CRASH of 1929

1. CRASH of 1929 What do you know about the Great Depression in the United States in 1930s? Discuss in pairs

2. Crowds gather  in the Wall Street district of Manhattan due to the heavy selling on the stock market in New York City on Oct. 24, 1929, less than a week before the Oct. 28-29 crash. The big bang!

3. Crowds gather  in the Wall Street district of Manhattan due to the heavy selling on the stock market in New York City on Oct. 24, 1929, less than a week before the Oct. 28-29 crash. The big bang!

4. THE BIG BANG! The period that followed the end of the First World War was a prosperous one for most Americans and many called it the (1) “_______________”. When Herbert Hoover became President in march 1929, the economy was still booming. Hoover promised a continuation of the boom and “a chicken in every pot” for each American family. As the economy grew, (2)_________________ prices soared. By the end of the decade, as many as 25 million American had placed money in the stock market. People did not need a lot of cash to invest in the stock exchange. Many bought stocks on (3)_______________. This meant they borrowed the money using the value of stock itself as (4)___________. By 1929, the total amount of (5)____________amassed by this practice had reached six billion dollars. However, there were serious problems with the American economy. Prosperity depended on people continuing to spend but many had large debts or had already bought the consumer goods they needed. WORK IN PAIRS Read the text and complete the gaps (1-18) with the words or phrases in the box Roaring Twenties economic margin stocks collateral debt share investors downward panic borrowed banks crash demand banks Depression period circle The big bang!

5. Wealth was distributed unequally as rising profits were not passed on to workers so most people were too poor to (6)_________________more. This meant (7)_______________ did not rise as fast as production. This led to overproduction, which meant industry was producing more than people wanted to buy. Barriers to trade in place between the USA and Europe combined with (8)________________problems meant that Europe was not in a position to provide a good market for America’s surplus goods either. By 1929, unsold stock began to lay off staff, unemployment increased. In September, some investors began to worry about prices and warned that a (9)__________________ would happen at some time. Some people started selling their shares, but during September the stock market recovered: the (10) ____________________helped to restore by buying up vast numbers of stock. Then came BLACK THURSDAY – October 24th 1929 – when a drop in stock price triggered a burst of panic-selling so frantic that it overwhelmed the Stock Exchange’s ability to keep track of the transactions. Wall Street financers were able to reverse the (11)______________ plunge only by buying as many shares as they could over the next two days. WORK IN PAIRS Read the text and complete the gaps (1-18) with the words or phrases in the box • Roaring Twenties • economic • margin • stocks • collateral • debt • share • investors • downward • panic • borrowed • banks • crash • demand • banks • Depression • period • circle WORK IN PAIRS Read the text and complete the gaps (1-18) with the words or phrases in the box Roaring Twenties economic margin stocks collateral debt share investors downward panic borrowed banks crash THE BIG BANG!

6. It was a temporary victory. Monday’s opening bell unleashed a frenzy of selling that soon turned into an uncontrolled (12) __________________ which continued for the rest of the trading day. The following day – black Tuesday, October 29th 1929 – saw the previous day’s panic turn into chaos on trading floor. The effects of the Wall Street crash were dramatic. Investors lost heavily, in many cases they were unable to repay the brokers who had provided them with expensive loans to buy shares. Small investors had often (13) ____________________ money using their homes as security, so the banks repossessed their homes and evicted them. Some (14) ________________ Even committed suicide, the situation was so desperate Many companies went bankrupt in the period from 1929 to 1933 and some (15) _____________went out of business as they could not repay their investors. Unemployment rose to 12 million by 1932. As more people lost their job, sales fell and therefore more people became unemployed. A vicious (16) ______________________began and this led to the (17) ____________________in America that became known as the Great (18) _________________. WORK IN PAIRS Read the text and complete the gaps (1-18) with the words or phrases in the box • Roaring Twenties • economic • margin • stocks • collateral • debt • share • investors • downward • panic • borrowed • banks • crash • demand • banks • Depression • period • circle WORK IN PAIRS Read the text and complete the gaps (1-18) with the words or phrases in the box Roaring Twenties economic margin stocks collateral debt share investors downward panic borrowed banks crash THE BIG BANG!

