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Roosevelt and the New Deal, 1933-1941
netw rksReading Essentials and Study Guide
Reading HELPDESK
Lesson 1 The First New Deal
Content Vocabularypolio abbreviated_term_for_poliomyelitis,_an_acute_infectious_disease_affecting_the_skeletal_muscles,_often_resulting_in_permanent_disability__and_deformity
gold standard a_monetary_standard_in_which_one_ounce_of_gold_equals_a_set_number_of_dollars
bank holiday closing_of_banks_during_the_Great_Depression_to_avoid_bank_runs
fireside chats radio_broadcasts_made_by_Roosevelt_to_the_american_people_to_explain_his_initiatives
Academic Vocabularyapparent appearing_to_be_fact_as_far_as_can_be_understood
ideology_ a_system_of_thought_that_is_held_by_an_individual,_group,_or_culture
fundamental_ being_of_central_importance
ESSENTIAL QUESTIONCan government fix the economy?
Is government responsible for the economic well-being of its citizens?
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Roosevelt and the New Deal, 1933-1941
netw rks
TAKING NOTES: Sequencing
aCtIVItY_as_you_read_about_Roosevelt’s_first_three_months_in_office,_complete_a_time_line_to_record_the_major_problems_he_addressed_during_this_time.
IT MATTERS BECAUSE…Franklin Delano Roosevelt became president in 1932. He had promised a “New Deal” for Americans. In his first hundred days in office, he proposed a great deal of new legislation. Some of the laws were intended to save banks, industry, and farming. Other laws were designed to provide jobs for the unemployed.
Roosevelt’s Rise to Power GUIDING QUESTION What_qualities_make_an_effective_leader?_
a_distant_cousin_of_theodore_Roosevelt,_Franklin_Delano_Roosevelt_grew_up_in_Hyde_Park,_New_York._as_a_youth,_he_learned_to_hunt,_ride_horses,_and_sail_and_grew_to_love_the_outdoors._He_developed_a_lifelong_commitment_to_conservation_and_a_love_of_the_nation’s_rural_areas._Later,_Roosevelt_studied_at_Harvard_University_and_Columbia_Law_School._at_Harvard,_he_met_eleanor_Roosevelt,_theodore_Roosevelt’s_niece._the_two_became_friends_and_eventually_married._Roosevelt_was_highly_competitive_and_liked_to_be_in_control._He_also_liked_being_
around_people._His_charming_personality,_deep_voice,_and_wide_smile_showed_confidence_and_hopefulness._He_had_the_right_personality_to_succeed_in_politics._after_Roosevelt_was_elected_to_the_New_York_State_Senate_in_1910,_he_became_
known_as_a_progressive_reformer._When_Woodrow_Wilson_became_president_in_1913,_Roosevelt_served_as_assistant_secretary_of_the_navy._In_1920_the_Democrats_chose_him_to_be_the_candidate_for_vice_president._they_chose_him_partly_because_of_his_good_reputation_and_partly_for_his_famous_family_name._However,_the_Democrats_did_not_win_the_1920_election._Roosevelt_temporarily_left_politics_after_losing_the_election._the_next_year_he_
caught_polio,_a_feared_disease_that_caused_paralysis,_or_the_inability_to_move._although_there_was_no_cure,_Roosevelt_refused_to_give_up._He_did_special_exercises_to_restore_some_muscle_control._He_used_heavy_steel_supports_on_his_legs_so_that_he_could_seem_to_walk_short_distances._to_move,_Roosevelt_needed_to_lean_on_a_cane_and_a_person’s_arm._He_could_then_swing_his_legs_forward_from_his_hips._While_recovering_from_polio,_Roosevelt_depended_on_his_wife_and_his_aide_Louis_
Howe_to_keep_the_New_York_Democratic_Party_aware_of_him._eleanor_Roosevelt_became_an_effective_public_speaker._Her_work_also_helped_keep_her_husband’s_political_career_alive.
