Name: ____ANSWERS_________
Date: _______________________
Period: ______________________
Chapter 14 Review Worksheet ANSWERS
OGT
Section
Page
Person, Place, Date,
Term
Description
14.1
465
McNaryHaugen Bill
Bill that would have provided federal
price-supports
vetoed by
President Coolidge and failed to ever pass.
government buys surplus and sells on the
world market—farm goods
14.1
465
14.1
465
What factors contributed to the superficial prosperity of the 1920s?
14.1
14.1
14.1
465
465—N/A
465—N/A
What industrial weakness signaled a declining economy in the 1920s?
One of great ironies of the Depression: What existed despite farmer surpluses?
under-consumption
14.1
466
14.1
466
14.1
14.1
466
466—N/A
14.1
467
pricesupports
Al Smith
which would have helped stabilized prices in domestic market, however, the bill was
Consumer goods were available in abundance. Farmers had been buying more land and more farm equipment and producing more and more goods for market. Credit was easy to get. The stock market was booming, and average people were able to invest in the stock market. People used credit to obtain higher standards of living than before. Politicians, such as President
Herbert Hoover, declared that the economy was doing extremely well.
The older industries such as textiles, steel, and railroads, which were basic to the fundamental well-being of the economy, were barely profitable.
starvation
the failure to purchase goods; many goods were being produced but the low wages caused an insufficient purchasing power to support the nation’s mass-production industries
1928 Democratic candidate for
President—lost election because
Americans believed in the prosperity the
last two republican administrations had brought
as well as because he was catholic (many worried he would become the puppet of the pope).
installment
buying plans
paying for products at periodic
intervals—paying a small percentage and making monthly payments (plus
interest) to pay for item
14.1
467
What did the mood of farmers and consumers at this time suggest about the health of the economy?
Wickersham Commission
Bull Market
Buying on
Margin
14.1
467
Dow Jones
Industrial Average
14.1
467
How did speculation and margin buying cause stock prices to rise?
14.1
467
Beneath the surface prosperity of the 1920s, the economy was in trouble.
recommended that Prohibition continue; the 11 members of the commission disagreed among themselves on whether Prohibition should continue; most felt that the “noble experiment” was ineffective and promoted crime, yet the commission as a whole recommended that prohibition be continued
economy is doing well stocks are rising
paying a small down payment and then
borrowing the rest
the average value of 30 large, industrial
stocks
engaging in risky behavior ventures
buying only to sell them as soon as a
profit can be made;
when
(prices of
as a group
or have risen)
percent of a stock’s price as a
(such as General Motors, Goodyear, IBM, Exxon, etc.)
speculation
They caused over investment as people ignored the risks and bought more than they could pay for.
on the chance a quick profit can be made—
stocks and bonds
investors speculated which company’s stock would rise and then bought large quantities of the stock then turned around and sold the stock for higher price; some crooked investors would pool together
14.1
14.1
14.1
14.1
467—N/A
467—N/A
467—N/A
467—N/A
Bear Market
securities
sole proprietorship
What is it called when a company first sells its stock to the public?
other investors’ money and buy a large quantity of company stock at a cheap rate. Investors outside the pool would note the buying and concluded the company is making money and start buying stock, then when stock peaked the pool would quickly sell and thus plummet the stock and other investors lose money; speculation drove prices higher and higher causing companies to
become artificially inflated and bore little correlation to the companies’ actual worth
when economy is doing poorly (prices of stocks as a group are falling or have fallen)
stocks and bonds
if you start a business (buy the building, equipment, etc.) by yourself with your own money
(IPO) initial public offering
14.1
467—N/A
What represents a stockholders share in a companies profits?
dividends
14.1
467—N/A
Who had loaned money to brokerage houses and went bankrupt when they failed to get paid back?
banks
14.1
468
Black
Tuesday
14.1
469
Banks failed
because:
October 29, 1929 collapse of the stock
market; 16 million shares were sold,
causing a collapse
people panicked and withdrew their
money
were owed money
(buying on margin, installment buying, house loans, etc.) and were not being paid back
14.1
469
14.1
469
14.1
471
14.1
471
14.1
471
European
countries could
not repay U.S.
because:
What happened to ordinary workers during the Great Depression?
