Harding, Coolidge And Hoover Flashcards

1
Q

Why was Harding elected

A

Failure of Democrats - LON, Wilson, Republicans United

Strengths of republicans.

  • stalwart division over
  • Harding= normalcy
  • women enfranchisement
  • prohibition influenced - republicans behind, dem split

WW1

  • 100,000 men lost
  • economic recession
  • race riots
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2
Q

Explain Harding vs Coolidge

A

Coolidge - hard on strikes eg Boston

Harding - return to normalcy, anti immigration, WASPS , America first

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3
Q

Why did politics become less progressive

A

Redscare - fear of communism - inc support for KKK = rise in communism —> inward thinking

Democrat party hurt by support for LON

Post WW1 politics more conservative

Laissez faire - boom, overturn of attempts to regulate business

Congress lowered income tax

Dem split over prohibition

Progressives vote for La Follette but defeated 1924

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4
Q

Did progressivism continue under Harding

A

Shepherd Towner Act

Among 60 social welfare bills - many unsuccessful

Resulted in decrease in infant mortality

Women’s group = most successful progressive element of US society during period
Women’s groups often % on acc of race and class

Vocational education act revitalised 1920

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5
Q

Explain the teapot dome scandal

A

Harding gave important jobs to friends who became known as Ohio gang

Albert Fall - Secretary of Interior- took over $300,000 in loans and bribed to allow a company to drill for oil —-> it was not his to sell

Teapot dome was gov owned land

Fall made $100,000 out of agreement

Took 6 years to find evidence
Fall jailed for year and fined $100,000
Symbol of 1920 corruption

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6
Q

Explain scandals under Harding

(Apart from teapot dome)b

A

4 and a half years after death - 2 cabinet members forced to resign and indicted for crimes ranging from defrauding gov to bribery to corruption

Forbes (Harding’s closest friend) went prison for accepting loans from a construction firm bidding government contracts and selling medical supplies to friendly purchaser at low price

Jess Smith - conspired to recover securities confiscated from Germans during war
Jury failed to convict him

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7
Q

Economic strengths during Harding’s administration

A

Fordney McCumber tariff good for BB 1922

Agricultural credits 1923

  • attempts to deliver recession in farm eco
  • but did not address overproduction

Copper Volstead 1922

  • gave ‘associations’ of persons producing agricultural products certain exemptions from anti trust laws
  • sometimes called the magma carta corporation
  • more long term than short term
  • federal trade commission good for BB
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8
Q

Economic weakness of Harding

A

Gov reduced taxes 1921 (on corporations and wealthy individuals)
The following year, tariffs raised making imported goods more expensive

Fordney McCumber Act 1922- one of highest tariffs - not good for farmers

The federal trade commission - formed to monitor business, but co-operates with them rather than regulate

Supreme Court protected BB from anti-trust legislations and ruled against labour unions in attempt to organise strikes

Uneven distribution of wealth
Red scare - Harding more conservative
Made cuts to gov spending

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9
Q

Social strengths during Harding administration

A

1920- Supreme Court rules against use of evidence seized illegally by raids post WW1

During 1920- strong reaction against violation of people’s rights and red scare faded away

Shepard Towner Maternity Aid
Provided federal aid to states to encourage them to built infant and maternity health centre

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10
Q

Racial strength during Harding administration

A

Harding spoke out against segregation in Birmingham Alabama

However some cynics day he did this for electoral support of northern African Americans

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11
Q

Racial weakness during Harding’s administration.

A

Pressure for reform obv w immigration. WCTU and ASL = largest campaign groups
Wartime conditions acted as a catylist to speed up support
It was widely ignored in densely populated urban areas
It achieved significant support in rural western and southern regions
Harding and his cronies widely ignored

Anti/lynching bill introduced and passed by House but blocked by senate

1921 Emergency Quota Act - passed to limit immigration into the US. Number of immigrants was limited to 3% of each national group

Nativism . KKK revises

Uncertainty of post war and fears of radicalism derived from Russian revolution 1917 led to attempt to stop immigration

Literacy tests and further legislations arrived under Coolidge

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12
Q

Strength of foreign policy during Harding

A

USA reject LON 1920

Key negotiated in Washington Naval Conference aiming to power acts to reduce battleship building to avoid dangers of arms racing

