HIST 106 1st Edition Lecture 20 Outline of Last Lecture I. Roots of DepressionII. Black Tuesday on Oct. 29th 1929III. What followed?IV. Hoover’s responseV. Coping Outline of Current Lecture I. Election of 1932II. The bonus armyIII. Presidential Election of 1932IV. The New DealV. More new deal programs Current Lecture- Election of 1932o Hoover’s name is attached to all sorts of bad things due to his inability to run a deficit (shanty towns=Hooverville) o Hoover is not doing to well in the eyes of the general public at the time of the election and his administration will make his name even worse- The bonus armyo Spring/summer 1932 The service bonus was a savings bond and most of the bonds could not be collected by 1935 and will not be able to get their bonus due to the stock market crash The marchers were basically living on Washington and when Congress turns them down and puts matters into Hoover’s hands:- July 28-Hoover will order the capital police to push the protestors out and theprotestors refuse peacefully, the police open fire and 2 people were killed- Hoover tells the police to stop and calls upon the army to push the protestorsout and this is a huge blood bath (shameful that the army is attacking its own veterans)o 17,000 WWI veterans 43,000 marchers total on Washington (the veterans, their families, their friends) and this will start the trend of protesting on Washington with WWII and the Civil War Congress debates the issue and the Senate declines the notion because Hoover does not want to do deficit spendingo Want service certificate paymentso Did not help Hoover’s image Hoover was incapable of breaking up a peaceful protest peacefully not to mention the shamefulness of the army attacking its own veterans The roll of these events basically put Hoover’s reelection down the draino Ensured the issue of veterans benefits was addressed in the future (GI Bill 1944) The GI Bill ensured that veterans would get their benefits and compensation rightafter they were done serving to ensure that another bonus army incident didn’t occur The reason that the army was able to interfere with legal matters because it stated that the army could not do this in states, not federal districts (which is what Washington DC is)- Presidential Election of 1932o Herbert Hoover-59 Clearly lost to FDR and this was due to the events that occurred after the depression started o Franklin D. Roosevelt-472 Assistant of secretary of Navy Governor of New York- Mobilized the machinery of government to help people out where private entities could not - His programs helped people in New York out during the depression First 100 Days- What is this president going to do in the first 100 days in office? (FDR coined this term)- Wanted to help relieve the depression in the first 100 days of his presidency better than Hoover did in his entire presidency- Passed 15 acts and forced congress to go into a mandatory session where congress will pass all 15 of his acts- The New Dealo Emergency banking relief act-1933 Confiscation of gold- Between 1933 and 1980s, it was illegal for Americans to privately own monetary gold (you couldn’t own bricks of gold)- In the time of the depression, Americans had private gold and the banks would pay people for their gold- The reasons they want the gold is to have the dollar have something to back it up and they wanted to monetize the gold to put the monetized money to put back into circulation to make sure there was enough money around to pay back the debts they owed- Within 300 days to this act being passed, 5,000 banks would be able to reopen Four day holiday- This was a mandatory 4 day shut down and would allow for inspectors to make sure the bank was on their way to a prosperous year Led to federal deposit insurance corporation (FDIC)- Ensure your money in the banks and if you have up to $250,000 in accounts and that bank goes down, you will get all of your money back - This is to make sure that if another depression occurs, people are not going to the bank to pull their money out This resulted in renewed faith in the banking sector Securities and exchanges commission-1934- Their job is to regulate the stock market and other trade markets to make sure you don’t have rampant speculation and would not have another stock market crash like in 1929- More new deal programs o Tennessee Valley Authority-1933 Federally owned corporation - Have the power of eminent domain, meaning if they want to build something, they have to go around or they would pay the person owning the land and having the something built on it Regional development- Made many dams and would make the hydroelectric reservoir and would allow people in rural areas to get electricity- Building dams takes a lot of manpower and will create more jobs for people o National recovery administration-1933 Minimum wages, max hours, fair prices - Will get labor and businesses together and will tell those people the minimum wage they get for that job, the maximum hours the workers can work, and set prices to make sure that competition was fairo Agricultural adjustment administration-1933 Paid not to produce?- The problem this act was aiming to relieve is the foreign traders flooding the markets and putting American farmers out of business- Says that if farmers leave a part of a plot alone for a year, they will get compensation for the crop that could not be produced - Farmers will also get a subsidy to make a certain crop and FDR will dump crops into the gulf of Mexico to lower the supply of the crops and raise
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