Hoover and the Depression (AQA A-Level History): Revision Notes

Hoover and the Depression

The historiographical debate

Herbert Hoover served as president during the Depression years from 1929 to 1933. Historical assessments of his response have shifted over time. Traditional historiography, represented by scholars such as Charles P. Kindleberger and Robert Sobel, argued that Hoover did too little to help and instead made the situation worse. This interpretation dominated for decades.

A revisionist perspective emerged during the 1980s, coinciding with Ronald Reagan's presidency and the promotion of similar conservative economic policies. These historians portrayed Hoover more sympathetically, arguing that he was constrained by his deeply held beliefs and became a victim of both his own ideology and an unprecedented economic crisis beyond anyone's control. British historian Paul Johnson suggested that Hoover should not have done more and that the economy would have corrected itself without intervention.

Hoover's background and character

Herbert Hoover (1874-1964)

Born into a Quaker family in West Branch, Iowa, Hoover embodied the self-made American success story. After graduating from Stanford University as a mining engineer, he established a highly successful mining business by 1908. When the USA entered the First World War in 1917, he was appointed National Food Commissioner. Three years later, he became Secretary of Commerce in Warren Harding's government. He won the presidential election in 1928, famously declaring that the USA was 'nearer to the final triumph over poverty than ever before in the history of any land'. Within months, these words would return to haunt him as the Depression began.

Hoover's personality shaped his presidency. He was intensely shy and avoided publicity, functioning better as an administrator than as a politician. His presidency became consumed by the Great Depression. Despite working tirelessly to combat its worst effects through long hours every day, he lost credibility as conditions deteriorated. He gained an unfair reputation as an uncaring president. The unemployed built shanty towns on the edges of cities, which they nicknamed 'Hoovervilles', whilst homeless people referred to the newspapers they used as blankets as 'Hoover blankets'. When the Mississippi burst its banks over a huge area in 1927, Hoover had organised large-scale relief efforts, but this earlier humanitarianism was forgotten during the Depression.

Hoover's beliefs

In his 1928 presidential election campaign, Hoover claimed that the USA was approaching triumph over poverty. Within years, these optimistic words would return to mock him. Hoover held certain beliefs acquired early in life which profoundly handicapped his response to the Depression's worst effects.

Rugged individualism was a concept Hoover had written about in his 1922 book American Individualism. He believed everyone could achieve what he had achieved through hard work and initiative. He placed enormous emphasis on the role of the individual. This ideology led him to believe in self-help and voluntary cooperation as solutions to problems. People should help themselves and help each other. As Hoover stated:

"A voluntary deed... is infinitely more precious to our national ideal and spirit than a thousand deeds poured from the Treasury"

Hoover believed that people should be responsible for their own welfare and that government should not intervene to solve people's problems. The role of government was merely to give people the ability to solve their problems themselves. According to Hoover:

"Economic wounds must be healed by producers and consumers"

This philosophy of voluntarism meant that Hoover expected businesses, charities, and local communities to address the Depression voluntarily rather than through federal government action.

The problem was that voluntarism and self-help could never be sufficient to deal with the unprecedented scale of the Great Depression. Hoover could never abandon his fundamental belief that the federal government should accept only a temporary and limited role. He remained convinced that the economy would correct itself naturally. To be fair to Hoover, few economic theories existed at the time about how to solve such a crisis.

Hoover's policies

Hoover has been criticised for doing too little too late to address the Depression and for implementing policies that actually worsened the situation. Indeed, by 1932, he was being widely ridiculed throughout the USA. His name became associated with the new shanty towns on city edges and the newspapers homeless people used as coverings.

Agriculture

Hoover introduced the Agricultural Marketing Act of 1930 to assist farmers. This Act enabled the federal government to lend money to farmers through special marketing groups which stabilised prices and attempted to ensure that produce was sold at a profit.

The Grain Stabilisation Corporation, introduced in the same year, tried to guarantee fair prices by purchasing wheat so that it could be stored until prices rose again. However, prices continued to plunge.

Hoover's agricultural policies failed because he was paying farmers artificially high prices. Additionally, farming was badly affected by the introduction of tariffs through the Hawley-Smoot Tariff Act of 1930. This protected US farmers by raising import duties on foreign goods. In retaliation, other countries refused to trade with the USA, further damaging American agricultural exports.

Industry

Hoover attempted to balance the budget by reducing federal spending and opposing relief schemes proposed by Congress. Instead, he relied on voluntary action. He hoped to persuade businessmen and state governments to solve the Depression through voluntary efforts.

He met with businessmen and implored them not to cut their workforce or wages. He encouraged state governments to begin new public works programmes. In 1932, he provided an additional $500 million to help various agencies provide relief.

The Reconstruction Finance Corporation (RFC) of January 1932 was the most substantial measure Hoover introduced to address the Depression. It represented a departure from Roosevelt's New Deal policies in that it lent up to $2 billion to rescue banks, insurance companies, railroads and construction companies.

The Emergency Relief Act in July of the same year gave $300 million to state governments to help the unemployed.

The Home Loan Bank Act of 1932 was designed to stimulate house building and home ownership. Twelve regional banks were established with a fund of $12 million.

The Bonus Marchers

Hoover's handling of the Bonus Marchers made him even more unpopular. The Bonus Marchers were veterans of the First World War who had been promised a bonus for serving in the war, payable in 1945. The veterans felt they could not wait that long. In May and June 1932, a Bonus Expeditionary Force, made up of over 12,000 unemployed and homeless veterans from all over the USA, marched to Washington DC to voice their support for a bill that would allow early payment of the bonuses. They brought their wives and children and built a Hooverville outside the capital.

To pay the bonus would have cost $2.3 million, and Hoover felt it was simply too much. Five thousand Bonus Marchers refused to leave, and Hoover called in the army to control the situation. The armed forces, led by Douglas MacArthur, Army Chief of Staff, razed the Hooverville to the ground. More than 100 were injured and a baby died of tear gas poisoning. This event left a bitter taste in the mouths of many Americans who became more convinced than ever that Hoover did not care. It finally destroyed the credibility of the President.