Hoover Struggles with the Depression

Ch. 22 Section 3

Hoover’s Philosophy

Government’s chief function was to foster cooperation between groups of society Voluntary cooperation Gov’t role to facilitate cooperation based

upon mutual interests Rugged Individualism

People should succeed through their own efforts

Hoover opposed any form of federal welfare

Reaction to the Crash

Hoover was cautious Brought together leaders from the

business, banking, and labor fields to work together Voluntary cooperation at work

Unsuccessful and the economy worsened

The public saw Hoover as a heartless leader Began calling shantytowns

“Hoovervilles” Placed the blame largely on Hoover

Hoover Takes Action

Passed the Federal Home Loan Bank Act Lowered mortgage rates, helped farms

avoid foreclosure Reconstruction Finance Corporation

$2 billion for emergency financing of banks and businesses

Hoover thought the money would eventually trickle down to the average citizen

The Bonus Army

The Patman Bill: WWI veterans to be paid a gov’t bonus for service

Hoover and Congress veto the bill

Protesters gathered, calling themselves the “Bonus Army”

Hoover calls on soldiers to dismantle the “army” Gassed 1,000

protestors and spectators.

The Depression Continues

Hard Times are still “Hoover”ing Over Us

The nation no longer trusts Hoover

New leadership is needed