New Deal Chapter 15 Section 1 – The New Deal Fights the Depression Section 2 – The 2 nd New Deal Takes Hold Section 3 – The New Deal Affects Many Groups Section 4 – Culture in the 1930’s Section 5 – The Impact of the New Deal

America is Ready for a Change Election 1932 Herbert Hoover –Republican Incumbent Franklin D. Roosevelt –Democratic Candidate

Roosevelt Has A Long History in Government Distant Cousin to Theodore Roosevelt Assistant Sec. of Navy in the Wilson Adm. Vice Presidential Candidate with Cox in 1920 Governor of New York –Good Record Concerning the Depression –One of the 1 st Governors to support direct relief by the states and unemployment insurance

Roosevelt’s Platform New Deal for the American People –Relief for the Needy Old Age and Unemployment Insurance Federal Relief –Economic Recovery Crop Controls Lower Tariffs Government and Business Work Together –Financial Reform Stock Market Regulation

No Contest Hoover addresses a large crowd in his 1932 campaign. Hoover’s image was very bad and during the campaign he constantly had to defend his record.

Election of

Lame Duck Presidency “An Unfortunate Wait” It would be 4 months before FDR would take office. Why? In that time there was an assassination attempt made on FDR.

20 th Amendment Known as the “Lame Duck Amendment” February 1933 Changes dates for Congress and Presidential Inauguration –Congress goes from March 4 to January 3 –President goes from March 4 to January 20

FDR Takes Office Listen to FDR Address the Nation:

1 st Hundred Days Roosevelt sets to work immediately and calls for a special session of Congress for March 9 th. FDR and Congress will keep their nose to the grindstone to try to do something for everyone. Listen to Roosevelt’s Speech:

1 st Hundred Days Banking Stock Market Unemployment Public Works Agriculture Industry Reform and Help For:

Americans Panic In the months before FDR took office many banks had taken “Bank Holidays” to save their banks. This caused “Runs” on banks and widespread panic, as well as a lack of confidence in America’s banking system. People began to withdraw any money they had in gold and hoard it at home.

Banking Reform FDR declares a “National Bank Holiday from March 6-9. Stops export of all gold, silver, and currency March 9 FDR pushed congress to pass the following act to help banks. (It took 40 minutes.) –Emergency Banking Relief Act

Emergency Banking Relief Act 1. Gave the President power over banking 2. Established to help reorganize banking –Banks were divided into catagories 1 st – Banks with 90% of all money, about ½ of all banks were reopened on March 15 th 2 nd – Weaker banks could only pay out some money to account holders 3 rd – Weakest banks to survive couldn’t pay out to account holders but could only take deposits 4 th – 1000 small banks were closed

Economy Act March 10 Balance the Budget –Cut salaries of government employees –Cut pensions and allowances to veterans (later rescinded) –Reorganization of Government

Fireside Chats March 12 FDR gives his 1 st “Fireside Chat” to explain the banking act and calm the public. Listen to FDR Address the Nation:

New Deal Programs

Federal Securities Act Gives the Federal Trade Commission the power to police all new stocks and bonds Required that new stock be accompanied by certain information FTC could police the Stockbrokers May

Securities and Exchange Act June 1934 Set up to regulate trading in securities in the stock market Set up the Securities and Exchange Commission (SEC) Gave it the power to license securities exchanges – places where stocks and bonds are bought and sold Gave the Federal Reserve Board the power to regulate the money supply used to finance the trading of securities –Control the “Margin Requirement” – amount of money an investor must put up when making a purchase –Higher margin requirements cuts down on speculation Prevent people with inside information about companies from “rigging” the stock market for their own profit – called “Insider Trading”

Communications Act Sets up the Federal Communications Commission (FCC) Regulates radio, telegraph, and cable communication both interstate and foreign

Glass-Steagall Act 1933 Removed banks from investments business Restricted the use of banking funds for speculation Created the FDIC (Federal Deposit Insurance Corporation) –Guaranteed individual bank deposits under $5,000 –Today it is guaranteed up to $250,000 (2008). “On January 1, 2010, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner.”

Agricultural Adjustment Act Reduce Production to Raise Crop Prices Pay farmers to leave a certain amount of land unseeded. Some crops were already to developed so the government paid farmers to destroy crops Paid hog farmers to kill hogs Finance payments to farmers by taxing people who process farm products

Criticism of the AAA Destruction of crops and livestock while people are going hungry Benefit Big Landowners and Not Small Farmers Farmers receiving AAA payments in 1939.