Chapter 24 Outline_Questions.pdf - I II Crash and Depression(1929-1932 A Black Thursday and the Onset of the Depression 1 Stock market went from 27

Chapter 24 Outline_Questions.pdf - I II Crash and...

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I. Crash and Depression (1929-1932) A. Black Thursday and the Onset of the Depression 1. Stock market went from 27 billion in 1925 to 87 billion in1929 2. Federal Reserve Board tried to dampen speculation by raising the interest rate on Federal Reserve notes 3. On October 24, 1929 “Black Thursday” - the stock market crash started the depression a) Some stocks became worthless others continued to drop 4. Economists, called monetarists, also blame the Federal Reserve System’s tight-money policies in the early 1930s a) they argue, strangled any hope of recovery by reducing the capital available to businesses for investment and growth B. Hoover’s Response 1. Hoover urged business leaders to maintain wages and employment. Viewing unemployment as a local issue, he advised city and state officials to create public-works projects. 2. Emergency Committee for Employment to coordinate voluntary relief efforts. In 1931, he persuaded the nation’s largest banks to create a private lending agency to help smaller banks 3. Reconstruction Finance Corporation, to make loans to banks and other lending institutions. C. Mounting Discontent and Protest 1. “Hoover Valley”—a section of Central Park where jobless men lived in boxes and packing crates, keeping warm with layers of newspapers they called Hoover blankets. --- suicide increased 2. Farmers lost their land due to tax delinquency 3. In 1931, the farmers' Holiday Association to force prices up by withholding grain and livestock from the market D. The Election of 1932 1. Republicans renominated Hoover 2. Democrats nominated FDR 3. FDR won as he campaigned off of Hoover’s failure II. The New Deal Takes Shape (1933-1935) A. Roosevelt and His Circle 1. Roosevelt brought to Washington a circle of advisers nicknamed the brain trust 2. Roosevelt’s cabinet reflected the New Deal’s diversity B. The Hundred Days
1. During this time between March and June 1933. Congress enacted more than a dozen key measures 2. Emergency Banking Act permitted healthy banks to reopen, set up procedures for managing failed banks, increased government oversight of banking, and required banks to separate savings deposits from investment funds 3. Federal Deposit Insurance Corporation to insure bank deposits up to five thousand dollars. 4. Civilian Conservation Corps, employed jobless youths in environmentally friendly government projects 5. Federal Emergency Relief Act appropriated $500 million for state and local relief agencies that had exhausted their funds 6. Agricultural Adjustment Act gave payments, called subsidies, to producers of the major farm commodities in return for cutting production 7. National Recovery Administration sought economic recovery and used parades, billboards, magazine ads, and celebrity events to persuade people to patronize companies that subscribed to an NRA code 8. Tennessee Valley Authority advanced the economic and social development of the poverty-stricken Tennessee River valley.

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