Series of disputed w Mexico over its failure to protect American citizens
Oil companies backed government

A compromise agreement made 1923- but 2 years later it was met w a tougher line from Mexico

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13
Q

What action had been taken against immigration up until 1920s

A

50 cent head count Ellis island

Mexican checks- if failed - sent back

Prohibition

1882 Chinese exclusion act - as well as railroads done being made - chinease were employed on railroads

1917- literacy test on immigrants

1915 rise of KKK and lynching prior to WW1

Boston police strike

Espionage and sedition act

Red scare

Palmer raids

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14
Q

Compare 1921 and 1924 immigration acts

A

The Emergency Quota Act

  1. The national origins act 1924
    Reduced maximum number of immigrants to 150,000 per year and cut quota to 2% of 198 pop US

Aimed at restrict southern and Eastern European immigrants

Also prohibited immigration from Asia and angered Chinese and Japanese already in U.s

More desperate and racist

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15
Q

Economic criticism of Coolidge

A

Failed to give ley way to countries facing economic difficulties after war

Failed to address worsening economic plight of farmers

‘Do nothing’ President - flavoured free market economy

His economic policy led to Great Depression —> world war 1, uneven wealth etc

Did nothing to Avert Depression

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16
Q

Social criticism of Coolidge

A

Criticism for condemning KKK when march down Pennsylvania Avenue in Washington 1925

Signed 1924 immigration act

Spoke out against lynching, child labour, low wages for women - but did nothing about it

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17
Q

Criticisms of Coolidge as a person

A

Lack of public speaking and poor work ethic was dissimilar to FDR

Childish - made bodyguards think he was kidnapped and slept in afternoons

Didn’t speak much. Held breakfast meetings in congress to control it but did not speak

Received his appointees reports in silence and often sent them away w out a word

1924 Indian citizenship act

Appointed council - look into teadome scandal

Flappers generation

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18
Q

Economic success of Coolidge

A

Largest 200 companies owned 20% nation’s wealth

1928 US richest country world

‘Coolidge prosperity’- declining unemployment, rising wages

Massive growth in consumer goods

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19
Q

Coolidge foreign policy success

A

Rejected LON

Implicit in Dawes Plan - helped Ger out of hyperinflation and Kellon Brand Pact - tried to endure not another way

Sent Hoover —> rescue, relief and reconstruction after Mississippi River Flood 1927

1925 -> chinease nationalism led to attacks on US in shanghai and call for unfair provileges for foreigners in China
Coolidge gave what asked

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20
Q

Did silent cal deserve his name

A

Yes - large extent

Presidency - massive economic growth - unregulated - did nothing

Unprofessional

Spoke out against lynching child labour and appointed AA to federal office - did nothing for child labour. Just spoke on issue

FP- silent - X LON X eco other

Successful in FP with Chiba

X like Roosevelt

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21
Q

Why was their an economic boom in US 1920

A

Laissez faire

Assembly line

Credit

Knowledge

Position of USA

A

New consumer goods

Tariffs

Share confidence

WW1 
Republicans policies 
Tech policies 
Car industry 
Media 
Confidence
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22
Q

1921-1924 wages

A

Rose 22% per person

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23
Q

Confidence and stock market

1920 boom

A

Value of stocks and shares rose steadily throughout decade. Rose dramatically 1928+29

Buying and seeking of shares grew substantially until it was common pccurance for working people to be involved

Most companies shares rise so people prepared to make risk

Even if not enough - deposit and borrow to pay rest

Number of share - $451- 1926

25m Involved

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24
Q

Technological changes

1920 boom

A

New advances in manufacturing and technology

Boom enhanced by abundant supply of coal +/- oil

US steel - so big - could dictate prices

Advances in tech - age of steel and electricity powered homes not coal

Radios, vacuum cleaners - with electricity

Henry Ford - Assembly Line - lots produced and fast and cheap. —> other industry - rubber, glass, paint. Required for new roads, petrol stations and moods

Boom in chemicals + movie industries

New business methods - significant growth in corporations

1929- largest 200 corporations held 20% nation wealth - dominated various ways. Operated cartels. Gov turned blind eye.

