Hoover's Attempts to Deal with the Depression

Moratorium
Suspended loans from Europe for 18 months to allow them to recover; didn't work, America lost one source of income.
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Hawley-Smoot Tariff (1930)
Raised tariffs on agricultural goods to 40%. Destroyed international trade and worsened farmers' situation. Was the product of lobbyists in Congress.
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Voluntarism
White House conference to persuade companies to keep workers and retain high wages. Promises were made, but US Steel still cut wages by 10%.
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Agricultural Marketing Act (1929)
Created farming co-operatives to help agriculture. Was undermined by cheap crops from Canada and Argentina. Could not cut production.
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National Credit Corporation (1931)
Was given $500m to bail out the banks; only $10m was spent. NCC made up of private bankers who were selfish and did not want to invest in failing corporations.
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Federal Home Loan Bank Act
Set up companies to offer mortgages to the public. Could only lend up to 50% of the value of the property.
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Emergency Relief and Construction Act (1932)
Provided $1.5b for public works schemes such as the Boulder Dam. Created jobs, but some argue it was too little, too late.
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Emergency Committee for Employment
Tried to make the situation better for the unemployed with aid, but could not cope with the scale of the Depression. Aid to families in Philadelphia cut to $4 before scrapped, despite 300,000 unemployed by 1932.
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Raising interest rates
FRB raised interest rates to make it harder to borrow. Made it impossible for banks to profit from interest on loans.
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Balanced budget
Hoover was obsessed with the balanced budget. Lead to inconsistent policies e.g. lowering taxed in 1929, then raising them in 1932 to pay for public works programmes.
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Bonus Marches
Veterans protested for early payment of 1945 bonus; Hoover refused to meet with them, and violently drove out those who stayed behind at Anacostia Flats.
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Other cards in this set

Card 2

Front

Raised tariffs on agricultural goods to 40%. Destroyed international trade and worsened farmers' situation. Was the product of lobbyists in Congress.

Back

Hawley-Smoot Tariff (1930)

Card 3

Front

White House conference to persuade companies to keep workers and retain high wages. Promises were made, but US Steel still cut wages by 10%.

Back

Preview of the back of card 3

Card 4

Front

Created farming co-operatives to help agriculture. Was undermined by cheap crops from Canada and Argentina. Could not cut production.

Back

Preview of the back of card 4

Card 5

Front

Was given $500m to bail out the banks; only $10m was spent. NCC made up of private bankers who were selfish and did not want to invest in failing corporations.

Back

Preview of the back of card 5
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