Great Depression VFL

November 22

Dow Jones Industrial Average

Measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange. The most widely used barometer of the stock market’s health. (Stock Market)

Price Support

The government would buy surplus crops at guaranteed prices and sell them on the world market. (Stock Market)

Credit

An arrangement in which consumers agreed to buy now and play later for purchases. (Stock Market)

Speculation

They bought stocks and bonds on the chance of a quick profit, while ignoring the risks. Reason for the depression (Stock Market)

Buying on Margin

Paying a small percentage of a stock’s price as a down payment and borrowing the rest. (Stock Market)

Black Tuesday

October 29, the bottom fell out of the market and the nation’s confidence. People who bought stocks on credit were stuck with huge debt as prices plummeted. Others lost most of their savings.

Hawley-Smoot Tariff Act

Established the highest protective tariff, designed to protect American farmers and manufacturers from foreign competition. Ended up having the opposite effect

Soup Kitchen

Offering free or low-cost food.

Shantytown

Little town consisting of shacks.

Bread Line

Lines of people waiting to receive food provided by charitable organizations or public agencies.

Dust Bowl

Southern plains were hit with drought, wind erosion, and great dust storms. Thousands of farmers and sharecroppers left their land behind.

Direct Relief

Cash payments or food provided by the government to the poor.

Herbert Hoover

President that had a laissez-faire approach. After the stock market crash, he tried to reassure Americans that the nation’s economy was on sound footing.

Boulder Dam

Provides electricity and flood control as well as a regular water supply which enabled the growth of California’s agricultural economy.

Federal Home Loan Bank Act

Lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.

Recon. Finance Corp.

Authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses.

Bonus Army

Between 10,000 and 20,000 WW1 veterans and their families arrived in Washington D.C. from various parts of the country. AKA Bonus Expeditionary Force