The New DealRestoring the Nation’s Hope

“lame-duck amendment” 1933- presidential elections took place in

November, but the Inauguration didn’t take place until April

4 months delay- Hoover a “lame duck” Depression deepened

Prompted Congress to pass the Twentieth Amendment which changed the date of the inaugural to January 20.

Did not take place until the following election

Building public confidence

2nd Bonus March on Washington Whitehouse provided campsites for the

veterans Eleanor Roosevelt visited them

demonstrating compassion and soothed popular fears about renewed radical agitation

Inaugural Address- “The only thing we have to fear is fear itself”

Fireside chats

New Deal

Referred to the relief, recovery, and reform programs of FDR’s administration that were aimed at combating the Great Depression

The First Hundred DaysStabilizing Financial Institutions

Pushed programs through congress to provide relief, create jobs, and stimulate economic recovery

“Bank holiday”- closed banks for 4 days to inspect financial health 2/3 reopened Americans regained confidence in the

banking system and began to put more money back into their accounts than they took out

Glass-Steagall Banking Act of 1933- created the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits

Federal Securities Act- required companies to provide information about their finances if they offered stock for sale

Securities and Exchange commission (SEC)- regulated the stock market

Decreased the value of U.S. currency by taking it off the gold standard Hoped that this action would raise the prices

of farm products and other goods Hoped that a devalued American currency

would stimulate export trade

The First Hundred DaysProviding Relief and Creating Jobs

Created the Federal Emergency Relief Administration (FERA) to help overburdened local relief agencies

Sent funds to local relief agencies Put federal money into public

works programs, government-funded projects to build public facilities

Civil Works Administration (CWA)- put unemployed to work building or improving roads, parks, airports, and other facilities

Civilian conservation Corps (CCC)- put more than 2.5 million young, unmarried men to work maintaining forests, beaches, and parks Paid $30/month, allowed to live in camps free of

charge and received food, medical care, and job training

Indian Affairs used federal funds and native American workers to build schools, hospitals, and irrigation systems

The First Hundred DaysRegulating the Economy

National Industrial Recovery Act (NIRA) sought to bolster prices

National Recovery Administration (NRA)- balance the unstable economy through extensive planning Industry-wide codes to spell out fair business

practices Regulated wages, restraining wage competition Controlled working conditions, production, and

prices, and set a minimum wage Gave organized labor collective bargaining

rights, which allowed workers to negotiate as a group with employers

Public Works Administration (PWA)- launched projects ranging from the Grand Coulee Dam to NYC’s Triborough Bridge to the causeway that connects Key West to the Florida mainland

The First Hundred DaysAssisting Homeowners and Farmers

The Depression caused many middle-income homeowners to fall behind in paying their mortgages

Home Owners’ Loan corporation (HOLC)- refinanced mortgages

National Housing Act of 1934- established the Federal Housing Administration (FHA)- government-0wned corporation created to improve housing standards and conditions to insure mortgages and to stabilize the mortgage market

Agricultural Adjustment Administration (AAA)- tried to raise farm prices through subsidies or government financial assistance

Paid farmers not to raise certain crops and livestock- lower production would cause prices to rise

Tennessee Valley Authority (TVA)- public works project that helped farmers and created jobs in one of the country’s least developed regions

Key Players in the New Deal

Groundbreaking Appointments

1st President ever to appoint a woman to a Cabinet post

Frances Perkins became Secretary of Labor and successfully pressed for laws that would help both wage earners ad the unemployed

Hired African Americans in more than a hundred policymaking posts Mary McLeod Bethune held the highest position of

any African American woman in the New Deal- influential spokesperson for Af. Am. Concerns▪ Advised FDR on programs that aided Af.Am. And in the

process increased her level of influence

Eleanor Roosevelt

Traveled widely for her husband, whose disability made traveling difficult Reported back on conditions in the country and

on the effects of his program Sometimes took stands that embarrassed her

FDR Controversial- some Americans though a

First Lady should act only as a gracious hostess

Many came to admire her for her political skills, her humanity, and her idealism

The New Deal Falters

New Deal programs failed to bring about significant economic improvement

Critics worried that New Deal agencies were giving increasing power to the federal government

Supreme Court attacked FDR’s programs Declared the NIRA unconstitutional because

it gave the Pres. Lawmaking powers and regulated local, rather than interstate, commerce

Struck down the tax that funded AAA subsidies

A Second New Deal

New, bolder burst of activity

Called the Second New Deal or the Second Hundred Days

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

Works Progress Administration (WPA)- provided work for more than 8 million citizens Built or improved tens of thousands of

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

National Youth Administration provided jobs, education, recreation, and counseling for young men and women ages 16-25

Resettlement Administration/Farm Security Administration (FSA)- loaned money to owners of small farms and helped resettle tenants and sharecroppers

Rural electrification New Labor Legislation

Wagner Act- legalized such union practices as collective bargaining and closed shops, which are workplaces open only union members. Also outlawed spying on union activities and blacklisting

Test Question

Be able to list 6 new deal agencies and their purpose.