US History chapter 14

US History chapter 14

price supports
the McNary-Haugen bill
subsidies provided by the federal government where surpluses are purchased; this action reduces supply and keeps prices at a level required by the producer.
key products:wheat, corn, cotton, and tobacco
14.1
credit
an arrangement in which consumers agreed to buy now
and pay later for purchases
14.1
Alfred E. Smith
Democrat against Republican candidate Herbert Hoover ELECTION OF 1928
Smith lost
14.1
Dow Jones Industrial Average
the most widely used barometer of the stock market’s health. its is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.
14.1
speculation
they bought stocks and bonds on the chance of a quick
profit, while ignoring the risks.
14.1
buying on margin
paying a small percentage of a stock’s price as a down payment and borrowing the rest.
14.1
Black Tuesday
A name given to October 29, 1929, when stock prices fell sharply.
14.1
Great Depression
(HH) , starting with collapse of the US stock market in 1929, period of worldwide economic stagnation and depression. Heavy borrowing by European nations from USA during WW1 contributed to instability in European economies. Sharp declines in income and production as buying and selling slowed down. Widespread unemployment, countries raised tariffs to protect their industries. America stopped investing in Europe. Lead to loss of confidence that economies were self adjusting, HH was blamed for it
14.1
Hawley-Smoot Tariff Act
established the highest protective tariff in United States history. It was designed to protect American farmers and manufacturers from foreign competition. had opposite effect
14.1
Railroads lost business to new forms of transportation:
Coal mining lost to:
trucks, buses, and private automobiles
hydroelectric power, fuel oil, and natural gas
14.1
October 29, 1929
Stock market crash
investors had lost about $30 billion
14.1
causes of Great depression
• tariffs and war debt policies that cut down the foreign
market for American goods
• a crisis in the farm sector
• the availability of easy credit
• an unequal distribution of income
14.1
shantytown
little towns consisting of shacks made out of
scrap materials.
14.2
soup kitchen
offered free or low-cost food
14.2
bread line
lines of people waiting to receive food provided by charitable organizations or public agencies
14.2
Dust Bowl
A drought in the 1930s that turned the Great Planes very dry. caused by plowing protective prairie grass and over production. windstorms carried dust hundreds of miles
14.2
direct relief
cash payments or food provided by the government to the poor- was not available in the first years
Herbert Hoover
(1929-1933) The New York Stock Market Crashes October 29, 1929 “Black Tuesday”. The 20th Amendment is passed and added and the 21st Amendment is passed by 1933.
14.3
Boulder Dam
Hoover dam- built to create jobs
14.3
Hoover’s actions:
backed the creation of the
Federal Farm Board it rose crop prices by helping members to buy crops and keep them off the market temporarily until prices rose.
also tried to prop up the banking system by persuading the nation’s largest banks to establish the National Credit Corporation. This organization loaned money to smaller banks, which helped them stave off bankruptcy.
14.3
Federal Home Loan Bank Act
Lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure
14.3
Glass-Steagall Banking Act
separated investment from commercial banking and would, Congress hoped, prevent another crash.
14.3
Reconstruction Finance Corporation
authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large corporations. didnt help the average citizen
14.3
Bonus Army
led by Walter Waters, World War I veterans and their families arrived in Washington, D.C. to support the patman bill
Patman Bill
authorized the government to pay a bonus to World War I veterans who had not been compensated adequately for their wartime service. it wasn’t passed