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T HE G REAT D EPRESSION AND THE N EW D EAL 1933-1939.

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1 T HE G REAT D EPRESSION AND THE N EW D EAL

2 V OCABULARY T ERMS New Deal Franklin Roosevelt Hoover Hundred Days Congress Emergency Congress Emergency Relief Act Works Progress Administration Ruth Benedict National Recovery Administration Grand Coulee Dam Agricultural Adjustment Administration 2 nd Agricultural Adjustment Act of 1938 Wagner/ National Labor Relations Act of TVA CIO

3 E SSENTIAL Q UESTIONS What events & problems led to the Great Depression? What were the consequences & results of the Great Depression? o How did America respond to the Great Depression? o What businesses & corporations arose from the Great Depression?

4 FDR IN A P OLITICAL W HEELCHAIR Suffered from paralysis= more humble to common ppl. Taught himself in patience, tolerance, & compassion. Asset=his wife, she was the “conscience of the new deal”. Worked with husband a lot. Became 1 st most active 1 st lady. Influenced policies of nat’l gov. battled for the poor & oppressed. Condemned by conservative, loved by liberals, =1 of most controversial ppl. FDR’s political appeal=amazing. Great orator of time. Sponsored state funding to relieve human struggles. Deep concern for the “plight of the “forgotten man”. Believed $ was less worth it than humanity. Dems. nominated FDR in June Dem platform= repeal of prohibition, attack the Hover depression, & promised a balanced budget & social & economic reforms.

5 P RESIDENTIAL H OPEFULS OF 1932 In next campaign FDR attacked the Rep Old Dealers, FDR=eager to prove others wrong FDR consistently preached a New Deal for the “forgotten man”-(annoying & contradictory) Most=writeen by “Brains Trust”-small group of reform minded ppl, mainly college professors FDR promised a balanced budget & scolded Hoover’s deficits. Dems=very high-spirited found in “happy days are here” song. Herbert Hoover=remained in WH(battling depression) Never insisted that FDR’s victory led to nation deeper into a depression Campaign=bad for Reps  Hoover took the reigns. He reaffirmed his faith in Am. Free enterprise &individual initiative & predicted that if the Hawley-Smoot Act was repealed, Am. Would prosper=such a down attitude= very diff. from FDR’s optimistic attitude & promises. V.

6 H OOVER ’ S H UMILIATION IN 1932 o Hoover = put into office when prosperity was rising. Hoover won by a lot to FDR. o 1 feature of election o Beginning of a distinct shift of blacks over to the FDR camp. Blacks=the worst off from depression. Beg in 1932, they became a vital part of the Dem party (esp in urban centers in N.) Hard times ruined Reps (bc 1932 election= anti-Hoover & pro-FDR Dems let nat’l vote pull them. A lot of majority demanded change-a new deal rather than the new deal. Any Dem. Candidate prob could have won. The lame duck period before the inauguration began to end. Hoover was still pres. For 4 more months, but he=helpless to start any long- range policies wo/ cooperation of FDR, victorious pres=uncooperative. Hoover succeeded in planning 2 meetings to discuss the war-debt situation, FDR didn’t assume responsibility for problem. Hoover (privately said) that he wanted to bind his successor to an anti-inflationary policy. But winner has choice not loser. Am. Economic force went to end. Banks were locking doors, workers protesting, ppl stuffed $ under mattresses. Hooverites blamed FDR of deliberately permitting the depression to worsen so he could emerge & seem more great.

7 FDR AND THE T HREE R’ S : R ELIEF, R ECOVERY, R EFORM March 4,1933- FDR broadcast provided the Am ppl with inspirational new hope. He denounced the “$ changers” who brought on problems & declared that the gov. must declare war on the Great Depression. FDR moved decisively With total responsibility, he declared a nationwide banking holiday (March 6-10) as prelude to opening better banks. Summoned the Dem Cong. into special cession to cope with the nat’l emergency. For 100 Days (March9- June 16, 1933) members cranked out a lot of remedial leg. Some derived from progressive ideals, but mostly sought to deal with the desperate problem.

