Hoover 1929-33

Question 1

Wall Street Crash

Answer 1

In October 1929 the panic selling of the US stock market led to a loss of confidence in the country’s economy. Share prices fell dramatically causing the collapse of the US stock market

Question 2

Rising unemployment

Answer 2

Factories, banks and businesses collapsed
Unemployment rates
- 1929, 1.5 million
- 1930, 5 million
- 1931, 9 million
- 1932, 13 million
- 1933, 15 million, 25% of workforce, 50% of blacks

Question 3

Depression in cities

Answer 3

• By 1933, a third of the workforce in cities was unemployed.
• Many could not pay rent and lived in “Hoovervilles” on the edge of towns made from tin, wood and cardboard.

Question 4

Depression in countryside

Answer 4

• Many farmers couldn’t sell their produce and became bankrupt, in many cases food was left to rot in the ground.
• Many were evicted and became hobos searching for work, 2 million by 1932.
• Drought of 1931 turned soil to dust.
• Dust storms affected 20 million hectares creating “dust bowl”

Question 5

Bonus Marchers

Answer 5

• In May-June 1932 the bonus army of WW2 veterans marched on Washington because they had been promised a bonus for fighting in the war, payable in 1945 but the wanted it then.
• They set up a huge “Hooverville” outside the White house.
• Hoover sent in troops to remove them and burn the shanty town.

Question 6

Family life

Answer 6

• There was no system of social security so people had to rely on Charity organisations like the Red Cross.
• Marriages fell by 20% between 1929 and 1932. - Birth rate also fell. - Suicide rate rose from 1.26% in 1926 to 1.74% in 1932. - In some states e.g. Arkansas, schools closed 10 months in a year because there wasn’t enough money for teachers.

Question 7

Early Responses

Answer 7

• Agricultural Marketing Act 1930: Enabled government to lend money to farmers through marketing groups (Cooperatives) who would also try and fix reasonable price levels to ensure farmers made a profit.
• Hawley Smoot Tariff Act 1930: Protected US farmers by increasing import duties on foreign goods
• Met with business leaders and told them not to cut wages or production levels
• Cut taxes by $130 million
• Invested $1.8 billion in new construction and repair of roads and dams

Question 8

1932 Measures

Answer 8

• Reconstruction Finance Corporation (Feb 1932): $2 billion to ailing banks, insurance companies and railroads to strengthen confidence and stimulate industry
• Emergency Relief Act (July 1932): $300 million to state governments to help unemployed
• Home Loan Bank Act (July 1932): 12 Regional banks were set up with a fund of $125 million to stimulate house building and home ownership