Causes of the
Great
Depression
Discuss three major causes of the Great Depression
HawleySmoot Tariff
14.1
471
14.1
471—
N/A
How did the Great Depression affect the world economy?
14.2
473
Bread Line
14.2
473
Hoovervilles
14.2
473
How did the Great
Depression affect
minorities?
14.2
473
Soup Kitchen
14.2
473
—
N/A
Describe the
conditions of
industrial
workers in
the early
1930s
group that many
Americans blamed
for the
had invested in the stock market
Germany could not war reparations
Could not sell their goods in U.S. due
to the Hawley-Smoot Tariff
(attempted to printed more money to pay debt which led to inflation)
which was the highest protective tariff in U.S. history
Many were out of a job. Others experience pay cuts and reduced hours.
Tariffs and war debt policies that cut
down the foreign market for
American goods
A crises in the farm sector
The availability of easy credit
An unequal distribution of income
caused a rapid drop in foreign trade;
The factors that caused the Great Depression included overproduction of consumer goods, under consumption of consumer spending, which in turn led to a slower increase in wages than in business and corporate profits. This led to insufficient purchasing power to support the nation’s industries. A prolonged slump in agriculture was another factor that contributed to the
economic decline. AND BUYING ON MARGIN, TARIFF AND TAXES, INSTALLMENT BUYING, SPECULATION, REPARATINOS.
The highest protective tariff in U.S. history,
it led to European countries passing similar tariffs on U.S. goods which further led to the failure of U.S. businesses. It started in the house as protection for farmers, by the time it passed the Senate it was the highest protective tariff in peacetime history; despite the urging of many economists and warnings from foreign diplomats-Hoover signed the bill fearing alienating the
Republican party.
World trade dropped, causing unemployment to rise globally.
Republicans/industrialist/bankers
Depression
(Shantytowns) makeshift communities
formed on the outskirts of cities by people
who were evicted from their homes
African Americans and Latinos suffered
from unemployment, low pay, and racial
violence.
Low or no cost food is served to the needay—usually provided by charitable organizations
As a result of lower demand for consumer
products and the materials needed to
build them, many Americans lost their
jobs and still more had their hours
reduced. Industries cut wages, and in
cities throughout the country, bread lines
and soup kitchens appeared as local
governments and charities tried to feed
2
14.2
473—
N/A
14.2
474
14.2
474
Okies
14.2
474—
N/A
Dorothea
Lange
14.2
475
Direct Relief
14.2
475
hoboes
14.2
475
Why did so
many men
leave their
homes during
the
Depression?
14.2
476
How did the
Great
Depression
affect women
and
children?
During the
depression, many
unemployed people
sold
Dust Bowl
the poor. Families who could not pay
their rent or make the mortgage payments
were evicted from their homes, resulting
in homelessness. Hunger riots sometimes
occurred as people smashed into grocery
stores attempting to take whatever food
they could.
apples
Area in the Midwest where overproduction and drought led to massive erosion causing
causing dust storms.
(Exodusters) Farm families who migrated
to Pacific Coast states in search of work
following the loss of their crop because of
the Dust Bowl, the name originated from
the original migrating families from
Oklahoma.
photographer who documented the lives
of migrant workers
Dole—Aid that went directly to the poor.
Men who wondered the country looking
for jobs
Many men were disheartened by their
inability to support their families and so
abandoned them. Others hoped to find
work and send money home to their
families.
Women: Many women had to
manage tight household budgets;
women encountered opposition in
holding jobs outside the home
Children: Many children suffering
from poor diets and inadequate
3
health care; many child welfare
programs and even schools were shut
down
Describe
Negative psychological effects include
some of the
feelings of despair and hopelessness, of
psychological shame and worthlessness. These feelings
effects, both developed as long-term unemployment,
negative and homelessness, and hunger eroded people’s
positive, of
self-respect and made them lose hope of
the Great
restoring their lives. Extreme
Depression.
demoralization led to increased rates of
How do you suicide and mental illness. Positive effects
think you
included placing value on thrift and the
would have
importance of having financial security,
survived the giving more emphasis to sharing and
hardships
showing charity to the needy, developing
that were
the ability to make do, and strengthening
widespread
community bonds. Students should give a
during this
frank assessment of their ability to make
period?
sacrifices that were typical of the period
and how hardships would affect their
outlooks.
