The Great Depression and New Deal in Texas 1929-1940

Causes of the Great Depression

A. Agriculture already on the ropes
B. Unequal distribution of the nation’s wealth
C. Tariffs and poor trade
D. Stock speculation and the illusion of prosperity
E. Herbert Hoover not the cause
1. Rugged individualism (Help fellowman & neighbor but too GREEDY)
2. Public perception
3. Jesse Jones and the Reconstruction Finance Commission
F. Election of Franklin D. Roosevelt

Reaction to the Great Depression: Promoting Recovery

A. Press encourages optimism
B. Voluntarism and local projects
1. Dallas “Committee of 1,000”
2. West Texas Jackrabbits
3. Relief for whites only
C. A state of depression

Gubernatorial Election of 1930

The gubernatorial election held in Texas during the Great Depression, where incumbent Governor Ross S. Sterling
faced off against challenger Miriam A. Ferguson. Sterling would win the election.

Ross S. Sterling

31st governor of Texas, after Miriam Ferguson! He started (along with others) Humble Oil Company which is now exxon-mobile

Miriam Ferguson

Texas first female governor

Reconstruction Finance Corporation

Gave out 2 billion money to banks, states, and insurance companies to "bail them out" of trouble. Did some good, but wasn't enough money

A state of depression

Unemployment Rates - San Antonio - 30%, Dallas - 20%, Houston - 23%, 300,000 of repossession of property, gangs of teenagers, Bonnie & Clyde - thieves no protection

A new discovery and a distinctive Texas

A. Columbus “Dad” Joiner
1. Kilgore, Texas
2. Boomtown and problems

Columbus “Dad” Joiner

Father of the oil strike; began in East Texas

Boomtown and problems

Red-light district, too much oil price go down

East Texas Oil Field

In 1931, oil workers raised a new well every hour for the entire month of October. The East Texas Oil Field spread under 140,000
acres and stretched across five counties. It quickly became the largest oil reserve in the United States. It contained one half of the nation’s reserve by the time of World War II.

“Roughnecks”

Independent oil producers hired migrant oil rig workers, or “roughnecks,” to work the fields at low wages. These workers
represented a mass migration of single men relocating to Kilgore to
make fast money. They brought with them problems and vice, and
helped establish Kilgore’s own “red-light district.”

Texas Railroad Commission and proration orders

1. Independents protest
2. “Teakettle” refineries and “hot oil”

Texas Railroad Commission

State agency created in 1891 by the Texas Legislaure initially for the regulation of railroad and other transportation companies, in the early 1900s received the authority to enforce regulations regarding the oil industry as well.

"teakettle" refineries

refineries built by independents to bypass the proration, hot oil

Proration orders

only can yield so much oil

Sterling sends in National Guard

1. Jacob F. Walters
2. Hot oil traffic increases
D. National Recovery Administration settles production
E. Majors move in

Jacob F. Walters

Leader of national guard & lawyer for Texaco

The return of “Ma” Ferguson

1. Ferguson’s problems in the depression
2. Texas Rehabilitation Commission

Texas Rehabilitation Commission

created to distribute federal emergency relief funds

Influential Texans in Washington

1. John Nance Garner
2. Sam Rayburn
3. Jesse Jones
4. Liberals vs. Conservatives
a. Maury Maverick, Wright Patman, Lyndon Johnson
b. Dominance of House Committees

John Nance Garner

Was a Democrat who served as Speaker of the House of Representatives who initially ran for the Democratic nomination for President in 1932 before joining FDR'S ticket ad his vice president candidate.

Sam Rayburn

Long-serving U.S. Congressman; Speaker of the House of Representatives; Supporter of Roosevelt's New Deal

Lyndon Johnson

1963-1969, Democrat , signed the civil rights act of 1964 into law and the voting rights act of 1965. he had a war on poverty in his agenda. in an attempt to win, he set a few goals, including the great society, the economic opportunity act, and other programs that provided food stamps and welfare to needy famillies. he also created a department of housing and urban development. his most important legislation was probably medicare and medicaid.

The New Deal’s Impact in Texas

A. Election of James Allred
B. Banking
C. Recovery and Relief
D. Farm relief

James Allred

Replaced "Ma"Ferguson as governor;established the Dept of Public Safety

Banking

1. Reconstruction Finance Corporation (RFC)
2. Federal Deposit Insurance Corporation (FDIC)
3. Texas banking reform and results

Reconstruction Finance Corporation (RFC)

Gave out 2 billion money to banks, states, and insurance companies to "bail them out" of trouble. Did some good, but wasn't enough money

Recovery and Relief

1. Public Works Administration (PWA)
2. Federal Emergency Relief Act (FERA)
3. Civil Works Administration (CWA)
4. Works Progress Administration (WPA)
5. Civilian Conservation Corps (CCC)
6. National Youth Administration (NYA)
7. Social Security Act Members of the NYA

Works Progress Administration (WPA)

Congress created the Works Progress Administration in 1935 and President Roosevelt placed Harry Hopkins in charge of it. It eventually spent $11 billion on federal works projects and provided employment for 8.5 million persons. They built roads, bridges, schools, etc., but the also funded projects for thespians, artists, writers, and young people. Disbanded by FDR

National Youth Administration (NYA)

(1935) - created part-time jobs for millions of college students, high-school students, and other youngsters.

Social Security Act

(FDR) 1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health

Farm relief

1. Agricultural Adjustment Administration (AAA)
2. Farm Credit Administration (FCA)
3. Rural Electrification Administration (REA)
4. Results proved value of programs
a. AAA paid $293 million to Texas Farmers
b. FCA put $430 million into farm economy to prevent foreclosures
c. REA brought 54,000 new customers electric power

Agricultural Adjustment Administration (AAA)

attempted to regulate agricultural production through farm subsidies; ruled unconstitutional in 1936; disbanded after World War II

Farm Credit Administration (FCA)

Help farmers refinance their mortgages. Helps farmers hang on to land, but money not lent to more efficient businesses slowing economy.

Rural Electrification Administration (REA)

provided loans for the installation of things that provide electricity to 7 rural areas

Franklin Roosevelt

1933-1945, Democrat, "forgotten man," broke two term rule, platform - prohibition, help farmers, prevent fraud, balanced budget, decrease public spending, third election - two groups: "Defend America by Aiding the Allies" and "America First"