U.S. History - Ch. 14-3

explain the main purpose of the reconstruction finance corporation (rfc) and whether it succeeded in achieving that goal

rfc provided emergency finance to banks and other large business to fuel business expansion- pump new life in nations economy; efforts were little to late

what was hoover's initial reaction to the stock market crash of 1929?

cautious; urged key leaders should work together to provide solutions and to act in ways that would not make this economic situation worse

early on, many economists thought the best way to battle the depression was to

let the economy fix itself

how did hoover deal with the economic problem posed by the bonus army?

opposed the immediate payment of bonuses to wwi vets; patman act was coming to be voted on; hoover ordered and infantry operations to close the shantytown- led to the gassing of 1,00 people, death of a baby, and public outrage; used tear gas

how did voters in 1930 respond to this situation?

republicans lost control of the house of reps and the majority in the senate was down to 1

what was hoover's philosophy of government?

believed that the function of the government was to encourage voluntary cooperation among groups with the same interest; that the government should guide the relief efforts not participate

one hoover-initiated project that provided many jobs and aided california's growing agricultural economy was construction of the

boulder dam

what did hoover do about the economic situation?

changing attitude, starts to decide that their are things the government can do; directs federal funds into public works projects-boulder dam- wanted to jump start economy and create jobs, backed federal farm board, national credit cooperation, rfc, federal home loan bank act

herbert hoover believed that most of the help for the needy should come from

charities

what was the nation's economic situation in 1930?

continuing to worsen; unemployment was continuing to rise; more companies went out of business; hobos (transient) and soup kitchens were becoming more common; misery of ordinary people continued to grow

how did his efforts affect his own political situation?

damaged public image; assured victory for fdr in next presidential election

due largely to the voter frustration with hoover, the congressional elections of 1930 were victory for the

democratic party

the bonus army was disperse by u.s. forces under the command of

douglas macarthur

how did the economy respond to his efforts?

economy keep going down- deteriorated

the patman bill called for an immediate bonus payment to

world war i veterans