The robust economy that helped elect Herbert Hoover in 1928 stalled soon after he took office. The stock market crashed on 10/29/1929, and more money was lost that day than had ever been printed or minted in American history. Since investors could borrow up to 90% of the price of a stock, much of the loss of stock value was caused by an investor inability to repay the borrowed funds. Securities dropped over $35 billion.

President Hoover called leading businessmen to the White House for a conference. He convinced them not to cut wages, hoping that the economic troubles would end soon. However, as people were increasingly unable to make their loan payments, merchants ordered less, factories produced less, and workers worked less.

The economy worsened in spite of Hoover’s optimism. Unemployment rose dramatically, and charities were providing all the aid they could give. Congress raised the tariff to increase the price of foreign goods in American stores, but the tariff only served to reduce the amount of American goods sold in foreign lands as the depression spread around the globe. President Hoover created the Reconstruction Finance Corporation to extend aid to the states, which was the first step in government intervention in the economy.

The Democrats saw the opportunity of the century when the midterm election of 1930 handed the U.S. House to them. The two leading Democrats seeking their presidential nomination were the last two governors of New York: Alfred E. Sm

[More...]

The robust economy that helped elect Herbert Hoover in 1928 stalled soon after he took office. The stock market crashed on 10/29/1929, and more money was lost that day than had ever been printed or minted in American history. Since investors could borrow up to 90% of the price of a stock, much of the loss of stock value was caused by an investor inability to repay the borrowed funds. Securities dropped over $35 billion.

President Hoover called leading businessmen to the White House for a conference. He convinced them not to cut wages, hoping that the economic troubles would end soon. However, as people were increasingly unable to make their loan payments, merchants ordered less, factories produced less, and workers worked less.

The economy worsened in spite of Hoover’s optimism. Unemployment rose dramatically, and charities were providing all the aid they could give. Congress raised the tariff to increase the price of foreign goods in American stores, but the tariff only served to reduce the amount of American goods sold in foreign lands as the depression spread around the globe. President Hoover created the Reconstruction Finance Corporation to extend aid to the states, which was the first step in government intervention in the economy.

The Democrats saw the opportunity of the century when the midterm election of 1930 handed the U.S. House to them. The two leading Democrats seeking their presidential nomination were the last two governors of New York: Alfred E. Smith and Franklin D. Roosevelt. Gov. George White of Ohio also entered the race. After adopting a platform calling for the repeal of Prohibition and increased government relief efforts, Roosevelt was nominated on the fourth ballot.

Former U.S. Senator Joseph I. France challenged Pres. Hoover for the nomination and won seven primaries. France was carried out of the national convention after he urged the delegates to nominate President Coolidge (he was convinced that Hoover could not win).

The public repudiation of President Hoover in 1932 was remarkable. FDR carried all but six states, and the Democrats won a 313–117 margin in the U.S. House.

[Less...]