7. KEY CONCEPT Dow Jones Index – in 1884 Charles H. Dow began tracking stocks. He started with eleven stocks, mostly railroads, looking at average prices for them. When the average went up consistently, he called it a BULL MARKET. When they dropped, it was a BEAR MARKET. To get his DowJones average he added up prices and divided by the number of stocks. Dow’sformula is still used today to gauge the market. WALL STREET NEW YORK Wall street run from Broadway to South Street on the East River in Lower Manhattan and it is the home of the New York Stock Exchange SYMBOLIC LOCATIONS

8. Stock: stocks are shares in the ownership of a company, or investments on which a fixed amount of interest will be paid Stock Exchange Stock Market Soar: if the amount, value, level or volume of something soars, it quickly increases by a great deal To lay off staff: if workers are laid off, they are told by their employers to leave their job Buy up: if you buy up land, property or a commodity, you buy large amounts of it, or all that is available Frantic: wild, desperate; things are done in a hurriedly and in an energetic but disorganized way Keep track of: if you keep track of a situation or a person, you have accurate and up-to-date information about hem all the time Plunge: quick and sudden decrease(stock p.) Match the English words (1-8) with the Italian equivalents (a-h) Tenersiinformato/aggior-natosu Capitaleazionario comprare in blocco; rastrellare frenetico, convulso caduta a picco, crollo Mercatoazionario Borsa salireallestelle Licenziarepersonale GLOSSARY

9. Share: a company’s shares are the many equal parts into which its ownership is divided. Shares can be bought by people as an investment. over the next two days: in the course of the next two days Unleash: to suddenly release a violent force that cannot be controlled Frenzy: a great excitement or wild behaviour the often results from losing control of your feelings Broker: a broker is a person whose job is to buy and sell shares, foreign money or goods for other people To evict: if someone is evicted from the place where they are living, they are forced to leave it, usually because they have broken a law or contract To go bankrupt: to have not enough money to pay debts Gauge:to calculate an amount, especially by using a measuring device To add up: to calculate the total of two or more numbers Roaring Twenties: the years between 1920 and 1930, when society was returning to normal after the First World War and the general mood was positive Match the english words (1-10) with the Italian equivalents (a-k) agentedicambio anniruggenti (anniVenti del ‘900) impeto, parossismo sfrattare scatenare, dare liberosfogo addizionare, sommare, nelcorsodei due giornisuccessivi valutare fallire azione GLOSSARY

10. On black Tuesday 2.894 million shares of stock were sold in one day, most at prices far below their values of only a few days earlier On Black Tuesday approximately 16,410,000 shares were sold. American economy steadily moves into the GREAT DEPRESSION, the worst economic crisis in U.S. history black Tuesday

11. World War I veterans outside the Capitol in Washington, during the summer of 1932 THE GREAT DEPRESSION

12. THE GREAT DEPRESSION A family of farmers camps out during their journey to the west For people in the United States, the 1930’s was the age of the Great Depression. In 1932, many business failed as a result of the Wall Street Crash and many banks also collapsed. The price of goods continued to fall and industrial production was cut. Wages fell and workers were made unemployed. President Hoover began to take some action. In 1930, he cut taxes and in 1931 he gave money to the state to help build infrastructures such as the Hoover Dam, in order to provide work. In 1932, he agreed to an Emergency Relief and Reconstruction Act which offered money to states that wished to help the unemployed. In May 1932, veteran soldiers tried to persuade Hoover to pay their war pensions early. Many of the war veterans had been out of work since the beginning of the Great Depression. The World War Adjusted Compensation Act of 1924 had awarded them bonuses in the form THE GREAT DEPRESSION

13. of certificates they could not redeem until 1945. Each service certificate, issued to a qualified veteran soldier, bore a face value equal to the soldier’s promised payment plus compound interest. Between 15-20,000 veterans called the “bonus Army” marched to Washington and built Hooverville, a shanty town of homes made from cardboard, outside the White House. The principal demand of the Bonus Army was the immediate cash payment of their certificates. On 28th July 1932, Hoover ordered the army to drive out the demonstrators and break up the encampment. A riot followed and two veterans were shot and died. By 1933 about 25 percent of the American workforce was unemployed. Farm product prices fell dramatically and it was costing farmers more to harvest and transport their produce than they could make by selling. Between 1931 and 1938, four separate droughts also hit the area of the Great Plains. This combined with poor agricultural practices – no Unemployed men, marching for jobs during the Great Depression in Canada THE GREAT DEPRESSION

