History Coursework 2 - The Great Depression

Source C on the other hand gives a more reliable interpretation. This is as source C was written in 1966 by D.B 'O' Callaghan who was probably a historian. This means that it could be reliable as many primary sources could have been considered and assessed before making this final account. However the source could be unreliable as the historian's own opinion could have been incorporated in the final piece therefore making it biased. In this case he could want to make an excuse for the events in the past so that people are proud of the country. Also it could be unreliable as the final account could be based on biased primary sources.

In conclusion both sources show factors of reliability and unreliability. However source C is less emotional and more rational and it is also probably based on many sources whereas B is just one.

3. Sources A,B and C give reasons for why the economic depression occurred. Source A is an election poster which was in circulation during the great depression. It is blaming the depression on the fact that the Republican party were not doing anything to stop it. It does this in a sarcastic manner. It says that the Republicans want Americans to "Smile away the depression". The Republican party did not do anything because they believed in laissez - faire. Therefore the cause indicated in source A is the economic policy of laissez - faire.

From my own knowledge I know that laissez - faire was the idea that businesses and industries should be left alone to run the economy, and the government shouldn't interfere. This meant that as soon as the depression started the government did not do anything to stop the depression as they believed it was part of the cycle of boom and bust . This was that the economy naturally had periods of prosperity and depression and any problems would resolve themselves. The government did not want to remove the policy of laissez-faire as it contributed greatly to the economic boom so they probably feared removing the policy in case prosperity returned . As a result of laissez-faire the government did nothing to help the people during the depression. For example there were no social security benefits as the government felt that it was not their responsibility. They also thought that if they started giving out benefits people would become dependent on the government , and so would be less willing to work which meant there would be less prosperity.

Both sources B and C give the same cause for the economic depression. This was that wealth was not fairly distributed between rich and poor. Source B says, " There is not an unemployed man in the country that has not contributed to the wealth of every millionaire in America". Source C says, " too small a share of increased national wealth of the 1920s had been finding its way into the hands of workers as wages".

From my own knowledge I know that there was a great divide in the wealth of American citizens. For example during the 1920s 42% of Americans lived below the poverty line. Also throughout the boom there was only an 8% wage rise. This was too little considering the huge rising profits the business owners would have received.

Source C also gives another cause. This was overproduction and under consumption. Source C says, " not enough people were buying the products of America's greatly expanded industries". This was a result of the fact that too small a proportion of the population could afford the goods. This would mean that it was inevitable that the people who could afford a certain product would already have one. For example in 1929 car sales fell for the first time in four years. Also between 1928 and 1933 industrial output fell by 40 % due to lack of demand.

From my own knowledge I know that there was three other causes that caused the boom which are not mentioned in the sources. Firstly there was no longer export markets for US goods. This was because the European countries had begun to put tariffs on American goods. This was seen as "payback" as the Americans had put tariffs on European goods sold in America throughout the 1920s. As a result the European people would buy European goods as they were less expensive than American goods. The American government may have resolved this problem by taking off their tariffs but Herbert Hoover, Republican president said," Another proposal of our opponents which would wholly alter our American system of life is to reduce the protective tariff to a competitive tariff for revenue.........the grass will grow in the streets of a hundred cities, a thousand towns; the weeds will overrun the fields of a million farms if that protection be taken away". Due to lack in export markets overproduction of American goods continued, and contributed to the depression.

The second cause was speculation. The booming economy in the 1920s meant that there was a rise in speculation on the stock market. This meant that more people were buying shares which meant the price went up due to high demand. Between 1923 -1924, the average share price was $100 whereas between 1928 -1929 it was $325. One example of the increase in share prices was in March 1928 Union Corbide shares stood at $145 but in September 1928 it had risen to $413. This rise in prices however was artificial as people were paying more for shares than they were really worth. By 1929 the prices in shares had dropped due to overproduction. By October 1929 people were worried about the decrease and started to sell their shares. The price of shares continued to drop and on the 29th October 1929 most speculators tried to sell their shares for a lot less than they had paid for them. Due to the sudden increase in sales on the stock market shares became worthless and the stock market crashed. Many people had borrowed money from banks to buy shares. In 1929 banks had lent out 9 billion dollars for speculation. As people had lost all their money they were unable to pay back loans and some had to sell their houses. As a result speculation on the stock market contributed greatly to the great depression.

