Great Depression Chapter 25. The Coming of the Great Depression Between 1928 and 1928 the average price of stocks increased 40% Between 1928 and 1928

Great DepressionGreat Depression

Chapter 25Chapter 25

The Coming of the Great The Coming of the Great DepressionDepression

Between 1928 and 1928 the average Between 1928 and 1928 the average price of stocks increased 40%price of stocks increased 40%

Widespread speculative fever that Widespread speculative fever that grew steadily more intense- easy grew steadily more intense- easy creditcredit

October 29- Black Tuesday: all efforts October 29- Black Tuesday: all efforts to save the market failed, industrial to save the market failed, industrial index dropped 43 points, stocks in index dropped 43 points, stocks in many companies became worthless.many companies became worthless.


Causes of the Depression: lack of Causes of the Depression: lack of diversification in American economy- diversification in American economy- prosperity depended on a few basic prosperity depended on a few basic industries (construction, automobiles)industries (construction, automobiles)

Misdistribution of purchasing power- Misdistribution of purchasing power- weakness in consumer demandweakness in consumer demand

Demand was not keeping up with Demand was not keeping up with supplysupply


Half of Americans were too poor to Half of Americans were too poor to buy the goods industrial economy buy the goods industrial economy was producingwas producing

Industries that were experiencing Industries that were experiencing declining demand began laying off declining demand began laying off workersworkers

Farmers deeply in debt- small banks Farmers deeply in debt- small banks tied to agriculture were in constant tied to agriculture were in constant troubletrouble


International debt structure: limited purchasing International debt structure: limited purchasing power of European countries- allied countries power of European countries- allied countries owed massive debts to American bankers after owed massive debts to American bankers after the warthe war

Refused to forgive or reduce the debts- gave Refused to forgive or reduce the debts- gave out loans instead to European governmentsout loans instead to European governments

Collapse of much of the banking system Collapse of much of the banking system followed the stock market crash- banking followed the stock market crash- banking closures, nations money supply greatly closures, nations money supply greatly decreaseddecreased


Federal reserve system raised Federal reserve system raised interest ratesinterest rates

Suffering extended into every area of Suffering extended into every area of societysociety

Cities became paralyzed by Cities became paralyzed by unemploymentunemployment


Many saw it as personal Many saw it as personal failurefailure

Private charities Private charities attempted to supplement attempted to supplement the public relief effortsthe public relief efforts

Breadlines stretched for Breadlines stretched for blocks outside the Red blocks outside the Red Cross and Salvation army Cross and Salvation army kitchenskitchens


Farm income declined by 60%- a Farm income declined by 60%- a third of farmers lost their landthird of farmers lost their land

Dust Bowl: stretched north from Dust Bowl: stretched north from Texas into Dakotas- began to Texas into Dakotas- began to experience a steady decline in experience a steady decline in rainfall and an accompanying rainfall and an accompanying increase in heat- heat turned fertile increase in heat- heat turned fertile land into dessertland into dessert


Black Blizzards: Black Blizzards: great dust storms great dust storms swept across the swept across the plains, blotting out plains, blotting out the sun and the sun and suffocating livestock suffocating livestock as well as any as well as any people unfortunate people unfortunate enough to stay enough to stay outside . Farm outside . Farm prices fell from prices fell from overproduction. overproduction.


Okies: families from the dust bowl Okies: families from the dust bowl traveled to other states like traveled to other states like California and found conditions little California and found conditions little better than where they leftbetter than where they left


African Americans: experienced more African Americans: experienced more unemployment, homelessness, unemployment, homelessness, malnutrition, and disease than they had malnutrition, and disease than they had in the past, considerably more than in the past, considerably more than whites, some migrated to southern whites, some migrated to southern citiescities

Black Shirts: organized a campaign with Black Shirts: organized a campaign with the slogan "No Jobs fro Niggers Until the slogan "No Jobs fro Niggers Until Every White Man Has a Job.Every White Man Has a Job.


