Changes

Hoover had played a major role in creating the long-term (20-year) mortgage in the 1920s. In times of prosperity mortgages accelerated national growth, as houses were built and lived in before people had saved enough to pay cash for one.  But in a downturn mortgages debt hurt the economy. people sacrificed current consumption to pay the mortgage so they would not lose the house and all the money they put in it. To pay the mortgage they gave up luxuries (like a telephone or new car), made do with old clothes, canceled vacations. The foreclosure rate pushed up and construction of new houses ceased.  It was much like 2008-09.  Like President Obama, Hoover moved to resolve the mortgage crisis. He called for the Federal Home Loan Bank Act (passed in  July 1932), that created a system of federal home loan banks to discount home mortgages. The Federal Home Loan Banks received $125 million in capital (comparable to $32 billion in 2009) to fund the home mortgages held by financial concerns.<ref>The "comparable" figures here are calculating by taking the same % of the GDP in 2009 as the sum was a % of GDP in 1930, 1931 or 1932.  This can be found by using these multipliers: to compare spending in 1929 versus 2009, multiply by 146; use 167 in 1930; 197 in 1931; 259 in 1932, and 268 in 1933.</ref>  Hoover believed that the ability of private lending institutions to secure new sources of capital would encourage them to make more construction loans and revive the industry. But it had little effect.

Hoover had played a major role in creating the long-term (20-year) mortgage in the 1920s. In times of prosperity mortgages accelerated national growth, as houses were built and lived in before people had saved enough to pay cash for one.  But in a downturn mortgages debt hurt the economy. people sacrificed current consumption to pay the mortgage so they would not lose the house and all the money they put in it. To pay the mortgage they gave up luxuries (like a telephone or new car), made do with old clothes, canceled vacations. The foreclosure rate pushed up and construction of new houses ceased.  It was much like 2008-09.  Like President Obama, Hoover moved to resolve the mortgage crisis. He called for the Federal Home Loan Bank Act (passed in  July 1932), that created a system of federal home loan banks to discount home mortgages. The Federal Home Loan Banks received $125 million in capital (comparable to $32 billion in 2009) to fund the home mortgages held by financial concerns.<ref>The "comparable" figures here are calculating by taking the same % of the GDP in 2009 as the sum was a % of GDP in 1930, 1931 or 1932.  This can be found by using these multipliers: to compare spending in 1929 versus 2009, multiply by 146; use 167 in 1930; 197 in 1931; 259 in 1932, and 268 in 1933.</ref>  Hoover believed that the ability of private lending institutions to secure new sources of capital would encourage them to make more construction loans and revive the industry. But it had little effect.

===RFC===

===Reconstruction Finance Corporation===

The most successful Hoover program—one that continued under FDR—was the [[Reconstruction Finance Corporation]], proposed by Hoover and created by Congress in early 1932. The collapse in the value of  assets combined with demands from panicky depositors to get their money out meant that many banks that were otherwise solvent, hoarded their money and refused to make loans.  It was much like the [[Financial Crisis of 2008]]. The RFC could make loans to banks, insurance companies and railroads. The Emergency Relief and Construction Act of  July 21, 1932, enlarged its power to allow for loans to state government and to farm agencies. The immediate aim was to restore confidence in  financial institutions generally and encourage them to start lending again, prevent ruinous bankruptcies that would further destabilize the shaky economy, and—hopefully—revive the economy  through the restoration of credit.  The RFC was capitalized at $500 million (comparable in size to $130 billion in 2009), provided by the  federal government, and it was empowered to sell $3.3 billion (comparable to $850 billion in 2009) of debentures. Through  the end of the Hoover administration $2.2 billion was actually loaned to authorized  borrowers (comparable to $590 billion). The RFC saved many railroads, banks, and insurance companies. Democrats limited its effectiveness by overly stringent security requirements for loans and by the decision of Congress to require public disclosure of borrowers, which virtually forced a bank to admit publicly it was in trouble.

The most successful Hoover program—one that continued under FDR—was the [[Reconstruction Finance Corporation]], proposed by Hoover and created by Congress in early 1932. The collapse in the value of  assets combined with demands from panicky depositors to get their money out meant that many banks that were otherwise solvent, hoarded their money and refused to make loans.  It was much like the [[Financial Crisis of 2008]]. The RFC could make loans to banks, insurance companies and railroads. The Emergency Relief and Construction Act of  July 21, 1932, enlarged its power to allow for loans to state government and to farm agencies. The immediate aim was to restore confidence in  financial institutions generally and encourage them to start lending again, prevent ruinous bankruptcies that would further destabilize the shaky economy, and—hopefully—revive the economy  through the restoration of credit.  The RFC was capitalized at $500 million (comparable in size to $130 billion in 2009), provided by the  federal government, and it was empowered to sell $3.3 billion (comparable to $850 billion in 2009) of debentures. Through  the end of the Hoover administration $2.2 billion was actually loaned to authorized  borrowers (comparable to $590 billion). The RFC saved many railroads, banks, and insurance companies. Democrats limited its effectiveness by overly stringent security requirements for loans and by the decision of Congress to require public disclosure of borrowers, which virtually forced a bank to admit publicly it was in trouble.

