Forging a New Deal

Election held in November, Roosevelt didn’t take office until March 4th. Why did it take so

long? Hoover remained in

office as a “lame duck”

20th Amendment passed Changed the date of

the inauguration to January 20th.

FDR and Eleanor’s efforts What happened during

the second Bonus March?

FDR said “the only thing…”

FDR held “fireside chats”

New Deal referred to the relief, recovery, and reform programs FDR’s administration used to end the Great Depression

March – June 1933Programs were pushed through

Congress.

First step was to restore public confidence in the banks March 5, 1933 ordered

banks closed for 4 days

Congress passed the Emergency Banking Act on March 9th ▪ Inspection of banks.▪ People began putting

money back into the banks

Glass-Steagall Banking Act of 1933 passed▪ Established FDIC to

insure bank deposits

Federal Securities Act (FSA), May 1933 Required companies to provide

information about their finances if they offered stock for sale.

Securities and Exchange Commission (SEC) Regulate the stock market

Federal Reserve Board (FRB) Regulate the purchase of stock on margin

Decreased the value of U.S. currency by taking off the gold standard

Next step to help local relief agencies

Federal Emergency Relief Administration (FERA) Sent funds to agencies Harry Hopkins was the

director FERA put federal money

into public works programs▪ Civil Works

Administration (CWA)▪ Unemployed to work

building or improving roads, parks, airports, and other facilities

▪ Civilian Conservation Corp (CCC)▪ Unmarried men

worked on maintaining forests, beaches, and parks

▪ Indian Reorganization Act (IRA)▪ Ended the sale of

Tribal lands and restored some lands to Indian owners.

National Industrial Recovery Act (NIRA) Set to raise industrial

prices▪ Under the NIRA the

National Recovery Administration (NRA)▪ Balance the unstable

economy though extensive planning by using industry-wide codes for fair business practices. Discuss examples of

this code. Some thought they

were too rigid▪ Public Works

Administration (PWA)▪ Most visible part of the

NIRA’s efforts Discuss examples

Home Owners’ Loan Corporation (HOLC) Refinanced mortgages

National Housing Act established the Federal Housing Administration (FHA) Improved housing standards and

conditions, insures mortgages, stabilizes the mortgage market

Agriculture Adjustment Administration (AAA Tried to raise farm prices through subsides▪ What are they?▪ Government financial assistance

Tennessee Valley Authority Helped farmers

and created jobs in one of the least developed regions

Roosevelt surrounded himself with advisors “Brain trust”▪ An informal group

of intellectuals who helped draft policies▪Harry Hopkins, Adolf Berle, Rexford G. Tugwell

First to appoint a women to a cabinet post. Frances Perkins▪ Secretary of Labor

Hired African Americans Mary McLeod

Bethune▪ Director of the

Division of Negro Affairs of the Youth Administration

▪ She organized the Federal Council on Negro Affairs (aka “black Cabinet”)

Strong supporting, traveled since it was hard for FDR to travel

Some of her actions caused FDR problems Discuss the

Southern Conference for Human Welfare in Birmingham, Alabama

When new programs didn’t bring significant economic improvements, critic arouse Discuss what Hoover

said Supreme Court▪ Declared NIRA

unconstitutional ▪ Struck down the tax

that funded AAA subsidies to farmers

Included more social welfare benefits, stricter controls over business, stronger support for unions and higher taxes on the rich

Works Progress Administration (WPA) Built or improved

playgrounds, schools, hospitals, and airfields, and it supported the creative work of many artists and writers

National Youth Administration Provided

education, jobs, etc for young people ages 16-25

Resettlement Administration Loaned money to

owners of small farms, tenants and sharecroppers

Farm Security Administration (FSA) Loaned $1 billion

to farmers and set up camps for migrant workers

1930’s 90% of cities had

electricity 10% of rural areas

Rural Electrification Administration (REA) Offered loans to

businesses and farmers to provide electricity

When NIRA declared unconstitutional, new legislation was passed

National Labor Relations Act (Wagner Act) Legalized union

practices like collective bargaining and closed shops.

▪What are closed shops?

Outlawed spying and blacklisting. What is blacklisting?

National Labor Relations Board (NLRB) Enforced the

Wagner Act Fair Labor Standards

Act Banned child labor

and minimum wage set

Provided financial security to people who could not support themselves

Three types of insurances (discuss each)

1.Old-age pensions and survivors’ benefits

2.Unemployment insurance3.Aid for dependent children, the

blind, and the disabled.

Alfred M. Landon vs. RooseveltFDR won by a landslide