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Roosevelt and the New Deal, 1933-1941
netw rks
By_the_mid-1920s,_Roosevelt_was_again_active_in_the_Democratic_Party._He_ran_for_governor_of_New_York_in_1928._He_worked_hard_to_show_that_his_illness_had_not_slowed_him_down_and_narrowly_won_the_election._two_years_later_he_was_reelected_in_a_landslide._as_governor,_Roosevelt_oversaw_the_creation_of_the_first_state_relief_agency_to_help_the_unemployed._Roosevelt’s_popularity_in_New_York_helped_him_gain_the_presidential_nomination_
in_1932._americans_saw_an_energy_and_hopefulness_that_gave_them_hope_despite_the_tough_economic_times._after_Roosevelt_became_president,_his_calmness_and_confidence_amazed_people._He_once_explained_that_working_so_hard_to_recover_from_polio_had_made_everything_seem_easy_to_him.In_mid-June_1932,_the_country_was_deep_in_the_Depression._Republicans_met_in_
Chicago_and_nominated_Herbert_Hoover_to_run_for_a_second_term_as_president._Later_that_month,_the_Democrats_also_held_their_national_convention_in_Chicago._they_nominated_Roosevelt,_who_broke_with_tradition_by_flying_to_Chicago_to_accept_the_nomination_in_person._In_his_acceptance_speech,_he_promised_the_american_people_that_they_would_receive_a_“new_deal.”From_that_time,_Roosevelt’s_plans_for_ending_the_Depression_became_known_as_
the_New_Deal._Roosevelt’s_confidence_that_he_could_make_things_better_contrasted_sharply_with_Herbert_Hoover’s_apparent_failure_to_do_anything_effective._On_election_Day,_Roosevelt_won_in_a_landslide,_winning_the_electoral_vote_in_all_but_six_states.
PROGRESS CHECKInterpreting What_characteristics_did_Roosevelt_have_that_made_him_popular_with_americans?
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The Hundred Days GUIDING QUESTION Why_are_the_first_hundred_days_so_important_for_a_president?_
Roosevelt_won_the_election_in_November_1932,_but_the_economic_situation_grew_worse_between_the_election_and_his_inauguration._Unemployment_continued_to_rise_and_bank_runs_increased._People_feared_that_Roosevelt_would_stop_using_the_gold standard_and_lower_the_value_of_the_dollar_to_fight_the_Depression._Under_the_gold_standard,_one_ounce_of_gold_equaled_a_certain_number_of_dollars._to_lower_the_value_of_the_dollar,_the_United_States_would_have_to_stop_exchanging_dollars_for_gold._many_americans_and_foreign_investors_with_money_in_american_banks_withdrew_their_money_to_exchange_it_for_gold_before_the_money_lost_its_value._across_the_nation,_people_stood_in_long_lines_with_paper_bags_and_suitcases._
they_waited_to_withdraw_their_money_from_banks._By_march_1933_more_than_4,000_banks_had_failed,_causing_nine_million_savings_accounts_to_disappear._In_38_states,_governors_declared_bank holidays._they_closed_the_remaining_banks_before_runs_on_those_banks_could_put_them_out_of_business._
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Roosevelt and the New Deal, 1933-1941
netw rks
By_the_day_of_Roosevelt’s_inauguration,_most_of_the_nation’s_banks_were_closed._One_in_four_workers_was_unemployed._Roosevelt_knew_he_had_to_get_people_to_feel_confident_again._In_his_Inaugural_address,_he_told_the_american_people_that_the_nation_needed_to_stop_being_afraid_and_take_action._
The New Deal Begins Roosevelt_and_his_advisers_entered_office_with_many_ideas_about_how_to_end_the_Depression._Roosevelt_did_not_have_a_clear_agenda_or_a_strong_political_ideology._He_believed_that_the_most_important_thing_to_do_was_to_try_something.the_new_president_sent_many_bills_to_Congress._the_time_between_march_9_and_
June_16,_1933,_became_known_as_the_Hundred_Days._During_this_time,_Congress_passed_15_major_acts_to_try_to_fix_the_economy._the_programs_Congress_approved_made_up_what_would_be_called_the_First_New_Deal._
A Divided Administration Roosevelt_made_the_final_decisions_about_what_policies_and_programs_to_try._However,_he_listened_to_his_advisers_for_new_ideas._He_purposely_chose_advisers_who_disagreed_with_one_another._He_did_this_because_he_wanted_to_hear_many_different_points_of_view._One_influential_group_of_advisers_thought_that_government_agencies_should_work_
with_businesses_to_regulate_wages,_prices,_and_production._they_believed_that_this_could_improve_the_economy._a_second_group_of_advisers_did_not_trust_big_business._they_felt_that_business_leaders_had_caused_the_Depression._this_group_of_advisers_wanted_government_planners_to_run_important_parts_of_the_economy._a_third_group_supported_Wilson’s_“New_Freedom”_philosophy._this_group_wanted_Roosevelt_to_break_up_big_companies_into_smaller_ones._Pay,_prices,_and_production_levels_would_be_set_by_competition_between_companies._In_addition,_this_group_thought_that_the_government_should_set_regulations_to_keep_economic_competition_fair._
PROGRESS CHECKSummarizing What_were_the_key_accomplishments_during_Roosevelt's_first_hundred_days_in_office?
