The Great Depression

Chapter 22

Section 1: Depression Hits TexasThe Great Depression Begins

Republican Herbert Hoover became the US President in 1919.He had been in office for only seven months when Wall Street stock market prices fell sharply. Stock shares represent ownership in companiesWhen the price of stock fell, both inventors and bank lost all the money they had loaned.

Economic bad news continued: Domino Effect1. Factories closed so…2. People lost their jobs; Unemployment so…3. People could not buy products so…4. More factories closed so…5. Price of agricultural products dropped so…6. Income of Texas farmers suffered so…7. People couldn’t afford new houses, so…8. East TX timbers workers were laid off

Hoover greatly underestimated the Great Depression.

Section 1: Depression Hits TexasToo Much Oil

Texans elected an oil businessman, Ross Sterling, as governor in 1930

In October 1930; a wildcatter named Columbus “Dad” Joiner drilled an oil well in northern Rusk County. This new field was so big that it was named for a whole region- many small towns boomed as thousands of people descended upon East Texas.

People could make a lot of money drilling, and lots of other people can make money selling things to the drillers.

Independents (or small oil drillers) drilled all over East Texas in hopes of finding oil.

- There was TOO MUCH OIL

Law of Supply and Demand –Supply increased and demand stayed the same- so Prices when DOWN

Section 1: Depression Hits TexasToo much Oil In early 1930s, the price of a barrel of oil dropped.

In April 1931, the Texas Railroad Commission issued an order to limit the production in East Texas, Independents thought this action would only help the Large Oil companies- there was wide-spread cheating.

Truckers carried “Hot Oil” at night on the on back roads without using their headlights. “Hot Oil” was petroleum produced in violation of the Railroad Commission’s orders and was smuggled out of the Texas boom towns.

Governor Ross Sterling declared Martial Law and sent the Texas National Guard to East Texas. But overproduction continued.

By 1935, the state and federal laws had successfully controlled production and oil prices became more stable.

Section 1: Depression Hits TexasCrisis for Cotton Farmers

The Great Depression forced the cotton prices lower too.

Because Cotton doesn’t spoil like other crops, it could be stored for years. But the stored cotton and the new crop created even larger surpluses! - As with petroleum, the answer was to limit production

Nationwide.

Huey Long, governor of Louisiana pushed through a law known as “drop-a-crop”- prohibiting the planting of cotton in Louisiana in 1932. It had a provision that other cotton- growing states must also prohibit production in order for the law to go into effect.

WHY WAS THIS A GOOD IDEA?!

Governor Sterling did not think the idea would work, they called for partial reduction, but a state court declared the law unconstitutional , the whole plan collapsed.

Section 1: Depression Hits TexasDust Storms Blanket the High Plains

As with oil and cotton, overproduction drove price of Wheat down. In 20 years, wheat dropped from $2.19 to $.39 per bushel.

The High Plains farmers also found when they plowed grasses under, there was nothing left to hold the soil when the winds blew.

A severer drought in the 1930s added to the problem. The soil literally blew away. Dust from what came to be known as the Dust Bowl was reported by ship captains in the Atlantic Ocean.

Section 1: Depression Hits TexasTexans Look for Answers

As banks failed, some merchant associations printed coupons that could be used as money.

Universities that could not pay salaries allowed professors and their families to eat in the university dining halls.

Churches paid their preachers with eggs, chickens, vegetables, and firewood.

Mexicans Americans and African Americans were especially hit hard by the Great Depression.

Between 1929 and 1931 large numbers of Mexicans and Mexican Americans left Texas for Mexico. - Some left voluntarily- Others were deported or forced to leave to open jobs for Texas

citizens

The percentage of African Americans who were unemployed was approximately twice that of the rest of the population

Section 2: Texas and the New DealThe New Deal Begins

President Hoover ran for reelection in 1932, but voters blamed him for the Depression. Franklin D. Roosevelt won an overwhelming victory- Texans gave almost 90% of their votes to Roosevelt, who promised a “New Deal for the American People”

First action: close all banks to determine which ones where strong enough to stay in business.

