the hoover response. responding to a worldwide depression president hover believed that prosperity...
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The Hoover Response
Responding to a Worldwide Depression
• President Hover believed that prosperity would return
• Advised voluntary action and restraint
• Urged businesses to keep wages high, unions not to strike, and charities to increase efforts
• Didn’t ask for legislative action
Responding to a Worldwide Depression
• Hawley-Smoot Tariff (1930) – Highest tariff in history (31-49%)
• Satisfied business leaders, Europe retaliated• Deepened depression
Responding to a Worldwide Depression
• Dawes Plan couldn’t continue• Hoover proposes debt moratorium• Britain and Germany accept, France doesn’t
Responding to a Worldwide Depression
• Most programs too little, too late
• Federal Farm Board – created before crash– Powers enlarged– Helped stabilize
prices– Too modest to deal
with continued overproduction
Responding to a Worldwide Depression
• Reconstruction Finance Corporation (RFC) – 1932 to prop up railroads, banks, life insurance companies, other financial institutions
• Benefits would “trickle down”• Democrats said it would only help
the rich
Responding to a Worldwide Depression• 1932 - Millions of unemployed workers and farmers decided to
take direct action– Farm unrest – farmers banded together to stop foreclosures and
evictions• Tried to stop all grain shipments, got violent
– Bonus Army – WWI vets wanted their bonuses early. • Went to DC, camped out at the capitol• Congress didn’t pass the bill• 2 vets killed by police• Gen. MacArthur sent out with tanks and teargas
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