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What was set up to help banks?
The National Credit Corporation, The Reconstruction Finance Corporation
When was the National Credit Corporation set up?
1931
What was the National Credit Corporation (NCC)?
Businesses raised $500 million to help failing banks and prevent them from closing
What were the disadvantages of the National Credit Corporation?
Investors were afraid to lose their money so spent very little of it
When was the Reconstruction Finance Corporation set up?
1932
What was the Reconstruction Finance Corporation (RFC) for banks?
Government provided $2 billion to rescue banks and other key organisations
What were the disadvantages of the Reconstruction Finance Corporation (banks) ?
It was criticised for using government money to help the banks rather than to help people who are struggling
What was set up to help farms?
The Agricultural Marketing Act, Hawley-Smoot Tariff, Federal Farm Loan Act
When was the Agricultural Marketing Act passed?
1929
What was the Agricultural Marketing Act?
Federal Farm Board was set up to buy crops from farmers
What were the disadvantages of the Agricultural Marketing Act?
The Farm Board bought huge amounts of extra goods but couldn't stop the falling prices
When was the Hawley Smoot Tariff?
1930
What was the Hawley-Smoot Tariff?
Raised import duties on foreign food by 40% to force Americans to buy their own goods
What were the disadvantages of the Hawley-Smoot Tariff?
Higher tariffs from America led other nations to do the same, reducing international trade
What was the Federal Farm Loan Act?
$125 million was given to the federal land Banks to provide farm mortgages
What were the disadvantages of the Federal Farm Loan Act?
It provided mortgages but it didn't help farmers repay them so many fell into debt and had homes repossessed anyway
What was set up to help industries?
National Business Survey Conference, a moratorium on WW1 debts, Reconstruction Finance Corporation
When was the National Business Survey Conference?
1929
What was the National Business Survey Conference?
It was a meeting of 400 business executives who made promises about production, expansion, and wages to keep people in work and create new jobs
What were the disadvantages of the National Business Survey Conference?
Promises made in 1920 by major employers were broken as the Depression worsened
Why was there a moratorium (freeze) on WW1 debts?
Enabled Europe's economy to recover
What were the disadvantages of the moratorium on WW1 debts?
The temporary suspension on debt repayment didn't prevent the collapse of the international economy
What was the Reconstruction Finance Corporation for industries?
When money was given to banks, it allowed banks to offer loans to industries
What were the disadvantages of the Reconstruction Finance Corporation (industries)?
Most of the money loaned went to the largest banks and companies, helping the few and not the many
What was set up to help prevent unemployment?
The President's Emergency Committee for Employment, Public works, Reconstruction Finance Corporation
When was the president's emergency committe for the employed around?
1930-31
What did the President's Emergency Committee for Employment do?
Organised and encouraged donations for relief
What were the disadvantages of the President's Emergency Committee for Employment?
It couldn't raise the enormous sums on money required to help the large numbers of unemployed
What did increased government spending on public works do?
By the government doubling its spending on public works over a 3 year period, projects liked the Grand Coulee Dam created jobs for the unemployed
What were the disadvantages of the increased spending on public works?
National spending on public work projects were low ($210 million in a year) compared to individual states ($2 billion a year)
What did the Reconstruction Finance Corporation do to help the unemployed?
Allowed the Federal Government to loan $300 million to states for relief
What were the disadvantages of the Reconstruction Finance Corporation (unemployed)?
Each state had to meet tough requirements in order to borrow money so only $30 million had been loaned by the end on 1932
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