Other areas whites used intimidation Other areas whites used intimidation and violence to drive blacks away and violence to drive blacks away from jobsfrom jobs

Left the south for northern cities- little Left the south for northern cities- little better conditionsbetter conditions

Scottsboro Case: Scottsboro boys were Scottsboro Case: Scottsboro boys were arrested for vagrancy and disorder on arrested for vagrancy and disorder on a freight train, 2 white women claimed a freight train, 2 white women claimed to be raped- sentenced 8 to deathto be raped- sentenced 8 to death


International Labor Defense: International Labor Defense: organization associated its self with organization associated its self with Communist Party came to the aid of the Communist Party came to the aid of the accused youths, NAACP provided accused youths, NAACP provided assistance- all of them eventually assistance- all of them eventually gained their freedom gained their freedom

NAACP: Walter White, worked to win NAACP: Walter White, worked to win positions for blacks within the emerging positions for blacks within the emerging labor movements labor movements


Unemployed whites demanded jobs Unemployed whites demanded jobs held by Hispanics: forced to leave held by Hispanics: forced to leave the country, faced persistent the country, faced persistent discrimination, most relief programs discrimination, most relief programs excluded Mexicans, no access to excluded Mexicans, no access to American schools, hospitals refused American schools, hospitals refused them admission, some joined them admission, some joined American Communist PartyAmerican Communist Party


Younger Nisei organized Japanese Younger Nisei organized Japanese American Democratic Clubs: worked American Democratic Clubs: worked for laws protecting racial and ethnic for laws protecting racial and ethnic minorities from discrimination, minorities from discrimination, encouraged assimilationencouraged assimilation

Japanese American Citizens League: Japanese American Citizens League: promote assimilationpromote assimilation


Illegal for more than one member the Illegal for more than one member the of the same family to hold a federal of the same family to hold a federal civil service jobcivil service job

Widespread assumption that married Widespread assumption that married women should not work outside the women should not work outside the home: both single an married women home: both single an married women worked since families needed the worked since families needed the moneymoney


By the end of the By the end of the depression 20% depression 20% more of women more of women were workingwere working

As many as half of As many as half of all black women lost all black women lost their jobstheir jobs

Depression saw the Depression saw the virtual extinction of virtual extinction of the National the National Woman's PartyWoman's Party


Retreat from consumerism: sewed Retreat from consumerism: sewed their own cloths, preserved their own their own cloths, preserved their own food, engaged in home businesses- food, engaged in home businesses- taking in laundry, selling baked taking in laundry, selling baked goods, accepting boarders, goods, accepting boarders, households expanded to take in households expanded to take in more distant relativesmore distant relatives

Decline in divorce rateDecline in divorce rate

The Depression and American The Depression and American CultureCulture

Robert and Helen Merrell Lynd: published Robert and Helen Merrell Lynd: published study of Muncie Indiana- Middletown- study of Muncie Indiana- Middletown- concluded that the culture has not concluded that the culture has not changedchanged

Began to look to government for Began to look to government for assistance- blamed corporate moguls, assistance- blamed corporate moguls, international bankers, economic royalistsinternational bankers, economic royalists

Survival of the ideals of work and Survival of the ideals of work and individual advancement: many blamed individual advancement: many blamed themselvesthemselves


Dale Carnegies: Dale Carnegies: How to win Friends and How to win Friends and Influence People: Influence People: a self help manual a self help manual preaching individual initiative was one of preaching individual initiative was one of the most best selling books of the decadethe most best selling books of the decade

Farm Security Administration: traveled Farm Security Administration: traveled through the south recording the nature of through the south recording the nature of agricultural life- Roy Stryker, Walter Evans, agricultural life- Roy Stryker, Walter Evans, Arthur Rothstein, Marger Bourke- White, Arthur Rothstein, Marger Bourke- White, Dorothea Lange produced memorable Dorothea Lange produced memorable studiesstudies