14. crop rotation , fallow fields and over ploughing, left few areas with natural buffalo grass. In 1932, dust storms began and windstorms stripped the topsoil from millions of acres which turned the whole area into a vast DUST BOWL, and destroyed crops and livestock in unprecedented amounts. As a result, by 1940, approximately 2.5 million people had left the plains. About 200,000 went to California and the others went to nearby cities such as Texas or Dallas and other areas on the Western Coast. Migrant farm labourers and many others were unable to keep up mortgage payments and so were evicted from their farms. Without unemployment benefit, many people relied on soup kitchens and charity handouts. They lived in Hoovervilles. Although condition began to improve by the mid-1930’s, total recovery was not accomplished until the end of the decade. KEY CONCEPT Dust Bowl: an area of land that has been turned into desert through lack of rain or too much farming READ THE TEXT AND UNDERLINE NEW WORDS. IN PAIRS, TRY TO GUESS THEIR MEANING. Check you answers in dictionary. LIST THE MAIN CAUSES OF THE WALL STREET CRASH AND SUBSEQUENT EFFECT ON AMERICA. DISCUSS YOUR ANSWERS IN PAIRS. THE GREAT DEPRESSION

15. WHAT DO YOU KNOW? WHY DO YOU THINK “THE NEW DEAL” WAS GIVEN THIS NAME? SHARE YOUR IDEAS WITH YOUR PARTNER

17. 1. The Republican President, Hoover, had failed to deal with the Depression successfully. He tried to introduce measures to help the economy like tax reductions, an expansion of public works and the home loan act. However, his idea that people would be able to “work themselves out of poverty” without direct assistance from the government was very unpopular. When Roosevelt accepted the Democratic Party nomination for president, he promised a “New Deal” for Americans, which proved popular with the electorate. On the 4th March 1933, Roosevelt became president of the United States of America. He now had to deliver his promised New Deal to American people. This had three aims: Relief – to help to improve the lives of people Recovery – to begin to rebuild American industry and trade Reform – to change conditions to ensure future progress READ THE TEXT AND UNDERLINE NEW WORDS. IN PAIRS, TRY TO GUESS THEIR MEANING. Check your answers in dictionary. Choose FIVE WORDS to learn THE NEW DEAL

18. Roosvelt implemented a four-day “Bank Holiday” which closed the banks until they had been regulated. The Emergency Banking Relief Act gave the government strict control over the banks. Only healthy banks were allowed to reopen and the other weaker banks were reorganized under federal supervision. The stock market was to be monitored more closely and the USA was taken off the GOLD STANDARD. In order to win over the American people, Roosevelt gave speeches known as “firesides chats” where he asked Americans to have faith in the New Deal. He also introduced several Federal agencies to combat the effects of depression. 2. The economic programs outlined in the New Deal were implemented in the United States between 1933 and 1936. During the first hundred days of his presidency, Roosevelt passed many laws to try and end the crisis of the Great Depression and restore American confidence. In his New Deal, Roosevelt put into practice some of the theories of the British Economist, John Maynard Keynes. GLOSSARY Gold Standard: an economic system in which he value of money is based on value of gold LINKS: FDR Fireside Chat 1: on the Banking crisis FDR Fireside Chat 6: On Government and Capitalism FDR Fireside Chat 7:on the Social Security Act FDR Fireside Chat 8:On Farmers and Laborers FDR Fireside Chat 10: On New Legislation The new deal

19. Historians distinguish a “First New Deal” (1933) and a “Second New Deal” (1934-’36). The First New Deal (1933) dealt with diverse groups, from banking and railroads to industry and farming, all of which demanded help for economic recovery. A “Second New Deal” (1934-36) included the Wagner Act to promote labour unions, the Work Progress Administration (WPA) relief program, the Social Security Act, and new programs to aid tenant farmers and migrant workers. The final major items of New Deal legislation were the creation of the United States Housing Authority and Farm Security Administration both in 1937, plus the Fair Labour Standards Act of 1938 which set maximum hours and minimum wages for most categories of workers and the Agricultural Adjustment Act of 1938. 3. Whilst there was no attempt to end segregation or to increase black rights in the South, Roosevelt appointed an unprecedented number of African Americans to second-level positions in administration; these appointees were collectively called the Black Cabinet. THE NEW DEAL

20. The African American community responded favourably, so that by 1936 the majority who voted (usually in the North) were voting for Democrats. Some New Deal relief programs allocated a part of their budgets to blacks. At that time, social security was denied to African American and most unions excluded them from joining. 4. To increase popular support for this New Deal, Roosevelt put an end to PROHIBITION, the national ban on the sale, manufacture and transportation of alcohol which had been in place since 1920. Once the manufacture and sale of alcohol was legalized, states and cities gained additional new revenue through taxes on sales and Roosevelt secured his popularity in the cities for ending this unpopular ban. 5. The New Deal represented a significant shift in political and domestic policy in the USA, its most lasting change being the increased federal government regulation of the economy. It marked the beginning of complex social programs and the growing power of labour unions. Some businessmen and the Republican Party thought THE NEW DEAL