The third cause was the collapse of banks. This was due to the fact that many loans were not paid back. Also it was because banks had speculated on the stock exchange, so when the market crashed the banks became bankrupt. In 1929 659 banks failed. In 1930 1352 banks went bankrupt. In 1931 another 2294 banks failed. Altogether 4305 banks failed. As a result people who had savings in the bank lost all their money. This also contributed to the great depression.

4. Source D is an artist's opinion of the wall street crash which is expressed in the form of a drawing. The picture shows buildings collapsing which is meant to represent the collapse of the stock market on wall street. Also in the corner of the picture are the words, "Dies Irae" which means "Day of judgement". This means that Americans are being judged for their attitude towards the economy in previous years when it was booming. The Republican government are also perhaps being judged for being complacent and not being careful enough to maintain the boom. Also the business men or "Big Boys" as they are described in source B are being judged for being too greedy and not doing enough to keep the economic boom going.

Source E is official figures given in table form showing the change in share prices of leading US companies. It shows the price on 3rd September 1929 which is before the Wall street crash and on the 13th November 1929 which is after the Wall street crash. The pattern that is evident is that the share prices have gone down since the crash. For example Anaconda copper had a share price of $132 before the crash but this had dropped to $70 after the crash.

To consider the usefulness of the source the limitations also have to be observed. Both sources D and E have limitations. Source D is a symbolic piece of art as the collapsing of the buildings represents the economic wall street crash. It doesn't literally mean that the businesses collapsed. As a result of this it may be exaggerated in order that the artist can put across a clear view. Also it is only one person's view of the crash and we can not tell if others felt the same way without looking at other evidence.

Source E also shows limitations. Firstly only a minority of the companies are present in the source so it does not give a full impression of the depression. The other companies could have done better or worse than those shown in the table. Also since it was put together by officials the companies shown may have been selected deliberately. This is because the government may have wanted to put a certain impression across. In this case the government could have picked the companies that suffered, but not to an extent of bankruptcy. This would be because they wanted people to stop panicking by showing them that the crash did not affect them too much. If people stopped panicking then they would start buying shares again which would reinvigorate the stock market and possibly put an end to the depression.

However both sources can be useful to historians.

Source D is useful as it is a primary source, drawn at the time of the Wall street crash (Oct.1929). This means that he is drawing the events that he probably experienced. It is also giving the opinion of one person about the Wall street crash, which was that he was horrified by it.

Source E is also useful. Firstly the source could give facts about the shares so it could show how the Wall street crash happened. Also if the figures were altered or specifically selected then they are still useful. This is as it can give an impression of why the government did this, which in this case could be to make it appear as though the crash wasn't that bad so people would stop panicking. Also it shows the manner in which the government may have dealt with the depression.

To conclude, both sources are useful to historians it just depends on what they are required for. Source D gives an emotional response to the crash so is useful where as source E could give a factual representation of the effect that the crash had on a selected number of companies, and the governments response to the crash. But both sources need more evidence to fully support the views and figures shown in them.

5. Source F is a popular song from 1932 which shows that this man is now having to beg despite his efforts to work hard in the 1920s to achieve the American dream. In source F it says, "They used to tell me I was building a dream, with peace and glory ahead-, why should I be standing on the line, just waiting for some bread?"

Source F may be a good interpretation of peoples' attitude towards the depression, but there are also points which show that people may not have felt the same way as the man in the song. It may be an accurate interpretation as many people did suffer from the depression and could have been in a similar situation as the person in the song. For example, farmers were badly affected. Many of them could not afford to pay their mortgages and had to sell their property. They would then possibly have to move to developing states such as California in order to gain employment. Also many workers were also out of jobs as the companies they had worked for collapsed. The figure by 1932 was 12,000,000 unemployed. Also many people had invested in the stock market which crashed, and they could also have had money in banks which closed. This would have meant that they would have lost a lot of money. The song was also popular, which may have been because people could relate themselves to the situation that the man in the song is in. All of this seems to indicate that the attitude given was one with a high degree of accuracy.

However there are factors that suggest that the song may not reflect everybody's interpretation. Firstly not everybody was affected by the depression and some could even benefit from it. By this, I mean the rich. They could benefit as they could buy the bankrupt businesses and gain profits after the depression. Many businessmen would also have had the money as they invested in overseas businesses. Also the song may only have been popular due to the tune. This would mean that people may not have related themselves to the lyrics of the song and it did not reflect their opinion of the depression.

