Fdrs first term the first hundred days and the new

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Unformatted text preview: oans, which got the banking system all screwed up. Speculation – Ah, does this sound familiar? In addition to heavy investment by companies, people were buying on margin (put a down 200 payment on stocks w/o having the money to pay the full amount, then buy more stocks on the profits), so when people tried to sell what they had bought on margin to minimize their losses prices collapsed and brokers were put into big trouble since they didn’t actually have the $ to pay people with. Lack of Recovery in Farming – Farmers never recovered from the post-war recession, as they faced a return of foreign competition and were often unable to repay their debts. Internat’l Problems – Following the war the US upped tariffs, which caused Europeans to stop buying our goods. Gov’t Policies – The gov’t followed very lassiezfaire policies w/easy credit and low discount rates, which stimulated the speculation mania. - Then, as the 1930s began, things just seemed to get worse and worse, as banks collapsed, people lost their money and jobs, and “Hoovervilles” formed in major cities. Farm prices dropped even more, and entire families ended up leaving their homes in search of better times. *Hoover’s Response* - Poor Herbert Hoover was the guy who got stuck w/dealing w/the result of a decade of crazed speculation. At first, urged by Secretary of the Treasury Andrew Mellon, he did nothing, assuming it was just a natural boom-and-bust thing and that welfare would undermine American individualism. 201 - As things worsened, however, Hoover began to ask for promises from companies not to lower wages and ask for public works projects from state governors. Additionally, he created some new institutions (to varying results) as follows: POUR (President’s Organization on Unemployment Relief) – Asked for private donations for relief, but not very successful. Hoover/Grand Coulee Dams – This was more successful, as Hoover’s encouragement of public works did indeed provide new jobs. Federal Farm Board (created in 1929 under the Agricultural Marketing Act) – The FFB lent money to cooperatives so they could buy crops and thus keep them off th...
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This note was uploaded on 04/02/2014 for the course APUSH AP United taught by Professor Orban during the Fall '10 term at Harrison High School, Harrison.

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