North Carolina in Depression and War

Chapter 22

The Great Depression

Depression: a downturn in economic activity Sales of goods and prices fall Banks fail, and People lose their jobs

Causes of the Depression

Agriculture declined weakening the economy Farmers were unable to repay bank loans Businesses had fewer sales

economist: studies the economy

“Black Thursday”

Occurred on October 24, 1929: the stock market crashed

NYSE: largest stock market

NC in the Depression

In North Carolina, agriculture was the hardest hit

Most profitable industries: Tobacco Electrical power Telephone Chemical Paper companies

Easing the Burden

To help the unemployed, Governor Gardner created the Live-at-Home program. This program encouraged farmers to: Grow gardens Can food, and Raise the necessities that they usually bought at

the store

Jane McKimmon: showed farm wives how to can food

The New Deal

Under President Franklin Roosevelt, Congress passed laws known as the New Deal, to bring about: Economic recovery Relieve the suffering of the unemployed Reform defects in the economy, and Improve society

Agricultural Adjustment Act (AAA): provided price supports for farm products

Wagner Act: guaranteed workers the right of collective bargaining

Relief

Public works projects were created to help the economy recover by helping the unemployed

Works Progress Administration (WPA): provided jobs by building schools, parks, roads, and airports

Civilian Conservation Corps (CCC): provided jobs for young men to preserve soil and purify water

Social Security Act: provided old-age benefits/insurance from taxes paid by workers and employees

Economic Reforms

Federal Deposit Insurance Corporation (FDIC): insured depositors’ accounts in banks

Social Improvement

Tennessee Valley Authority (TVA): built hydroelectric dams on the Tennessee River and its tributaries

Fontana dam/lake: the highest dam and longest lake in NC

The Second World War

International relations worsened as: Japan Italy Germany, and the Soviet Union

tried to expand their power and territory

Italian dictator, Benito Mussolini led Italy to take over countries in Africa and the Balkans

German dictator, Adolf Hitler seized much of Europe by 1940

The War Begins

World War II began on September 1, 1939, when Britain, France, Australia, New Zealand, Canada and South Africa declared war on Germany

Lend-lease aid: the lending or leasing of weapons to Britain, during WWII, when they ran out of cash

America Enters the War

On Dec. 8, 1941, after the bombing at Pearl Harbor on Dec. 7, the United States entered WWII

Dutch East Indies - Indonesia

NC in WWII

NC was the site for many training bases located at:

Fort Bragg (largest artillery post) Camp Lejeune Camp Mackall Camp Battle Cherry Point Marine Air Base, and many others

Cape Hatteras became known as “Torpedo Junction”, because so many ships were sunk by German submarines

Mica: used in electronic parts Shipyards in NC:

Wilmington New Bern Elizabeth City

Many goods were rationed, because they were in short supply

Some goods that were rationed are: Meat Butter Canned goods Gas Shoes Tires Coffee, and Sugar