8 FDR THE M AN W HO C HANGED A MERICA

9 FDR AND THE T HREE R S ” R ELIEF R ECOVERY, RE FORM FDR’s New Deal 3 goals=Relief, recovery, & reform Short-range goals-relief & immediate recovery. Long-range goals- permanent recovery & reform of current abuses (esp. those that led to problem) Goals of 3 R’s often overlapped & got in way of other. New Deal program launched forward. FDR cracked the whip Green cong. Shared the fear of the country  they were ready to rubber- stamp bills drafted by the White House advisers –(measures that FDR called must legs). Cong. Gave FDR extreme bank-check powers FDR=delighted to give executive leadership & cong. Responded to it. Didn’t know always want to do, but was driven by intuition. His next play depended on the outcome of the previous play. Public=so desperate that any movement (even in wrong direction) was better than none. The Frantic 100 Days Cong. Passed # essentials of the New Deal “three R’s”. (important long range measures were added later) Reforms owed much to the legacy of pre-WW1 progressive movement. Many=long over due. New Deal embraced progressive ideals- unemployment insurance, old-age insurance, min-wage regulations, conservation & development of natural resources, & restrictions on child labor. Few reforms mad small gains in some of states. # of these forward-looking reforms had been adopted earlier by W. Euro.

10 R OOSEVELT M ANAGES THE $$$$ Banking chaos needed immediate action Cong. Got together & made the Emergency Banking Relief Act of gave the pres the power to regulate banking transactions & foreign exchange & to reopen banks able to pay debts. FDR now turned to the radio to deliver the 1 st of his 30 famous “fireside chats” Gave assurances that it was now safer to keep $$$ in reopened banks than “under mattresses”  banks unlocked their doors & ppl’s confidence rose. The Emergency (100 days) Cong. Reinforced pub.Reliance on the banking system by enacting the Glass-Steagall Banking Reform Act. Provided for the Fed. Deposit Insurance Co. (insured individual deposits up to $5,000)  ended the chain of bank failures. $$$$$$$$$$$

11 R OOSEVELT M ANAGES THE $$$S FDR moved fast elsewhere in the finanacial area He sought to protect the melting gold reserve & prevent panicky hoarding. Ordered all private holdings of gold to be surrendered to the Treasury in exchange for paper $$$ & then took the nation of the gold standard.  Emergency Cong. Canceled the gold-payment clause in all contracts & authorized repayment of paper $$$  better “managed currency” in future. Goal of FDR’s “managed currency”= inflation (he believed it would relieve debtors’ burdens & stimulate New production. FDR main tool to get inflation=gold buying. Instructed the treasury to buy gold at increasing prices  therefore increasing the price of gold, results=policy increased # of $$$ in circulation as gold holders cashed it in at increasing prices. But inflationary result  provoked the wrath of “sound-$$$” critics. Gold-buying scheme ended in Feb when FDR returned the nation to a limited gold standard for purposes of internat’l trade only. Thereafter the US pledged itself to pay foreign bills (if requested ) in gold. But domestic circulation of gold cont’d to be banned, gold coins became collectors’ items.

12 C REATING J OBS FOR THE J OBLESS Overwhelming unemployment needed prompt action. 1/4 of ppl= jobless (highest level of unemployment in history). FDR= not hesitant to use fed $$$ to assist the unemployed & benefit industrial recovery. The 100 Days Cong. Responded to FDR’s spurs with the creation of the Civilian Conservation Corps (CCC) =maybe the most popular of all the New Deal agencies. Law provided employment in gov. camps for 3 mil uniformed young men,work=useful.recruits=required to help parents by sending home most of their pay  human & natural resources were conserved. 1 st major effort of the new cong. To deal with those all unemployed= Emergency Relief Act main goal=immediate relief rather than long-range recovery.  Federal Emergency Relief Admin. (FERA)= handed over to Harry L. Hopkins- (became 1 of most influential advisers). Granted $3 billion to the states for direct sharing payments or for wages on work projects.

13 C REATING J OBS F OR THE J OBLESS C ONT. Immediate Relief= given 2 large groups & special groups by the 100 Days Cong. Agricultural Adjustment Act (ACA)-made available millions of $$$ to help farmers meet their mortgages. Home Owners’ Loan Corporation (HOLC)- designed to refinance mortgages on nonfarm homes, assisted 1 mil badly hurt households, agency bailed out mortgage-holding banks & bolted the political loyalties of relieved mid-class homeowners securely to the Dem party. FDR (felt continuous plague of unemployment) Established the Civil Works Admin. (CWA) in 1933 Branch of FERA  Hopkins helped. Designed to provide temporary jobs during the cruel winter emergency, served as a useful purpose. Put a premium on shovel- leaning slow motion  scheme=widely criticized.

