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USA > Hoover's Policies & The Depression > Flashcards

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
Q

Criticism of the spending done by the RFC X2

A

2/3 of the first $60million goes to only 3 banks

90% goes to small / medium banks

26
Q

Why was it a problem that 90% of the RFCs funded went to small / medium banks?

A

no reform

banks should not have been reopened

27
Q

Why was the spending by the RFC largely ineffective?

A

banks saw it as a means of preserving their own capital

not for purpose of loaning to increase purchasing power of consumers

28
Q

When was the Bonus Marchers march?

How did Hoover react?

A

1932

General MacArthur sent to forcibly remove veterans

29
Q

How many Veterans at 1932’s Bonus Marchers march?

A

20,000

30
Q

When was the Revenue Act which was the largest peacetime tax rise?

What had Hoover done which contradicted this?

A

June 1932

Had decreased taxes in 1929

31
Q

What did 1932’s revenue act involve?

A

increase in number of people paying taxes

increase in lowest rate
(from 1% –> 4%)

increase in top rate
(from 25% –> 63%)

32
Q

Why was the 1932 Revenue Act counterproductive?

A

Was limiting people’s purchasing power more

33
Q

Why could the government do little in the way of taxation?

A

Mellon had reduced taxes so drastically during the 1920s - so would have been of little stimulation

34
Q

What did the RFC and Emergency Relief and Construction Act show?

A

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
Q

When was the Federal Home Loan Banking Act?

What did this provide?

A

1932

provided credit up to 50% of home value

36
Q

Was the Federal Home Loan Banking Act successful?

A

decrease the number of foreclosures
but too late for thousands of families

some stimulation of construction industry

37
Q

When was the Emergency Relief and Construction Act?

A

1932

38
Q

Who was pressuring Hoover to provide some form of relief and employment provision?

A

La Follette

39
Q

Who was La Follette

A

leader of the left’s progressive party

was pressuring Hoover to adopt some form of relief and employment provision

40
Q

How much was funded into the Emergency Relief and Construction Act for construction purposes?

For relief purposes?

A

$1.5billion for construction

$300million for relief

41
Q

What was the Emergency Relief and Construction Act allowed to do in terms of employment?

A

fund local public works

42
Q

The relief part of the emergency relief and construction act was distributed via…

A

via states discretion

not directly from central government

43
Q

What did Hoover do in terms of federal spending that suggests he was not a ‘do nothing’ president?

A

X2 federal spending in 3years

spent X4 as much on public works than any of the previous 40 Presidents

44
Q

The Emergency Relief and Construction Act in 1932 acknowledged what?

A

that voluntarism had been unsuccessful

45
Q

Example of project conducted by Emergency Relief and Construction Act funding

A

Hoover Dam

46
Q

Was the RFC funded more than the ERCA’s construction budget?

A

No

RFC : $2billion

ERCA : $1.5billion

47
Q

When did Hoover experience some recovery in the economy?

A

final 6 months

48
Q

What was the Morris La Guardia Act? When was it passed?

A

Act on labour relations

1932

49
Q

What did the Morris La Guardia Act ban and permit?

A
  • yellow dog clauses
  • federal courts issuing injunctions
  • permitted unions to form without employer interference
50
Q

What was Hoover’s final legacy?

A

Emergency Banking Act passed in 5 days

cooperation with Roosevelt’s administration

51
Q

When was Hoover vs FDR election? What was FDR’s % of the vote?

A

November 1932

57% of the vote

52
Q

By 1932 what was it clear about Hoover’s policies?

A

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
Q

What was the job of the RFC?

A

rescue and bail out banks and companies in trouble via providing loans

54
Q

When and how did Hoover introduce stricter immigration laws?

A

September 1930

via Executive Order

55
Q

When did wages as part of the voluntarism campaign begin to decline?

Example of cuts corporations made

A

endemic wage cuts in 1931

GM and US Steel between 10-20%

56
Q

Why can Hoover’s policies on immigration not be considered vastly effective?

A

Immigration had drastically slowed during depression - so number it effected was small despite White House claims

57
Q

Farm foreclosure rates :

1931 :
1933 :

What does this show?

A

19 per 1,000

39 per 1,000

Shoes ineffectiveness of Agricultural Marketing Act & Stabilisation Corporations

58
Q

Good production values;

1929:
1932:

What did this prove?

A

1929 : $104billion

1932 : $59billion

proved voluntarism was not working
businesses still cutting production

59
Q

Figures on the number of countries on the gold standard;

What does this suggest about Hoover?

A

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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