HIST 1312 1st Edition Lecture 24 Outline of Last Lecture I Essay 1 Progressive Reforms II Essay 2 WWl III Essay 3 Roaring 20 s IV Multiple Choice Outline of Current Lecture I Great Depression A Stock Market Crash B Federal Reserve Response C Hawley Smoot Tarif D Associational Principles E Reconstruction Finance Corp RFC II Election of 1932 A Hoover vs FDR III FDR A B C D E Current Lecture Emergency Banking Act FDIC Fireside Chats Glass Steagall Act Gold not Legal to Own l A The Stock Market Crash occurred on October 29 1929 when Hoover was President This greatly impacted the Great Depression because everyone s investments were now lost and people now owed money B The Federal Reserve response was to increase interest rates which made companies start falling apart because they couldn t pay them so now big businesses go in debt C Before the stock market crash Hoover had Congress look at a tarif to specifically help farmers because they were a sick industry and he wanted to keep them from going under However Congress was still debating when the crash occurred and now everyone wanted protection So Congress raises the tarif from 65 to 68 which was not enough for most people This was the Hawley Smoot Tarif These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute D Associational Principles was for big businesses where they were going to try and have a meeting to split up what each company does so they can all stay in business However businesses were greedy and didn t do this They were only interested in helping themselves E The Reconstruction Finance Corp loans money to big banks and businesses so that it can hopefully trickle to the smaller businesses but this only helps a little and unemployment is at 25 with no government help ll A In the election of 1932 people are angry at Hoover because of the Depression so they elect FDR to be the next President FDR has polio but refuses to be seen with crutches or a wheelchair and he runs on the campaign slogan A New Deal He doesn t define what this means but the people know the old deal was capitalism which led them into this depression so they think FDR s new deal is socialism or communism lll A People begin removing their money from the banks because they re scared they re going to lose it The banks run out of the 20 cash they have on hand FDR says they need to close down national banks for a 5 day period so they make an Emergency Banking Act so they can do this After 5 days the banks that have good credit are reopened but the banks that don t are closed forever and many people lost the money they put in those banks so it was very hard for people to trust banks after that B Because everyone is withdrawing their money from the bank FDR does Fireside Chats on the radio to get people to re invest in banks so they can get the circulation going C FDR also creates the FDIC that says 2 of bank money goes to the FDIC who invests in the banks If the banks fail the FDIC will cover up to 100 000 per account holder D The Glass Steagall Act is created This act said that companies could no longer invest in banking insurance and financial securities they could only do one at a time This kept another big crash from happening by doing this E FDR passes a law that says Americans must turn in their gold it is illegal to now own gold especially gold coins because the government wants it
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