Skip to main content icon/video/no-internet

IN HIS INAUGURAL address on March 4, 1929, President Herbert Hoover told the American people that his top priorities for the next four years were prosperity and freedom. Hoover said that he was particularly concerned about high levels of unemployment. He believed that the national government should take a greater role in promoting education and public health. Many historians believe that if Hoover had served the country at any other time than the coming of the Great Depression, he might have been considered one of the best presidents.

Although it has received little attention historically, Hoover's greatest achievement as president may have been his reform of the federal criminal justice system. Hoover had a personal as well as a presidential interest in the administration of justice and was particularly determined to prosecute anyone who engaged in securities fraud and violations of antitrust laws. During the 1928 presidential election, Hoover had promised to conduct a scientific study of crime and law enforcement.

After his election, Hoover followed through, appointing a crime study commission and declaring war on white-collar and organized crime. Hoover targeted notorious criminals such as Al Capone, believing that they could be stopped by repeated attacks on their economic resources.

Prohibition was in full swing during the Hoover years, and the president ordered his Attorney General William D. Mitchell to make sure that violators of the 18th Amendment were prosecuted to the fullest extent. Hoover also hired noted prison authority Sanford Bates to oversee a complete overhaul of the federal prison system, with orders to make it more effective. The president was also determined to make the Department of Justice (DOJ) more effective and ethical, instructing Mitchell to rid DOJ of corrupt and inept federal prosecutors and launching extensive investigations of all judicial nominees.

In the 1930 election, the Democrats regained control of the House of Representatives with a gain of 50 seats and a one-vote margin in the Senate, which gave them control of all party leadership positions. Ironically, Hoover was more comfortable with Democratic leaders John Nance Garner and Joseph Robinson than he had been with Republican leaders. In reality, a large number of Progressive Republicans were incensed about what they called Hoover's “do-nothing” policies. In December 1931, Congress passed a number of bills that Hoover supported, including the establishment of the Reconstruction Finance Corporation (RFC) to make loans to banks, insurance companies, railroads, and farm mortgage associations. The Glass-Steagall Banking Act was passed to deal with runs on banks that had affected credit throughout the country. The Federal Home Loan Bank Act established regional banks that were charged with providing loans for mortgages and housing construction. Even when he managed to work with Congress to pass a bill, Hoover frequently limited the way in which the bill was implemented.

Red Cent

Under Hoover's direction, the RFC was secretly distributing millions of dollars a day in business loans. Congress complained that the president was willing to render relief to businesses, banks, loan associations, railroads, and foreign governments but was unwilling to give a “red cent to starving American women and children.” Hoover also received a lot of criticism for the inequities in federal income taxes. While the working class was struggling to pay its share of taxes, millionaires like J.P. Morgan were sliding by without paying any taxes at all. It was only as the election of 1932 began to demand his attention that Hoover stopped vetoing appropriations for relief and signed a bill that allowed state governments to borrow from the RFC fund.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading