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1928 Election
In this election, H.H. went against Alfred E. Smith. Since Smith was a Catholic, rural America greatly preferred Hoover, leading to the latter’s presidency. More people voted in this election than ever before. The Republicans had once again beaten the Democrats, but it was still apparent that the Democratic party was slowly gaining traction once again.
The election was especially notable because Hoover, a Republican, had gained support of some of the Southern states that hadn’t voted for a Republican president since the end of Reconstruction.
Herbert Hoover
He believed that public relief for the Great Depression should be given to the people by the state and not the federal government. He also initially believed that all the people needed was confidence and refrained from taking many major actions at the beginning of the depression. The Democratic Party took this opportunity to build up their political power again.
Black Thursday and Black Tuesday
[Two Terms] The first of which (October 24th, 1929) saw the largest amount of stocks sold in history, severely decreasing the value of the market. The second of which (October 29th, 1929) saw the stock market crash when investors traded about 16 million shares that had nearly no value.
Sect. of Treasury, Andrew Mellon
This was one of the wealthiest men in the world. He wanted tax cuts, reduced regulation, etc. His tax reductions led to over-saving by the general public, which helped diminish the demand for consumer goods. His policies enticed the rich into stock market speculation, and when trouble came, the bloated corporate structure came crashing down.
Federal Reserve
The central banking system of the United States, it failed during the beginning of the GD due to poor decision making and inefficiency (tight money policies and insistence on the gold standard led to bank failures as people panicked to get their money out of the bank).
Hawley-Smoot Tariff (1930)
This was passed by Hoover in an effort to promote internal trade and to support farmers during the Great Depression. However, it had devastating consequences for the economy (including the agricultural sector) because people couldn’t really sell excess goods to foreign nations since they had retaliated by increasing their own tariffs. This was a huge blow to Hoover’s administration and worsened the Great Depression.
Margaret Sanger
She is well known for her contributions in the field of women’s health since she popularized birth control. Her organization became known as Planned Parenthood later on. She was alienated by her supporters because she supported the eugenics movement.
Reconstruction Finance Corporation (RFC)
Hoover finally taking some federal action. In 1932, this was created with $500 million for emergency loans to banks, life-insurance companies, building-and-loan societies, farm-mortgage associations, and railroads. Hoover’s critics accused it of favoritism to corporations, but nonetheless, it remained a key agency through the mid-1940s.
“Priming the pump”
This was the belief that a deteriorating economy could be saved/kickstarted if the government pumps money into the market.
“rugged individualism”
This was the idea that a person is self-reliant and does not usually need government intervention to thrive. Hoover adopted this stance during the Great Depression and it didn’t go well (he first mentioned it in a speech).
Farm Holiday Association
A militant organization formed in Iowa by farmers which called for a farmers’ strike since the government gave up and stopped buying crop surpluses in an effective end to government relief for farmers.
“Bonus Army”
This was a group of World War 1 veterans who demanded government assistance, citing their past military service. They protested in Washington to receive their service cash bonuses, but Hoover had the army shut it down. This damaged his reputation and cost him the support of the American people.
Stimson Doctrine
This Doctrine stated that the United States would not recognize any treaty or agreement between Japan and China that violated U.S. rights or agreements to which the United States subscribed. This doctrine of non-recognition was very ineffective in suppressing Japanese aggression and Japan invaded and briefly occupied Shanghai, China.
Franklin Delano Roosevelt
This person was a Democrat who was elected during the Great Depression. He promised heavy government intervention to help Americans during the Great Depression. Thus, he facilitated the creation of a “limited welfare state” in which the government was responsible for the welfare of its citizens. He is notable for his New Deal pledge.
1932 Election
This was an election during which Hoover and FDR faced off against each other. FDR promised government intervention and his campaign song was “Happy Days are Here Again.” He trashed Hoover and the Republican Party, which helped him win the election. Hoover warned Americans that FDR and the Democrats were dangerous for not considering international causes for the depression, but the people were fed up with him so he lost.
“Fireside chats”
These were a series of radio broadcasts made by FDR that were made to alleviate the public’s fears about the economy and to inform them of the steps the government was taking to improve the situation. To the Americans who tuned in, it felt like FDR was directly talking to them, making him very popular.
Bank Holiday
Following his inauguration on March 4, 1933, FDR set out to rebuild confidence in the nation's banking system and to stabilize America's banking system. On March 6, he declared a national four-day period that kept all banks shut until Congress could act. The idea was that this would help stem bank failures, thereby restoring the nation’s trust in the banks.
Frances Perkins
An American workers-rights advocate who served as the fourth United States Secretary of Labor from 1933 to 1945, the longest serving in that position. A member of the Democratic Party, she was the first woman ever to serve in a presidential cabinet.
“Brain Trust”
The name given to FDR’s advisors that helped him make important economic decisions. They were academics, and initially, it consisted of a group of Columbia Law School professors.
The Hundred Days
This period was dubbed this since it represented the beginning 3 months of Roosevelt’s presidency. From March 3 to June 16th, Congress received from the president, and enacted, fifteen major proposals with unprecedented speed. This was a huge effort to save the economy.
20th Amendment
This was commonly known as the “Lame Duck Amendment” since it reduced the amount of time that a defeated incumbent would continue to stay in power. This was supposedly put into place to reduce the chance of drama during the transfer of power (a constitutional succession crisis). In short, it was meant to prevent a 2nd civil war.
21st Amendment
Was ratified on December 5, 1933. It repealed the previous Eighteenth Amendment which had established a nationwide ban on the manufacture, sale, and transportation of alcohol. Therefore, this repealed prohibition. By this stage of the depression, people had largely wanted alcohol back and thought that it could even help sustain the economy a bit.
Schechter v. United States (sick chicken case)
Declared a provision of the NIRA (National Industrial Recovery Act), one that authorized the President to approve “codes of fair competition” for the poultry industry and other industries, unconstitutional in 1935. The end result of the case was that the defendants faced 60 charges of violating the “Live Poultry Code,” including offering unfit chickens for sale and not offering a minimum wage to workers.
Francis Townsend
An American physician and political activist in California. In 1933, he devised an old-age pension scheme to help alleviate the Great Depression. Known as the "____ Plan", this proposal would pay every person over age 60 $200 per month, with the requirement it all be spent quickly. The pensions would be founded by a 2% national sales tax.
Father Charles Coughlin
This Roman Catholic “radio priest” founded the National Union for Social Justice in 1935. In broadcasts over the CBS radio network, he promoted schemes for the coinage of more silver to increase the money supply and made attacks on bankers that increasingly hinted at anti-Semitism.
Huey Long (The Kingfish)
This was a Louisiana senator who supported the redistribution of wealth from the rich to the poor (robin hood style…) He was accused of corruption and was impeached, but that didn’t stop him from running for the presidency. He was assassinated, however, before he became president. His nickname came from Amos and Andy.
“Share the Wealth”
Proposed by H.L., it promised a minimum annual income of $5000 for Americans that was paid for by taxing the rich. It was heavily criticized because it turned out that each American family wouldn’t even get close to that amount. Other critics claimed that this was Socialism. It did get support from the people, however, and it influenced a few of FDR’s policies. However, it was a failure over all.
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