FDR’s New Deal

1. FDR’s New Deal Relief, Recovery, Reform

2. Franklin Delano Roosevelt • New York native • Harvard and Columbia Law School • New York State Senate • Assistant Secretary to the Navy • New York Governor • Democrat • Polio • Wife = Eleanor Roosevelt • Easily won election of 1932 • In office 1933-1945

3. Fireside Chats • Addressed the nation by radio to explain to them what he was trying to accomplish • First main chat over the Emergency Banking Relief Act • Encouraged people to trust having their savings in banks • Restored confidence in banking system • Gave Americans confidence and hope

4. 100 Days • When Roosevelt took office most banks were closed and ¼ workers were unemployed • First New Deal • Beginning of term in which 15 major acts to resolved economic crisis were passed • Banking Relief • Needed to restore confidence in banks • Emergency Banking Relief Act • Bank Holiday • Closing banks before bank runs could put them out of business

5. Relief Programs

6. Emergency Banking Relief Act • Required federal examiners to survey the nation’s banks and issue Treasury licenses to those that were financially sound • Placed banks on a temporary holiday until they could examine soundness • Gave citizens confidence in banking system and ended banking crisis

7. Civilian Conservation Corps • Offered employment to unmarried 18-25 year olds • Planted trees, fought forest fires, built reservoirs • Men lived in camps near work areas • Earned $30/month • $25 of that was sent back to families • Returned home after about 6-12 months • Gave jobs to 3 million men

8. Federal Emergency Relief Act • Gave loans to states to operate relief programs • Goal was to alleviate unemployment by giving unskilled jobs in state or local government • Did not want to give a hand out because felt that having a job gave the men a sense of self-esteem because they could continue being the ‘bread-winner’ of the family

9. Public Works Administration • Gave jobs to people building dams, sewer systems, highways, schools, and other gov’t facilities • PWA awarded contracts to construction companies and insisted they not discriminate in hiring practices • Broke down racial barriers in construction business

10. Civil Works Administration • Hired workers directly instead of giving contracts like the PWA • Built or improved airports, roads, school buildings, playgrounds and parks • Employed 4 million people including 300,000 women in the winter of 33-34 • Closed down after winter because Roosevelt was worried about how quickly the agency was spending money • Spent 1 billion in 5 months

11. Recovery

12. Home Owners Loan Corps • HOLC bought the mortgages of many homeowners who were behind on payments • Restructured loans with longer terms of repayment and lower interest rates • Did not make not farm owners or those that were unemployed • If people could not make loan payments they would foreclose on their house

13. Farm Credit Administration • Help farmers refinance their mortgages • Able to push interest rates lower • Saved millions of farms from foreclosure

14. Agricultural Adjustment Act • Prices for farm goods was low due to a surplus of goods • Pay farmers to not raise certain livestock or not grow certain crops • Acres were plowed and livestock was destroyed in an effort to raise prices of farm goods • Farm surplus fell, food prices rose, and farmers income rose • However, many were upset that while families didn’t have enough to eat crops were purposely being destroyed • Also concerned that it benefitted large commercial farmers who focused on one crop • Another criticism was that poor tenant farmers, many were African Americans, lost job and home when landlords took their fields out of production

15. National Industrial Recovery Act • Focused on industry • Suspended anti-trust laws and allowed business, labor and gov’t to cooperate when setting up rules for industry • Codes of fair competition: set prices, established minimum wage, limited factories to 2 shifts per day, shortened work hours, and guaranteed right of workers to join unions • Goal was to ensure more people could get jobs • Those that agreed to thee codes received signs to put in windows to encourage consumers to only buy from those stores • Failed because you didn’t have to sign codes • Many didn’t because not like unions • Felt minimum wage required them to higher prices of goods • Difficult for NRA, who ran the program, to administer codes

16. Reform

17. Glass- Steagall Act • Separated commercial banking from investment banking • Commercial banks that handle everyday deposits and lend money for mortgages could no longer use depositor's money to play the stock market

18. Securities Exchange Act • Required companies that sold stock to provide complete and truthful information to investors • Securities Exchange Commission regulates that stock market and prevents fraud

19. Federal Deposit Insurance Corporation • Provides government insurance for bank deposits up to $250,000 • Increased public confidence in banks

20. Impact of First New Deal • Did not restore prosperity • Reflected Roosevelt’s willingness to try to improve the economy • Banks were reopened • More people employed • More people retained homes and farms • Improved American spirit • 2 programs unconstitutional: AAA and NIRA