The Federal Govt should direct agencies and states to give relief

1. The Federal Govt should direct agencies and states to give relief • Hoover's blamed for the Depression • The Democratic National Committee hired a public relations expert to damage Hoover. They linked Hoover to the Depression. • Hoovervilles - shacks for the homeless outside the cities • Hoover blankets- old newspapers worn under the clothing • Hoover Hog - a jackrabbit • Hoover flags - empty pockets inside out

4. Hoover's FlawsThe great engineer could not adapt UNFLEXIBLE • A] Congress wanted 40 billion to spend - He spent only 2 He would not listen to them - In tough times a bad move • B] Bonus Army - 1932 VETERANS from WW 1 wanted bonuses promised them for 1945 -earlier. • In mid July - there were 15,000 marchers camped out on the white house lawn - they had been there for 2 months • C] Refused to cancel foreign war debts • D] Hoover could be seen at fine restaurants, living well while most of America suffered

5. Bonus Army • The Patman Bill voted down the bill to give them their bonus early. They did agree to pay for their way home but deducted it from their 500 dollar bonus they were to receive in 1945

6. Bonus Army • Congress voted not to grant them the bonus early • Hoover sided with Congress and sent in Gen Douglass Macarthur to remove the marchers with tanks and tear gas.

7. Bonus March • A 3 month old baby Benard Myers was killed • The BEF News suggested an epitaph • "Here lies Benard Myers, aged 3 months, gassed to death by order of President Hoover"

10. HooverBoulder Dam • Hoover set aside 800 million dollars for public works like the Hoover Dam. • Built in Nevada

11. Harold Ickes – sec. Of Interior believed Hoover had nothing to do with the dam and along with FDR at the dedication he promoted it as the Boulder Dam . The name stuck for a dozen years

12. President Truman officially changed the name in 1947

13. Blame • Who is to for the Great Depression? • A} President Hoover • B} Warren Harding • C} All of America • D} Empty Cow ( no milk)

14. B ANKS • L EGISLATURE • A MERICAN SHOPPERS • M ANUFACTURERS • E UROPE • M ARGIN ACCOUNTS • T ARIFFS • C REDIT • O OVERPRODUCTION • W ORLD WAR 1 That cow has got no milk

15. AN (EMPTY)COW CAUSED THE GREAT DEPRESSION • Banks and Margin Accounts • Federal Banks were forbidden to loan money for stock market speculation • Private Banks did not - they used Margin Accounts

16. Margin Accounts - a buyer wants to purchase stock and puts down part of the money (25%) • - His broker or agent puts down the rest for him, but charges interest on a Margin Account • The broker gets the rest of the money by borrowing it from a bank and he uses the stock as collateral

17. Inexperienced investors ( a large number from the middle class who had never invested before) panic when the stock falls which leads to a "a gambler's type panic" • The Banks were ruined from the loans

18. Legislature and the Tariff • Hawley Smoot Tariff -1930 - was the highest protective tariff in U.S History - it created an unbalanced foreign trade • Foreign Nations were unable to sell their goods in the American market and thus could not afford American products

19. This led to Economic Warfare - which is not a good business practice BAD BUSINESS PRACTICE Raffle Ticket theory - if many people sell raffles to you and you refuse all the time-when it comes time for you to sell some - look out

20. Credit and the American Shopper • The Installment Plan - Americans built up huge debts on credit They couldn't afford to pay back their loans

21. Manufacturers and Overproduction • Mechanization - New plants built the latest technology -increased output of goods but needed less workers to do it • Uneven distribution of income - lack of balance between consumption and production

22. Profits from production went to the stockholders or were put back into the business - at first; in the early 20's stocks were great • PROBLEM: Workers under low wages couldn't afford to buy the products. The farmers had the same problem. They were not receiving enough money for their crops

23. Europe and World War 1 • European nations were in debt, had property destroyed which reduced their purchase of American goods • The insistence that Germany pay war debts of 33 billion caused Europe to go off of the Gold Standard (paper money could no longer be exchanged for gold) - the gold value dropped which meant that Europe bought American products with a cheaper currency

24. Franklin Delano Roosevelt Governor of NY • New Deal – program OF RELEIF • Brain Trust -Trusted advisors • Polio (1921) • Eleanor Roosevelt (distant cousin to FDR) – she championed the Poor and comforted FDR during his illness

25. Brain Trust

26. FDR Policy • Bank Holiday • EBRA • Straight Talk • Fireside Chats

27. Bank Holiday • March 6, 1933 2 days into office –FDR closed every bank in the nation until each was sound enough to re – open • EBRA –Emergency Banking Relief Act

28. Straight Talk • Explains to the people about Banks – on march 12th • Banks invest your money and do not have it all on hand • Fireside Chats – FDR explained the New Deal measures on radio – he spoke of friendly encouragement

29. Side note in History • Hindenburg Disaster 1937 – New Jersey