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25
Q

Media and advertisement

1920 boom

A

1929- over 25,000 cinemas opened + average of 100 million US wheat

Movies became one of most important advertising mediums of 1920s

1920s- flapper —> wanted glamorous clothes

Mass advertising - 70% of radios 1920s brought on credit

Radios = +$1 million in advertising time to Democrat and Republican

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26
Q

Car industry

1920s boom

A

Hire purchase - people bought goods even if X cash to pay for immediately

End of 1920s a 4.5 million cars on road - largest industry in world

1913- Assembly lime

1918- ford factory - car every 3 min
1920- every 10 seconds

People found work boring
1914 doubled wage $5 a day
Workers raced to work for him
Reduced working day to 7 hours

Price decreased
1914= $850
1926= $295

90% petrol and rubber consumed by car industry
Building of motels, highways and towns

1921 highway act - gov build roads. 10,000 miles 1 year

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27
Q

World war 1

1920s consumer boom

A

USA entered WW1 1917

No damage to repair - no war on US soil

US made a lot of money by selling weapons and arms to France and Britain

While European countries were busy fighting, USA took over many of their markets

USA’s chemical industry replaced Germany industry as world leader producing explosives, fertilisers, dyes and plastics

According to WW1/ foreign debts commission- Bri, France and Italy owed US $22 billion and interest

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28
Q

USA wealth 1920s

Coolidge

A

The USA was rich in raw materials such as steel and had much fertile land

It was the world’s leading industrial nation

It’s popular with migrants - hardworking and ambitious

The early 1900s move from rural and agricultural to industrial

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29
Q

New industries in the 1920s

Coolidge

A

The total population of American industry increased 50% during 1910s

The boom was fuelled by a demand for ‘new’ consumer goods

For example radios etc

Most significant was the growth in the motor industry

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30
Q

Rising wages and stable prices
1920s

Coolidge

A

People could afford to buy new goods because income rose around 25% during 1920s - whilst prices remained the same or fell

A reason for this was the introduction of the Assmebly Line - Ford —-> manufactured could increase production + make goods cheaper

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31
Q

Gov policies
1920s

Coolidge

A

Throughout 1920s, control of the economy were in the hands of Andrew Mellon

He believed in laissez faire

His policy was to give BB what it wanted. Businessmen believed of taxes were low, people and companies would have more money to invest

The gov introduced high tariffs in foreign goods coming to America

The Fordney-McCumber Tariff 1922- raised tariffs higher than ever before - protected US industry

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32
Q

Hire purchase
1920s

Coolidge

A

The consumer boom was encouraged by the easy availability of credit

Pioneered by car companies, hire purchase enabled customers to buy the goods they wanted with a small deposit, and then pay the rest in weekly, monthly instalments

6/10 cars bought this way

Another marketing tool was the Mail Order Catalogue eg Roebuck Catalogue

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33
Q

1920s weak unions

Coolidge

A

The Republican government like businessmen - against trade unions

Employers allowed to use violence to break strikes and refuse to employ union members

Unions excluded altogether from car industry

Employers able to keep wages low and working hours long - time when profits increase rapidly

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34
Q

1920s influence in foreign entanglements

Coolidge

A

Business corporations bought oil concessions in many countries like Canada

Firestone corporation developed a rubber industry in Liberia

Guggenhams invested in South America to produce nitrates, copper and lead

United Fruit Co had large budget in Costa Rica

US dominated Canadian markets and effectively destroyed their car industry

US refused to trace or co-operate with USSR but American businessmen infiltrated the USSR.
133% of Ford Tractors went there)

1919- foreign investments in overseas: $700m
1930= $17200m

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35
Q

1920s Coolidge

Road building

A

Breaking with laissez faire -

The government investment a great deal in road building programmes

3 million miles of road in 1920 were largely unavailable to cars (1% available)

Federal Highway Act 1921- led to 10,000 miles of road built by 1929

This had massive knock on effect

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36
Q

Who missed out on the 1920s boom

A

Farmers in South Carolina

South Carolina

Farmers

Native Americans and African Americans

Women

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37
Q

His far so farmers in South Carolina and South Carolina in general, Miss out on the boom?

