I.Crash and Depression (1929-1932)A.Black Thursday and the Onset of the Depression1.Stock market went from 27 billion in 1925 to 87 billion in19292.Federal Reserve Board tried to dampen speculation by raising the interestrate on Federal Reserve notes3.On October 24, 1929 “Black Thursday” - the stock market crash startedthe depressiona)Some stocks became worthless others continued to drop4.Economists, called monetarists, also blame the Federal Reserve System’stight-money policies in the early 1930sa)they argue, strangled any hope of recovery by reducing the capitalavailable to businesses for investment and growthB.Hoover’s Response1.Hoover urged business leaders to maintain wages and employment.Viewing unemployment as a local issue, he advised city and state officialsto create public-works projects.2.Emergency Committee for Employment to coordinate voluntary reliefefforts. In 1931, he persuaded the nation’s largest banks to create a privatelending agency to help smaller banks3.Reconstruction Finance Corporation, to make loans to banks and otherlending institutions.C.Mounting Discontent and Protest1.“Hoover Valley”—a section of Central Park where jobless men lived inboxes and packing crates, keeping warm with layers of newspapers theycalled Hoover blankets. --- suicide increased2.Farmers lost their land due to tax delinquency3.In 1931, the farmers' Holiday Association to force prices up bywithholding grain and livestock from the marketD.The Election of 19321.Republicans renominated Hoover2.Democrats nominated FDR3.FDR won as he campaigned off of Hoover’s failureII.The New Deal Takes Shape (1933-1935)A.Roosevelt and His Circle1.Roosevelt brought to Washington a circle of advisers nicknamed the braintrust2.Roosevelt’s cabinet reflected the New Deal’s diversityB.The Hundred Days
1.During this time between March and June 1933. Congress enacted morethan a dozen key measures2.Emergency Banking Act permitted healthy banks to reopen, set upprocedures for managing failed banks, increased government oversight ofbanking, and required banks to separate savings deposits from investmentfunds3.Federal Deposit Insurance Corporation to insure bank deposits up to fivethousand dollars.4.Civilian Conservation Corps, employed jobless youths in environmentallyfriendly government projects5.Federal Emergency Relief Act appropriated $500 million for state andlocal relief agencies that had exhausted their funds6.Agricultural Adjustment Act gave payments, calledsubsidies, to producersof the major farm commodities in return for cutting production7.National Recovery Administration sought economic recovery and usedparades, billboards, magazine ads, and celebrity events to persuade peopleto patronize companies that subscribed to an NRA code8.Tennessee Valley Authority advanced the economic and socialdevelopment of the poverty-stricken Tennessee River valley.