble. Provided food, supplies to erect shantytown near Capitol. June 17, Senate voted down Patman Bill. Hoover asked the Bonus Army marchers to leave. Most did, but about 2,000 stayed, hoping to meet with the president.

Dangers of riding the rails

While exciting, deadly. Many we're beaten or jailed by "bulls", armed freight yard patrolmen. Riders had to sleep standing up with loud noise. Some accidentally locked in ice cars for days. Others murdered by criminals. 1929-1939, 24,647 trespassers killed, 27,171 injured on railroad property. Picture: 2 boys, 15&16, walk by freight cars in San Joaquin valley

Tech in New York stock Exchange

With computers, less human interaction. 99% of trades on NYSE go through electronic database called Super Display Book system that can complete a trade in milliseconds. Electronic networks allow people to buy/sell stocks over internet cheaper than with specialist. Think all future trading will be with computers, so no physical exchanges like the NYSE.

Women in the depression

Worked hard to help families survive. Canned food, sewed clothes. Carefully managed household budgets. Jeane Westin, author of Making Do: How Women Survived the 30s said, "did everything to save a penny. Neighbor shopped together. 2 lbs of burger for quarter, so we split it. Switch paying the extra penny."

Global effects

World nations had become interdependent. International trade important to most countries. When US economy failed, american investors withdrew money from European markets. To keep US dollars in America, gov raised tariffs. World trade dropped. Unemployment soared. Germany and Austria very hard hit. 1931, Austria's largest bank failed. Asia, farmers, urban workers suffered when export values fell by half from 1929-31. Latin America, when US and European demand for sugar, beef, and copper fell, prices collapsed.

Election of 1928

in mood of apparent national prosperity. Republican Herbert Hoover verses Democrat Alred E. Smith. Hoover had major advantage of years of prosperity under republican administrations since 1920.