Agenda 3/7/11 Go over 9.3 – Hoover’s Response FDR’s Response- The New Deal Video: The New Deal “A Chaos of Experimentation” Notebooks due Friday (last day of quarter) Chapter 9/10 test next week 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)