USH 11:3

• Hoover Responds to the Depression– He believed in “rugged individualism” • People need to help themselves

– Increased funding for Public Works• Government-funded building projects

– Focused on expanding the money supply • Help banks make loans

11:3

• Hoover Responds to the Depression– Created National Credit Corporation (NCC) (1931)

• Created a pool of money for banks to loan to businesses

– Created Reconstruction Finance Corporation (RFC)• Make loans directly to businesses

– Both failed to stop economy from declining

11:3

• The Bonus Marchers (“Bonus Army”)– Military veterans were promised $1,000 bonus• To be paid in 1945

– Thousands of vets march on Washington • Demand bonus pay immediately • Hoover denies

11:3

• Legacy of Hoover– Failed to resolve economic crisis– Did more than any other president to expand

federal government’s role in economy– Handling of Bonus Army and the lingering

Depression tarnished his image