Unit 7 The Great Depression 1920-1938

The Boll Weevil Small, gray, long-snouted beetle

that came from Mexico through Texas

Destroyed cotton -it hatched in the flower and the larvae ate the white, fluffy cotton-making it useless

1915-Arrived in SW GA spreading quickly and destroying thousands of acres of cotton

1914-Cotton production was 2.8 million bales

1923-Cotton production dropped to 600,000 bales

Drought 1924-sun-baked fields slowed the boll weevil

Drought ruined most crops in the southwest and midwest

375,000 farm workers left GA between 1920 and 1925

310,000 farms fell to 250,000 farms

When farms failed-banks took huge losses

Farm-related businesses closed

The U.S. was in a deep depression. The boll weevil and the drought were contributing factors.

Dust Bowl Map

Economic Factors That Resulted in The Great Depression

People borrowed more money than they could repay. This hurt banks and businesses. Workers were laid off.

Factories had produced more products than they could sell.

Farmers had produced a surplus of food crops (prices fell)

After WW I high tariffs made it difficult to trade with foreign countries. People gather as a farm closes

Economic Factors That Resulted in The Great Depression (continued)

People bought stocks-prices went up higher than the stocks were worth

Banks bought stocks-stock market “crashed”-banks lost money

Banks failed No government welfare or housing

Laissez-faire

The belief that if left alone, the economy itself would work out the problems.

This was the attitude of many Americans and the Government.

President Hoover had told people that “...prosperity is just around the corner.” It was not.

Impact of Political Career of Eugene Herman Talmadge

Elected Governor in 1933

Told rural voters they had 3 friends-”Sears Roebuck, God Almighty, and Eugene Herman Talmadge”

Conservative, white supremacist, against Federal Intervention for relief efforts and public welfare.

Tried to “rid” GA of New Deal programs

Used federal $ to build highways, reduce property taxes, utility rates, and some license fees.

Eugene Talmadge (continued)

1934 Re-elected Governor by a “landslide”

Any government officials who disagreed with ET were fired and replaced with his supporters.

He refused to follow New Deal regulations so the Federal Gov’t took over the ND program in GA.

1934 During GA’s worst textile strike, Talmadge declared Martial Law and called out the National Guard to arrest strikers.

Eugene Talmadge (continued)

1940 Ran for governor again-won.

Began using modified versions of “New Deal” legislation. The state’s economy grew.

He was involved in a scandal trying to stop integration of UGA and GA Southern College by getting some people fired.

The Southern Association of Colleges and Schools voted to take away accreditation of white GA colleges.

Georgia Governor Fights the New Deal

Eugene Talmadge served four terms as the governor of Georgia.

He was elected by the farmers of Georgia because of the county unit system of voting.

He was opposed to FDR’s reforms because he did not want big government controlling people’s lives.

Eugene Talmadge

FDR and the New Deal In 1932, with America still in the

midst of the Great Depression, Franklin Delano Roosevelt (FDR) was elected president of the United States.

He promised a “New Deal”

help economic recovery

relieve the suffering of the jobless

improve the standard of living for all Americans

FDR changed many of the ways the government functioned- first federal income tax began

He had a cottage at Warm Springs, GA. Franklin Delano Roosevelt

The New Deal

FDR established many agencies to help farmers, bankers, and children.

Securities and Exchange, National Labor Relations, Child Labor laws, and the Federal Deposit Insurance Corporation were aimed at reforming businesses and protecting the public from financial ruin and unfair practices.

FDR closed the banks to keep people from taking their money out

CCC-Civilian Conservation Corps

Provided jobs for young single men-building forest trails/roads, planting trees to reforest the land/control flooding, building parks

CCC was popular in GA because of its work at Kennesaw Mtn. Nat’l Battlefield Park, Roosevelt State Park (Pine Mountain), Augusta’s Savannah River Levee, and Macon’s Airport

Construction of sewer systems and flood control/drainage projects such as Tybee Island’s Seawall

The CCC worked to build, expand, or improve schools and hospitals throughout the state. Much of the work on Grady Hospital was done by CCC.

AAA-Agricultural Adjustment Act

Created in March 1933

Paid farmers not to plant crops on part of their land

“price supports”-guaranteed higher prices-to farmers who cut back their cotton and tobacco crops

The idea was to “raise prices by cutting production” The plan worked and farm incomes improved.

Major drawback: Farm “subsidies” (grants of money from the gov’t) went to landowners rather than tenant farmers and poor sharecroppers

REA-Rural Electrification Authority

One of the most “Important and far –reaching” of the New Deal programs.

1920’s power companies ran lines to towns and cities

Rural population too spread out-power lines were expensive to build and maintain

President Roosevelt spent hot nights in Warm Springs, GA. He realized his neighbors had no electricity. His power bill for the little cottage was higher than his New York mansion. In 1935 he created the REA.

REA brought electricity to farms and rural homes.

By 1940, a large percentage of farmers had electric water pumps, lights, and milking machines. This made life easier for farm families.

Social Security

1935 Congress passed the Social Security Act

Federal Gov’t would provide retirement and unemployment insurance from taxes paid by both workers and their employers.

Farmers were not covered

Social Security …”will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age.”

This program is still used today.