A

1929- farmers in South Carolina made $129 a month

W in NY made $881

Fruit farmers in California - $1246

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38
Q

How did farmers miss out on the boom

A

Overproduction - more produced than ever before - more than pop eat - causes prices to drop - lower income for farmers

To keep incomes up - farmers grew more and cycle continued

Farmers took our mortgages worth $200m during the 1920s

Precipitation cut demand for grain
Synthetic fibres mean no need natural
Improved fertilisers, husbandry techniques lessened demand for workers

Overproduction led to dustbowls and droughts

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39
Q

How did native Americans and African Americans miss out on the boom

A

Native Americans often had difficult life on infertile reservations

African Americans made up 10% of pop, but 85% lived in south, many as sharecroppers who lived in cycle of debt and poverty

There was considerable migration north to search for far better opportunities to large cities - but here too, African Americans discrimination

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40
Q

How did women miss out on the boom

A

By 1920 eg only 150 female dentists

Women enjoyed more opportunities as clerical works and salespeople but overall got paid less than men

Despite Jazz age of flappers, women were generally expected to concentrate on home and marriage

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41
Q

Name the 7 problems in the economy

A

Uneven distribution of wealth

Rural poverty

Get rich quick

Banking schemes

Cycle of international debt

Slow down

42
Q

How was unequal distribution of wealth a problem in the economy

A

Income distribution

Employment

Old industries - coal and cotton —> unemployment

Women —> unequal pay gap

Nature and AA tend to be in agricultural work

43
Q

Explain rural poverty as a problem in the economy

A

Farmers economic problems

Role of gov

Agricultural business

44
Q

Explain banking schemes as a problem in the economy

A

Federal reserve board

State banks

45
Q

Explain the cycle of international debt as a problem in the economy

A

Loan repayments

Dawes and young Plan

US investment abroad

46
Q

Explain slow down as a problem in the economy

A

Small businesses
for every 4 businesses, 3 failed

Construction industry circula 1926

Failing domestic - demand saturated

47
Q

Explain get rich quick schemes

A

Early 1920s Porru coined thousands into investing in his ventures

He promised 50% profit return in 90 days

Florida land boom - 1920-25- population increased from 0.8 million to 1.2 million

Panels on land sold to wealthy northerners who had often not seen them
People began to invest money into unseen developments, hoping to sell, make quick profit
—> often people only put 10% deposit as binders

Nature destroyed Florida Land Boom - hurricanes killed 400 on 1926 and Medeteraniun fruit fly dried up citrus industry

People found out investments worth nothing or did not exists

No recovery until WW2 when Florida became major military training centre

48
Q

Explain stock market speculation

A

Very few prepared go learn from Florida land Boom and speculative investment on stock market continued

Revisionist historian - only 1.5m people

Large concerns were investing profits in the stock of others

Eg Bethlehem Steel Corporation and Electric Bond and Share eavhcinvested $157m in market by late 1929

If prices fall- firms might go bankrupt

49
Q

Explain federal reserve board

A

Banking system out of date in 1920s

12 regulatory reserve banks headed by federal reserve board

System allowed banks to regulate themselves w/o gov interference

The reserve banks represented the interests of the bankers and therefore could not be relied upon to act in interest of nation if - issue

  • While national banks had to join the centralised system, local state banks did not
  • In 1920s - almost 30,000 banks in US.
  • Most = v small -> unable to cope w financial problems
  • If collapses - depositors prob lose all savings

Federal reserve board favoured low interest rates - encourage easy credit. Also wanted to see a flow of gold from USA to Europe so Europe can pay back loans

50
Q

Explain cycle of international debt

A

US priority = European nations repay loans - Europe still suffering from war - could not

1922- Congress created the Debt Funding Commission. Suggested deadlines set at 1947- interest at 4.25%
Europe cannot accord

Further agreement - 1923- harsh

Get started to experience severe eco inflation in 1913 due to repetitions

Under Dawes plan and young plan - USA lent money
This resulted in USA taking money out of Treasury building and putting it in another

Europe slowly started to recover as consequence
But w repetitions - triangle of international debt

Should anything happen to US eco :O

51
Q

Was the boom slowing down

A

For every 4 businesses that succeeded, 3 failed. Gov not prepared to help

Construction boom 1920s. But 1926- died down - decline in building materials and skills like plumbing - led to higher unemployment in construction - related business and had srs knock on effects

Late 1920s production outstrips demand. More and more people in no position to spend in non essential items

1929- 10% Philadelphia labour force unemployed

Estimate 1929/ 80% living close to subsistence

Overall workers not protected by labour unions

Supreme Court helpful - blocked child labour and minimum wages for women

But many employers operated yellow dog clauses which their employees not allowed to join union

