The Great DepressionThe Great Depression

An Economic CrisisAn Economic Crisis

Companies sell stocks Companies sell stocks – shares of ownership- – shares of ownership- to raise money.to raise money.

During the 1920’s the During the 1920’s the price of many stocks price of many stocks rose steeply.rose steeply.

Many Americans Many Americans began to speculate, began to speculate, buying stocks in an buying stocks in an attempt to make a attempt to make a quick profitquick profit

An Economic CrisisAn Economic Crisis The in late October The in late October

1929, panic spread at 1929, panic spread at the New York Stock the New York Stock Exchange as people Exchange as people rushed to sell their rushed to sell their stocks. stocks.

This panic led to a This panic led to a stock market crash.stock market crash.

Thousands of shares Thousands of shares rapidly lost their value.rapidly lost their value.

Many people who Many people who invested their savings invested their savings were left with nothing.were left with nothing.

An Economic CrisisAn Economic Crisis The effects of the stock The effects of the stock

market crash were soon market crash were soon felt throughout the U.S. felt throughout the U.S.

Many banks were forced to Many banks were forced to close because they had close because they had made too many loans to made too many loans to people who now could not people who now could not repay them. repay them.

People who had savings in People who had savings in these banks sometimes these banks sometimes lost all of their money.lost all of their money.

People bought less, so People bought less, so businesses began laying businesses began laying off workers to reduce off workers to reduce expenses.expenses.

An Economic CrisisAn Economic Crisis Workers who were Workers who were

unemployed or without unemployed or without work could not buy as work could not buy as much food, clothing, or much food, clothing, or other goods as they other goods as they once had.once had.

When demand for these When demand for these goods fell, business was goods fell, business was hurt even more.hurt even more.

As this cycle continued, As this cycle continued, the economic slowdown the economic slowdown became a depression.became a depression.

An Economic CrisisAn Economic Crisis

During the first year of During the first year of the depression, many the depression, many people believed the people believed the economy would economy would improve quickly.improve quickly.

This optimistic spirit This optimistic spirit did not last long.did not last long.

The global economic The global economic slowdown in the slowdown in the 1930’s became known 1930’s became known as the Great as the Great DepressionDepression

An Economic CrisisAn Economic Crisis Millions of people Millions of people

throughout the world throughout the world became unemployed.became unemployed.

By 1933, some 15 By 1933, some 15 million American million American workers were workers were unemployed and millions unemployed and millions of families were on relief of families were on relief or public assistance.or public assistance.

Thousands of families Thousands of families lost their homes and lost their homes and many people had to beg many people had to beg for money on the for money on the streets.streets.

An Economic CrisisAn Economic Crisis Governor Ross Sterling Governor Ross Sterling

announced in 1932 that announced in 1932 that some 300,000 Texans some 300,000 Texans were unemployed. were unemployed.

African Americans and African Americans and Mexican Americans Mexican Americans were hit particularly were hit particularly hard.hard.

They were often the first They were often the first to be laid off from work to be laid off from work so that white employees so that white employees could keep their jobs.could keep their jobs.

As a results many As a results many Mexican Americans Mexican Americans returned to Mexico.returned to Mexico.

Depression in TexasDepression in Texas The depression was The depression was

somewhat less severe in somewhat less severe in Texas. Many farmers could Texas. Many farmers could at least feed their families.at least feed their families.

The oil industry still The oil industry still provided many jobs.provided many jobs.

Texans need for assistance Texans need for assistance grew as the depression grew as the depression wore on.wore on.

Churches and private Churches and private organizations tried to help organizations tried to help as many people as possible as many people as possible setting up soup kitchens setting up soup kitchens and breadlines to give out and breadlines to give out food.food.

Charitable organizations Charitable organizations also donated clothing and also donated clothing and provided shelters.provided shelters.

Depression in TexasDepression in Texas Local governments also Local governments also

struggled to deal with the struggled to deal with the Great Depression. Great Depression.

To reduce spending many To reduce spending many cities and counties cut cities and counties cut jobs.jobs.

Local governments also Local governments also issued “scrip” or paper issued “scrip” or paper notes to save money. notes to save money. These paper notes were a These paper notes were a promise to pay at a later promise to pay at a later date. date.

Such measures did little to Such measures did little to help the Texas economy or help the Texas economy or to boost confidence.to boost confidence.