Erskine Caldwell's: Erskine Caldwell's: Tobacco Road- Tobacco Road- expose of poverty in the rural southexpose of poverty in the rural south

Richard Wright: major black novelist, Richard Wright: major black novelist, exposed the plight of residents to exposed the plight of residents to urban ghetto in urban ghetto in Native SonNative Son

Escapism: in radio- comedies such as Escapism: in radio- comedies such as Amos'n Andy, soap operas, public Amos'n Andy, soap operas, public performances, radio comedies performances, radio comedies dramasdramas


King Vidor's Our Daily Bread, John King Vidor's Our Daily Bread, John Ford's Grapes of Wrath- movies Ford's Grapes of Wrath- movies which explored political themeswhich explored political themes

First Disney cartoon- Steamboat First Disney cartoon- Steamboat WillieWillie

1937 Snow White- Wizard ofOz, Gone 1937 Snow White- Wizard ofOz, Gone wi the Windwi the Wind


Most popular books and magazines where Most popular books and magazines where escapist and romanticescapist and romantic

Popular Front: a broad coalition of "antifascist" Popular Front: a broad coalition of "antifascist" groups on the left, of which the most groups on the left, of which the most important was the American Communist Partyimportant was the American Communist Party

Softened its attitude toward Franklin Softened its attitude toward Franklin Roosevelt, formed loose alliances with many Roosevelt, formed loose alliances with many other "progressive" groupsother "progressive" groups

“Communism is twentieth century Americanism”

Earl Browder


Spanish Civil War: good example of Spanish Civil War: good example of how the left helped give meaning how the left helped give meaning and purpose to individual livesand purpose to individual lives

Abraham Lincoln Brigade: 3,000 Abraham Lincoln Brigade: 3,000 Americans who traveled to Spain to Americans who traveled to Spain to join in the fight against the fascists- join in the fight against the fascists- Ernest Hemingway spent time as a Ernest Hemingway spent time as a correspondent in Spain, wrote correspondent in Spain, wrote Whom Whom the Bellthe Bell TollsTolls


Communist Party: staged hunger march in Communist Party: staged hunger march in DC, most effective union organizers in DC, most effective union organizers in some industries, helped organize a union some industries, helped organize a union of black sharecroppers in Alabama- always of black sharecroppers in Alabama- always under close supervision of the Soviet under close supervision of the Soviet UnionUnion

Socialist Party of America: Norman Socialist Party of America: Norman Thomas, citied crisis as evidence of the Thomas, citied crisis as evidence of the failure of capitalism and south to win failure of capitalism and south to win public support for its own political programpublic support for its own political program


Southern Tenant Farmers Union: Southern Tenant Farmers Union: supported by the party, organized by supported by the party, organized by young socialist H.L Mitchell, young socialist H.L Mitchell, attempted to create a biracial attempted to create a biracial coalition of sharecroppers, tenant coalition of sharecroppers, tenant farmers, and others to demand farmers, and others to demand economic reformeconomic reform

Antiradicalism: hostility towards Antiradicalism: hostility towards communist partycommunist party


Pare Lorentz: made a series of powerful Pare Lorentz: made a series of powerful and polemical documentaries- and polemical documentaries- the plow the plow that broke the Plainsthat broke the Plains

James Agee and Walker: traveled to rural James Agee and Walker: traveled to rural Alabama to capture poverty- used Fortune Alabama to capture poverty- used Fortune magazine to explore distressed areas of magazine to explore distressed areas of the nations economic lifethe nations economic life

John Steinbeck: celebrated novel John Steinbeck: celebrated novel The The Grapes of Wrath- Grapes of Wrath- harsh portrait of agrarian harsh portrait of agrarian life in the Westlife in the West