52
Q

Causes and effects of Wall Street crash

22 October 1929

A

Share prices plummeting on NY stock exchange - SUDDEN

Within an hour - 2.2 million shares sold

53
Q

What had stock market been like 5 years prior to 1929

A

Market only gone up

54
Q

Causes and effects of Wall Street Crash

24 October 1929

A

People came in to trade stocks

No buyers - price of shares fell

20,30 points at a time

—> stunned

55
Q

Causes and effects of Wall Street crash

29 October 1929

A

A financial catastrophe —> sweet

Away US catastrophe

56
Q

How could the cause of the Wall Street crash be traced back to 1918-19

A

WW1

57
Q

Cause of Wall Street crash

How did life change in the 1920s

A

Electrically, airplanes, radios, car industry —> luxury new necessity has

58
Q

Wall Street crash : cause and effects

How could people afford shares? Outline how bonds/ easy credit worked

A

Credit —> buy now pay later

Bonds —> borrow money from public to pay for war —> paid in interest —> Wall Street took advantage

59
Q

Causes and effects of Wall Street crash

Outline detail of Mitchell

A

President of national city bank

Market eg corporate bonds and tell people they’re respectable investments

60
Q

How did technology help sour boom

A

Telegraphic ticket rape machines —> share prices shown

61
Q

Wall Street crash - cause and effects

What is a speculator and who were the speculators? What was the speculator frenzy

A

Embraced all types of people into the stock market —> investment in private business
!!

62
Q

What was the effect of the speculative frenzy

A

3 million on market —> it now pay later —> buying w borrowed money

63
Q

Causes and effects on Wall Street crash

What is buying on margin and the bulk market

What are the dangers/effects/rules/who did it

A

Bull market - shares only go up

Effects —> more demand for shares
1927- 50% - more borrowed

People who did it - men from no where, celebrities, Wall Street, women

64
Q

Hoovers view on economy before depression

A

Republican - laissez faire

65
Q

Who is Warburgh

A

He issued a warning prior to depression but was disregarded

66
Q

Situation Sept 1929

A

Market was volatile

Hoover was unease’s

67
Q

When was the stock market crash

A

23 Oct 1929

68
Q

When was Black Thursday and what was it

A

24 Oct 1929

Beginning of crash

69
Q

How did bankers try to restore confidence after crash?

Did it work

A

Mitchell - meeting at JP Morgan - made pool of $250 million to support key stocks

Eg Rockefeller bought a big share

WORKED

70
Q

28 October 1929

A

Panicking investors want to see prices - people see wrong of easy credit

71
Q

What happened 29 October 1929

What was hoovers response

A

Share prices plummeted 22% less than 28th October

Hoover - it’ll solve self - laissez faire

72
Q

29 October 1929 +

What were the effects on the rest of the US esp those who did not invest

A

$25 billion gone

$5 billion in personal wealth gone

Jobs lost

Mortgages houses

Victims

Confidence sunk

Suicide

73
Q

How did events lead to the Great Depression

A

Confidence sunk - banks failed

74
Q

What happened to banking across USA after 1929 Oct

How did things spiral

A

3000 banks closed next year

Spiral 
Loading money 
Prices fell 
Money dissapeared 
Companies let workers go 
Companies stop production 
Can’t get loans 
Bankrupt as cannot pay people off 
Laid them off
75
Q