Asked Congress to pass laws to help solve the economic problems

Facts about Frank:1. He got Polio in 1921 which left him paralyzed from the

waist down. But the press left this fact out of newspapers2. Franklin also had to deal with WW2- he delivered the

“Infamy Speech” to congress after the Pearl Harbor attacks 3. He won FOUR terms as President (not possible anymore)4. He died in office during his 4th term from a stroke.

Section 2: Texas and the New DealNew Deal Programs in Texas

The New Deal greatly increased the activity of the federal government in people’s lives Before 1930s1. Collect taxes2. Print money3. Set up courts

NOW:New Deal created the Alphabet Agencies to deal with the many problems faced by the nation as a result of the depression.

Section 2: Texas and the New DealNew Deal Programs in Texas

Federal Emergency Relief Administration (FERA):Gave funds to state and local agencies for distribution directly to unemployed people.

Civilian Conservation Corps (CCC):Provided outdoor employment for young men while helping to preserve the nation’s resources. Nearly 50,000 Texans participated in the CCC. Living in camps:1. Planted trees2. Built erosion control structures3. Helped conserve natural resources a. Garner, Bastrop and Palo Duro state parks, which are still in use today!4. They were paid $30 a MONTH and were to send $25 of that home to their families

Section 2: Texas and the New DealNew Deal Programs in Texas

National Youth Administration (NYA):Hired High school and college students to perform clerical and maintenance jobs. Students would:1. Work at school2. Work on playgrounds3. Help build roadside parks4. Spread gravel on highway shouldersHead of the NYA in Texas: Lyndon B. Johnson

Public Works Administration (PWA):5. Built bridges6. Built dams7. Schools8. Other structures of permanent value to the state

Section 2: Texas and the New DealNew Deal Programs in Texas

Works Progress Administration (WPA):Hired 600,000 Texans who built:1. Swimming pools2. Recreation centers3. Stadiums4. Parks

Others:5. Artists to paint murals6. Theater and musical groups were hired to provide

entertainment in several Texas cites.7. Historians were given jobs writing community histories.

Section 2: Texas and the New DealNew Deal Programs in Texas

Section 2: Texas and the New DealRural Texans and the New Deal

New Deal legislation helped rural people form Cooperatives, or organized groups, that borrowed money from the government to pay for stringing electrical wires. (the cities had electric lights, but the farms did not)

Farmers in the Dust Bowl regions planted alternating strips of wheat and grain sorghum. The sorghum was taller and protected the topsoil from being blown away.

In the cotton fields of Texas, the federal government encouraged farmers to:1. fill up gullies with brush to slow the water as it ran

downhill2. to plowed around hills in a method called contour

plowing rather than going straight up and own hills. 3. Paid to plant crops, such as clover that would

enhance the soilThis is sorghum

Section 2: Texas and the New Deal

Texas Centennial

Dallas was chosen to be the site of the Centennial Celebration in 1936 because it was able to contribute almost $10 million to help build the facilities.

The Texas Legislature and the U.S. Congress each provided $3 million. The main celebration was help at the 185 acre Fair Park in Dallas.

The San Jacinto Monument was erected on the battlefield to the east of Houston

Museums were built at the Alamo grounds in San Antonio, on the campus of UT and at the Canyon, Huntsville, Goliad and Gonzales.

San Jacinto Monument

Section 3: Politics in the 1930s1930s Governors

Despite economic problems in his term, Ross Sterling ran for re-election in 1932. Miriam Ferguson won the election.

Controversy:1. Fired experienced Texas Rangers2. She used her pardon power to release many criminals from

state prisons

James Allred was sworn in as governor in 19353. Restored Texas Rangers4. Made Texas Rangers apart of Department of Public Safety5. Allred founded Board of Pardons and Paroles6. Created retirement systems for teachers and state employees

Section 3: Politics in the 1930sMexican Americans fight for their rights

The Pecan Shellers’ Strike

The League of United Latin American Citizens (LULAC) was founded in Corpus Christi in 1929.

In 1930 it supported Jesus Salvatierra in his lawsuit against the Del Rio Schools.

Mostly Mexican Americans worked for the Pecan Industry and their working conditions were inhumane. In 1938, the company cut their wages. Emma Tenayuca Brooks and other organizers led more than 10,000 workers on a strike that lasted three months! Workers later went back to work for higher pay.