HIST 110 Chapter Notes - Chapter 24: Reconstruction Finance Corporation, List Of Sovereign States By Suicide Rate, Farm Credit Administration
Document Summary
The great depression and the new deal, 1929 1939. Black thursday and the onset of the depression. Sock prices had risen through much of the 1920s. Stockbrokers lended buyers up to 75% of a stock"s cost, credit or margin" buying spread. Income-tax cuts increased the flow of money into the market. Federal reserve board tried to dampen speculation by raising interest rates and urging member banks to restrain their lending. As prices fell, some stocks found no buyers at all, they had become worthless. 1929 to 1932 gross national product dropped billion. 1933 more than 5500 banks had closed and unemployment stood at 25% Hoover advised city and state officials to create public-works projects. 1930 set up an emergency committee for employment to coordinate voluntary relief efforts. 1931 persuaded the nation"s largest banks to create a private lending agency to help smaller banks make business loans. Reconstruction finance corporation - to make loans to banks and other lending institutions.
