Chapter 15 Section 3

Chapter 15Chapter 15Section 3Section 3Hoover’s Hoover’s

PoliciesPolicies

Opposing Direct ReliefOpposing Direct Relief

President Hoover believed the way to economic President Hoover believed the way to economic recovery was through recovery was through {{rugged individualism-rugged individualism- the the idea that success comes from individual effort}idea that success comes from individual effort} and not from government assistanceand not from government assistance

American’s began to demand the federal American’s began to demand the federal government proved relief for the needygovernment proved relief for the needy

Despite the pleas, Hoover rejected the idea of Despite the pleas, Hoover rejected the idea of direct government aid. He felt it would inflate the direct government aid. He felt it would inflate the budget and reduce self-respect of the people budget and reduce self-respect of the people receiving the aidreceiving the aid

He also refused to support a bill that would create He also refused to support a bill that would create a a {Federal Emergency Relief Board it was {Federal Emergency Relief Board it was not not passedpassed}} because of his lack of support because of his lack of support

Encouraging VoluntarismEncouraging Voluntarism

Hoover believed that voluntary efforts were Hoover believed that voluntary efforts were preferable to governmental aidpreferable to governmental aid

In 1930 he created the President’s Committee In 1930 he created the President’s Committee for Unemployment Relief (PCUR)for Unemployment Relief (PCUR)

{All the PCUR really did was {All the PCUR really did was urge people to urge people to private relief agenciesprivate relief agencies}} and pass out and pass out pamphlets because they were poorly funded. pamphlets because they were poorly funded.

During the entire Hoover administration they During the entire Hoover administration they were only given $157,000 were only given $157,000

Conditions of the depression only worsenedConditions of the depression only worsened

Stimulating the EconomyStimulating the Economy Although Hoover opposed direct relief, he did support Although Hoover opposed direct relief, he did support

governmental intervention in the economygovernmental intervention in the economy Secretary of the Treasury, Secretary of the Treasury, {{Andrew MellonAndrew Mellon, , thought thought

government should let business got out of the government should let business got out of the depression on its own}depression on its own}

Rejecting Mellon’s advice, Rejecting Mellon’s advice, {{Hoover requestedHoover requested that that Congress and state governments funded several Congress and state governments funded several public works programs.}public works programs.}

The construction of the Hoover Dam, the building of The construction of the Hoover Dam, the building of more than 800 public buildings and 37,000mi of more than 800 public buildings and 37,000mi of highway, unfortunately had little impact on the highway, unfortunately had little impact on the depression depression

Coping with the Coping with the Farm CrisisFarm Crisis

Hoover had Congress pass the Agricultural Marketing Hoover had Congress pass the Agricultural Marketing Act, which established the Federal Farm Board and Act, which established the Federal Farm Board and gave them a budget of $500 milliongave them a budget of $500 million

The FFB offered loans and financed the creation of The FFB offered loans and financed the creation of farmers cooperativesfarmers cooperatives

When crop prices continued to fall, Hoover instructed When crop prices continued to fall, Hoover instructed the FFB to buy up the surplus produce, store them, the FFB to buy up the surplus produce, store them, and sell them when the prices went back upand sell them when the prices went back up

Farmers refused to limit production and in reaction to Farmers refused to limit production and in reaction to the low prices, planted more cropsthe low prices, planted more crops

In 1931 the FFB stopped buying surplus crops having In 1931 the FFB stopped buying surplus crops having already spent $180 million already spent $180 million

The Reconstruction The Reconstruction Finance CorporationFinance Corporation

Hoover also tried to stimulate the economy by creating Hoover also tried to stimulate the economy by creating the Reconstruction Finance Corporation (RFC) in the Reconstruction Finance Corporation (RFC) in 19321932

The RFC was allowed to lend up to $2 billion of The RFC was allowed to lend up to $2 billion of taxpayer $ to stabilize banks, insurance companies, taxpayer $ to stabilize banks, insurance companies, railroad companies and other institutionsrailroad companies and other institutions

Although it did help many large corporations the Although it did help many large corporations the economy still continued to decline because the RFC economy still continued to decline because the RFC was created after the depression was in full swingwas created after the depression was in full swing

Also $ did not trickle down to the ordinary citizens-the Also $ did not trickle down to the ordinary citizens-the ones who needed it mostones who needed it most

Radical ProtestsRadical Protests

By 1932, Herbert Hoover was probably the most hated By 1932, Herbert Hoover was probably the most hated man in Americaman in America

The Communist and Socialist Parties in the U.S. The Communist and Socialist Parties in the U.S. blamed capitalism for the depression and staged blamed capitalism for the depression and staged many mass protestsmany mass protests

{{A.J. MusteA.J. Muste gathered the jobless into Unemployed gathered the jobless into Unemployed Leagues to demand work}Leagues to demand work}