14 A D AY F OR E VERY D EMAGOGUE Direct relief from Washington to needy families helped pull the nation through the rough winter of But the persistence of unemployment & suffering showed that the emergency relief had cont’d 1 danger signal= appearance of # of demagogues (notably a magnetic “microphone messiah” Father Charles Coughlin-catholic priest in Michigan, slogan= “social justice”. Anti-new deal, began broadcasting in Also notorious among new group of agitators= those who capitalized on pop. Discontent to make extreme promises Senator Huey P. (“ Kingflash”) Long(LA, most known)- publicized his “share out wealth” program-promised to make “every man a king”, every fam was to get $5000 at expense of prosperous. H. L. Mencken called Long’s chief lieutenant, Gerald L. K. Smith the deadliest orator ever. Ppl’s fear of Long becoming a fascist dictator ended when he was shot in Dr. Francis E. Townsend (CA)-retired person whose savings were rapidly wiped out. Attracted support of 5 mil “senior citizens” with his plan that spoke the earth’s need. Each person >60 was to get $200 a month as long as it was used in 1 month.

15 A DAY FOR EVERY D EMAGOGUE CONT. Cong. Authorized the Works Progress Admin. (WPA)-partly to quiet upset made by stupid proposals Goal=employment on useful projects, launched by Hopkins Spent $11 bil on pub buildings, bridges, & roads. Not all projects fixed infrastructure. Small missions made critics snear. 9 mil ppl were given jobs over the years. WPA also found part-time jobs for needy high school & college students & unemployed white collar workers. Talent was nourished, self-respect was preserved, a lot of art was made & published.

16 N EW V ISIBILITY F OR W OMEN Am. Women began to have a greater part in the nation’s political & intellectual life. Elanor Rosevel t=most visible women in the Roosevelt White House, but not only female voice. Frances Perkins (sec of labor)-became 1 st women cabinet member. Mary McLeod Bethune –director of the offices of minority affairs in the Nat’l Youth Admin, was the highest-ranking African Am. in the Roosevelt admin. Women also made great contributions in social sciences. (esp in fairly new field of anthropology) Ruth Benedict- continued the work of her mentor, Franz Boas, by developing the “culture & personality movement” in the 1930s & 1940s. Landmark work= Patterns of Culture (1934)-established the study of cultures as collective personalities. Each culture had its own “more or less consistent pattern of thought & action. Margaret Mead- 1 of Benedict’s student, studied adolescent ppl among Pacific Island ppls to advance bold ideas about sexuality, gender roles, & intergenerational relationships, 34 books, helped popularize cultural anthropology & achieved a celebrity status rare among social scientists.

17 N EW V ISIBILITY F OR W OMEN C ONT. Pear S. Buck- novelist who won similar acclaim. Raised in China by presbys, introduced readers to Chinese peasant society. Best selling novel= The Good Earth (1931), earned noble prize for literature Used fame to advance humanitarian causes

18 H ELPING I NDUSTRY & L ABOR Emergency Cong. authorized the Nat’l Recovery Admin (NRA)- daring attempt to stimulate nationwide comeback Scheme=most complex & far-reaching effort by the New Dealers to have immediate relief & long-range recovery. Designed to help industry, labor, & the unemployed. Individual Industries were to work out codes of “fair competition” under which employment hrs. were shortened  giving a > amount of ppl jobs. Ceiling placed on the max hrs. of labor, flooring placed under wages to establish min levels. Labor under the NRA=was granted more benefits Workers were guaranteed the right to organize & bargain collectively through representatives that they choose. The “yellow dog” contract was forbidden & certain safeguarding restrictions were placed on the use of child labor. Industrial recovery through the NRA “fair competition” codes would be at best painful bc they called for self-denial by management & labor. Patriotism was aroused & increased Blue eagle was designed as the symbol for the NRA. There was an upswing in business activity.

