Chapter 14 Part 3 Pages 478 483 Terms

Chapter 14 Part 3 Pages 478 -483

Terms to Know • • • Herbert Hoover Boulder Dam Federal Home Loan Bank Act Reconstruction Finance Corporation Bonus Army

Herbert Hoover • • Elected in 1928 The Great Humanitarian China, Belgium, Russia Sec. of Commerce (Harding and Coolidge) • A Progressive Republican

Stock Market Crash Sept 1929 • Most believed that depressions were a normal part of the economic cycle • Hoover encouraged optomism • Prepared to wait it out • No one imagined the magnitude or duration

Belief that • The government should do nothing • The economy would correct itself • Hoover was a progressive BUT objected to direct aid • He worried about Americans’ self-respect

Hoover’s Trickle Down Theory • • • Hoover did want to help But only indirect help Labor Farmers Banks and Business Relief

The Reconstruction Finance Corporation (RFC) • Federal money to Banks, Businesses and States • Asked Banks to continue to loan out money • Asked Businesses to keep people on the job and to NOT lower wages • Asked states to give direct relief to those who required it

The RFC Money • Was given to Banks, Businesses and states without legal strings attached • Banks, Businesses and states used the $ themselves • It did not trickle down • Hoover believed that nothing would work unless it was voluntary

Hoover’s PWorks Programs • The government did pay folks to build government buildings, roads, airports, etc. But not enough projects to make a difference • Biggest project was the Hoover Dam • Aka Boulder Dam

Boulder Dam • Was proposed by Hoover when he was Sec. of Commerce • Congress appropriated funding in 1928 and the project began when Hoover was President • would provide electricity which would be sold to pay for itself

The Colorado River • shared by 7 states: Colorado, California, Arizona, Nevada, New Mexico, Utah, Wyoming • Above shared the water rights • Made a big difference in agricultural growth and prevention of flooding • Cost $700 million

The Boulder Dam Provided • • Employment for many Flood Conrol Electricity Fresh water supply

BUT by 1932 • vetoed the Garner-Wagner Bill and the Norris Bill • He did not believe the government should continue to interfere in the economy • The Garner-Wagner Bill was for more work relief. The Norris Bill was to provide electricity and fertilizer in the Tennessee Valley

Labor • Hoover DID sign the Norris-La. Guardia Bill which DID attempt to help labor • Outlawed Yellow Dog Contracts • Did guarantee the right of collective bargaining

The Farmer • Hoover vetoed the Mc. Nary-Haugen Bill • Coolidge had vetoed it twoce • Hoover believed that it was too direct with government involvement so he proposed a similar measure

Remember • The Mc. Nary-Haugen Bill would have the federal government buy up farm surplus and sell it abroad • This was too direct for Hoover

The Agricultural marketing Act • Would give federal money to new farm organizations and to existing farm organizations • The Federal Farm Board was a new one • It was given $500 million to buy up farm surplus (to be sold later in the US when prices recovered

The Federal Farm Board • Went broke • Farmers were lost • Many burned their corn and wheat for fuel rather than sell at a loss • In the cities folks were still eating out of garbage cans

By 1932 • Farmers worked together to prevent farm foreclosures • Shantytowns were called Hoovervilles • Newspapers were called Hoover Blankets • Hoover was pretty unpopular

A Depression Jingle • • Mellon pulled the whistle Hoover rang the bell Wall Street gave the signal And the country went to hell

Andrew Mellon • Secretary of the Treasury for Harding, Coolidge and Hoover • Was a millionaire • Made a fortune during the war in aluminum • As Secretary of the Treasury he worked for tax breaks for the wealthy

The Bonus Army • WWI vetrans had been promised a bonus of about $500 in 1945 • The vets were unemployed and homeless in 1932 • They wanted their bonuses paid early

Bonus Army • About 17, 000 veterans and their families liven in shantytowns outside of the white house and along the Potomic waiting for government response • They were absolutely peaceful • But conservatives and authorities called them commies

Hoover • Asked army headquarters to remove the army from the White House grounds • Patton, Eisenhower and Mac. Arthur chased them away with tear gas, bayonets and torched their shanties and tents • Some children died, others wounded

Election of 1932 • Hoover did not have a chance.