The Great Crash-American Nation Textbook Chapter 26, Section 1 Summary
1. a) Herbert Hoover-He was the president elected in the election of 1928. His role was in the Cabinet as
secretary of commerce for the majority of the 1920s. He assisted in creating the country’s prosperity in
that role. He viewed the growing economy when he took office in 1929 and failed to recognize the
warning signs of trouble.
b) Black Tuesday-This is the name given to October 29th, 1929, when the stock market crashed. Most
people kept selling their stocks, causing prices to decrease. Prices continued dropping as there were no
buyers, leading to the crash.
c) Great Depression-This is the name given to the duration of time of economic hardship following the
crash. It occured from 1929-1941. Along with the stock market crash, overproduction assisted in the
occurrence of the depression. Salaries did not keep up with the prices of goods. Farms and factories were
producing more goods than people could afford to purchase. Factories shut down and many were left
unemployed as ordered slowed down. In addition, many banks were forced to close since borrowers
were unable to repay the loans they had taken out.
d) Hooverville-This is the name given to the shacks where homeless people lived. Hoover tried to reverse
the hardships, but he was too late and his efforts weren’t enough. In addition to Hoovervilles, “Hoover
blankets” were the newspapers the homeless used to stay warm as they slept outside. “Hoover stew” was
the thin soup people got in soup kitchens. “Hoover leather” was the name people gave to the cardboard
patch that covered a shoe’s hole.
e) Bonus Army-After WWI, Congress decided to give veterans a bonus that they’d receive in 1945. In
1932, over 20,000 unemployed veterans went to Washington to demand the bonus immediately. For 2
months, this Bonus Army camped in a tent city that was along the Potomac River.
2. a) On margin-Many people purchased shares of stocks on margin. People who did this paid only a
fraction of the cost when they made the purchase.
b) Bankrupt-Being unable to pay debt.
c) Relief program-Programs to give aid to those in need.
d) Soup kitchen-A place where those who are hungry can receive a free meal.
e) Public works-Projects built by the government for the use of the public.
f) Bonus-An additional amount of money.
3. There were signs of economic trouble in the 1920s. One of those signs was that some Americans didn’t
benefit from the 1920s prosperity. Textiles and soft-coal mining were just two of the industries that
hadn’t been thriving in the 1920s. People who worked in industries such as those only read about the
thriving economy. Another sign of economic trouble in the 1920s was that farmers were facing
hardships. During the 1920s, farm expenses had increased much faster than the prices of the farm
products that made up the salaries of the farmers. However, farmers didn’t decrease production.
Because of this, the prices of farm products remained low and the income of farmers dropped. With
their income drop, went along their ability to purchase goods and pay off loans.
4. The Depression had a great impact on families. One of these impacts was that unemployment greatly
increased. By the early 1930s, one in every four laborers were unemployed. Millions more people
1. a) Herbert Hoover-He was the president elected in the election of 1928. His role was in the Cabinet as
secretary of commerce for the majority of the 1920s. He assisted in creating the country’s prosperity in
that role. He viewed the growing economy when he took office in 1929 and failed to recognize the
warning signs of trouble.
b) Black Tuesday-This is the name given to October 29th, 1929, when the stock market crashed. Most
people kept selling their stocks, causing prices to decrease. Prices continued dropping as there were no
buyers, leading to the crash.
c) Great Depression-This is the name given to the duration of time of economic hardship following the
crash. It occured from 1929-1941. Along with the stock market crash, overproduction assisted in the
occurrence of the depression. Salaries did not keep up with the prices of goods. Farms and factories were
producing more goods than people could afford to purchase. Factories shut down and many were left
unemployed as ordered slowed down. In addition, many banks were forced to close since borrowers
were unable to repay the loans they had taken out.
d) Hooverville-This is the name given to the shacks where homeless people lived. Hoover tried to reverse
the hardships, but he was too late and his efforts weren’t enough. In addition to Hoovervilles, “Hoover
blankets” were the newspapers the homeless used to stay warm as they slept outside. “Hoover stew” was
the thin soup people got in soup kitchens. “Hoover leather” was the name people gave to the cardboard
patch that covered a shoe’s hole.
e) Bonus Army-After WWI, Congress decided to give veterans a bonus that they’d receive in 1945. In
1932, over 20,000 unemployed veterans went to Washington to demand the bonus immediately. For 2
months, this Bonus Army camped in a tent city that was along the Potomac River.
2. a) On margin-Many people purchased shares of stocks on margin. People who did this paid only a
fraction of the cost when they made the purchase.
b) Bankrupt-Being unable to pay debt.
c) Relief program-Programs to give aid to those in need.
d) Soup kitchen-A place where those who are hungry can receive a free meal.
e) Public works-Projects built by the government for the use of the public.
f) Bonus-An additional amount of money.
3. There were signs of economic trouble in the 1920s. One of those signs was that some Americans didn’t
benefit from the 1920s prosperity. Textiles and soft-coal mining were just two of the industries that
hadn’t been thriving in the 1920s. People who worked in industries such as those only read about the
thriving economy. Another sign of economic trouble in the 1920s was that farmers were facing
hardships. During the 1920s, farm expenses had increased much faster than the prices of the farm
products that made up the salaries of the farmers. However, farmers didn’t decrease production.
Because of this, the prices of farm products remained low and the income of farmers dropped. With
their income drop, went along their ability to purchase goods and pay off loans.
4. The Depression had a great impact on families. One of these impacts was that unemployment greatly
increased. By the early 1930s, one in every four laborers were unemployed. Millions more people
