Maya Thompson
APUSH
Mr. Kann
2 February, 2017
Unit 13 Notes
Wall Street Crash (pg. 493)
● During the 1920s stock prices were large
● Millions of people invested in the “boom” market of 1928
○ Millions lost their money in 1929 when it collapsed
Causes of the Crash (pg. 493-494)
● Real causes:
○ Uneven distribution of wealth
■ Top 5% had 30% of wealth
● Stock market speculation
○ People buying and dumping stocks, not holding them
● Overuse of credit
○ Increasing personal debt and overbuying of goods
● Overproduction
○ Factories making more than would be purchased
● Weak Farm Economy
○ Increasing debt, terrible weather, and low prices
● Government Oversight
○ Little to no government oversight of businesses. Tariffs that hurt farmers
and international trade
● Global Economic Problems
○ Intertwined global economy that was still struggling
Effects (pg. 494-496)
● The US Gross National Product went from 104 bil to 56 bil in 4 yrs
● 20% of banks were closed
○ wiped out 10 million savings accounts
● 13 million people were unemployed by 1933
● Poverty and homelessness increased
Hoover’s Policies (Page 496)
● Did little, thinking economy would recover, it didn’t
○ Passed ​Hawley Smoot Tariff
● Was 31%-​49% tax on foreign imports
● European nations passed higher tariffs, which decreased economic output
for everyone
Domestic Programs: Too Little, Too Late (pg. 497)
● Farm board was created in 1929
○ Board was allowed to help farmers make their prices stable by holding grain and
cotton
● Reconstruction Finance Corporation
○ Govt owned corporation created in 1932
○ Created to stabilize key businesses
● Democrats believed it would only help the rich
Despair and Protest (pg. 497)
● Farmers created ​Farm Holiday Association
○ Tried to prevent price drops by controlling supply
● Bonus March​ of WWI
○ 1000 unemployed WWI vets marched to DC
○ Protests broken up by army
■ Caused hatred towards Hoover
The Election of 1932 (Page 497-​498)
. ● Herbert Hoover was the Republican nominee while FDR was the Democratic nominee
○ FDR won, pushing plans for an economic New Deal
New Deal Philosophy (pg. 499)
● FDR promises the three Rs: relief, recovery, and reform
● Roosevelt went to a group of university professors: known as the Brain Trust
○ Included​ Rexford Tugwell, Raymond Moley, Adolph A. Berle, Jr
● People that Roosevelt appointed to high administrative positions were most diverse in
U.S. history
○ African Americans, Catholics, Jews, and women
■ Frances Perkins was his secretary of labor
● The first woman ever to serve in a president’s cabinet
The Fire Hundred Days (pg. 499-501)
● Congress passes record number of laws:
○ Bank Holiday:​ Temporary closing of banks to reorganize and fix them
○ Repeal of Prohibition​: Increased tax revenue, and economic movement
○ Fireside Chats​: Radio presentations with Roosevelt he would issue, talking to
Americans about issues
○
Financial Recovery Programs (pg. 500)
● Emergency Banking Relief Act:​ government were allowed to examine the finances of
the banks when closed
● Federal Deposit Insurance Corporation's:​ guaranteed individual deposit of $5,000
● ​Home Owners Loan Corporation: ​provided refinancing of small homes to
● prevent foreclosures
● The Farmers Credit Administration​: provided low interest farm loans and mortgages
to prevent foreclosure on the property of indebted farmers
Programs for relief for the unemployed (pg. 500-​501)
● Federal Emergency Relief Administration
○ Opened soup kitchens and other forms of relief for people across the country
● Public Works Administration
○ Put people back to work building public infrastructure like skyscrapers, dams,
and roads
● Civilian Conservation Corps
○ Employed young men on projects on federal lands and paid their families monthly
sums
● Tennessee Valley Authority
○ Program that sold power, built dams, and cleaned the valley
Industrial Recovery Programs (pg. 501)
● Headed by ​National Recovery Administration
○ Set wages
○ Controlled production
○ Set prices
● Farm production control program
○ regulated industry
Other Programs of the First New Deal (pg. 501-502)
● Civics Works Administration
○ Hired for PWA projects
● Securities and Exchange Commission
○ Created to regulate stock trading
● Federal Housing Administration
○ Insured bank loans and lowered homelessness
● Removal of gold standard
The Second New Deal (pg. 502)
● Relief Programs
○ Works Progress Administration​ employed 3.4 million people
■ Most workers under the WPA worked on construction
○ Resettlement Administration:​ provided loans to sharecroppers, tenants and
small farmers.
● Reforms
○ National Labor Relations Act​ 1935
■ Guaranteed a workers rights to join a union
○ National Labor Relations Board
■ Empowered to enforce the law and protect workers rights
○ Rural Electrification Administration
■ Provided loans for electrical cooperatives to supply power to rural areas
○ Federal taxes: Revenue Act ​1935
■ increased the tax on wealthy.
● The Social Security Act
○ Created a federal insurance program based upon the automatic collection of taxes
○ Social Security would be to make monthly payments to retired people over the
age of 65
● The Election of 1936
○ Roosevelt was nominated for a second term
○ Alfred Landon was the republican nominee
■ Democrats consisted of African Americans mainly in the Northern Cities
■ Africans joined the Democratic party because of Roosevelt’s New Deal
Opponents of the New Deal (pg. 504)
● Businesses hated Roosevelt, people liked him
○ Had 60% of the popular vote
● Many people despised the New Deal
○ Extreme liberals criticized the deal for doing too much for business and not
enough for the poor
○ Conservatives criticized the plan for being dangerously close to communism, and
for destroying business
The Supreme Court (505)
● FDR thought reelection meant he had to get around courts
● Court​-reorg plan​ would have let FDR place six new justices
■ Plan was disliked bc it looked like FDR just wanted power for himself
Rise of Unions (pg. 506)
● Wagner Act + National Industry Recovery Act
○ Made Union's legal
● Formation of the C.I.O
○ Committee of Ind Orgs were part of AFL and wanted unskilled workers let in
Fair Labor Standards Act (pg. 507)
● Competition between unions led to formation of ​Committee of Industrial
Organizations
○ Organized workers in many industries
● Strikes were common, until most companies agreed to work with the CIO
● Passage of ​Fair Labor Standards Act​, which set:
○ Minimum Wage
○ Maximum Work Week
○ Child Labor Restrictions
Last Phase of the New Deal (507)
● Women:
○ Women sought to work because there was an income struggle since many
○ fathers were unemployed, women were accused of taking jobs from men
○ Many New Deal programs allowed women to receive lower pay than men
● African Americans:
○ Employment rates were higher than national average
○ Jobless A.A were excluded from state and local relief programs
○ Lynching continued in the South
○ The New Deal did provide relief and gave A.A’s low paying jobs
○ Over 100 African Americans were given middle level positions in federal
departments by Roosevelt
■ 1941, an executive order was released to create a committee to assist
minorities in gaining jobs
Native Americans (509)
● John Collier
○ Was a long time advocate of Native Amer. rights
■ Was appointed commissioner of the Bureau of Indian Affairs in 1933
● Indian Reorganization Act (1934)
○ The Dawes Act of 1887 was repealed in 1934 with the passage of the Indian
● Reorganization Act
○ Returned lands to the control of tribes and supported the preservation of Native
American cultures
Mexican Americans (pg. 509)
● Mexican Americans were the principal source of agricultural labor in the South West
● High unemployment and drought in the Midwest caused dramatic growth in white
migrant workers
● Discrimination in the New Deal forced many thousands of Mexican Americans to
return to Mexico