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21 Cards in this Set
- Front
- Back
Herbert Hoover |
Republican nominee for presidential election of 1928 - he won easy |
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Al Smith |
Democrat nominee of presidential election of 1928 - because he was catholic, no one wanted him as a president |
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Main issue of 1928 election? |
Prohibition (issue of "rural" vs. "urban") |
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Representations |
Hoover represented rural (farm interests), and Smith represented urban (business interests) |
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What didn't Hoover belive in |
Hoover didn't believe the government should be involved in the lives of people or in regulating business |
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What did he do? |
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 |
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When was that demonstrated |
When farmers began to get into deeper trouble |
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What did Hoover not want |
The government's job to be buying and selling. He felt the government's job was to help people help themselves |
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Securities |
Stocks and bonds |
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How much did securities go up from 1925-1929 |
More than tripled between the 4 years. It went from $27 billion to $87 billion ($60 billion) |
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Speculators |
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 |
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What did the Federal Reserve Board do? |
Advised banks to stop loaning money for people to buy on margin - few banks listened |
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In September of 1929... |
Some professional speculators began to pull out and the market began to waiver |
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When did the stock market crash? |
October 29, 1929 **also known as Black Tuesday |
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J |
I |
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Banks |
》People rushed to banks to get their money 》Banks went bankrupt 》People who had accounts in the banks lost their life savings |
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Causes of the Great Depression |
》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 |
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President Hoover's Reaction |
》asked leaders of industry, finance, 》 》 》 |
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Tariffs |
》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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Farmers |
》continued to struggle - the depression was hitting them horribly - debt was becoming unbearable 》the Farm Board bought up surplus crops 》 》 》 |
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Moratorium |
When you're going to hold something off for a bit |