(2c) Hoover's presidency and response Flashcards
Hoover’s background and beliefs
- He was a self-made man and believed in the conservative views of voluntarism and self-help (individualism).
- He didn’t like Govt intervention but intervened more than every President up to that point.
Hoover was a __________ president and believed in the role of ______ to help the poor, not the _____.
Hoover was a Republican president and believed in the role of charity to help the poor, not the state.
Attempts to combat the Depression
- He worked tirelessly and gave much money to charity.
- He cut his own and state officials’ salaries by 20%.
- He remained optimistic in public - seemed out of touch.
- He blamed foreign economic problems - this influenced his policy making.
Hoover was not able to bring himself to ______ that direct government relief was _________ to curing the Depression.
Hoover was not able to bring himself to accept that direct government relief was necessary to curing the Depression.
Federal Government policies:
1929 Agricultural Marketing Act
- Established Federal Farm Board - funds of $500 million to create ‘stabilisation corporations’.
- Supposed to buy, store, and dispose of surpluses - didn’t actually reduce overproduction.
- Prices fell - the corporations overpaid:
- By 1931: Spent an average of 82 cents per bushel on wheat - the world price had fallen to 40 cents per bushel.
Because of the Agricultural ________ Act, the government paid ___________ ___ prices to farmers and were accused of _______ public money.
Because of the Agricultural Marketing Act, the government paid artificially high prices to farmers and were accused of wasting public money.
Federal Government Policies:
1930 Smoot Hawley Tariff
- Highest tariff in US history - 40% on industrial and agricultural imports.
- European nations abandoned free trade - farmers couldn’t export their large surpluses.
- Exports fell - $2,341 million (1929) to $784 million (1932.
- Led to devastating fall in international trade (fell $1.2 billion in 1931).
- US imports also fell.
Federal Government Policies:
1931 Repudiation of War debts
- USA would postpone collections of war debts for 18 months.
- Too little too late to stop the collapse of European economies.
Federal Government Policies:
1932 Unemployment Relief
- Secured $500 million from Congress to help charities and relief agencies.
- Inadequate to meet demands.
- He still refused to commit to direct relief - even in the severe drought in 1930-31 which saw near starvation in much of the south.
Federal Government Policies:
1932 Federal Home Loan Act
- July 1932: Attempted to save mortgages by making credit easier.
- The loans given were insufficient - only 50% of the value of the property.
Federal Government Policies:
1932 Reconstruction Finance Corporation
- January 1932: Set up to lend $2 billion in order to rescue banks.
- 50% of the actual loans went to the largest 7% of banks.
- Of the first $61 million committed, $41 million went to 3 institutions.
Federal Government Policies:
1932 Emergency Relief and Construction Act
- Set up to authorise the RFC - lend up to $1.5 billion to states to finance public works.
- These public works were supposed to generate employment.
- However, states had to declare bankruptcy to apply and would eventually have to pay off loans.
Federal Government Policies:
1932 The Bonus Army
- Veterans were to be paid a ‘bonus’ in full in 1945 but they wanted it immediately due to the Depression.
- 20,000 marched to Washington to publicise their cause - Hoover paid $100,000 for their transportation home.
- General MacArthur removed the squatters too forcibly and this tarnished the reputation of Hoover further.
MacArthur destroyed the squatter’s camp and many marchers were _______ due to the use of tear gas. This violent dispersal was a major _________ _______.
MacArthur destroyed the squatter’s camp and many marchers were injured due to the use of tear gas. This violent dispersal was a major political blunder.