The Ordeal of Herbert The Ordeal of Herbert HooverHoover

Hoover's response to Depression: Hoover's response to Depression: attempt to restore public confidence attempt to restore public confidence in the economy- urged leaders of in the economy- urged leaders of business, labor and agriculture to business, labor and agriculture to adopt a program of voluntary adopt a program of voluntary cooperation for recoverycooperation for recovery


Voluntary Cooperation: not to cut Voluntary Cooperation: not to cut production or layoff men, forgo demands production or layoff men, forgo demands of higher wages or better hours- system of higher wages or better hours- system collapsedcollapsed

Proposed Congress an increase of 423 Proposed Congress an increase of 423 million in federal public works programs- million in federal public works programs- not enough to face problemsnot enough to face problems

Proposed a tax increase to help the Proposed a tax increase to help the government avoid a deficitgovernment avoid a deficit


1929 Agricultural Marketing Act: 1929 Agricultural Marketing Act: established the first major government established the first major government program to help farmers maintain prices- program to help farmers maintain prices- Farm Board would make loans to national Farm Board would make loans to national marketing cooperatives or buy surpluses marketing cooperatives or buy surpluses and thus raise prices.and thus raise prices.

Raised agricultural tariffs: Hawley- Smoot Raised agricultural tariffs: Hawley- Smoot Tariff of 1930: increased protection on 75 Tariff of 1930: increased protection on 75 farm productsfarm products


1930 Democrats won 1930 Democrats won control of the Housecontrol of the House

Hoovervilles: blamed Hoovervilles: blamed Hoover for crises, Hoover for crises, began calling shanty began calling shanty towns of unemployed towns of unemployed in outskirts of townin outskirts of town


International financial panic of 1931: International financial panic of 1931: largest bank in Austria collapsed; largest bank in Austria collapsed; panic gripped financial institutions of panic gripped financial institutions of neighboring countriesneighboring countries


Reconstruction Finance Corporation: Reconstruction Finance Corporation: government agency whose purpose government agency whose purpose was to provide federal loans to was to provide federal loans to troubled banks, railroads and troubled banks, railroads and businesses- RFC failed to deal businesses- RFC failed to deal directly or forcefully enough with real directly or forcefully enough with real problems of the economyproblems of the economy


1932 Farmers Holiday Associations: 1932 Farmers Holiday Associations: endorsed the withholding of farm endorsed the withholding of farm products from the market- a farmers products from the market- a farmers strikestrike


Bonus Expeditionary Force (Bonus Bonus Expeditionary Force (Bonus Army) WW1 veterans, marched into Army) WW1 veterans, marched into DC, built crude camps around the DC, built crude camps around the city, promised to stay until Congress city, promised to stay until Congress approved legislation to pay the approved legislation to pay the bonus- voted down, Hoover ordered bonus- voted down, Hoover ordered police to clear the marches out, police to clear the marches out, ordered armyordered army


General Douglas General Douglas MacArthur: army MacArthur: army chief of staff, led the chief of staff, led the 3rd Cavalry, veterans 3rd Cavalry, veterans fled in terror 1932 fled in terror 1932 Election: Republicans Election: Republicans re-nominated Hooverre-nominated Hoover

http://upload.wikimedia.org/wikipedia/en/9/92/MacArthur_Manila.jpg


Democrats nominated Franklin Delano Democrats nominated Franklin Delano Roosevelt- avoided such divisive Roosevelt- avoided such divisive cultural issues as religion and cultural issues as religion and prohibition, emphasized the economic prohibition, emphasized the economic grievances- "I pledge you, 1 pledge grievances- "I pledge you, 1 pledge myself, to a new deal for the American myself, to a new deal for the American people"people"

Democrats won majorities in both Democrats won majorities in both houses of Congresshouses of Congress

The Election of 1932

Documents

Great Depression Chapter 25. The Coming of the Great Depression Between 1928 and 1928 the average price of stocks increased 40% Between 1928 and 1928