Ch. 14 History Final

Credit
an arrangement in which consumers agree to buy now and pay later for purchases

Speculation
an involvement in risky business transactions, in an effort to make a quick or large profit

Buying on margin
practice of buying stocks, mostly borrowed funds, a cause of the 1929 crash

Black Tuesday
October 29,1929, day of stock market crash

Dow Jones Industrial Average
a measure based on the prices of stocks of 30 large companies; widely used as a barometer of the stock market’s health

Great Depression
the period from 1929 to 1940 when the economy plumitted and unemployment sky rocketed

Dust Bowl
Term for great central region that was economically destroyed when drought and winds struck mismanaged lands

Direct Relief
type of relief for the poor where cash payments or food is provided by the government

Herbert Hoover
President elected in 1928 who was at first too cautious in his approach to solving problems of the depression

Bonus Army
group of WW1 veterans who protested to be compensated for wartime services but later forcibly disbanded by Hoover

During WWI, prices rose and international demand for crops soared. Farmers had planted more and taken out loans for land and equipment. Demand fell after the war, and crop prices declined by 40%. Farm income declined making it difficult to paying off loans. Many lost their farms when banks foreclosed and seized the property as payment for the debt. As farmers began to default on their loans, many rural banks began to fail. Congress tried to help the farmers by passing the McNary-Haugen bill in which the government would buy surplus crops at guaranteed prices and sell them on the world market, but President Coolidge vetoed the bill.
How were farmers effected by the 1920s and explain their situation during the Great Depression?

People lost their savings, banks failed, businesses went bankrupt, unemployment sky rocketed, and a world wide depression began.
What were the effects of the stock market crash?

In cities across the country, people lost their jobs, were evicted from their homes and ended up in the streets.
Shantytowns: little towns consisting of shacks
Soup kitchens: offering free or low-cost food
Bread lines: lines of people waiting to receive food provided by charitable organizations or public agencies; became a common sight
How were shantytowns, soup kitchens and bread lines a response to the Depression?

Minorities experienced an increase in discrimination because competition for jobs increased
Why did minorities often experience an increase in discrimination during the Great Depression?

The economic difficulties of the Great Depression put severe pressure on the family life. Making ends meet was a daily struggle, and som families broke apart under the strain.
Men: weren’t accustomed to unemployment; stopped trying to find jobs after years and abandoned families
Women: canned food, sewed clothes, managed household budgets, worked outside of the house and were viewed as targets
children: poor diets, serious health problems; schools shortened or closed; worked in horrible conditions
What pressures did the American family experience during the Great Depression?

Most Americans were outraged at the government’s treatment of the veterans. The incident damaged Hoover’s image adn public morale.
How did Hoover’s treatment of the Bonus Army affect the standing with the public?

His attempts to relieve the depression involved negotiating agreements among private entities, again reflecting in his belief in small government. Hoover appealed to Congress to pass a series of measures to reform banking, provide mortgage relief, and funnel more federal money into business investment.
Federal Farm Board: organization of farm cooperatives that intended to raise crop prices by helping members to buy crops and keep them off the market temporarily until prices rose (unsuccessful)
National Credit Corporation: organized loaned money to smaller banks, which helped them stave off bankruptcy (unsuccessful)
Federal Home Loan Bank Act: lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure
Reconstruction Finance Corporation: authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses (unsuccessful)
In what ways did Hoover try to use the government to relieve the Depression?

what increased economically in the 1920’s? farmers’ debts what were the causes of the great depression tariffs on foreign goods, the availability of easy credit, a crisis in the farm sector, uneven distribution of income WE WILL WRITE A CUSTOM …

Price Support The government would buy surplus crops like corn, wheat, cotton and tobacco at guaranteed prices and sell them on the world market. Credit an arrangement in which consumers agreed to buy now and pay later for purchases in …

1929 What year was there a major stock market crash? There is a lot of economic uncertainty. Credit works well until what? WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY $13.90/PAGE Write my …

Credit Short-term loans to buy goods with promises to pay later Speculation Investments in high-risk ventures WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY $13.90/PAGE Write my sample buying on margin Buying stock …

Credit An arrangement in which the consumers *agreed to buy now and pay later for purchases*. During the 1920s Americans were living beyond their means by buying a lot of things on credit. Buying on MARGIN Many people were buying …

Which group experienced an early depression in the 1920’s? Farmers During the 1920’s, the United States economy moved through which phase of the business cycle? Expansion WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR …

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