To conclude, there were many various attitudes to the economic depression and the song may only reflect the attitudes of the people who were most affected and who were in a similar position to the man in the song.

6. Source G is a film named "Grapes of Wrath". It shows the severe extent to which people suffered due to the Great Depression. It is based on the original book which was written by John Steinbeck. In order to judge the value of this source as an interpretation of the Great Depression a series of questions would have to be asked. Since the source is based on the original book questions on the book would firstly have to be asked. An important question that would be asked is, "When was it written?" This is important so that it can be established whether or not it is a primary or secondary source. This is of high importance as it could affect the reliability of the source. This is as if it was written a long time after he experienced the events then he would have to recall the events from his memory which means vital points could be left out. On the other hand if it was written straight after the depression then everything that he experienced would be fresh in his memory. Another question that could be asked is, "Why was the book written?" This would establish his motives for producing the book which again could alter its reliability. Firstly the book could have been written in order for the author to put his own opinion across which means it would be biased. For example he could have got into trouble with the Republican government whilst in America which means he could have made the situation worse to put the government down. Also he could have been a supporter or was working for the Democrat party. Also he could have written it to make the reader sympathise with those who are in the terrible situation in America. This would have affected the content of the book as things could have been exaggerated to make them worse than it actually was in order to gain sympathy. Finally he could have written the piece just to entertain people and get money. If this were the case then the situation could have been changed and factors exaggerated in order to make it more interesting for the reader and in turn make money through sales. Another question under why was it written could be, "Was the book written to cause deliberate controversy?" This means that he could have wanted people to see an outsiders view, maybe once this was seen the American government would take action in order to preserve a respectable reputation for the country.

After asking questions about the book, questions have to be asked about the link between the book and the film. The first question that would have to be asked would be, "Is the film based closely on the book?" This is important as if there are major changes then it would not be a realistic interpretation as the film makers would be putting their interpretations into the film through the changes. The next question would be, "Who wrote the screen play?" This is important as if it was John Steinbeck then it would be close to the original piece, meaning a valid interpretation. However if it was someone else then the interpretation would vary as it is that individual's interpretation of what Steinbeck had written about, so it would not be as close to the truth. Someone else could have interpreted it differently. Also the question, "Who was the director?" must be asked. This is as the director would be giving their own interpretation of the Depression. The next question would be, "Was there a loss of emphasis?" In a book a lot more emotion can be described through narrative words, but in a film symbolism has to be used to represent emotion which may not be picked up by the viewer. Also the parts where emotion may have to be shown may be exaggerated to make it clearer, making it further away from the truth. Also as the film would have cost a lot of money to make they could have been hoping for better return which meant that they could have made it more interesting.

In conclusion, after asking a number of questions it is evident that source G is unlikely to be reliable as it is unlikely that the direct ideas from the book have been transferred to the film. However this does not mean it is not useful. This is as some of it still may be true and also one opinion of the Depression can be seen

7. The economic depression in America started in 1929 after the Wall Street crash. From then on there were many different social groups that would have suffered due to the depression. This question will look at whether the statement, " Of all the people in the USA, the poor suffered the most as a result of the Great Depression", is true or not.

Firstly the factors that show that the statement is not true will be considered. These are all showing that other social groups within America did suffer. The first of these groups was the rich. This is shown by source C , it says," not enough people were buying the goods of America's greatly expanding industries." This shows that the businesses found it hard to sell their products. This meant that the business owners were losing a lot of money and the business owners were the rich. Also the fact that the rich suffered is also backed up by source D. This is an artist's impression of the Wall Street crash. It shows all the buildings collapsing which is meant to represent the collapse in the stock market on Wall Street shows. This that the companies who were selling their shares on the stock market would have also collapsed or lost a lot of money. Many of these businesses were owned by the rich. The fact that a lot of money was lost is indicated in Source E. It shows the share prices of various companies before and after the depression. For example Anaconda Copper had a share price of $132 before the depression but this went down to $70 dollars after the depression. This shows a loss of $42, which is the money that the rich (business owners) would have lost. Also from my own knowledge I know another source that shows the rich suffering. This is from the memoirs of Edward A. Ryerson, who was chairman of the board of Inland Steel Company. It says," I did away with my chauffeur..... I drove my own car, my wife did the cleaning and all that sort of thing ". This shows that the rich did have to make some sacrifices. However even though all of the above evidence seems to show that the rich did suffer, they actually didn't suffer as much as the poor. They would have thought they were suffering but it was relative. To the other groups they would have seen the rich as not suffering at all. The rich did make sacrifices but these were mainly luxuries such as the chauffeur mentioned above. Also there were ways in which they could benefit such as by buying bankrupt businesses. Also many still had their businesses, as big businesses would have survived the depression.