19 H ELPING I NDUSTRY & L ABOR C ONT. But the seemingly high-flying eagle gradually began to fall to earth. Too much self-sacrifice was expected of labor, industry, & the pub for such a scheme to work. Critics called the NRA names, symbolized by what Henry Ford called it, “that damn Roosevelt buzzard”. A new age of chiselry came as some businessppl publicly displayed a blue bird on their windows but secretly violated the codes. Complete collapse=inevitable in 1935 when the Sup. Ct. shot down industry Schechter “ sick chicken” decision. The judges said that cong. Could not “delegate leg powers” to the executive & declared that cong. Control of interstate commerce could not apply to local bus. (like that of the Schechter bros) Public Works Administration Goal=for industrial recovery & unemployment relief, leader= Harold L. Ickes (sec of interior), bull mooser, Primary purpose=long-range recovery, >$4 bil was spent on projects. 1 great achievement= the Grand Coulee Dam on the Columbia R. –largest structure made by humans since the Great Wall. In darkness of time, the dam seemed like a highlight. Made possible the irrigation of millions of acres of new farmland, created > electrical power in a region with little industry & virtually no market for additional power. The dam would come to a stroke, transforming the region with abundant water & power.

20 H ELPING I NDUSTRY & L ABOR C ONT. Special stimulants helped the recovery of 1 part of business-the liquor industry. The imminent repeal of the prohibition act gave an opportunity to raise needed fed revenue & provide employment. FDR disliked the act that the 100 Days Cong. Said that legalized light wine & beer with a certain alcohol content  prohibition was officially repealed by the 21 Amendment (1933).

21 T HE C AUSES & E FFECTS OF T HE G REAT D EPRESSION

22 P AYING F ARMERS N OT T O F ARM Farmers had been suffering from overproduction & low prices (esp. in grain). During the depression, conditions became worse # of mortgages were foreclosed, corn was burned for fuel. Radical new approach to farm recovery= when the Emergency Cong. Established the Agricultural Adjustment Admin (AAA) Goal= to establish “parity prices” (parity=the price set for a product that gave it the same real power, in purchasing power) for basic commodities. The AAA would eliminate price depressing surpluses by paying growers to reduce their crop acreage. The $$$ needed would be raised by taxing processors of farm products & would in turn shift the burden of consumers. The AAA got off to a wobbly star Ppl misused a lot of their food (ex. Used meet as fertilizer) This “sinful” destruction of food (at a time when ppl were hungry) increased condemnation of the Am. Economic system by # voices “Subsidized scarcity”  raised farm income (but got a lot Of criticism) Farmers, food processors, consumers, & taxpayers=  Paying the farmers to not farm  increased unemployment, at a time when other New Deal agencies were trying to decrease it. Sup Ct. killed the AAA in 1936-by declaring its regulatory taxation provisions unconstitutional  foes=

23 P AYING F ARMERS N OT T O F ARM C ONT. The New Deal Cong. Tried to pass the Soil Conservation & Domestic Allotment Act of 1936 ( to try to recover) Withdrawal of acreage from production= achieved by paying farmers to plant soil-conserving crops. With emphasis on conservation, the Supreme Ct. approved it. The 2 nd Agricultural Adjustment Act of 1938= more Comprehensive substitute (still continued conservation Payments) If growers observed acreage restrictions on specific commodities, they would be eligible for parity payments, designed to give farmers a fairer price & a more substantial share of the national income. Both goals= partially achieved.

24 D UST B OWLS & B LACK B LIZZARDS Nature had been somewhat scarce Late in 1933-there was a drought in states of the trans-Mississippi Great Plains, rainless weeks followed, windy weather, & dust bowls. Drought & wind triggered the dust storm but were not the only causes. High grain prices during WW1 enticed farmers to buy a lot of acres of marginal land under cultivation. Dry farming techniques & mechanization had revolutionized Great Plains ag. Steam tractor & disk plow tore up the sod leaving dust in the air. Refugees fled their ruined acres (burned & blown out) In 5 yrs, 350,000 Oklahomans & Arkansans went to S. California. Shown in John Steinbeck's The Grapes of Wrath (1939) New Dealers=zealous & sympathetic toward soil-tillers, made # efforts to relieve their burdens. The Frazier-Lemke Farm Bankruptcy Act (1934 )- made possible a suspension of mortgage foreclosures for 5 yrs, but was voided in 1935 by Supreme Ct, a revised law limiting the grace period was issued Resettlement Admin (1935)- the pres. Had to remove near-farmless farmers to better land. >200 trees were successfully planted on bare prairies by the Civilian Conservation Co. Native Ams. Felt the far-reaching hand of the New Deal reform John Collier- (Commissioner of Indian Affairs), sought to reverse the forced- assimilation policies in place, he promoted the Indian Reorganization Act of encouraged tribes to establish local self-gov & to preserve their native crafts & traditions, helped to stop the loss of Indian lands & revived tribes’ interest in culture & identity. Not all Indians were, some refused to accept it.

