i)Roosevelt projected optimism- famous quote “all we have to fear is fear itself” ii)Two days after taking office issued “Bank Holiday” closing all banks for four days to give Congress time to discuss reforms; Emergency Banking Act required Treasury Dept inspection of banks, assistance to troubled institutions iii)Bank Holiday restored ¾ of closed banks; Economy Act passed a few days later forced balanced fed budget thru cutting govt salaries + veterans pensions b)Agricultural Adjustment
i)Agricultural Adjustment Act 1933 reduced crop production to end surpluses + raise prices; Agricultural Adjustment Administration would enforce industry limits + subsidize vacant lands to parity-- farm income began increasing ii)1936 Agricultural Adjustment Act declared unconstitutional b/c it required farmers to limit production; new Soil Conservation and Domestic Allotment Act passed to pay farmers to reduce production in order to “conserve soil” iii)Resettlement Administration and later Farm Security Administration gave loans to small farmers to help relocate to better lands; Rural Electrification Administration attempted to make power more available to farmers c)Industrial Recovery
i)Administration allowed for relaxing of some antitrust laws to stabilize industry prices in return for concessions to labor to allow collective bargaining and unions led to 1933 National Industrial Recovery Act ii)Act created National Recovery Administration under Hugh Johnson called on adoption of labor codes + industrial codes to set floor prices-- sought to maintain employment + production iii)NRA weakened b/c codes poorly written and administered; Section 7(a) of NIR Act gave workers right to unionize but no enforcement so many corps. ignored it; Public Works Administration of NIR Act slow to distribute monies iv)NRA failed to raise production; 1935 Supreme C. held NRA unconstitutional d)Regional Planning
i)AAA and NRA examples of economic planning that allowed private interests to dictate planning process; others wanted govt in charge of planning ii)Tennessee Valley Authority created after failure of electric utility companies to develop water resources for cheap power; 1933 TVA began building dams in Tennessee Valley region + sell electricity at reasonable rates iii)TVA revitalized region by improving transport, limiting flooding, making electricity more available, and lowered power rates nationwide e)Currency, Banks, and the Stock Market
i)1933 president took president took nation off gold standard; govt began manipulating value of dollar by buying/selling large amts of silver ii)Efforts to increase govt regulation in 1933 Glass-Steagall Act- govt power to curb speculation, Federal Deposit Insurance Corporation to protect deposits iii)1933 Truth in Securities Act required corporations to give truthful disclosures iv)1934 Securities and Exchange Commission created to police stock market f)The Growth of Federal Relief
i)Administration saw need to help impoverished until economy improved—Federal Emergency Relief Administration gave cash to state relief groups ii)Work relief provided by the Civil Works Administration that gave millions temporary work- built roads + schools, and pumped money into economy iii)Civilian Conservation Corps gave unemployed men jobs in national parks planting trees and improving irrigation iv)To aid in mortgage relief created Farm Credit Administration to help farmers refinance; 1933 Frazier-Lemke Farm Bankruptcy Act aided foreclosed farmers; 1933 Home Owners’ Loan Corporation refinanced households 2)The new Deal in Transition
a)Critics of the New Deal
i)Conservatives and businesses leaders main opponents to New Deal, 1934 formed American Liberty League decrying “attacks” on free enterprise ii)Another threat to New Deal in Townsend Plan- proposed giving all over 60 monthly pension; idea gained much support older ppl, forerunner to Soc Sec iii)Father Charles Coughlin’s...