USA in the Great Depression

Question 1

When was the Wall Street Crash?

Answer 1

Black Tuesday 29th Oct 1929

Question 2

When was the Babson break?

Answer 2

5th Sept 1929

Question 3

Causes of the WSC

Answer 3

• Overproduction in US industry, market saturation where people who could afford to buy had already done so therefore there was no demand for the large supply
• US domestic market was weak, not everyone was benefitting from the book since workers’ wages were not rising
• Problems with international trade, not able to sell surplus goods to Europe due to retaliatory tariffs
• Republican economic policies, banking system individual, laissez-faire => little regulation of the economy/stock market and no limit on borrowing (encouraging buying on the margin)
• Speculation on the stock market and increasing share prices, many investors were speculators and/or buying on the margin leading to the market overheating
• Panic selling
• Loss of confidence
• Experts warning of an overheated market
• Babson break

Question 4

Impacts of the depression in cities

Answer 4

• Widespread, diverse unemployment
• Lack of money to buy necessities
• Starvation
• Desperation
• Loss of housing
• Homelessness
• Property tax
• Shanty towns which were unhygienic

Question 5

Impact of the depression of countryside/farmers

Answer 5

• Wheat prices per bushel dropped
• Farm wages drop
• Farm income drops
• Properties evicted

Question 6

Reasons why FDR won the 1932 election

Answer 6

• Change of focus from social to economic issues
• Prohibition
• PR
• Economic stratification made worse by the depression
• Use of technology - radio
• New Deal coalition
• The Great Depression - people wanted change
• Roosevelt’s personalities and image
• Hoover’s mistakes and image

Question 7

When did 10,000 veterans go to Washington and set up camp to demonstrate for their bonuses to be paid early?

Answer 7

June 17th 1932

Question 8

When were the veterans’ bonuses supposed to be paid?

Answer 8

1945

Question 9

What was the result of the Senate vote for the Bonus March?

Answer 9

Against paying the bonuses early

Question 10

What had Hoover been supplying to the demonstrators?

Answer 10

Beds, medicine and army food

Question 11

Who did Hoover appoint to deal with the demonstrators?

Answer 11

Secretary of War Patrick Hurley and General Douglas MacArthur

Question 12

What were Hoover’s orders to MacArthur?

Answer 12

To clear the area making sure that women and children received “every kindness and courtesy”

Question 13

What did MacArthur do instead?

Answer 13

Burnt down the camp, charged through the camp on cavalry with drawn swords and used tear gas

Question 14

What were the results of MacArthur’s actions?

Answer 14

Two babies died from tear gas and a 7-year-old boy was bayonetted through the leg

Question 15

What did Hoover claim in his defence?

Answer 15

That they were communists and criminals though it still damaged his reputation

Question 16

What was Hoover’s background?

Answer 16

• Elected in 1928, promised to continue prosperity
• Believed in rugged individualism
• Believe in voluntarism - persuading businesses to act not forcing them to by law

Question 17

Hoover leather

Answer 17

Cardboard soles for shoes

Question 18

Hoover blankets

Answer 18

Newspaper

Question 19

Hoovervilles

Answer 19

Unhygienic, separated and crowded shanty towns with lack of education, lots of homelessness, risk of disease/loss of life, hazardous living, city sprawl, lack of choice, lock of money/resources, rapid change and poor construction

Question 20

What evidence is there that Hoover was a Do Nothing President?

Answer 20

• 1930 - the Smoot-Harley Act raised taxes
• 1931 - the federal banks raised interest rates
• 1932 - the government raised taxes
• 1932 - Hoover blocked the Garner-Wagner relief bill (allowing Congress to provide $2.1 billion to create jobs)

Question 22

What evidence is there that Hoover was a Do Something President?

Answer 22

• 1929 - Set up the Federal Farm Board to buy surplus produce and keep prices up
• Nov 1929 - Encouraged businessmen to agree to not cut wages
• 19030+31 - Cut taxes and the Committee for Unemployment Relief was formed
• 1931 - gave $423 million to state governments to set up schemes to provide work

Question 23

What did Hoover do in 1932?

Answer 23

• Reconstruction Finance Cooperation - To provide state and city governments, mortgage companies and railroads, and continued lending till 1953
• Federal Home Loan Bank Board - To oversee security of home mortgages
• Glass-Steagall Act - Helped banks by making it easier for them to borrow from the federal reserves