Hoover was a reformer who expanded [[civil service]], canceled private oil leases on government lands, and prosecuted notorious criminals, most notably [[Al Capone]].  He negotiated a treaty with Canada on the [[St. Lawrence Seaway]]; it in the Senate. He wrote a Children's Charter that advocated protection of every child regardless of race or gender, built the [[San Francisco Bay Bridge]], created an antitrust division in the [[Justice Department]], required air mail carriers to improve service, and proposed federal loans for clearance of urban [[slum]]s.

Hoover was a reformer who expanded [[civil service]], canceled private oil leases on government lands, and prosecuted notorious criminals, most notably [[Al Capone]].  He negotiated a treaty with Canada on the [[St. Lawrence Seaway]]; it in the Senate. He wrote a Children's Charter that advocated protection of every child regardless of race or gender, built the [[San Francisco Bay Bridge]], created an antitrust division in the [[Justice Department]], required air mail carriers to improve service, and proposed federal loans for clearance of urban [[slum]]s.

Hoover organized the [[Federal Bureau of Prisons]], reorganized the [[Bureau of Indian Affairs]], proposed a federal [[United States Department of Education|Department of Education]], advocated fifty-dollar-per-month [[pension]]s for Americans over 65, chaired [[White House]] conferences on child health, protection, homebuilding and homeownership, and signed the [[Norris-La Guardia Act]] that limited judicial intervention in labor disputes.  

Hoover organized the [[Federal Bureau of Prisons]], reorganized the [[Bureau of Indian Affairs]], proposed a federal [[United States Department of Education|Department of Education]], advocated fifty-dollar-per-month [[pension]]s for Americans over 65, chaired [[White House]] conferences on child health, protection, homebuilding and homeownership, and signed the [[Norris-La Guardia Act]] that limited judicial intervention in labor disputes.

 

===Indians===

===Indians===

Hoover's Quaker upbringing influenced his views that Native Americans needed to achieve economic self-sufficiency. He chose Senator [[Charles Curtis]], an Indian—as his Vice President. (Curtis was the first and last Indian to hold high national office, but he was a figurehead, not a policy maker.) Hoover appointed Charles J. Rhoads as commissioner of Indian affairs. He supported Rhoads' efforts to achieve Indian assimilation and sought to reduce the federal role in Indian affairs to the minimum. He wanted to have Indians acting as individuals instead of as tribes, and assuming the responsibilities of citizenship which had been granted pursuant to [[Indian Citizenship Act of 1924]].<ref>Thomas A. Britten, "Hoover and the Indians: the Case for Continuity in Federal Indian Policy, 1900-1933" Historian 1999 61(3): 518-538. Issn: 0018-2370</ref>

Hoover's Quaker upbringing influenced his views that Native Americans needed to achieve economic self-sufficiency. He chose Senator [[Charles Curtis]], an Indian—as his Vice President. (Curtis was the first and last Indian to hold high national office, but he was a figurehead, not a policy maker.) Hoover appointed Charles J. Rhoads as commissioner of Indian affairs. He supported Rhoads' efforts to achieve Indian assimilation and sought to reduce the federal role in Indian affairs to the minimum. He wanted to have Indians acting as individuals instead of as tribes, and assuming the responsibilities of citizenship which had been granted pursuant to [[Indian Citizenship Act of 1924]].<ref>Thomas A. Britten, "Hoover and the Indians: the Case for Continuity in Federal Indian Policy, 1900-1933" Historian 1999 61(3): 518-538. Issn: 0018-2370</ref>

===Foreign Policy===

===Foreign Policy===

Regarding to foreign policy, Hoover originated what Roosevelt later called the "[[Good Neighbor Policy]]" by withdrawing American troops from [[Nicaragua]] and [[Haiti]]. He proposed an arms embargo on [[Latin America]] and a one-third reduction in the world's naval, which was called the [[Hoover Plan]]. The [[Roosevelt Corollary]] was dropped as a part of U.S. foreign policy. He and his powerful Secretary of State [[Henry Stimson]] formulated the [[Stimson Doctrine]] that said the United States would not recognize territories gained by force. This meant the U.S. refused to recognize Japan's seizure of Manchuria.

Regarding to foreign policy, Hoover originated what Roosevelt later called the "[[Good Neighbor Policy]]" by withdrawing American troops from [[Nicaragua]] and [[Haiti]]. He proposed an arms embargo on [[Latin America]] and a one-third reduction in the world's naval, which was called the [[Hoover Plan]]. The [[Roosevelt Corollary]] was dropped as a part of U.S. foreign policy. He and his powerful Secretary of State [[Henry Stimson]] formulated the [[Stimson Doctrine]] that said the United States would not recognize territories gained by force. This meant the U.S. refused to recognize Japan's seizure of Manchuria.