President Hoover’s Response

Review Questions

Which of the following protests was directly related to federal policies, and thus had the greatest impact in creating a negative public perception of the Hoover presidency?

  1. the Farm Holiday Association
  2. the Ford Motor Company labor strikes
  3. the Bonus Expeditionary Force
  4. the widespread appearance of “Hooverville” shantytowns



Which of the following groups or bodies did not offer direct relief to needy people?

  1. the federal government
  2. local police and schoolteachers
  3. churches and synagogues
  4. wealthy individuals



What attempts did Hoover make to offer federal relief? How would you evaluate the success or failure of these programs?


Hoover formed the Reconstruction Finance Corporation (RFC) in 1932. This represented a significant effort, although it did not provide any direct aid to needy Americans. The RFC set aside $2 billion in taxpayer money to rescue banks, credit unions, and insurance companies, hoping to promote Americans’ confidence in financial institutions. However, by lending money only to banks with sufficient collateral, he ensured that most of the recipients of the aid were large banks. Additionally, most Americans at this time did not have assets to place into banks, however confident they may have felt. In 1932, Hoover also endorsed the Emergency Relief and Construction Act, which allotted $1.5 billion to states to fund local public works projects. Hoover’s limitations upon the types of projects that could receive funding and the types of workers who could participate, however, limited the program’s utility.