25 B ATTLING B ANKERS & B IG B USINESSES Reformist New Dealers= determined to curb the “$$$ changers” (who played loose & fast with gullible investors) “ Truth In Securities Act”- required promoters to transmit to the investor sworn info. about the soundness of their stocks & bonds.(passed by the 100 days cong) 1934-cong. took further steps to protect the public against fraud, deception, & inside manipulation. Authorized the Securities & Exchange Commission (SEC)- designed to act as a watchdog admin agency. Stock markers were to operate more as trading marts & less gambling. New Dealers directed their hate at public utility holding co. (super corporations) Possibilities of controlling with a min. of capital. The Public utility Holding Co. Act of delivered a “death sentence” to this type of bloated growth, except where it was economically needed.

26 T HE TVA H ARNESSES THE T ENNESSEE The sprawling electric-power industry attracted the interest of New Deal reformers. Rose from nothing to a lot in a few decades. As a pub. Utility, it reached directly & regularly into the wallets of tons of consumers for vitally needed services. Passionate New Dealers accused it of taking from the public at excessive rates The Tennessee R. provided New Dealers with a rare opportunity. Had good tributaries, was in a poor region. By developing hydro-electric potential of the entire area, Washington could have get immediate advantages (putting ppl to work) & long- term project for reforming the power monopoly. Tennessee Valley Authority (TVA ) passed by the 100 Days Cong. Result of the vision & zeal of George W. Norris of Nebraska. TVA=the most revolutionary of all the New Deal schemes. New agency (TVA)= determined to discover precisely how much the production & distribution of electricity costs, so that they could test the fairness of rates charged by private companies. Utility corps. Lashed back charging that the low cost of TVA power was due to dishonest bookkeeping & the absence of taxes.

27 T HE TVA H ARNESSES THE T ENNESSEE C ONT. The New Dealers pointed a prideful finger at the amazing achievements of the TVA TVA brought full employment, blessings of cheap electric power, low-cost housing, abundant cheap nitrates, the restoration of eroded soil, reforestation, improved navigation, & flood control. Rivers & poverty stricken areas were transformed. The idea of hydro-electric power from dams would drive growth of the Urban West, & the waters would nurture the land. The conservative reaction against the “socialist” New Deal would confine the TVA’s brand of federally guided resource management & comprehensive regional development to the Tennessee Valley.

28 H OUSING & S OCIAL S ECURITY The New Deal created new policies for housing construction Federal Housing Admin-1934, to speed recovery & better homes, set up by FDR. The building industry was to be stimulated by small loans to householders, to improve their dwellings & complete new ones. FHA= so popular, 1 of the few agencies to outlast FDR Cong. Bolstered the FHA program in by authorizing the United States Housing Authority (USHA)-an agency designed to lend $$$ to states or communities for low-cost construction. New buildings fell greatly short of ppl’s needs. New Deal efforts to expand the project met opposition from real estate promoters, builders, & landlords. For the 1 st time in a century, the slum areas in Am stopped growing & even shrank. Republican opposition to the sweeping new leg=bitter The GOP national chairman falsely charged that every worker would have to wear a metal dog tag for life. Social Security was greatly inspired by the ex. Of some of the more highly industrialized nations of Europe. By ?45 mil ppl were eligible for social security benefits & in a few yrs, workers were added & the payments to them were increased. Am workers had to be employed to get coverage

