Franklin D. Roosevelt and the New Deal(s)

1933 – 1941

Introduction

Contradictory hodge-podge of programsNew Deal didn’t end Depression – only World War II did that F.D.R. possessed ability to inspire and restore confidence Listening to the “Fireside

Chats”Copyright 2000, Bedford/St. Martin’s

The Election of 1932

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Shoring Up the Financial State

Emergency Banking Relief Act (March 9) allowed Treasury to reopen solvent banks & reorganize insolvent onesFederal Securities Act (May 27) mandated full disclosure on all new securitiesHome Owners’ Loan Corp. (June 13) created to refinance home mortgagesGlass-Steagall Act (June 16): Separated commercial & investment banking Federal Deposit Insurance Corp. created

to insure bank deposits up to $5,000.00Securities Exchange Commission created in 1934 to monitor Wall Street

Creating Jobs for the Unemployed

Civilian Conservation Corps (March 31, 1933) put young, unmarried men to work planting trees & creating parks

Almost 3 million men, aged 18-25, participated 2,650 segregated, military-style camps Paid nominal $30 a month, but point was to keep them out

of the labor forceFederal Emergency Relief Administration (May 12, 1933) gave grants to states to fund relief efforts

Run by Harry Hopkins Set up some works programs

Public Works Administration (June 12, 1933) hired private contractors for large infrastructure projects

Run by Secretary of the Interior Harold Ickes Spent $3.3 billion on projects like Triborough Bridge Used private contractors who hired union members & did

not discriminate

FDR and the CCC

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Helping the Farmers

Agricultural Adjustment Administration (May 12, 1933) Run by George Peek Set crop quotas & prices based on 1909-

14 Worked through state & local officials,

so benefits went to middle & upper class Declared unconstitutional by Supreme

Court in U.S. v. Butler (1936)

Emergency Farm Mortgage Act (May 12, 1933) allowed refinancing of farm mortgages

The Dust Bowl

The Tennessee Valley AuthorityMay 18, 1933

Cheap electricity used as yardstick to measure private companies’ ratesGovernment bought nitrates for military useCaused vast pollutionRural Electrification Administration created in 1935 to bring electricity to rural areas

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National Recovery AdministrationJune 16, 1933

N.R.A. meant to be centerpiece of New Deal – based on T.R.’s New Nationalism Run by Gen. Hugh Johnson Joint committees of labor,

management & government created fair practice codes

Section 7(a) guaranteed union recognition

Declared unconstitutional by Supreme Court in Schecter Poultry Co. v. U.S. (1935)

Critics on the RightConservative Democrats formed the American Liberty League – opposed New Deal as corrupt patronage politicsHoover & Republicans labeled the New Deal “socialist” & warned of loss of personal libertySupreme Court invalidated legislation: Schecter Poultry Co. v. U.S. - declared NRA

restricted intrastate commerce & delegated legislative power to executive branch

U.S. v. Butler - invalidated AAA as attempt to use taxing power to unconstitutionally regulate agriculture

Critics on the LeftFather Charles Coughlin created the National Union for Social Justice Claimed New Deal really benefited wealthy, not

poor charged that an international conspiracy of

Jewish financiers was behind Roosevelt

Dr. Francis Townshend suggested a revolving pension scheme for the elderlySen. Huey Long (the Kingfish) wrote Every Man a King & created Share Our Wealth Clubs Called for seizing incomes above $1 million &

redistributing to all families Planned to run for president in 1936

The Second New Deal, 1935:

Works Progress Administration Run by Harry Hopkins Spent $4.8 billion Employed 8.5 million put people to work using their

existing talents

Wagner National Labor Relations Act Guaranteed unions right to

organize & bargain collectively Est. National Labor Relations

Board to supervise elections & mediate disputes

The W.P.A. at Work

W.P.A. Projects

The Second New Deal (cont.):

Social Security Act Social Security Admin.

Provides pensions to elderly & disabled

Financed by flat payroll tax

Aid to Dependent Children (later AFDC) was 1st federal direct welfare program

“Soak the Rich” Tax Increased income,

inheritance, gift & excess profits taxes

Didn’t really redistribute

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1937 Recession

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The Third New Deal, 1937-38:

United States Housing Authority (1937) Long-term loans to local agencies & subsidized

rents Redlining continued segregation

Farm Security Administration (1937) gave loans to tenant farmersSecond A.A.A. (1938) required a 2/3 vote in plebiscites to set quotasFood, Drug & Cosmetics Act (1938) forbade false or misleading ads – regulated by FTC Fair Labor Standards Act (1938) set min. wage & max. 40-hour work week

New Deal Gains & LossesGrowth of labor unions AFL grew from 2.3 million

to 6.89 million, 1933-45 CIO had 3.7 million by 1938

More women working, but often excluded from reliefBlacks benefited from some programs (esp. W.P.A.)Wheeler-Howard Act (1934) reversed Dawes Act & restored tribal land & self-government

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