HERBERT HOOVER “THE GREAT ENGINEER” THE ELECTION OF 1928 by yurtgc548

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									     HERBERT HOOVER “THE GREAT ENGINEER”
             THE ELECTION OF 1928

• HOOVER – DRY,
  PROTESTANT & NATIVE
• SMITH – WET, CATHOLIC &
  IMMIGRANT
• PERSONIFICATION OF
  DIVISIONS WITHIN AMERICA
• HOOVER 58% OF POPULAR
  VOTE “THE FINAL TRIUMPH
  OVER POVERTY”
• DEMOCRATIC GAINS IN
  CITIES SHOWS SHIFT IN
  ELECTORATE
HE’S NOT YOUR FATHER’S REPUBLICAN

                 • OPPOSED CUTTHROAT
                   COMPETION
                 • CORPORATE COOPERATION
                 • WELCOMED WELFARE
                   CAPITALISM
                 • ADVOCATED VOLUNTARISM
                 • 250 BUSINESS CONFERENCES
                 • TRADE ASSOCIATION
                 • 8 HOUR WORK DAY
                 • DIVISION OF CO. RIVER H2O
        THE STOCK MARKET AND AMERICAN
         ECONOMY BEFORE OCTOBER 1929
•   UNEVEN DISTRIBUTION OF
    WEALTH – 60% BELOW POVERTY
•   TRADITIONAL INDUSTRY
    REPLACED BY NEW CAUSING
    UNEMPLOYMENT – UMW 500K 1920
    TO 75K 1928 – AFL 5.1MILL TO 3.4
•   FARM PRICES DROP 40% 1920-21
•   BANK FAILURES RAMPANT IN
    MIDWEST (550 1928-29)
•   RICHEST 1% OWN APPROX. 40%
    COUNTRY’S WEALTH
•   SHAREOWNERS FROM 4 TO 20MILL
    BUT PRICE DIDN’T = VALUE
•   BUYING ON CREDIT LED TO DEBT
    WHICH LED TO LOAN RESTRIC-
    TIONS & SCARCE CREDIT
•   REDUCED SPENDING LED TO DEC-
    LINING PRICES
    BLACK THURSDAY 10/24/29 & THE ONSET OF
              THE DEPRESSION
•   UNDER COOLIDGE 5 YR ARTIFICIAL
    RISE
•   MELLON TAX BILL CONTRIBUTED
    TO RAMPANT CONSUMER
    SPENDING
•   HOOVER CLOSES MARKET FRIDAY
    & MONDAY “BUSINESS OF U.S. IS
    ON A SOUND & PROSPEROUS
    BASIS”

•   Construction industry tanked in 1928
•   FRB increased interest rates to reduce
    money supply but banks kept making
    loans
•   Tight $ policy in ’30’s reduced $
    available for investment & growth &
    hurt recovery efforts
           BLACK TUESDAY 10/29/29

• DJIA 100 TO 381 1924-28
• DJIA 41 IN 1932
• DJIA 381 MID 1950’S

• EARLY SEPT. PRICES
  FALTER
• BLACK THURSDAY 13 MILL
  SOLD
• BLACK TUESDAY ANOTHER
  16MILL SHARES SOLD
RUGGED INDIVIDUALISM
          •   Immediate reaction- discount
              seriousness of depression

          •   Aid to business NOT
              individuals

          •   Responsibility lies with local
              government & charities

          •   Public Works: Hoover Dam
              too little too late
ACTING OUTSIDE THE REPUBLICAN
       IDEOLOGICAL BOX
               •   FEDERAL FARM BOARD ’29
               •   stabilize prices and to promote the
                   sale of agricultural products. To help
                   farmers stabilize prices by holding
                   surplus grain & cotton in storage.
                   Created before crash & powers
                   expanded afterwards.
               •   RECONSTRUCTION FINANCE
                   CORP – 1932: Lent money to
                   banks, insurance companies, NOT
                   individuals. Helped prevent
                   further decline but…..unemploy-
                   ment reaches 6-7 mill by 1932 13
                   million out of work
               •   Businesses had no obligation to
                   abide by voluntary restraints &
                   cooperation
     THE BONUS MARCH 1932 OF
         THE BONUS ARMY
•   demand for immediate cash-payment
    redemption of their service certificates
•   World War Adjustment Act of 1924
    had awarded them bonuses in the
    form of certificates redeemable in
    1945. Each Service Certificate bore a
    face value equal to the soldier's
    promised payment plus compound
    interest
•   AG Wm Mitchell ordered to clear vets
    from gov’t property – 2 vets killed
•   D. MacArthur with cavalry & tanks
    forcibly moved vets & families off of
    property & burned their makeshift
    houses
DON’T FORGET FOREIGN
       POLICY!
          •   STIMSON DOCTRINE 1932 as a
              result of Japan’s invasion of
              Manchuria in 1931. Letters sent
              to China & Japan that US will NOT
              recognize legality of seizures
              made in violation of treaties. HH
              “We’re not the world’s policeman”
          •   No impact on Japan & they bomb
              Shanghai in 1932 & withdraw from
              League
          •   Clark Memorandum 1930 -The
              primary point was that the Monroe
              Doctrine was based on conflicts of
              interest between the United States
              and European nations, rather than
              between the United States and
              Latin American nations.

								
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