14.2
477
14.2
477—
N/A
Clark Memorandum
14.2
477—
N/A
Earl
Browder
14.2
477—
N/A
stated that the Monroe Doctrine could no longer be used to justify American intervention;
the writer (Undersecretary of State J. Reuben Clark) said “The Monroe Doctrine states a
case of the United States v. Europe, not of the United States v. Latin American” and thus
the Monroe Doctrine could no longer be used to justify American intervention in Latin
America
general secretary of the communist party;
believed communism who take over with
violence—(“omelet theory”: just as it was
impossible to make an omelet without
breaking eggs, it was impossible to make a
revolution without breaking hands)
Explain how Hoover wanted to improve United States
foreign policy relations with Latin America. He
toward Latin abandoned military intervention in Latin
4
14.2
477—
N/A
America
changed
under
Hoover
Geneva
Conference
American countries. He declared that the
Monroe Doctrine could no longer be used
to justify American intervention in Latin
America.
meeting at which Hoover wanted to
abandon aggressive weapons or cut arms
by one-third; disarmament conference held by the League of Nations, but
work was hampered by the activities of lobbyists of arms dealers and mistrust among the
delegates; Hoovers proposal was not accepted by conference
14.2
477—
N/A
Henry L.
Stimson
14.2
477—
N/A
14.2
477—
N/A
London
Naval
Conference
Manchuria
14.2
477—
N/A
moratorium
14.2
478
14.3
478
14.3
479
secretary of state under Herbert Hoover;
urged Hoover to go further than
moratorium and completely cancel war
debts and reparations but Hoover did not
Proposed and passed fixed ratio sizes of
the Unites States, Japanese, and British
navies
Chinese province seized by the Japanese in 1931; taking
advantage of the civil war in China and the weak condition of
the Western nations, Japanese armies speedily overran
Manchuria, this action was in direct violation of the NinePower Treaty of 1922 which guaranteed China’s sovereignty as
well as breaking the Charter of the League of Nations of which
both China and Japan were part of
the suspension of a legal obligation such
as debt; in 1931 Hoover proposed an
international moratorium for one year of
all war-debt payments to the US
“Hoover
(“wild boys”) Teenagers who left home to
Tourists”
alleviate stress on parents and rode trains
in search of work and adventure.
Herbert
Republican candidate for President in
Hoover
1932
Describe how Hoover did not believe the federal
President
government should let economic events
Hoover’s
run their course but rather that it should
philosophy of help people to help themselves. As a
government result, he did not believe that the federal
5
government should help the farmers’
problems by buying surplus farm
products of that the federal government
should provide direct relief for the
unemployed
What were
Hoover believed that reason could solve
some of
problems, that government should foster
Hoover’s key cooperation between competing groups,
convictions
and that individuals, charities, and
about
private organizations should help care for
government? the less fortunate.
Why was Hoover
He believed it would enable and weaken
against Direct
people’s self-respect and “moral fiber.”
Relief?
“farm
Farmers refused to work their fields in
holiday”
protest against Hoover since the price of
agricultural goods were so low and he
refused to assist them.
“Hoover
Newspapers used as blankets
Blankets”
“Hoover
Empty pockets turned inside out
flags”
affected his
economic
views
14.3
479
14.3
479
14.3
14.3
479—N/A
479—N/A
14.3
480
14.3
480
14.3
480
14.3
480—
N/A
14.3
14.3
481
481
14.3
481
14.3
481
Garner-Wagner bill
What was the reason Hoover vetoed the Garner-Wagner bill?
proposed legislation what would have provided direct aid to the unemployed; Hoover vetoed it because he believed it would weaken the self-respect of those who received it, undercut the efforts of those who received it, undercut the efforts of private charity, and that it would destroy the tradition of local responsibility for the unfortunate
Hoover vetoed it because he believed it would weaken the self-respect of those who received it, undercut the efforts of those who received it, undercut the efforts of private charity, and that it would destroy the tradition of local responsibility for the unfortunate
Who was blamed for Depression?
