2024 - M/J - 9489/11 | Q1

Read the sources and then answer both parts of the question.

Source A

Source B

The principal issues between the Republicans and Democrats in the coming Congressional elections in California are soaring unemployment and the crisis affecting both agriculture and manufacturing. The Republicans suggest that the situation is just a temporary downturn and part of a perfectly normal economic cycle. The Democrats argue that mismanagement and a laissez-faire attitude by Republican administrations since 1921 are the real causes. Republicans praise the public works initiatives taken by the Hoover administration to create employment. Democrats argue that these measures, having a focus on costing the taxpayer nothing in the long run, mean they have achieved nothing beyond raising false hopes. The Democratic candidate for the Senate argues that the banking system in California has received little support and suggests that Treasury Secretary Mellon is only interested in helping his friends in the Federal Reserve banks.

From an article in the ‘Los Angeles Times’, 23 August 1932.

Source C

This depression has been caused by many factors beyond our control. Prosperity caused excessive optimism which caused overexpansion which caused reckless speculation which caused waste, exploitation and crookedness. The Democrats have ignored the impact of the War and its effects on debt and heavy taxes. There is overproduction in many parts of the world and trade barriers have been erected which have done us great harm. My administration has done much to both recognise, and deal with, the evils of unemployment. $2 billion has been spent since 1929 on public works designed to create jobs. We have wisely insisted that all such works are productive and will not be a drain on public funds. There have been real achievements with this programme, and it has done much to restore confidence. We have also taken steps to strengthen our entire financial system with aid to the Federal Reserve banks at the top of the structure.

From an election speech by President Hoover, October 1932.

Source D

Farming, like so many major industries, is in a hopeless situation. This is because:

1. Total farm income has fallen by over 50 per cent between 1925 and 1932.
2. Prices of farm produce have slumped.
3. The prices farmers have to pay for their essentials have not slumped.
4. Fixed charges such as taxes and interest payments remain high.
5. The market is glutted with enormous surpluses.

Underlying all this is the fact that foreign demand for their produce has undergone substantial decline. Unemployed workers in our cities cannot afford to buy farm products. Still our farmers produce more in order to try to feed their families and pay their debts.

Notes, written by President Roosevelt, accompanying the Agricultural Adjustment Act sent to Congress, March 1933.

Answer both parts of the question with reference to the sources.