Chapter 23 Roosevelt and the New Deal

1. Chapter 23Roosevelt and the New Deal Section 1 Roosevelt Takes Office Section 2 The First New Deal

2. Part I

3. Herbert Hoover ran for a second term in 1932. The Democrats selected New York Governor, Franklin Delano Roosevelt. Roosevelt Takes Office

4. Roosevelt is Inaugurated • Unemployment ctd. to rise, bank runs increased, and people converted their money into gold. • Many governors declared bank holidays, which closed the remaining banks before bank runs could put them out of business.

5. The Hundred Days Begins • March 9 – June 16, 1933 – Hundred Days • Congress passed 15 major acts to help the economic crisis. • These programs made up the First New Deal.

6. A Divided Administration • Advisors divided into 3 main groups • 1)Supporters of “New Nationalism” – gov’t & business should work together to manage the economy. • 2)Distrusted big business & wanted gov’t to run key parts of the economy. • 3)Supported “New Freedom” – felt it was gov’t responsibility to restore competition to the economy.

7. Fixing the Banks & Stock Market • He called a national bank holiday, and called Congress into special session. • Passed the Emergency Banking Relief Act, which required federal examiners to survey the nation’s banks and issue Treasury Department licenses to financially sound banks.

8. “Fireside Chat” • Roosevelt spoke directly to the people, in his “fireside chat,” assuring the Americans that the banks were secure. • The following day deposits in every city outweighed withdrawals, ending the banking crisis.

9. Part II

10. The First New Deal • The First New Deal created many agencies that helped bring the country out of the Depression. • They are as follows….

11. Securities & Exchange Commission (SEC) • Created to regulate the stock market and prevent fraud.

12. Federal Deposit Insurance Corporation (FDIC) • Provided government insurance for bank deposits up to $2500.

13. Agricultural Adjustment Administration (AAA) • Paid farmers not to raise certain crops to lower crop production.

14. National Industrial Recovery Act (NIRA) • Suspended antitrust laws and allowed business, labor, and gov’t to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry.

15. National Recovery Administration (NRA) • Ran the NIRA. • Controlled industrial production and prices with industry-created codes of fair competition. • Declared unconstitutional in 1935.

16. Home Owners’ Loan Corporation (HOLC) • Bought mortgages of homeowners behind on payments and restructured them with longer terms of repayment and lower interest rates.

17. Farm Credit Administration (FCA) • Helped farmers refinance mortgages.

18. Civilian Conservation Corps (CCC) • Gave unemployed men aged 18-25 the opportunity to work with the national forestry service.

19. Federal Emergency Relief Administration (FERA) • Channeled money to help state and local agencies fund relief projects.

20. Public Works Administration (PWA) • Series of construction projects, creating additional jobs.

21. Civil Works Administration (CWA) • Hired workers directly and put them on the government’s payroll.

22. Tennessee Valley Authority (TVA) • Built hydroelectric plants and dams aimed at improving seven Southern states and attracting industry to the South.

23. TEST