The Depression

Identification (4 Points)

• 1.Herbert Hoover

Answer One

• Herbert Hoover was the President at the onset of the Great Depression. He believed in a the government taking a “hands off’ approach to dealing with the economic problems of the time.

Identification (4 Points)

• 2.Al Smith

Answer Two

• Al Smith ran as the Democratic candidate for President against Hoover in 1928. He was the first Catholic candidate for President and carried the cities overwhelmingly. He was for the repeal of Prohibition.

Identification (4 Points)

• 3.Margin

Answer Three

• Margin was the practice of buying stock on credit issued by the stockbroker in the 1920’s. When the prices of stocks declined, people who used this method of purchase could not repay these loans.

Identification (4 Points)

• 4.October 24,1929

Answer Four

• October 24,1929 was a day when 13 million shares of stock were traded. Most of these trades were sales as stockholders tried to get rid of their stock. With few buyers willing to purchase stocks, prices plummeted.

Identification (4 Points)

• 5.Black Tuesday

Answer Five

• Black Tuesday was on October 29,1929. This was the date that the bottom fell out of the Stock Market. $30 billion dollars worth of valuation was lost in one day of trading.

Identification (4 Points)

• 6.Installment Buying

Answer Six

• Installment Buying was the practice by consumers of buying products on a payment plan with interest. This method of payment caused common people to carry more debt than they could handle.

Identification (4 Points)

• 7.Reconstruction Finance Corporation

Answer Seven

• Reconstruction Finance Corporation was a government agency set up to make loans to companies during the beginning of the Great Depression. They only financed projects that they felt could eventually repay the government for these loans.

Identification (4 Points)

• 8.Hoover-Stimson Doctrine

Henry Stimson

Answer Eight

• Hoover-Stimson Doctrine stated that America should not be relied upon to be the “policeman of the world”. This doctrine reflected Hoover’s isolationist ideology.

Identification (4 Points)

• 9.Bonus Army

Scene from Bonus Army March

Answer Nine

• Bonus Army was made up of Veteran’s of WWI who were promised a bonus by congress in 1945. Due to the hard times of the Depression they sought an earlier payment and held a massive rally and set up housekeeping in Washington to demand such early payment.

Identification (4 Points)

• 10.Douglas MacArthur

Answer Ten

• Douglas MacArthur was a General in the US army. He was charged by Hoover with the task of clearing the Bonus Army out of Washington.

Identification (4 Points)

• 11.Franklin D. Roosevelt

Answer Eleven

• Franklin D. Roosevelt ran against Hoover as the Democratic candidate for President in the election of 1932. He won in a landslide.

Identification (4 Points)

• 12.Banking Panic

Answer Twelve

• Banking Panic occurred when worried depositors went to their banks to withdraw their savings. This caused a shortage of money for the banks causing them to close and leading to a crunch on the money supply.

Identification (4 Points)

• 13.Twentieth Amendment

FDR

Answer Thirteen

• Twentieth Amendment was enacted to change the date of the Inauguration from March to January. This Amendment shortened the “lame duck” period between the election in November and the Inauguration.

Identification (4 Points)

• 14.Earl Browder

Answer Fourteen

• Earl Browder was the leader of the Communist party during the Great Depression. He believed Communism could not succeed at the ballot box in America and could only gain power through armed struggle.

Identification (4 Points)

• 15.Germany

German Soldiers

Answer Fifteen

• Germany was tangled in a period of great economic depression during the 1920’s. Much of their problems could be traced to harsh reparations forced upon them by the Allies at the end of WWI.

Short Answer One (12 Points)

• What were the 7 causes of the Great Depression?

Unemployed Seeking Jobs

Answer• 1. Overproduction- Machines made production cheaper

and faster• 2. Installment Buying - Credit• 3. Under consumption- Rich got richer in 1920's but the

poor/middle stayed the same • 4. Agricultural Slump- Poor conditions/ overproduction

drove prices down• 5. Banks Overextended- Loans to Speculators (Margin)-

Farm Loans• 6. High Tariffs- Foreign countries could not afford to buy

our products• 7. High War Reparations - Foreign countries could not

afford to buy our products

Short Answer Two (12 Points)

• What was the Hawley-Smoot Tariff and what were its’ effects on the United States when passed?

Hawley-Smoot Tariff Has Been Cited as a Major

Cause of The Great Depression

AnswerHawley - Smoot Tariff

• High Tariff on Imported goods• Object was to protect farmers and industry in US• Raise the price of foreign products• Raise the price of foreign products

Effects• Helped inefficient US producers- protect weak businesses

/poor product• Raise prices- Inflationary• Reduce foreign trade-

» foreign countries would retaliate (trade war)» couldn't afford to buy US product» Caused ill will towards other countries- See US as a

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Short Answer Three (12 Points)

• Who were the two candidates for President in 1932 and what were their respective positions on the issues? Be sure to indicate which candidate won the election.

FDR and Hoover

Answer• 1. Hoover’s Positions

Bad economy is not good for the incumbent Does not believe that government can solve the nation's problems Blames the Depression on Foreign economies collapse- (beyond

our control)• 2. Roosevelt’s Positions

runs against the Republicans mishandling of the economy promises a "New Deal"- government can help end to prohibition Roosevelt himself was a naturally cheerful and optimistic person

(gave hope)• 3. Roosevelt wins in a Landslide

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