21. the New Deal had gone too far. Roosevelt’s critics said it had made Americans too dependent on government help. Some business men were not happy about high taxation of the rich and also unions in the workplace. The Supreme Court was also against the New Deal as many judges were Republicans and they declared that several New Deal measures were unconstitutional. The effects of the New Deal remain a source of controversy and debate amongst economists and historians. • Answer the questions: • What were the 3Rs of the New Deal and what did they mean? • Why do some people think President Hoover lost the 1933 election? • Why ere some people against the New Deal? choose the correct heading (a-e) for each paragraph (1-5) The New Deal and African Americans The first hundred days Challenges of the New Deal The end of Prohibition Relief, Reform, Recover THE NEW DEAL

22. National Industry Recovery Act (NIRA) The entire purpose of this group was to find a way to fix the Great Depression Agricultural Adjustment Act (AAA) Provided relief for farmers struggling due to the Dust Bowl Paid farmers not to farm a certain amounts of land and to kill off a certain amount of live stock New deal organizations

23. The Tennessee Valley Authority (TVA) It was a government owned utilities company They provided reasonably priced electricity They created job for the people The Securities and Exchange Commission (SEC) They regulated financial management Made sure prices were not too high or too low They protected stocks and investors NEW DEAL ORGANIZATIONS

24. Workers Progress Administration (WPA) They put unskilled men to work building things that benefit the country Civilian Conservation Corps (CCC) Provided work for 18-25 years old men A group to conserve the environment They built a lot of national parks and monuments in USA NEW DEAL ORGANIZATIONS

25. NEW DEAL ORGANIZATIONS

26. THE FEDERAL AGENCIES AND THE NEW DEAL

27. Complete each of e the chart with the title or the description of the federal agencies from the list (a-g) GROUP DISCUSSION Which agency was the most important in helping America recover from the Depression? • This made 500 million dollars available to state and local government for emergency relief. This was used to give direct help to the poor, for example for dole payment and soup kitchens • Public Works Administration • Provided work for thousands of unemployed men in forestry, water and soil conservation projects • Home Owners Loan Corporation • National Recovery Act • Provided government funding to rebuild agriculture and industry in six regions of the United States • This paid farmers to limit food production This raised prices and increased incomes and helped farmers modernise and rebuild their businesses

28. INTERNET LINKS VIDEOS OTHER LINKS • BBC - Great Depression • 1 A job at Ford’s • 2 The road to rock bottom • 3 New Deal, New York • 4 We have a plan • 5 Mean things happening • Roosevelt studied the theories of British Economist John Maynard Keynes and applied them to his New Deal. • Search the internet to find more about Keynes and his theories. In pairs, compare your results.

29. HISTORICAL QUOTATIONS STUDYING SOURCES SOURCE A This is Roosevelt’s quotation to the American people in 1932 upon accepting the Democratic nomination for presidency Million of our citizens cherish the hope that their old standards of living have not gone forever. Those million shall not hope in vain. I pledge you, I pledge myself to a New Deal for American people. • First identify if the source is primary or secondary • Read the quotation once first and underline any words you do not understand • Look the words up in a dictionary • Break the quotation down into sections and make notes about the key message of each section • Who is the speaker and when did they make the quotation? • Who is the audience? • What speech/piece of writing does the quotation come from? • What tone do they use and why? • What is the quotation about? • What are the key messages? • Take into account the speaker’s viewpoint and as it is a quotation you need to put it into a context

30. AN HISTORICAL SPEECH STUDYING SOURCES This is an extract from a speech presented by the President of the United States to the United States Congress on the 3rd January, 1934. For many years, the speech was referred to as “the President’s Annual Message to Congress” SOURCE B Roosevelt’s first State of the Union Address. I shall continue to regard it as my duty to use whatever means may be necessary to supplement state, local and private agencies for the relief of suffering caused by unemployment. With respect to this question, I have recognized the dangers inherent in the direct giving of relief and sought he means to provide not mere relief, but the opportunity for useful and remunerative work. We shall, in the process of recovery, seek to move as rapidly as possible from direct relief to publicly supported work and from that to the rapid restoration of private employment.

31. Roosevelt, the Democratic candidate for the White House, in Goodland Kansas, 1932 STUDYING SOURCES

32. 1. 2. • Read SOURCE A and answer the question: what was Roosevelt promising? • Analyse SOURCE B and answer the questions. In small groups, share your answers. • Who is Roosevelt speaking to? • What is the general message of this speech? • What does this source tell us about Roosevelt’s approach to dealing with the Depression?