Hoovers Response to the Depression
- Created by: Lily
- Created on: 09-05-13 13:50
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- Hoovers response
- Agriculture
- Agricultural Makreting Act 1929
- Established a 9 person Federal Farm Board with $500 million to stabilise corps
- Had no power to restrict production & surpluses
- Artificial prices
- Failed to take into account foreign relations
- Agricultural Makreting Act 1929
- Tariffs
- Hawley Smmot Tariff 1930
- Highest in history
- led to most European nations abandoning free trade
- led to fewer American exports (bad for farmers)
- Hawley Smmot Tariff 1930
- Repudiation of War Debts
- France/Germany and Britain were struggling over USA debts and were growing angry
- 1931 Deffered the collection of war debts for 18 months if others would do the same
- Too little, too late to save European economies
- Voluntarism
- Voluntary actions to solve Depression
- Implored businessmen to maintain output & urge buying
- Encouraged state leaders to begin new public work programmes
- Problems were too great for voluntarism to work, especially against business
- Unemployment relief
- Presidents Emergency Comitte for Employmenr
- $500 million for relief agencies
- Inadequate for scale of problem
- Severe drought of 1930-1 baulked at direct relief, allocated only $47 million as loans to be repaid
- Reconstruction Finance Corporation
- Established with the authority to lend up tp $2 billion to rescue banks, railroad, constructon/ insurance companies
- 90% went to small/medium banks, 70% banks in towns of less than 5,000
- No relief for individuals, just large companies
- Emergency Relief & Construction Act authorised the RFC to lend up to $1.5 billion to finance public works
- Hoover Dam
- Generation & sale of electricity
- created 3,000 jobs
- bad working conditions
- Hoover Dam
- Established with the authority to lend up tp $2 billion to rescue banks, railroad, constructon/ insurance companies
- Federal Home Loan Bank Act 1932
- Intended to save mortgages and make credit easier
- Series of Federal Home Loan Banks were set up to help
- Maximum loan was only 50%^
- Inadequate
- Agriculture
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