29 A N EW D EAL FOR L ABOR The NRA blue eagles(called for collective bargaining) had been a helpful force of organized labor New Deal principles brought some slackening of unemployment, labor began to feel more secure & more self-assertive. Summer of series of walkouts occurred. Strike in San Francisco. When the Supreme Court ended the NRA, cong, sympathetic to labor unions attempted to fix it. Wagner/ National Labor Relations Act of (fruit of cong. attempts)-created a powerful new Nation Labor Relations Board for admin purposes & reasserted the right of labor to engage in self- organization & to bargain collectively through representatives of its own choice. Wagner Act= 1 of the real milestones on the rough road of the U.S. Labor movement Under the encouragement of a very sympathetic National Labor Relations Board, a # of unskilled workers began to organize themselves into effective unions. Leader -John J. Lewis-boss of the United Mine Workers formed the Committee for Industrial Organization (CIO). But skilled workers had only shown some sympathy for the cause of unskilled labor. In friction with the CIO prohibited the establishment of unions associated with the newer association.

30 F RANKLIN D. R OOSEVELT & T HE N EW D EAL Impact of the NEW Deal o

31 A N EW D EAL FOR L ABOR C ONT. The Rebellious CIO moved on a scale into a huge automobile industry Late in the workers resorted to a revolutionary technique-the sit-down strike:they refused to leave the factory building of General Motors at Flint, Michigan, & prevented the importation of strikebreakers. Conservative respecters of private property were scandalized. The CIO won a victory when its union, was recognized by General Motors as a sole bargaining agency for its employees. Unskilled workers now pressed their advantage The US Steel co. went on costly strike when it voluntarily granted rights of unionization to its CIO-organized employees.  steel co. fought back the Memorial Day massacre at the plant of Rep. Steel co. in S. Chicago (citizens=shocked) Fair Labor Standards Act (1938)-better deal for labor continued. Industries involved in interstate commerce were to set up min-wage & max-hr levels. Goals= 40 cents an hr & a 40 hr week labor of children under 16= forbidden. Reforms=opposed by many industrialists, (esp those in S. textile manufacturers who profited from low-wage labor) The exclusion of ag. Service, & domestic workers meant that blacks, Mexican Ams., & women did not benefit bc they weren't concentrated in these fields.

32 A N EW D EAL FOR L ABOR C ONT. In later New Deal days, labor unionization thrived Pres. encouraged unionization, pres got great support at voting time from labor leaders & many appreciative working ppls. The CIO surged ahead, totally separating from the AF of L in The Committee for Industrial Organization=formally reconstituted as the Congress of Industrial Organizations (the new CIO) under the presidency of John J. Lewis. By the CIO had 4 mil members in its unions. Still bitter feuding continued with the AF of L.

33 L ONDON C HALLENGES “ THE CHAMP ” As the pres. Campaign of 1836 neared, the New Dealers were on top of the world They achieved great progress, millions were grateful to their great gov. Dems renominated FDR on platform for New Deal. Republics= hard-pressed to find someone to nominate for pres. Nominated Alfred M. Landon-moderate, accepted some New Deal reforms (not Social security Act), condemned the New Deal platform of FDR for its radicalism, experimentation, confusion, & waste. FDR denounced the “economic royalists” who sought to “hide behind the flag of the constitution”, he welcomed their hatred. Landon lost by A LOT Democrats were returned to cong. Democrats now got >2/3 of cong. The battle of 1936-the needy economic groups were lined up against the greedy economic groups CIO units contributed a lot to FDR’s win. Many left-wingers turned to FDR. Blacks had now been shaken off of their traditional allegiance to the Rep. party FDR won mainly bc he appealed to the “forgotten man”. Some of his supporters weren’t very passionate- “reliefers”. FDR had forged a powerful & lasting coalition of the South, blacks, urbanites, & the poor. =esp effective in marshaling the support of the multitudes “new immigrants”-mostly catholics & jews who came to city. FDR appointed catholics

34 N INE O LD M EN ON THE B ENCH FDR took pres. Oath on Jan. 20,1937. FDR interpreted his reelection as a mandate to continue New Deal reforms. But thought old men stood in way of path. In 9 major cases, the FDR admin had been prevented from succeeded 7 times. Court=ultraconservative FDR had impatience of the obstructive conservatism of the court. Felt that men were hanging on, FDR felt that voters called for reform. In his eyes democracy meant rule by the ppl. If the Am way of life was to be preserved, FDR thought that the Supreme Court would have to get in line with the supreme court of pub. opinion. FDR finally got a court case that he regarded as an answer to prayer. = 1 of the most costly political misjudgments of his career. 1937, shocked nation FDR asked cong. For leg to permit him to + a new justice to the Supreme Ct. for every member >70 who would not retire. Max membership could only be 15. FDR said they needed new blood. Charge which turned out to be false, brought accusations of dishonesty. FDR=headstrong & not fully aware of the fact that the Ct. had been sacred.