Depression in TexasDepression in Texas President Herbert Hoover and President Herbert Hoover and

Governor Ross Sterling- like Governor Ross Sterling- like many Texans- opposed many Texans- opposed government programs such as government programs such as unemployment relief because unemployment relief because they worried about destroying they worried about destroying individual’s self-reliance.individual’s self-reliance.

They supported limited They supported limited government aid to government aid to businesses.businesses.

They believed that once They believed that once businesses had recovered, businesses had recovered, new jobs would be created new jobs would be created and the economy would and the economy would revive.revive.

However, many Texans and However, many Texans and other Americans grew other Americans grew increasingly unhappy with increasingly unhappy with these policies as the these policies as the depression continued.depression continued.

Herbert Hoover

Ross Sterling

A Crisis in the Oil IndustryA Crisis in the Oil Industry As the depression deepened, the Texas As the depression deepened, the Texas

oil industry faced a crisis.oil industry faced a crisis. The East Texas oil discovery led to an The East Texas oil discovery led to an

over-production.over-production. The price of oil dropped from more than The price of oil dropped from more than

$1 per barrel to a dangerously low 8 $1 per barrel to a dangerously low 8 cents per barrel.cents per barrel.

These low prices threatened to ruin These low prices threatened to ruin profits and the Texas oil industry.profits and the Texas oil industry.

Gov. Sterling tried to get producers to Gov. Sterling tried to get producers to limit production.limit production.

In Aug. 1931, he declared martial law In Aug. 1931, he declared martial law on some east Texas counties.on some east Texas counties.

He sent the National Guard to enforce He sent the National Guard to enforce proration.proration.

Under proration, each well could only Under proration, each well could only produce a certain amount of oil each produce a certain amount of oil each day.day.

The state legislature passed laws The state legislature passed laws granting the Texas Railroad granting the Texas Railroad Commission more authority to regulate Commission more authority to regulate the oil industries.the oil industries.

These laws helped prevent over-These laws helped prevent over-production, thereby increasing stability production, thereby increasing stability within the oil industry.within the oil industry.

The Dust Bowl and FarmersThe Dust Bowl and Farmers Although Texas farmers Although Texas farmers

could grow much of their could grow much of their own foods, the depression own foods, the depression hit them hard economically. hit them hard economically.

Farmers had experienced Farmers had experienced difficult times during the difficult times during the 1920’s but life grew even 1920’s but life grew even harder.harder.

Crop prices continued to Crop prices continued to drop.drop.

In 1932, cotton sold for less In 1932, cotton sold for less than six cents a pound. than six cents a pound.

Prices fell so low that some Prices fell so low that some farmers burned their crops.farmers burned their crops.

The Dust Bowl and FarmersThe Dust Bowl and Farmers An environmental disaster An environmental disaster

made matters worse.made matters worse. Ranching and farming Ranching and farming

changed the environment.changed the environment. In the 1920’s farmers in Texas In the 1920’s farmers in Texas

and other states had plowed and other states had plowed up much of the Great Plains to up much of the Great Plains to grow wheat.grow wheat.

Wheat did not hold the soil Wheat did not hold the soil like native grasses.like native grasses.

Drought in the 1930’s leaving Drought in the 1930’s leaving the soil dry and loose. the soil dry and loose.

Spring winds came and lifted Spring winds came and lifted the soil into the air, creating the soil into the air, creating huge, black clouds of dust.huge, black clouds of dust.

Amarillo suffered a black Amarillo suffered a black blizzard that blocked out the blizzard that blocked out the sun for nearly 11 hours.sun for nearly 11 hours.

The Dust Bowl and FarmersThe Dust Bowl and Farmers

The Dust Bowl and FarmersThe Dust Bowl and Farmers Parts of the southern Great Parts of the southern Great

Plains soon came to be Plains soon came to be called the Dust Bowl.called the Dust Bowl.

Drought and dust ruined Drought and dust ruined crops and thousands of crops and thousands of cattle died.cattle died.

Many cattle ranchers Many cattle ranchers struggled financially during struggled financially during this time.this time.

One third of the Panhandle One third of the Panhandle farm families received farm families received charity or relief. charity or relief.

About 90% of local farmers About 90% of local farmers had to take out crop loans had to take out crop loans to be able to buy to be able to buy necessities.necessities.