The Great Depression: Initial American Government Response (1929-33)


Figure 1.--Many Depression photograpy shows unemployed men in bread lines. Often the impact on theur families is poorly illustrated. Most of those men had families. With millions losing their jobs, countless families were left without incomes and began to go hungary. Private charities attempted to deal with the problems. The dimensions of the problem, however, were beyond the capabilities of charity to address. Here we see families in Grand Rapids, Michigan just before Christmas 1932 receiving milk and bread at the local Fore House.

People in 1929 before the New Deal had a very different attitude toward the role of Government. The Government was there to provide national defense and to maintain law and order as well to administer the legal system. The Progressive Era had introduced laws to provide governent regulation in economic areas such as labor laws to protect women and children and food and drug legislation to protect the public. The Government was, however, not seen as responsible for the economic well being of individuals. This was seen as a private responsibility. There was no unemployment insurance or old age retirement systems. Nor were there programs to assess the poor. Poverty and unemployment were seen as character flaws and not the result of ecomomic fluctustions beyound the capability of individuals to deal with. Some state Governments attempted to address the problem, but the crisis was beyound the abolity of state government to handele. Ironically President Hoover was noted for his humanitarian efforts in Europe during and After World war I. His ideological mindset, however, his ability to address the challenge of the Great Depression. Private charities struggled to provide food and other support. The demessions of what was needed went far beyond the capabilities of chaity to address. Hoover's initial resomse was to cut Government spending and ballance the budget. Hoover announced that while he would keep the Federal budget balanced, he would cut taxes and expand public works spending. In would be wrong to suggest that Hoover was unfeeling or that he did nothing to address the Depression. Rpercussions from Europe by 1931 were deepening the crisis, even though the President presented to Congress a program asking for creation of the Reconstruction Finance Corporation to aid business, additional help for farmers facing mortgage foreclosures, banking reform, a loan to states for feeding the unemployed, expansion of public works, and drastic governmental economy. At the same time he reiterated his view that while people must not suffer from hunger and cold, caring for them must be primarily a local and voluntary responsibility.

Governmental Reponsibility

People in 1929 before the New Deal had a very different attitude toward the role of Government. The Government was there to provide national defense and to maintain law and order as well to administer the legal system. The Progressive Era had introduced laws to provide governent regulation in economic areas such as labor laws to protect women abd children and food and drug legislation to protect the public. The Government was, however, not seen as responsible for the economic well being of individuals. This was seen as a private responsibility. Poverty and unemployment were seen as character flaws and not the result of ecomomic fluctustions beyound the capability of individuals to deal with.

Government Programs

There was no unemployment insurance or old age retirement systems. Nor were there programs to assess the poor.

Staye Government

Some state Governments attempted to address the problem. A leeder here was New York when newly elected Franklon Rossevelted ushered in some innovative efforts. Roosevelt had been elected in the Republican 1928 landslide. The crisis was, however, beyond the abolity of state government to handele.

Hoover Administration

Ironically President Hoover was noted for his humanitarian efforts in Europe during and After World war I. His ideological mindset, however, his ability to address the challenge of the Great Depression. Hoover's initial resomse was to cut Government spending and ballance the budget. Hoover announced that while he would keep the Federal budget balanced, he would cut taxes and expand public works spending. In would be wrong to suggest that Hoover was unfeeling or that he did nothing to address the Depression. Rpercussions from Europe by 1931 were deepening the crisis, even though the President presented to Congress a program asking for creation of the Reconstruction Finance Corporation to aid business, additional help for farmers facing mortgage foreclosures, banking reform, a loan to states for feeding the unemployed, expansion of public works, and drastic governmental economy. At the same time he reiterated his view that while people must not suffer from hunger and cold, caring for them must be primarily a local and voluntary responsibility.

Private Charities

Private charities struggled to provide food and other support. The demessions of what was nned went far beyond the capabilities of chaity to address.

The Bonus March (May-July 1932)

One of the shabiest chapters in America's treatment of its veterans is the Bonus March that occurred during the Great Depression. Tanks and banyonets deployed against unenployed veterans against the background of the Depression caused mant to question the future of America. As a result of the Depression there had been a number of small marches on Washington, but nothing along the domensions of the Bonus March. Congress after World War I promised veterans a bonus to honor their service. Congress passed the Adjusted Service Certificate Law (1924). The bonus was to be paid in 1945. The American Legion has pushed for the legislation. The Law was not just what the Legion wanted and they pushed for revisions, especially after the Depression began. Veterans were of course among the millions of unemloyed Americans.The Legion pushed for a bill allowing veterans to borrow against 50 percent of the nonus certificate value (March 1931). Congress passed the bil, but President Hoover vetoed it. He believed that the Government could not afford it and deficit spending would just impede recovery from the Depression. Congress passed the bill over Hoover's veto (February 1932). Thus many veterans began to see money from their bonus as a real possibility. Walter W. Walters and a group of other unemployed cannery workers decided that the Government should pay their bonus now when they really needed it. They came to WAshington and set up camp, calling themselves the "Bonus Expeditionary Forces" (May 1932). Army Chief of Staff Douglas MacArthur, a veteran himself, did so see the Bonus Marchers as needy veterans. Rather he saw, with virtually no evidence, a dangerous communist conspiracy to tke over the national government. MacArthur's own intelligence staff informed him that he was mistaken. As word spread of the initial encampment, thousands of veterans, many brining their family, headed for Washington. Eventually about 20,000 veteranns massed in Washington. Some of the veterans set up the Mall, but most built a "Hooverville" at nearby Anacostia Flats. The House of Representatives passed the Patman Bonus Bill moving up the payment date (June 15). The Bonus Army demonstrated at the Capitol as the Senate considered the bill (June 17). The Senate rejected it. Congress did appropriate money to help the veterans return home. Some marchers decided to do so, but many decided to stay to press their case. . The District of Columbia police attempted to evict some of the remaining Bonus Marchers from a Federal construction site (July 28). In the ensuing mele the police shot and killed two Bonus Marchers. The Marchers then attacked the police. They did not use fire arms, but they managed to injure several policemen who fell back. District of Columbia authotities informed President Herbert Hoover that they could not deal with the situation. President Hoover ordered Secretary of War Hurly to "surround the affected area and clear it without delay." Hoover did not order an attack on the major encampment at Anacostia. The resulting attack, however, would be one more action that would descredit President Hoover in the eyes of many Americans.






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Created: 1:43 AM 11/13/2006
Last updated: 3:17 AM 11/13/2006