35 T HE C OURT C HANGES C OURSE Cong. & the nation= promptly convulsed over te scheme to “pack” the Supreme Ct. with a “dictator bill” FDR was written about abusively for attempting to break down the checks & balances among the gov. accused of trying to be dictator. To citizens, mostly Reps but some Dems saw basic liberties in jeopardy. Meanwhile, the court had seen the end of it near Justice Owen J. Roberts (formerly a conservative) began to vote on the side of his liberal colleagues. March the Ct. upheld the principle of a state min wage for women. FDR’s “court-packing”= more undermind when cong. Voted full pay for justices >70 who retired, 1 of oldest retired & was replaced. Cong. Passed a court reform bill (only applied to lower courts) FDR suffered his 1 st major leg defeat at the loss of his own party in cong. Yet FDR incidentally won his campaign. The cong. became more receptive to his New Deal reforms. Succession of deaths & resignations enabled him to make 9 appointments to the tribunal. FDR lost both the Court Battle & war He aroused conservatives of both parties in cong. That few New Deal reforms were passed after he ruined much of the political goodwill that got him to win in 1936.

36 T WILIGHT OF THE NEW DE AL FDR’s 1 st term ( ) did not get rid of the Depression Unemployment continued, & recovery had been modest. In the economy took a sharp downturn-severe depression New Social security taxes took $$$ away from payrolls & as the admin cut back on spending out of continuing revenue. Only at this late did FDR embrace the recommendations of the British economist John Maynard Keynes. New Deal had worked a little but not much, in April FDR announced a bold program to simulate the economy by planned deficit spending. This abrupt policy reversal marked a major turning point in the gov’s relation to the economy. “Keymesianism” became the new economic orthodoxy & remained so for decades. FDR meanwhile had been pushing the remaining measures of the reform measures of the New Deal Early he urged cong. To aurthorize a reorganization of national admin in the interests of streamlined efficiency. Issue became tangled up with autocratic ambitions of Supreme Ct  FDR lost  1939-cong. Gave him limited powers for admin reform in the Reorganization Act. The New Dealers were accused of having the richest campaign chest in history Cong. Adopted the Hatch Act of barred fed admin officials, except the highest- policy making ppl, forbade the use of gov. funds for political purposes & collection of campaign contributions from ppl receiving relief payments. Hatch Act= broadened in 1940 to place limits on campaign contributions & expenditures

37 T WILIGHT OF THE N EW D EAL C ONT. By 1938, the New Deal lost most of its early momentum FDR ran out of reform movements. In cong. Election of 1938, the Reps for the 1 st time cut into the New Deal majorities in Cong International crisis came to boil, shifted pub attention away from domestic reform & helped save FDR political rep. the New Deal had ended

38 N EW D EAL OR R AW D EAL ? Foes of the New Deal condemned its wasted, incompetence, confusion. Said FDR did nothing. FDR= further accused by conservatives of being Jewish & of tapping too many Jewish leftists Hardheaded business ppl were shocked by the lea-before-you- look. They accused him of confusion noise, others appreciated his approach. “bureaucratic meddling”= complaints of New-Dealers. Bureaucracy did blossom. The fed gov. became the largest single business in the country Promises of budget balancing totally disappeared. The national debt had increased greatly. America was trying to squander back prosperity. Their wish-bones were becoming bigger than their back-bones. Hard-pressed workers went West for relief.

39 N EW D EAL OR R AW D EAL ? CO NT Business=bitter Accusing the New Deal, conservatives insisted that the laborer & farmer were being pampered. Business ppl (esp Reps) said that they could pull themselves out of the depression if they had the fed gov. they said private enterprise had been stifled by “planned economy”. States’ rights were being ignored. The aggressive leadership of FDR eventually became publicly condemned. Directed at his attempts to intimidate the Supreme Ct. & create a “dummy congress”. Most damning indictment of the New Deal=if it failed to cure the depression Many economists believed that it would’ve ended better if there was great deficit spending. The gap was not closed btwn production & consumption. A lot of farm surpluses.

