Start of the Great Depression

1. Start of the Great Depression Gov. Ross Sterling: “Hot Oil” & the “Cotton Holiday” Gov. Miriam A. Ferguson, Part II

2. Ross Sterling • Wealthy TX oil man • Ran for Gov. in 1930 • Defeated Ma Ferguson • Soon inherited the Great Depression

3. East Texas Oil Boom • Resulted from “wildcatting” efforts of Columbus “Dad” Joiner • Massive field discovered near Kilgore – 5 counties wide • Massive rush led to prosperity in one of the state’s poorest areas

4. Ross Sterling & “Hot Oil” • Massive production led to 95% drop in crude oil prices • Sterling OK’d efforts sought by large oil cos. to limit production • TX RR Commission sought to set quotas

5. Ross Sterling & “Hot Oil” • Many small producers ignored the quotas • Continued to produce illegal “hot oil” • Sterling declared martial law to enforce the quotas • Very unpopular in East TX base of the Fergusons

6. Huey Long’s “Cotton Holiday Plan” • Sought by LA Gov. • If no cotton raised in 1932, prices should rise greatly in 1931 • Only to take effect if 75%+ of South’s cotton acreage pledged to be taken out of prod.

7. Huey Long’s “Cotton Holiday Plan” • Ball placed in Texas’s court, since TX produced over 1/3 of US cotton • No TX approval = no holiday • Sterling & the Legis. vs. the plan (rejected) • Sterling’s popularity sinks w/ many cotton farmers

8. Miriam A. “Ma” Ferguson • Took advantage of discontent w/ the Depression (& Sterling) • Won 1932 Dem. Party runoff vs. Sterling; also won general election • Supported the “New Deal” • Accused of favoritism w/ gov’t relief $$ & jobs

9. Franklin D. Roosevelt & the “New Deal”