3 Roosevelt Takes Office Herbert Hoover ran for a second term in 1932.The Democrats selected New York Governor, Franklin Delano Roosevelt.
4 Roosevelt is Inaugurated Unemployment ctd. to rise, bank runs increased, and people converted their money into gold.Many governors declared bank holidays, which closed the remaining banks before bank runs could put them out of business.
5 The Hundred Days Begins March 9 – June 16, 1933 – Hundred DaysCongress passed 15 major acts to help the economic crisis.These programs made up the First New Deal.
6 A Divided Administration Advisors divided into 3 main groups1)Supporters of “New Nationalism” – gov’t & business should work together to manage the economy.2)Distrusted big business & wanted gov’t to run key parts of the economy.3)Supported “New Freedom” – felt it was gov’t responsibility to restore competition to the economy.
7 Fixing the Banks & Stock Market He called a national bank holiday, and called Congress into special session.Passed the Emergency Banking Relief Act, which required federal examiners to survey the nation’s banks and issue Treasury Department licenses to financially sound banks.
8 “Fireside Chat”Roosevelt spoke directly to the people, in his “fireside chat,” assuring the Americans that the banks were secure.The following day deposits in every city outweighed withdrawals, ending the banking crisis.
10 The First New DealThe First New Deal created many agencies that helped bring the country out of the Depression.They are as follows….
11 Securities & Exchange Commission (SEC) Created to regulate the stock market and prevent fraud.
12 Federal Deposit Insurance Corporation (FDIC) Provided government insurance for bank deposits up to $2500.
13 Agricultural Adjustment Administration (AAA) Paid farmers not to raise certain crops to lower crop production.
14 National Industrial Recovery Act (NIRA) Suspended antitrust laws and allowed business, labor, and gov’t to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry.
15 National Recovery Administration (NRA) Ran the NIRA.Controlled industrial production and prices with industry-created codes of fair competition.Declared unconstitutional in 1935.
16 Home Owners’ Loan Corporation (HOLC) Bought mortgages of homeowners behind on payments and restructured them with longer terms of repayment and lower interest rates.