Ch. 22.3 Hoover Struggles with the Depression
Section Objectives:
1. Explain Hoover’s initial response to the Depression.
2. Summarize the actions Hoover took to help the economy and the hardship suffered by Americans.
3. Describe the Bonus Army and Hoover’s actions toward it.
One American’s Story
­Who was Oscar Ameringer?
● Newspaper editor in Oklahoma City during the Great Depression.
­Who did Americans demand help them?
● The federal government
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1. Hoover Tries to Reassure the Nation
­Who was Herbert Hoover?
President of the U.S. when the stock market crashed in 1929.
­What kind of role did Hoover believe the government should play in helping the economy?
A limited role
A. Hoover’s Philosophy
­What did Hoover believe the role of government was?
He believed the government’s job was to promote cooperation between competing groups and interests in
society.
­Why was Hoover reluctant to help people during the Depression?
He believed in “rugged individualism,” the belief that people should take care of themselves and their
family, and that the government should not bail them out.
B. Hoover takes Cautious Steps
­What type of action did Hoover take after the stock market crash?
He urged business, bank, and labor leaders to work together in order to find solutions to solve the nation’s
economic problems.
­Was he successful?
This plan was not successful the economy was still getting smaller.
C. Boulder Dam
­What was the Boulder dam?
Known as the Hoover dam today, world’s tallest dam, second largest, and it provided electricity, flood
control, and a water supply to California, Colorado, Arizona, Nevada, New Mexico, Utah, and Wyoming.
­Why was the Boulder dam significant?
The dam is important because it provides electricity, flood control, and a water supply to several states in
the West.
D. Democrats Win in 1930 Congressional Elections
­Why did Republicans lose their majority in the House of Representatives?
Because of the economic difficulties
­How did farmers express their anger during the Depression?
Farmers burned their corn and wheat, dumped their milk on highways, some refused to work, and some
blocked roads to prevent food from getting to markets.
­What did shantytowns become known as? Why were they called this?
Hoovervilles, they were called these because people felt it was the policies of Hoover that led to the need for
Shantytowns.
­Did Hoover budge from his policies during the Depression?
Hoover still refused to support direct relief, and did not budge on his original position.
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2. Hoover Takes Action
­Did Hoover change his policies?
Hoover had to soften his position as the economy got worse.
A. Hoover Backs Cooperatives
­What did Hoover do to try and improve the farming and banking?
Hoover created the Farm Board, it was intended to raise crop prices by helping members buy crops and
keep them off the market until prices rose.
Establishing the National Credit Corporation to prevent small banks from going bankrupt.
B. Direct Intervention
­What was the Federal Home Loan Bank Act?
It lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid
foreclosure.
­What was the Reconstruction Finance Corporation?
It authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and
other large businesses to try and spark job growth.
­Was the Reconstruction Finance Corporation successful?
The RFC was a failure it was too little too late.
3. Gassing the Bonus Army
­What was the Bonus Army?
A group of World War I veterans and their families that arrived in Washington D.C. demanding they be paid
their bonus money for serving during the war.
A. The Patman Bill Denied
­Who was in charge of the Bonus Army?
Walter Waters
­What was the Patman Bill?
It authorized the government to pay a bonus to World War I veterans who had not been paid adequately for
their wartime service.
­What did Hoover think the Bonus marchers were?
Communists and persons with criminal records.
­What happened to the Patman Bill?
It was voted down by the Senate on June 17, 1932.
B. Hoover Disbands the Bonus Army
­Why did Hoover use the military to disperse the Bonus Army? How did the infantry disperse the Bonus Army?
Hoover was afraid the Bonus Army would become violent.
The infantry gassed the Bonus Army and their families.
­What was the outcome of this event?
An 11­month­old baby died, and eleven year old boy was partially blinded, two people were shot, and many
were injured.
­Who was running against Hoover in the election of 1932?
Franklin Delano Roosevelt