Transcript 9.3 Study Guide

Agenda 3/7/11
Go over 9.3 – Hoover’s Response
 FDR’s Response- The New Deal
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
Video: The New Deal “A Chaos of
Experimentation”
Notebooks due Friday (last day of quarter)
 Chapter 9/10 test next week
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Chapter 9.3
1.Of what did President Hoover assure the nation
on Friday, October 25, 1929, the day after Black
Thursday?
Industry was on a sound & prosperous basis
2. What did President Hoover win from industry,
and what was the result?
A pledge to keep factories open and to stop the
slashing of wages. The result was that business
leaders eventually abandoned the pledge.
Chapter 9.3
3. What did President Hoover see as
problems with government-paid works
jobs?
Someone had to pay for the projects:
Raising taxes = taking away money from
workers and hurts struggling businesses
Deficit spending = borrowing $$ from
banks = less $$ for banks to loan to
consumers
Chapter 9.3
4. Why did Republicans lose their majority in
the House in the congressional elections
of 1930?
Citizens blamed Republicans for the
economic problems
5. What was the purpose of the National
Credit Corporation (NCC)?
Created a pool of $$ to help troubled banks
continue lending $$ in their communities
Chapter 9.3
6. Why did the Reconstruction Finance Committee
(RFC) fail?
RFC- lend $$ to banks, railroads and business. It
was overly cautious & did not increase its loans
in sufficient amounts to meet the needs of the
economy.
7. Why did President Hoover oppose the federal
government’s participation in relief?
He believed that only state and local governments
should dispense relief.
Chapter 9.3
8. What was the purpose of the Emergency Relief
and Construction Act?
$1.5 million in public works projects and $300
million in loans to states for direct loans
9. Why did the Communist Party participate in the
hunger marches of the early 1930’s?
They were eager to take advantage of national
problems to change the American form of gov’t.
Chapter 9.3
10. What was the series of events that
caused nearly one million farmers to lose
their farms between 1930 and 1934?
WWI-farmers borrowed $$ against their
farms to buy machinery and increase
production. When prices dropped = they
couldn’t make a profit = couldn’t pay loans
= loss of farm (foreclosure).
Chapter 9.3
11. How did some farmers try to raise crop prices?
By reducing supply = prices go up. They tried to
reduce supply by destroying crops, burning corn
for fuel, pouring milk out.
12. How did the effort of the Bonus Army end in
July of 1932?
Hoover ordered them cleared of abandoned
buildings. Gen. MacArthur had the Army send
the cavalry, infantry and tanks in and they drove
the veterans out of DC.
Chapter 9.3
13. What did President Hoover expand more
than any previous president?
The economic role of the government
14. What action of President Hoover’s
marked the first time an American
president used federal power to intervene
in the economy during peacetime?
The Reconstruction Finance Committee
(RFC)