FDR and the New Deal

American History (B)

C. Simmons

Roosevelt’s Rise to Power

• (D) New York Governor, planned to end Depression with the “New Deal”

• Wealthy Family, Former State Senator, and secretary of Navy

• Married Eleanor Roosevelt, he was distant cousin of Teddy Roosevelt

• In 1920 he contracted polio (paralyzing disease) led to popularity

Roosevelt Inaugurated

• Inaugurated in March 1933 (20th Amendment) during time of crisis – bank runs, high unemployment, and conversion of money to gold

• Fear that Roosevelt would end gold standard increased bank runs

• Over 4000 banks collapsed in 1933, banks declared holidays so bank runs would end

Discussion Questions

1. What was the Gold Standard?

2. Why did Americans sympathize with Roosevelt?

The Hundred Days

• Roosevelt sent many bills to congress in first 100 days, 15 acts were passed – First New Deal

• Group of advisers put together• Three groups:

1. New nationalism – business and government together

2. Feared big business, government advisors

3. New Freedom – government’s responsibility to restore competition to economy

Fixing Banks and Stock Market

• 1st priority - Restore confidence in banking system

• Emergency Banking Relief Act – government regulation of banks

• Fireside chat – radio address assuring banks were sound

• Securities Act (1933) truthful trading (stocks/bonds) Glass-Steagall Act

• Creation of Securities and Exchange Commission – regulated stock market and the Federal Deposit Insurance Company (FDIC) – insured deposits up to $100,000

Managing Farms and Industry

• Agricultural Adjustment Act (AAA) – paid farmers to lower crop production to raise prices, left out tenant farmers and smaller who where homeless and unemployed

• National Industrial Recovery Act (NIRA) – suspended anti-trust and allowed cooperation between industry and gov.

• National Recovery Administration (NRA) declared unconstitutional in 1935

Providing Debt Relief

• Home Owners’ Loan Corporation (HOLC) – restructured loan payments (longer and lower rates) only loaned to employed, led to 100,000 foreclosures, refinanced 1 of 5 mortgages in U.S.

• Farm Credit Administration (FCA) farmers were helped with mortgages – hurt more than helped

Spending and Relief Programs• Goal was to provide work programs to the

unemployed• Civilian Conservation Corps (CCC) – gave jobs

to 18-24 men with forestry commission, in less than 10 years over 3 million were employed

• Federal Emergency Relief Act (FERA) – helped state and local gov with relief

• Public Works Administration (PWA) – begin construction projects

• Civilian Works Administration (CWA) – government jobs, failed b/c of spending

• Most important aspect of New Deal was inspiring to Americans, hope and optimism restored

Discussion Questions

1. Why did Roosevelt choose advisors with differing opinions?

2. Why was the FDIC so important?

3. Why did Roosevelt start work programs for unemployed?