HIST 1312 1st Edition Exam 3 Study Guide Lectures 24 33 Lecture 24 March 31 The Great Depression and FDR When did the stock market crash How did it influence the Great Depression 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 What was the Federal Reserve Response to the stock market crash 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 What was the Hawley Smoot Tariff Before the stock market crash Hoover had Congress look at a tariff 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 tariff from 65 to 68 which was not enough for most people What were Association Principles for 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 What did the Reconstruction Finance Corp do 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 How does FDR win the election of 1932 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 What causes FDR to make an emergency banking act What did this banking act do 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 Why does FDR do Fireside Chats 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 What does the FDIC do 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 What is the Glass Steagall Act 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 Why is gold not legal to own anymore 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 Lecture 25 April 2 Great Depression Relief Agencies What did the CCC do FDR wants to get people re employed so he creates the C C C Civilian Conservation Corporation which only hired young single males These males had to set up camps where they built shelters Meals were provided and during the day they had to plant trees and put down fertilizer because of the Dust Bowl They got 25 of their pay and the other 75 would be sent back to their families What did the CWA do The C W A stood for Civil Works Administration and they employed men and women These people built and improved roads bridges schools airports recreational fields they helped out teachers artists writers and historians What was the WPA PWA The W P A or the Works Progress Administration and the P W A or the Public Works Administration did the same things They made the Golden Gate Bridge the Botanical Gardens and Lake Texoma How did the TVA help the economy The T V A was created which was the Tennessee Valley Agency They produced gunpowder and the government puts up a dam in Alabama They also use nitrates in fertilizer and they show people how to sew and can food This was the most successful agency of the new deal because it raised people s awareness of how to do things and how to protect themselves How did the REA help people in rural areas The R E A or the Rural Electrification Administration made sure rural areas across the country were provided with cheap electricity Houses made a small payment every month to pay off the electricity note and if you paid too much you got a rebate By the 1950 s this was so successful everyone had electricity and then they started putting in telephones and the internet How did the NIRA help the government control businesses The N I R A or the National Industrial Recovery Administration was a sticker that people could put in the windows of their shops basically saying they re patriotic so more people went to these business Businesses with this stamp had to abide by the government rules of this administration The government decided production quotas and made fixed prices and made companies include Clause in 7A which guaranteed collective bargaining and employment How was the NIRA ruled unconstitutional Schlecter had a poultry farm in New York and New Jersey and he could only sell top grade chickens He runs out of top grade chickens in New York so he uses some of his chickens in New Jersey for New York Because of this he got arrested and the government ruled that the N I R A was unconstitutional What was the other recovery agency that was ruled unconstitutional In 1933 the A A A was formed or the Agricultural Adjustment Administration which stated that 8 commodities were being overproduced They tried to persuade farmers not to produce these items by giving them a check to not farm them They put a special tax on the food industry alone The government declared this unconstitutional because taxes must be uniform they can t just target one group Lecture 26 April 7 FDR and Alternatives to end the Great Depression What was the Supreme Court Packing Scheme President FDR didn t like the old men on the Supreme Court because they