Republicans (Hoover)/industrialists/banks
Evaluate President Hoover’s success in dealing with the Great Depression. Were his actions as president effective? How did
the public perceive his actions?
Herbert Hoover came into office in 1928 at a time of seeming prosperity. When the crash came, he urged optimism, believing, as many did, that the economy would correct itself. When it did not, Hoover still took a cautious approach to the depression, based on his belief that federal handouts would weaken people’s self-respect. Favoring cooperation among nongovernmental
entities, he urged business owners not to lay off workers and supported the relief efforts of private charities. These steps had little effect. As shantytowns grew up across the nation, public opinion turned strongly against Hoover, but he still did not support direct relief. He continued to encourage cooperation, this time within troubled industries. In 1931 he backed the Federal
Home Loan Bank Act, which provided mortgage relief. In 1932 he authorized the Reconstruction Finance Corporation, which provided funds to help save banks and other large businesses. These measures had only a small impact, and Hoover remained unpopular. Hoover’s image suffered further when he sent in the army to disperse the Bonus Marchers, veterans who had come
Washington to seek relief through early payment of their promised bonuses.
Federal
Farm Board
created by the Agriculture Marketing Act
to help farm organizations (farm
cooperatives) to try and reduce costs
(buying equipment and supplies in bulk)
and also to help raise crop prices
Lowered mortgage rates for homeowners
and allowed farmers to refinance their
farm loans to avoid foreclosure
separated investment from commercials
banking
Federal
Home Loan
Bank Act
GlassSteagall
Banking Act
6
14.3
481
14.3
481
14.3
481—
N/A
14.3
481—
N/A
National
Credit
Corporation
Reconstructi
on Finance
Corporation
(RFC)
Agricultural
Marketing
Act
Who tried to
convince
farmers to
grow less
loaned money to smaller banks to try and
help them avoid bankruptcy
unemployed veterans who marched on
Washington demanding early payment of
the bonus Congress promised to pay in
1945 (Patman Bill)
Bonus Army
14.3
482
Bonus Army
14.3
482
Who wanted early payment of
the bonus Congress promised
to pay in 1945?
14.3
482—
N/A
Patman Bill
14.3
483
14.3
483
Franklin D.
Roosevelt
14.3
483
Who cleared the veteran
demonstrators from
federal buildings and
who assisted him?
15
Douglas McArthur
Twentieth
Amendment
Established in 1932, it authorized up to $2 billion for
emergency financing for banks, life insurance companies, railroads, and
other large businesses but it was criticized for helping only the
corporations— (Hoover argued that that the money would trickle down to
the average citizen but Americans did not want to wait for the trickle, they
wanted relief now)
legislation passed in 1929 that created a
Federal Farm Board
the Farm Board (formed by the Agricultural
Marketing Act to help farm organizations) was buying up the
surplus of wheat and cotton between 1929 and 1932, however
they also encouraged farmers to plant less in order to reduce
the amount of farm produce available and thus increase the
prices on goods
Give WWI Veterans $500 of the $1,000
promised that would have been paid in
1945
Democratic candidate for President in
1932
General Douglas MacArthur and
Commander Dwight D. Eisenhower
legislation that changed the date of the
presidential inauguration from march 4 to
January 20, important here because this amendment was added to late to take
affect for the 1932 election, because of this Hoover was a presidential lame duck
cleared veteran demonstrators from federal buildings
assisted him.
(an officeholder with little influence because term was ending) thus the nation was virtually
leaderless and the banks further collapsed during this time
15
Why did
Franklin
1) many voters associated the Hoover and
the Republicans with difficulties of the
7
Roosevelt
win 1932
election?
Depression, 2) voters desire to use
government as an agency for human
welfare
8