Republican Herbert Hoover (Quaker)

VS.

Democrat Alfred E. Smith (Catholic)

Three P’s:

Prosperity

Prohibition- Hoover “dry” Smith “wet”

Protestantism

I. The Long Bull Market Buying “on margin” -

credit Strong economy

CRASH!

“Cycle of Disaster” – many businesses went bankrupt

Businesses cut production

Workers sufferedfrom wage cutsand lay offs.

People had little or no money to spend.

Demand forgoods fell.

1929Hawley-Smoot Tariff - raised to highest level in American history

BankRunsInstallment Plans

“The worst effects of the crash upon employment will have passed during the next sixty days.”-Hoover• Spoke and promoted positivity

Rugged Individualism: Hoover believed it would keep America going

RRs, banks, big business, labor and government• pledged to keep factories open and stop cutting wages

Pledges failed-Hoover increased public works• Simultaneously- he refused to increase government spending or taxes

Hoover tried to persuade the Federal Reserve Board to print more $$$-DENIED

Opposed relief

Recovery attempts:• National Credit Corporation -created

a pool of $$$• Reconstruction Finance Corporation - loans to businesses

• 1932 had lent $238 million Too cautious in its loan amounts-economy

decline• Emergency Relief and Reconstruction Act: money for public works and loans for states for direct relief

1931 discontentment led to violence• Oklahoma City: 500 broke into a store and looted

American Communist Party organized “hunger marches”• December 5, 1932 Washington D.C. police denied

protesters food, water, and medical treatment Congress intervened ,stressing the marchers’ right to

petition their government Farmers Revolt

• 1930-1934 creditors foreclosed on 1 million farms• Farmers destroyed crops in an effort to raise

money by reducing the supply

1924 $1,000 bonus to be paid to in 1945 • 1931 a bill

introduced to authorize early payment

• 1932 “bonus army” marched on Washington

Hoover failed to resolve the crisis but did more than any previous president• The RFC marked the 1st time federal

government intervened to stimulate the economy

What is the primary focus of the photograph? (i.e. what stands out?)

What is the mood? How is this symbolic of the Great Depression?

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