Weiss Great Depression Quiz

The 1928 Presidential election pitted which two canidates

Herbert Hoover vs. Alfred Smith

What kind of personality and what political background did Herbert Hoover have?

A quiet and reserved man, zero political experience.

How did Americans view the victory of Herbert Hoover in the election of 1928?

A continuation of Coolidge, did not seek change, and were happy!

What is the Stock Exchange?

An organized system for buying and selling shares or blacks of investments in corporations.

What did many economists warn Americans of and how did the Americans react to these warnings?

The inevitable weaknesses in the economy, Americans continued to maintain the utmost confidence in the nation’s health.

What is the “Bull Market"?”

A period of rising stock prices.

What does it mean to “Buy on Margin?”

Made only small cash payment as low as 10% of the price.

When is “Buying on Margin” safe and when is it risky?

As long as the stock prices continued to rise, when it’s going down.

What is “Speculation?”

They bought stocks and bonds on the chance of a quick profit while ignoring the risks.

How did Hoover react to the potential danger of the stock market?

They ignored the danger signs and didn’t attempt to discourage people from buying stocks.

What occurred early in September 1929?

Stock prices peaked and then began to fall.

What did economic experts state on October 21, 1929

The market was going to be fine and it was simply experiencing nothing more than a “period of readjustment”

What happened on “Black Thursday?”

13 million shares of stocks were sold.

What happened on “Black Tuesday"?”

16 million shares had changed and stock prices had plummeted, NY stock exchange closed for a few days. By mid November, investors lost close to $30 billion.

What happened to the unemployment rate after the crash?

Leaped from 3% to 25%

What are Hoovervilles?

Makeshift homes called shantytowns or hoovervilles.

How did many Americans feel about Herbert Hoover during the depression?

They blamed him for everything, for suffering.

What strategy did Hoover have in repairing the economy?

He called on the nations top business leaders to come together and help the needy.

Hawley-Smoot Tariff Act:

By reducing the flow of goods into the U.S the tariff prevented other countries earning American currency to buy American goods. Made unemployment worse in industries that could no longer export goods to Europe.

Who were the “Bonus Army”, and how were they treated by President Hoover?

WWI veterans, Hoover called General Douglas MacArthur and his aide Dwight Eisenhower to remove the troops from Washington.

Soup Kitchens

Voluntary groups helping the needy

Who was and why was he the most colorful presidential candidate in the

1920’s?

Al Smith. Wisecracking, glad-handing liberal who was a big advocate for

alcohol consumption, including his own.

What were Al Smith’s political liabilities?

Catholic, repeal of prohibition support, big-city guy, lack of radio speaking

skill.

What were Hoover’s major strengths as a presidential candidate?

Talent for Administration.

Results of the Hawley-Smoot Tariff of 1930:

The worldwide depression deepened.

Great Depression and Birthrate:

Caused a decade-long decline.

What did Hoover believe would end the Great Depression?

Directly assisting businesses and banks, keeping faith in the efficiency of the industrial system, continuing to rely on the American tradition of rugged individualism, lend funds to feed farm livestock.

What was Hoover’s approach to the Great Depression?

Adopt unprecedented federal initiatives to combat it.

Reconstruction Finance Corporation:

Made loans to businesses, banks, and state and local governments.

Bonus Expeditionary Force in 1932:

Demanded full payment of bonus payments promised to WWI veterans.

What destroyed Hoover’s public image?

Handling of the dispersal of the Bonus Army