The Great Depression

Front 1

Herbert Hoover

Back 1

Republican nominee for presidential election of 1928 - he won easy

Front 2

Al Smith

Back 2

Democrat nominee of presidential election of 1928 - because he was catholic, no one wanted him as a president

Front 3

Main issue of 1928 election?

Back 3

Prohibition (issue of "rural" vs. "urban")

Front 4

Representations

Back 4

Hoover represented rural (farm interests), and Smith represented urban (business interests)

Front 5

What didn't Hoover belive in

Back 5

Hoover didn't believe the government should be involved in the lives of people or in regulating business

Front 6

What did he do?

Back 6

Appointed commissions to study various problems as they turned up, but did not get the government involved when it came to addressing/solving the problems

Front 7

When was that demonstrated

Back 7

When farmers began to get into deeper trouble

Front 8

What did Hoover not want

Back 8

The government's job to be buying and selling. He felt the government's job was to help people help themselves

Front 9

Securities

Back 9

Stocks and bonds

Front 10

How much did securities go up from 1925-1929

Back 10

More than tripled between the 4 years. It went from $27 billion to $87 billion ($60 billion)

Front 11

Speculators

Back 11

They were people willing to take a risk.

**As prices to rose, more and more people began speculating. To make as much money as possible, speculators often bought stocks on margin

Front 12

What did the Federal Reserve Board do?

Back 12

Advised banks to stop loaning money for people to buy on margin - few banks listened

Front 13

In September of 1929...

Back 13

Some professional speculators began to pull out and the market began to waiver

Front 14

When did the stock market crash?

Back 14

October 29, 1929

**also known as Black Tuesday

Front 15

J

Back 15

I

Front 16

Banks

Back 16

》People rushed to banks to get their money

》Banks went bankrupt

》People who had accounts in the banks lost their life savings

Front 17

Causes of the Great Depression

Back 17

》Machinery - they took over people's jobs

》Farmers - they had borrowed money to buy machinery, and they had a surplus of goods. That meant the farm prices went way down.

》High Tariffs - Americans weren't allowed to sell to other countries, so they didn't sell to Americans

》Random Problems - it was like the domino effect, one thing after another, everything for Americans went spiraling down

Front 18

President Hoover's Reaction

Back 18

》asked leaders of industry, finance,

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Front 19

Tariffs

Back 19

》they continued to be a problem

》by the time the tariff bill got to the President's office in 1930, more than 1000 leading economists were begging him not to sign it. They said the tariff would help inefficient producers, raise consumer prices, reduce foreign markets, and create negativity toward the United States in other countries

》if Hoover didn't sign the bill his own party started,

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Front 20

Farmers

Back 20

》continued to struggle - the depression was hitting them horribly - debt was becoming unbearable

》the Farm Board bought up surplus crops

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Front 21

Moratorium

Back 21

When you're going to hold something off for a bit