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The Wall Street Crash Sparks the Depression
The Roaring Twenties would reach its peak before beginning to fall. This was a result of numerous factors that came before the Wall Street Crash. When things started to look a bit bleak, the discount rate was increased from 5% to 6% by the Federal Reserve to support the gold standard and stop inflation. -
The drought hits
Severe drought hits the Midwestern and Southern Plains. As the crops die, the “black blizzards” begin. Dust from the over-plowed and over-grazed land begins to blow. -
Food Riots and Bank Collapse
In Minneapolis, food riots erupt as people struggle for food. A few hundred people smash the windows of a grocery market, taking bacon, ham, and canned goods with them as they run away. 100 policemen managed to bring the riots under control and 7 people were arrested as a result. The fourth largest bank in the United States the Bank of the United States failed causing the biggest failure in a bank at the time. -
Dust Storms Increase
The number of dust storms is increasing. Fourteen are reported this year; next year there will be 38. -
President Roosevelt is elected
In one of the key events in this Great Depression timeline, Democratic candidate Franklin D. Roosevelt is elected President of the United States after defeating Herbert Hoover in a landslide victory. Roosevelt got 22,800,000 popular votes, compared to Hoover who got 15,750,000. -
The Emergency Farm Mortgage act
The Emergency Farm Mortgage Act allots $200 million for refinancing mortgages to help farmers facing foreclosure. The Farm Credit Act of 1933 established a local bank and set up local credit associations. -
The Dust Storm Spread Across an even greater area
Great dust storms spread from the Dust Bowl area. The drought is the worst ever in U.S. history, covering more than 75 percent of the country and affecting 27 states severely. -
Drought Relief Service
The federal government forms a Drought Relief Service to coordinate relief activities. The DRS buys cattle in counties that are designated emergency areas, for $14 to $20 a head. Those unfit for human consumption – more than 50 percent at the beginning of the program – are destroyed. Although it is difficult for farmers to give up their herds, the cattle slaughter program helps many of them avoid bankruptcy. -
Creation of works progress administration.
The Works Progress Administration is created by the Emergency Relief Appropriation, hiring 8.5 million people to help with the unemployment crisis. -
Spending on New Deal Programs Cut
This year, President Roosevelt had the difficult task of having to manage the debt, but also trying to keep the economy out of the depression. In an attempt to relieve the country’s debt, he cut back spending on the New Deal programs, which ultimately pushed the economy back into the depression. In the end, after a $5 billion relief program was enacted by Congress, the economy grew by 5.1%.