Next the other social group that suffered will be considered. This was the lower middle class. This is shown again in source D. It is showing the buildings collapsing representing the stock market. The lower middle class would have suffered as they would have been the social group who mainly invested in the stock market and so would have lost a lot of money through the loss in shares. Source E backs this up by showing the decrease in share prices. Also banks would have speculated on the stock exchange and many failed due to the crash of the stock market. This would affect the lower middle class as they were mostly the people who had savings in banks. From my own knowledge I know another source that shows that the lower middle class suffered. This is a source which was written by S. Terkel in "Hard Times", 1970. It says " He built me a ten room stone house for $ 8500". This shows that the lower middle class contractors had to work for very little money. Also it says, " I asked the contractor what he got out of it.......I ate for six months ". This shows that they had to work hard just to eat and they had no money to spend on other things. However, even though all the above evidence seems to suggest that the lower middle class did suffer, they still kept their jobs and houses and their suffering, similar to the rich, is not that great and relative to that of the poor.

Next the factors that seem to agree with the statement will be considered. These are that the poor did suffer the most. Firstly source A shows that they did suffer. This is as it is an election poster saying that the Republican party were not doing enough to stop the depression. This would have made the poor suffer as the government followed a policy of laissez faire. This meant that the government left the economy alone which resulted in no state benefits for the poor. Source B also shows that the poor suffered as it says," There is not an unemployed man in the country that has not contributed to the wealth of every millionaire". This shows that they contributed to the wealth of the country but they are now suffering. This is also backed up by source F which is a song. It says, " They used to tell me I was building a dream, with peace and glory ahead, why should I be standing on line, just waiting for bread? This shows that he has worked hard to achieve the American Dream but is now having to beg.

Also from my own knowledge I know that the poor can be split into three main groups which all suffered. First there is the unemployed. They suffered due to the depression as they lost their jobs and had to deal with high poverty. There is a source which shows a picture of "Hoovervilles". These are just 'shanty towns' named after the president who has brought them the misery, Herbert Hoover. There is a caption, part of it says, " Hoover flags was the name given to trouser pockets turned inside out to show that there was no money in them". This shows the conditions that they had to live in and the fact that they had absolutely no money. Also the fact that many of the unemployed were homeless and had to sleep wherever they could is underlined in a source which was written by K. Monroe. It says " The trip takes two hours. A good corner seat gives the rider a chance to get a fair nap". Many of the unemployed would have had to rely on charity which by 1932 the Red Cross could only give less then a dollar to each person a week. They also would have found it hard to get jobs which is shown by a source from the memoirs of Ed Paulsen which says," More and more men were after fewer and fewer jobs". This shows that if the unemployed can never get jobs then they will never be able to improve their situation.

The second group within the poor were the farmers. They suffered hugely as during the time of the depression there was also a major drought. This meant that the farmers could not grow any crops which meant that they did not get any money. Many farmers had taken out loans to help them through the droughts but as the effects of the Wall street crash became evident many banks were collapsing. This meant that they started to get money back from the farmers who could not afford it. In order to repay these loans many farmers sold their property or gave it to the banks.

The final group would be the black Americans. They suffered even more as there was a lot of racial prejudice. In a source from an article ' Negroes out of work' it says," Negroes among the unemployed runs sometimes four, five, six times as high as it should be......... Preference is given to the white worker". This shows that because employers would give jobs to whites ahead of blacks the number of blacks unemployed was very high. Also if the blacks were farmers they would have suffered even more. This is backed up by a source which is part of a speech made by congressman Huddleston which says," the Negro tenants, are now, in the middle of winter, practically without food and clothes".

In conclusion, even though there is evidence to show that other social groups in the USA did suffer, the statement is still true. This is as the suffering was only relative to that of the poor. The poor therefore suffered the most and one of the groups within the poor that suffered the most would have to be the black Americans as there was a lot racial prejudice in America.