#8-14
8. What had changed for famers, and what stayed the same
1920 wheat shot up to $3 per barrel
machines caused overabundance of crops
farmers didn't need as much men or horses
(when depression hit, 1 farm in 4 sold )
Bipartisan "farm bloc" formed in 1921 to help farmers the Capper-Volstead act were exempted farmer cooperatives from antitrust prosecution
bloc pushed for McNary-Haugen bill from 1924-1928 Government buy surplus , sold abroad, money that the government lost was made back by with special tax on farmers. Passed 2x by congress, shot down 2x by Coolidge, prices stayed down
9. Why did Coolidge win 1924 election?
Democrats at Madison Square garden split into too many groups, Wets and Drys urbanites and farmers, fundamentalists and modernists, candidate John W Davis meekly supported at best
Senator “fighting bob” Robert La Follette was a progressive candidate but was no progressive party to support him
Coolidge basically won by process of elimination
10. Why did America cancel the debt of European countries?
1. European countries were the ones complaining that they had lost men during the war and America should just cancel the debt.
2. All the money made was going to America
3. American post-war tariffs made it impossible for European countries to make money.
11. What resulted from America’s instance on getting back the money loaned
1. the allies mainly made Germany pay 32 billion for reparation.
2. In 1923 French captured Germany's Ruhr valley.
In response, Germany was forced to inflate their money ridiculously.
3. Dawes plan- by American banker, Charles Dawes- America loans money to Germany. Germany pays the allies. Allies pay it back war debts to America
4. us eventually cancelled the plans. Finland only paid their debts.
5. hatred for Americans was the only thing left in Europe.
12. Why was Herbert Hoover more popular than Al Smith with voters?
Alfred Smith:
A drunk in prohibition; Catholic in a protestant country
Was lacking in radio department
Rejected by South/KKK for being a Catholic, drunk, Irish and urbanite
Herbert Hoover:
Ideal American business candidate; worked from bottom to top
Mudslinging against Smith
“A Vote for Al Smith Is a Vote for the Pope”
3 R's: Rum, Romanism, and Ruin
13. Hoover tried to help farmers, how well did he do?
Agricultural Marketing Act
Passed by Congress in 1929
Set up Federal Farm Board to buy, sell and, store surplus
FFB created Grain Stabilization Corporation and Cotton Stabilization Corporation
Both would try to increase prices
Both were suffocated by too much surplus; resulted in lowered prices
Hawley-Smoot Tariff of 1930
Designed to help farmers, but then acquired 1000 amendments and pushed the tariff up to 60%
Angered foreign countries; plunged America and other countries into a further depression
Increased financial chaos; forced US into economic isolationism
14. What were the effects of the stock market crash
Origin and Cause
stock market crashed due to mass speculation following the period of economic prosperity during WWI
set off by British who rose interest rate to try to bring capital back to their country
In response foreign investors and domestic speculators began to sell their stock by the bunches "selling their insecurities"
Crash came on Oct 29 1929 “Black Tuesday"
2 months later, us lost 40 billion (about 4x the amount of spent in WWl for the US)
1930 4 mil jobless
1932 12 mil jobless
Between w 1929 & 1932 % 5000 banks collapsed taking tens of thousands
companies changed from hiring to firing
everyone felt economic strain and had less children, more children=less money
1920 wheat shot up to $3 per barrel
machines caused overabundance of crops
farmers didn't need as much men or horses
(when depression hit, 1 farm in 4 sold )
Bipartisan "farm bloc" formed in 1921 to help farmers the Capper-Volstead act were exempted farmer cooperatives from antitrust prosecution
bloc pushed for McNary-Haugen bill from 1924-1928 Government buy surplus , sold abroad, money that the government lost was made back by with special tax on farmers. Passed 2x by congress, shot down 2x by Coolidge, prices stayed down
9. Why did Coolidge win 1924 election?
Democrats at Madison Square garden split into too many groups, Wets and Drys urbanites and farmers, fundamentalists and modernists, candidate John W Davis meekly supported at best
Senator “fighting bob” Robert La Follette was a progressive candidate but was no progressive party to support him
Coolidge basically won by process of elimination
10. Why did America cancel the debt of European countries?
1. European countries were the ones complaining that they had lost men during the war and America should just cancel the debt.
2. All the money made was going to America
3. American post-war tariffs made it impossible for European countries to make money.
11. What resulted from America’s instance on getting back the money loaned
1. the allies mainly made Germany pay 32 billion for reparation.
2. In 1923 French captured Germany's Ruhr valley.
In response, Germany was forced to inflate their money ridiculously.
3. Dawes plan- by American banker, Charles Dawes- America loans money to Germany. Germany pays the allies. Allies pay it back war debts to America
4. us eventually cancelled the plans. Finland only paid their debts.
5. hatred for Americans was the only thing left in Europe.
12. Why was Herbert Hoover more popular than Al Smith with voters?
Alfred Smith:
A drunk in prohibition; Catholic in a protestant country
Was lacking in radio department
Rejected by South/KKK for being a Catholic, drunk, Irish and urbanite
Herbert Hoover:
Ideal American business candidate; worked from bottom to top
Mudslinging against Smith
“A Vote for Al Smith Is a Vote for the Pope”
3 R's: Rum, Romanism, and Ruin
13. Hoover tried to help farmers, how well did he do?
Agricultural Marketing Act
Passed by Congress in 1929
Set up Federal Farm Board to buy, sell and, store surplus
FFB created Grain Stabilization Corporation and Cotton Stabilization Corporation
Both would try to increase prices
Both were suffocated by too much surplus; resulted in lowered prices
Hawley-Smoot Tariff of 1930
Designed to help farmers, but then acquired 1000 amendments and pushed the tariff up to 60%
Angered foreign countries; plunged America and other countries into a further depression
Increased financial chaos; forced US into economic isolationism
14. What were the effects of the stock market crash
Origin and Cause
stock market crashed due to mass speculation following the period of economic prosperity during WWI
set off by British who rose interest rate to try to bring capital back to their country
In response foreign investors and domestic speculators began to sell their stock by the bunches "selling their insecurities"
Crash came on Oct 29 1929 “Black Tuesday"
2 months later, us lost 40 billion (about 4x the amount of spent in WWl for the US)
1930 4 mil jobless
1932 12 mil jobless
Between w 1929 & 1932 % 5000 banks collapsed taking tens of thousands
companies changed from hiring to firing
everyone felt economic strain and had less children, more children=less money