Depression Last So Long? Flashcards
Hoover’s relationship w/ Congress
little control
- democrats making gains
- many Republicans disliked H
What was Hoover’s central belief with the budget?
balanced budget crucial
did not accept deficit fianancing
How much was allocated in the Agricultural Marketing Act?
$0,5bn
What was the Agricultural Marking Act set up to do?
establish farmer owned cooperatives
What policies was Hoover not prepared to consider?
export subsidies
direct aid to individuals
What % was federal expenditure of GNP in 1929?
3%
When was the Hawley-Smoot Tariff Act introduced?
1930
What was the average tariff under the H-S Tariff Act?
42%
When did Britain introduce a retaliatory tariff to the US?
1931
What was significant about Britain introducing a retaliatory tariff?
Britain was free trade
When was the National Credit Corporation set up?
1931
How much funding did the National Credit Corporation have?
$500million
What was the aim of the National Credit Corporation?
break liquidity crisis via purchasing dubious assets held by banks on verge of insolvency
What would purchasing banks dubious assets do for depositors?
raise their confidence in the banks themselves
how much was spent out of the available funding for the National Credit Corporation?
only 10million
Why was so little of the budget for the National Credit Corporation spent?
in the control of ultra-conservative bankers
Where were most bank collapses?
rural mid-west and south
When was the Reconstruction Finance Corporation set up?
Jan 1932
How much funding did the Reconstruction Finance Corporation have?
$2bn
What was the set up of the Reconstruction Finance Corporation recognition of?
volunteerism not working
Where did the funding of the Reconstruction Finance Corporation go?
to rescue banks / financial institutions / credit unions
most went to larger banks / companies
When was the largest peacetime tax rise?
June 1932
Why was there a tax rise in June 1932?
to maintain the balanced budget
What would a tax rise, such as the one in June 1932 mean?
a dampening of consumer spending