Unemployment stats 1929-33

A

1929 3% unemployed

1933- 25% unemployed

76
Q

Bank failure stats 1929-33

A

1929- 599 banks failed

1933- 3927 banks failed

77
Q

Wheat prices stats 1920-24

A

1920-$2.45 per bushel

1924- 0.62 per bushel

78
Q

How did the depression effect agriculture

A

Big agriculture

Drought - dust bowls -erosion

Repossessed

Uneven distribution of wealth

Mass poverty

AA

79
Q

Overall what was the gov response to the depression

A

Too little too late

Hoovervilles

Hoovenlags

Voluntarism

Bonus army

80
Q

Overall how did the depression effect US economy

A

Structural unemployment

federal reserve

81
Q

Overall how did the depression affect people’s lives

A

Unemployment

Rugged individualism

Voluntarism

relief

Migration

82
Q

Overall how did the depression affect industry

A

Saturation

Worthless

Slowdown in demand

83
Q

Name the 8 things Hoover ‘addressed’ to deal w the depression

A

Agriculture

Tariffs

War debts

Voluntarism

Unemployment relied

Home loan act

RFC Jan 1932

War veterans and Bonus Army

84
Q

How did Hoover and admin deal w agriculture during the depression to tackle it

A

Agriculture marketing act 1929

9 person board with £500m to create co-operatives

AIM was to buy, store and dispose surplus

No power to reduce production, prices therefore continued to fall

Therefore buying at this rate was waste of money

When congress proposed bill to reduce production, Hoover opposed it

85
Q

How did hoovers administration deal w tariffs during the Great Depression to tackle it

A

Hawley smoot tariff 1920- highest 40% on agriculture and industry

Most European nations abandoned free trade and therefore even fewer goods were exported

Therefore farmers fought it and only passed by 2 votes
Hoover could have vetoed but did not

86
Q

How did hoovers administration deal with war debts during the depression to tackle it

A

Hoover blamed depression on Europe

Trade fell after 1930 by $500 m
$1.2 billion in 1931

1931- Hoover issues moratorium on debts but it was too late + most European countries collapsed

87
Q

How did hoovers administration use voluntarism during the Great Depression to tackle it

A

Hoover advocated voluntarism

Business had to cut back

Voluntarism could not work

88
Q

How did Hoovers administration tackle the Great Depression with unemployment relief

A

$500m secures from Congress in 1932 to secure relief

President Emergency Committee to help agencies organise

But Hoover would not issue direct federal relief

In the end $47m was made available and only as loans

89
Q

How did Hoover deal with the depression using the home loan act

A

1932

As loan - was only 50% of value property

Ineffective

90
Q

How did Hoovers administration tackle the Great Depression with the RFC

A

January 1932

Most radical measure
Could lend up to £2b to rescue banks etc
Designed to restore confidence

90% small and medium banks

Argued that it only helped large firms but gov argued these needed help most

No money given to individuals

Eventually - July 1922 - $4.5 billion lent to public works, he lost support from reps

91
Q

How did hoovers administration tackle the Great Depression with war veterans and bonus army

A

Hoover set up .org to help veterans with disabilities

Congress agreed bonus in 1925

Hoover offered to pay their way home
Many leafy squatting
Army moved in and removed them

Violent dispersal often seen as last act

92
Q

What is the extent of the Great Depression and expectations of Hoover

A

Hoovers first response was mostly passive, trusting in the conservative approach to leave business to sort it out

Later
1931-32
Hoover changed his mind and carried out a few interventionalist policies — too little too late

93
Q

Historical interpretation of Hoover

A

!

94
Q

Evidence Hoover tried to sort out depression

A

Set up organisation to help veterans with disabilities

95
Q

Evidence Hoover caused damage during depression or was too little too late

A

RFC- Jan 1932- no money given to individuals
July 1932- $4.5b lent to public works only

Voluntarism no work

1931- Hoover issued movatorium (temp postpone of debt)but too late - European countries collapsed

96
Q

Long term causes of depression

Pre 1929

A

Decline in agriculture

Decline in staple industry

Overproduction

Uneven distribution of wealth

Get rick quick

Decline in trade (high tariffs)

Cycle of international debt

Native of Great bull market

Loans

Gov

Psychology

97
Q

Short term causes of depression (1929-30)

A

Wall Street crash

Car ownership boom ended 1929 before WSC

Construction boom ended 1929/9 before WSC

Industry production 1929 (2 months before WSC)b

98
Q

Causes of depression

During the depression

A

Hoover

Laissez faire

Voluntarism

Allowed deflation

Mellon ‘plurge the rotten elements’

Banking crisis

99
Q

Republican policies

A

1923 Fordney McCumber tariff - protectionism

Isolationism

Laissez faire

Rugged individualism

1920 majority of tax payers paid 5% federal income tax - Mellon Plan

100
Q

Credit

A

People bought on credit - luxury items- putting some money down 1st - followed by 1-5 year’s monthly payments

Due to laissez faire

Easy credit - inc in consumer indebtness - dramatic decline in savings

75% of pop spend most of yearly income to purchase foods inc food and radios

Consumer credit 1929- outstanding £3 mill

People gambled on stock market ‘safe bet’