The Communist Party also helped to expose racial The Communist Party also helped to expose racial injustice, when they funded a defense for 9 African injustice, when they funded a defense for 9 African American teens charge with a very questionable rape, American teens charge with a very questionable rape, and protested the inevitable verdict. All the men were and protested the inevitable verdict. All the men were out of jail eventuallyout of jail eventually

On 25th March, 1931, Victoria Price (19) and Ruby Bates (17) claimed they were gang-raped by 12 black men on a Memphis bound train. Nine black youths on the train were arrested and charged with the crime. Twelve days

later the trial took place at Scottsboro, Alabama. Their defense attorney was an alcoholic, who was drunk throughout the trial. The prosecutor on the other hand, told the jury, "Guilty or not, let's get rid of these n@#*!^#".

After three days all nine men were found guilty: eight, including two aged 14, were sentenced to death and the youngest man, who was only thirteen, was given life imprisonment.

Two famous writers, Theodore Dreiser and Lincoln Steffens, publicized the case by writing articles on how the men had been falsely convicted. The Communist Party supplied legal defense for the defendants and organized

mass demonstrations against the verdict. In November, 1932, the United States Supreme Court ordered a second trial on the grounds that the men had been inadequately defended in court.

Although Ruby Bates testified at the second trial that the rape story had been invented by Victoria Price and the crime had not taken place, the men were once again found guilty. A third trial ended with the same result but a fourth in January, 1936, resulted in four of the men being acquitted. Four more were released in the 1940s but

the last prisoner, Andy Wright, had to wait until 9th June, 1950, before achieving his freedom. This was nineteen years and two months after his arrest in Alabama.

The nine men were finally pardoned in October, 1976. Only one of the men, Clarence Norris, who had spent 15 years in prison for the crime, was still alive. He commented when he heard the news: "I only wish the other eight boys could be here today. Their lives were ruined by this thing, too." In April 1977 the Alabama House Judiciary

Committee rejected a proposal to pay Norris $10,000 in compensation for his time spent in prison.  

Lawyer Samuel Leibowitz with

Heywood Patterson in

trial.

The Bonus ArmyThe Bonus Army

The largest protest was staged in May 1932 when more than The largest protest was staged in May 1932 when more than 10,000 WWI veterans and their families came to Washington 10,000 WWI veterans and their families came to Washington D.C. to support a veterans bonus bill D.C. to support a veterans bonus bill

The bill would have granted veterans early payment of their The bill would have granted veterans early payment of their pension bonuses owed to them for their service in the warpension bonuses owed to them for their service in the war

These protesters were soon labeled the These protesters were soon labeled the Bonus Army Bonus Army When the bill was rejected, some 2,000 veterans stayed to When the bill was rejected, some 2,000 veterans stayed to

protest further. In a clash with authorities 2 veterans and 2 protest further. In a clash with authorities 2 veterans and 2 policemen were killedpolicemen were killed

President Hoover called in General Douglas MacArthur, who President Hoover called in General Douglas MacArthur, who came in with tanks, machine guns and tear gas.came in with tanks, machine guns and tear gas.

Hundreds were injured and three died including a 11 week old Hundreds were injured and three died including a 11 week old babybaby

Those who didn’t already hate Hoover, did nowThose who didn’t already hate Hoover, did now

The Election of 1932The Election of 1932 Oddly enough, the Republican Party chose Oddly enough, the Republican Party chose

Hoover to run againHoover to run again The Democratic Party chose The Democratic Party chose Franklin D. Franklin D.

RooseveltRoosevelt FDR’s wife, Eleanor Roosevelt, was one of his FDR’s wife, Eleanor Roosevelt, was one of his

most important political assetsmost important political assets {{RooseveltRoosevelt promised to put the political and promised to put the political and

economic system “at the service of the people”}economic system “at the service of the people”} Not only did FDR win the election but the Not only did FDR win the election but the

Democrats won decisive majorities in both Democrats won decisive majorities in both houses of Congresshouses of Congress

Knowing his policies would be passed with the Knowing his policies would be passed with the new Democratic Senate, new Democratic Senate, {{Franklin D. RooseveltFranklin D. Roosevelt offered the American public a “new deal”}offered the American public a “new deal”}

Review QuestionsReview Questions This is the idea that success comes from individual This is the idea that success comes from individual

efforteffort Was the Federal Emergency Relief Board passed?Was the Federal Emergency Relief Board passed? This man thought government should let business This man thought government should let business

got out of the depression on its owngot out of the depression on its own What did Hoover request that Congress and state What did Hoover request that Congress and state

governments funded?governments funded? This man gathered the jobless into Unemployed This man gathered the jobless into Unemployed

Leagues to demand workLeagues to demand work Roosevelt promised to put the political and Roosevelt promised to put the political and

economic system “at the service of who?economic system “at the service of who?