Hoovers Response to the Depression

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  • 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
    • Tariffs
      • Hawley Smmot Tariff 1930
        • Highest in history
        • led to most European nations abandoning free trade
        • led to fewer American exports (bad for farmers)
    • 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
    • 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

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