Election of 1928- Herbert Hoover Republican candidate, past head of Food Administration and Secretary of Commerce Vs. Alfred E. Smith Roman Catholic, was the four- time governor of New York.

The Stock Market- The stock market was established as a system for buying and selling shares of

companies.

Bull Market- A long period of rising stock prices.

Margin- making a small cash down payment, borrowing the rest

Margin call- when brokers called asking for their money back immediately

Speculation- investors bet on the market climbing and sold whatever stock they could in an effort to

make a quick profit.

October 29, 1929- Black Tuesday, the stock market crashed resulting in $10 to $15 billion loss in value. Although this did not cause the Great Depression, it did undermine the economy’s ability to hold out against its other weaknesses.

THE ROOTS OF THE GREAT DEPRESSION: Efficient machinery led to overproduction, and Americans could not afford to buy all the goods produced.The uneven distribution of wealth in the United States added to the country’s economic problems.

The Hawley- Smoot Tariff- Intensified the Depression by raising the tax on imports.

Hobos- homeless Americans who wandered around hitching rides on railroad cars.

Many of the homeless built shacks in shantytowns, which were referred to as “Hoovervilles” because they blamed the President for their financial trouble.

Dust Bowl- A terrible drought in the Great Plains, beginning in 1932

William Faulkner and Stream of Consciousness- Literary technique that revealed character’s thoughts and feelings before they spoke, Thoughts they dared not reveal.

John Steinbeck’s 1939 novel The Grapes of Wrath- Told the story of an Oklahoma family fleeing the Dust Bowl to find a new life in California. Steinbeck and many writers of the time wrote about poverty, misfortune, and social injustice.

President Hoover held a series of conferences bringing together: The heads of banks Railroads Big business Labor Government Hoover received a pledge from industry to keep factories open and stop cutting wages.

The pledge failed and Hoover increased public works- At the same time, Hoover refused to increase government spending or taxes. He feared that deficit spending would actually delay an economic recovery. Americans will blame the Republican Party for the Depression. As a result, in the midterm congressional elections of 1930, the Republicans lost 49 seats and their majority in the House.

Public works are government- financed building projects.

President Hoover tried to persuade the Federal Reserve Board to put more currency into circulation, but the board refused.

Hoover set up the National Credit Corporation NCC) which created a pool of money to rescue banks, but it was not enough to help.

The Reconstruction Finance Corporation (RFC) – made loans to banks, railroads, and agricultural institutes. The economy continued to decline when the RFC was too cautious in its loan amounts.

Hoover opposed the federal government’s participation in relief. He felt that relief was the responsibility of state and local governments.

In July 1932, Congress passed the Emergency Relief and Construction Act to get money for public works and for loans to the states for direct relief.

By 1931 discontentment over the economy led to violence. Looting, rallies, and hunger marches began.

Between 1930 and 1934, creditors foreclosed almost a million farms.

Some farmers destroyed their crops, hoping the reduction in supply would cause the prices to go up.

In 1924 Congress enacted a $1,000 bonus to be paid to veterans in 1945.

Bonus Bill- In 1931 a bill was introduced in the House that authorized early payments of the bonus.

In 1932 the Bonus Army marched to Washington, D.C.

Hoover refused to meet with the Bonus Army and the Senate voted the new bonus bill down, some marchers left and some stayed.

When Hoover ordered the buildings cleared, disputes between the remaining people and the police resulted in several deaths.

Walt Disney- made first feature length animate film, snow white and the seven dwarfs

Soap Operas- Soap operas received their name because makers of laundry soaps often sponsored

them. dramatic stories

Election of 1932- FDR vs Hoover, FDR won