The Wall Street Crash had political and social consequences.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2020). The mark or mark type is shown in brackets.

1. [1] It was a march by 25 000 war veterans.
2. [1] It took place in summer 1932.
3. [1] The veterans were to be paid a bonus in 1945.
4. [1] They asked for it early to help them through the depression.
5. [1] The marchers began a peaceful protest outside the White House.
6. [1] Their camp was destroyed by the army.
7. [6] Level 4 Explains TWO reasons
8. [5] Level 3 Explains ONE reason (e.g. Buying on the margin contributed to the Wall Street Crash because the banks had loaned money to speculators to buy shares. They only needed 10% of the money and borrowed the rest from the banks. This meant the banks invested heavily in the stock market. When the value of shares started to fall, the speculators were unable to pay back their loans, and this in turn led to the banks losing even more money, causing them to become bankrupt.)
9. [1] Speculators bought shares, assuming the value would go up.
10. [1] They borrowed money to buy shares and then hoped to sell them at a profit.
11. [1] If the value of the shares dropped the speculator lost money.
12. [1] Buying on the margin meant they only put down 10% of the cash needed to buy the shares.
13. [1] American banks made large loans so people could ‘buy on the margin’.
14. [1] Many Americans bought shares in the Stock Market.
15. [1] As people started to sell their shares, this panicked others to also sell, and the value of the shares started to drop rapidly.
16. [10] Level 5 Explains with evaluation of 'how surprised' (As Level 4 plus evaluation.)
17. [9] Level 4 Explanation of both sides
18. [6] Level 3 One-sided explanation OR one explanation of both sides (More detailed explanation of one issue to be given two marks.)
19. [3] In some ways I am surprised because Hoover did not deserve his reputation. He made some changes to try and support American business. For instance, he cut taxes in 1930 to try and encourage consumers to keep spending. He also asked Congress for changes to tariffs on goods and signed the Hawley-Smoot Act in 1930 to raise tariffs on foreign goods and protect American goods. He set up the Reconstruction Finance Corporation in 1932 to provide loans to businesses which were in difficulty.
20. [3] It is not surprising that Hoover was known as the ‘do nothing' President. Hoover created an image of being heartless and uncaring by believing that government should stay out of business matters. He believed in 'rugged individualism', the idea that people should work hard for themselves and not expect the government to help them. This meant that he had little action.
21. [3] Level 2 Identifies AND/OR describes (One mark for each point)
22. [1] He reformed tariffs with the Hawley-Smoot Act.
23. [1] He started a construction programme which built the Hoover Dam.
24. [1] The Emergency Relief and Reconstruction Act gave money to the unemployed.
25. [1] Hoover believed the government shouldn't interfere in business.
26. [1] Hoover did not support welfare provision.
27. [1] His tax cuts were too little too late.
28. [1] He thought it was up to the individual to get work.
29. [1] He did not believe in state handouts.
30. [1] Hoover treated the Bonus Army poorly.