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Hoover's Policies & The Depression Flashcards

1
Q

Date : Agricultural Credit Act

What did it set up?

A

1929

Farm Labour Board

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2
Q

How much funding did Agricultural Credit Act receive?

What was its major limitation

A

$0.5billion

no export subsidies or direct aid

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3
Q

Successfulness of Agricultural Credit Act

A

Farm prices down 50% 1929-32

77% of farms making losses

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4
Q

When was the Wheat and Cotton Stabilisation Corporation set up?

Action

Limitations

A

1930

bought and stored farm surplus (e.g 3million cotton bales)

didn’t solve overproduction - if anything stimulated
too fiscally conservative to continue

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5
Q

Date: Dust Bowl Rain Loan

A

1930-31

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6
Q

Fiscal provisions of Dust Bowl Rain Loan

Why was this harmful?

A

$49million

Increased farm debt since prices remained low

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7
Q

Date of H-S Tariff

% tariff

Consequence

A

1930

42% (up from 38% F-M)

couldn’t export way out of the Depression
decline in world trade by 2/3 by 1932

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8
Q

Decline in world trade due to Britain leaving gold standard and H-S Tariff

A

Trade in 1932 was 1/3 of 1929 value

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9
Q

Date of introduction of war debt moratorium
How long did it last?

What was this in response to?

A

June 1931
18months

Hoover’s perception of the ‘international’ crisis

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10
Q

Hoover’s role in H-S Tariff

A

Not solely responsible

Led a deeply protectionist Republican congress

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11
Q

Unemployment;

1929

1930

1931

1933

A

1929 - 3%

1930 - 8.5%

1931 - 16%

1933 - 25%

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12
Q

Peak year for banking closures, how many?

A

1931

2,300 bank closures

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13
Q

When did Britain leave the gold standard?

Why did Britain leave the gold standard?

A

September 1931

To protect the value of the pound

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14
Q

When did USA increase the rediscount rate?

What was this change?
What type of measure was this?

A

October 1931

1.5% –> 3%
deflationary measure

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15
Q

What was the change in rediscount rate a reaction to?

A

Britain leaving the gold standard

wanted to stem flow of gold out of the US

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16
Q

What did the change in rediscount rate in October 1931 result in?

A

exacerbated liquidity crisis

made in increasing difficult to access credit

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17
Q

When was the Davis Bacon Act introduced?

A

1931

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18
Q

What did the Davis Bacon Act mandate?

What did this do for the composition of the workforce?

A

federally funded construction projects to pay prevailing wage

shut out migrants / non-whites

summoned business leaders to agree not to decrease wages (VOLUNTARISM)

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19
Q

Why was voluntarism inherently bad?

A

maintaining wages meant decreasing the number of people employed

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20
Q

When was the national credit corporation set up?

What was it financed? What was it assigned to do?

A

1931

$0.5billion to purchase dubious assets from banks

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21
Q

How much of its budget did the National Credit Corporation use?

Why was this?

What did this lead to?

A

only $10million of $0.5billion

inherent attitudes of fiscal conservatism

banks continue to collapse

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22
Q

When was the RFC set up?

How much was it financed?

A

Jan 1932

$2billion

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23
Q

Was the RFC financed more than the National Credit Corporation? What were they both funded?

A

RFC > NCC

RFC = $2billion

NCC = $0.5billion

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24
Q

Funded for each agency;

RFC :

NCC :

ACA :

ERAC Act : (construction and relief separate)

A

RFC : $2billion

NCC : $0.5billion

ACA : $0.5billion

ERAC Act : $1.5billion for construction
$300million for relief

25
Criticism of the spending done by the RFC X2
2/3 of the first $60million goes to only 3 banks 90% goes to small / medium banks
26
Why was it a problem that 90% of the RFCs funded went to small / medium banks?
no reform | banks should not have been reopened
27
Why was the spending by the RFC largely ineffective?
banks saw it as a means of preserving their own capital not for purpose of loaning to increase purchasing power of consumers
28
When was the Bonus Marchers march? How did Hoover react?
1932 General MacArthur sent to forcibly remove veterans
29
How many Veterans at 1932's Bonus Marchers march?
20,000
30
When was the Revenue Act which was the largest peacetime tax rise? What had Hoover done which contradicted this?
June 1932 Had decreased taxes in 1929
31
What did 1932's revenue act involve?
increase in number of people paying taxes increase in lowest rate (from 1% --> 4%) increase in top rate (from 25% --> 63%)
32
Why was the 1932 Revenue Act counterproductive?
Was limiting people's purchasing power more
33
Why could the government do little in the way of taxation?
Mellon had reduced taxes so drastically during the 1920s - so would have been of little stimulation
34
What did the RFC and Emergency Relief and Construction Act show?
The limits of Hoover's willingness utilise the fiscal resources of the government to target the depression both proved hopelessly inadequate for the scale of the situation
35
When was the Federal Home Loan Banking Act? What did this provide?
1932 provided credit up to 50% of home value
36
Was the Federal Home Loan Banking Act successful?
decrease the number of foreclosures but too late for thousands of families some stimulation of construction industry
37
When was the Emergency Relief and Construction Act?
1932
38
Who was pressuring Hoover to provide some form of relief and employment provision?
La Follette
39
Who was La Follette
leader of the left's progressive party was pressuring Hoover to adopt some form of relief and employment provision
40
How much was funded into the Emergency Relief and Construction Act for construction purposes? For relief purposes?
$1.5billion for construction $300million for relief
41
What was the Emergency Relief and Construction Act allowed to do in terms of employment?
fund local public works
42
The relief part of the emergency relief and construction act was distributed via...
via states discretion not directly from central government
43
What did Hoover do in terms of federal spending that suggests he was not a 'do nothing' president?
X2 federal spending in 3years spent X4 as much on public works than any of the previous 40 Presidents
44
The Emergency Relief and Construction Act in 1932 acknowledged what?
that voluntarism had been unsuccessful
45
Example of project conducted by Emergency Relief and Construction Act funding
Hoover Dam
46
Was the RFC funded more than the ERCA's construction budget?
No RFC : $2billion ERCA : $1.5billion
47
When did Hoover experience some recovery in the economy?
final 6 months
48
What was the Morris La Guardia Act? When was it passed?
Act on labour relations | 1932
49
What did the Morris La Guardia Act ban and permit?
- yellow dog clauses - federal courts issuing injunctions - permitted unions to form without employer interference
50
What was Hoover's final legacy?
Emergency Banking Act passed in 5 days | cooperation with Roosevelt's administration
51
When was Hoover vs FDR election? What was FDR's % of the vote?
November 1932 57% of the vote
52
By 1932 what was it clear about Hoover's policies?
he was now, 3 years after the Depression's beginning, willing to do some form of direct government action - just not on the scale required
53
What was the job of the RFC?
rescue and bail out banks and companies in trouble via providing loans
54
When and how did Hoover introduce stricter immigration laws?
September 1930 via Executive Order
55
When did wages as part of the voluntarism campaign begin to decline? Example of cuts corporations made
endemic wage cuts in 1931 GM and US Steel between 10-20%
56
Why can Hoover's policies on immigration not be considered vastly effective?
Immigration had drastically slowed during depression - so number it effected was small despite White House claims
57
Farm foreclosure rates : 1931 : 1933 : What does this show?
19 per 1,000 39 per 1,000 Shoes ineffectiveness of Agricultural Marketing Act & Stabilisation Corporations
58
Good production values; 1929: 1932: What did this prove?
1929 : $104billion 1932 : $59billion proved voluntarism was not working businesses still cutting production
59
Figures on the number of countries on the gold standard; What does this suggest about Hoover?
originally over 40 but by 1932 only 6 major economies remained Hoover was part of the minority who sought to retain the gold standard

USA (33 decks)

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