Chapter 23 The Great Depression Stock Market 1

Chapter 23 The Great Depression

Stock Market 1 in 20 families bought stock Dow Jones up 350% in 5 years # of investors drive up prices

Many people speculate on prices of stock “Buy on the margin”

Black Tuesday October 29, 1929

Causes of the Great Depression 1. Lack of Diversity 2. Poor distribution of Purchasing Power 3. Credit Structure 4. International Debt

During the Depression: *9000 banks fail *Depositors lose $2. 5 billion *GNP drops 25% *2 million take to the roads

1929 3% unemployment 1932 24% By 1933 13 million or 1/3 of Americans out of work NO

Wages drop from 1929 $25 per week to $17 in 1932

Farm income drops 60% 1/3 of farmers lose their land Farm prices too low to make money

Farmers dump milk

Kansas 1935

Rolla, Kansas

African-American and the Depression Drop in farm prices force many off the land Go to towns

50% unemployment for Southern Blacks Some whites in the South demanded that all Blacks be dismissed so white could have the jobs

Black Shirts – Atlanta “No jobs for Blacks until every white man has a job”

Scottsboro Boys 9 teens arrested in Alabama for rape Convicted despite evidence

Powell v. Alabama Supreme Court overturns conviction th 14 Denied Amendment rights Not given competent legal counsel

Entertainment

Busby Berkeley Musical

Radio

Ed Wynn on the Radio

Abbott & Costello

Hindenburg

John Steinbeck

Erskine Caldwell

Hoover and advisors think country just in a recession Asks business not to lay off workers and labor not to ask for raises No one listens

Hoover wants to avoid government helping – wants private charities to do the job Will later try to help with government spending, but too conservative to spend enough

Reconstruction Finance Company Federal loans to banks Only large banks that are not in too much trouble

Hawley-Smoot Tariff

Willis Hawley Reed Smoot

Bread line NYC

Farm Auction

Hoovervilles

PROTESTS

Farmers upset about low crop prices and bank foreclosures *try to keep crops from market *disrupt farm auctions

1924 Congress votes bonus to WWI vets, to be paid in 1945 1932 vets want the money now

Bonus Army Bonus Expeditionary Force 20, 000 veterans and families March on Washington-say they will stay until bonus is passed

Hoover calls out the Army led by Chief of Staff Douglas Mc. Arthur

Camp Marks

Over 100 injured including a 7 year old boy bayoneted in the leg 2 babies killed by gas

1932 Election What do the Republicans do about Hoover?

FDR Happy Days Are Here Again

“I pledge you. . . A New Deal for the American People”