40 FDR’ S B ALANCE S HEET New Dealers defended their record. Admitted that there was some waste, said that relief had been the main goal of their war on depression. Argued that it had been trivial. Apologists for FDR declared that they New Deal had relieved the worst of the crisis in Promoted idea of “balancing the human budget” & accepted the principle that the fed gov. was morally bound to prevent mass hunger & starvation by “managing” the economy. The Washington regime was to be used not feared. FDR should have been the business tycoons’ saint He had pop resentment against business & may have saved the Am system of free enterprise. His quarrel was with capitalists not capitalism.

41 C HAPTER 33 R EVIEW !!!!!! 1. FDR was mainly concerned with the rights of what social class? a The upper class b The “forgotten man” c blacks d women 2. The program that promised a balanced budget & scolded Hoover’s beliefs? a New Deal b Civil Service Commission c TVA d NRA 3. Suffered the most as a result of the depression a Irish immigrants b White Peasants c Mexican-Americans d Blacks e Big business corporations 4. All of these are goals of the New Deal except: a relief b immediate recover c greater control of big businesses over society d permanent recovery e reform of current abuses 5. What act gave the president the power to regulate banking transactions & foreign exchange & to reopen banks to pay debts? a National Labor Relations Act of 1935 b Emergency Banking Relief Act of 1933 c Fair Labor Standard Act d Hatch Act of 1939

42 C HAPTER 33 R EVIEW C ONTINUED !!!!!! 6. What Emergency (100 days )Congress reinforced public reliance on the banking system with which document? a Hatch Act of 1939 b Emergency Banking Relief Act of 1933 c Fair Labor Standards Act d Glass-Stegall Banking Reform Act 7. What was FDR’s goal for “managed currency”? a deflation b free enterprise c inflation d increased circulation of money 8. The Civilian Conservation Corporation provided employment in government camps for 3 million young uniformed men… a they were required to send $$$ they made back home b they were allowed to keep the $$$ & spend it how they wanted c conserved natural resources d both a & c e a, b, & c 9. True/ False- The goal of the Emergency Relief Act was long-term relief rather than immediate relief. 10. Who became one of the most influential advisers? a Harry Hopkins b FDR c Margaret Mead d Ruth Benedict 11. True/False- The Civil Workers Administration gave temporary jobs during the winter emergency.

43 C HAPTER 33 R EVIEW C ONTINUED !!!!!! 12.The Works Progress Administration was created to… a arouse public opinion & hatred upon factories b quiet upset made by stupid proposals c employ a lot of people on useful projects & give them jobs d both b & c 13. The 1 st women cabinet member a Mary McLeod Bethune b Eleanor Roosevelt c Frances Perkins d Margaret Mead e Pear S. Buck 14. Responsible for developing the personality & culture movement, wrote Patterns of Culture a Eleanor Roosevelt b Pear S. Buck c Frances Perkins d Margaret Mead e Ruth Benedict 15. True/ False- The National Recovery Administration attempted to stimulate nationwide comeback & help industry, labor, & those unemployed.

44 C HAPTER 33 R EVIEW C ONTINUED !!!!!! 16. This Administration was created to make “parity prices” for basic commodities & elimiate price depressing surpluses. a Agricultural Adjustment Administration b Public Workers Administration c Civil Workers Administration d Works Progress Administration 17. This organization was created to discover the exactly how much production & distribution of electricity costs, so they could test the fairness of rates charged by private companies a TVA b NRA c CIO d WPA 18. True/ False- the National Labor Relations Act of 1935 made powerful new nation labor relations board for administrative purposes & reasserted the rights of labor to engage in self-organization & bargain collectively through representatives they could not choose. 19. The goal of this act was to establish a 40 hr week & 40 cents an hr pay. It was opposed by many industrialists, & excluded agricultural service & domestic workers therefore Mexican Americans, blacks, & women did not benefit. a Glass-Stegall Banking Reform Act b Fair Labor Standards Act c National Labor Relations Act of 1935 d Emergency Relief Act

45 C HAPTER 33 R EVIEW C ONTINUED !!!!!! 20. True/ False- the Hatch Act of 1939 barred fed officials, allowed them to use government funds for political purposes & collection of campaign contributions from ppl receiving relief payments.


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