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Banks and Debt Relief GUIDING QUESTION Why_did_Roosevelt_broadcast_“fireside_chats”?
Roosevelt_knew_that_very_few_of_the_new_programs_would_work_as_long_as_the_nation’s_banks_stayed_closed._Before_he_did_anything_else,_he_needed_to_get_people_to_trust_the_banking_system_again._Within_a_week_of_Roosevelt’s_taking_office,_the_emergency_Banking_Relief_act_was_passed._the_new_law_said_that_federal_examiners_would_study_the_nation’s_banks._the_examiners_would_decide_which_banks_were_strong_enough_to_stay_open._they_would_then_give_these_banks_a_treasury_Department_license.
Reading Essentials and Study Guide Cont.
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Roosevelt and the New Deal, 1933-1941
netw rks
On_march_12,_Roosevelt_spoke_to_the_country_by_radio._Sixty_million_people_listened_to_the_first_of_many_“fireside chats.”_Roosevelt_told_the_american_people_that_the_banks_were_safe._He_said_that_people_should_put_their_money_into_the_reopened_banks._When_banks_opened_on_march_13,_more_money_was_deposited_than_was_withdrawn._the_banking_emergency_was_over.
The FDIC and SEC many_of_Roosevelt’s_advisers_wanted_to_go_even_further._they_argued_for_new_regulations_for_banks_and_the_stock_market._Roosevelt_agreed._He_supported_the_Securities_act_of_1933_and_the_Glass-Steagall_Banking_act._the_Securities_act_said_that_companies_that_sold_stocks_and_bonds_must_provide_complete_and_truthful_information_to_investors._the_Securities_and_exchange_Commission_(SeC)_was_created_to_regulate_the_stock_market_and_stop_fraud._the_Glass-Steagall_act_separated_commercial_banking_from_investment_banking._Commercial_banks__handle_everyday_banking._they_could_no_longer_risk_the_money_people_deposited_through_stock_speculation._the_Glass-Steagall_act_also_created_the_Federal__Deposit_Insurance_Corporation_(FDIC)._this_group_provided_government_insurance_for_bank_deposits._the_creation_of_the_FDIC_increased_public_confidence_in_the_banking_system._
Mortgage and Debt Reliefmany_americans_feared_that_they_would_lose_their_homes_or_farms._they_cut_back_on_spending_to_ensure_they_could_pay_their_mortgages._In_response,_Roosevelt_introduced_policies_to_help_americans_with_their_debts._For_example,_the_Home_Owners’_Loan_Corporation_bought_the_loans_of_homeowners_who_were_behind_in_their_payments._then_it_reorganized_the_loans_to_give_people_more_time_to_repay_them._the_new_loans_also_had_lower_interest_rates.the_Farm_Credit_administration_(FCa)_helped_refinance_farmers’_loans._these_
loans_saved_millions_of_farmers_from_losing_their_land_through_foreclosure._the_FCa_may_have_slowed_the_economic_recovery,_however._It_made_less_money_available_to_lend_to_more_efficient_businesses._But_the_agency_helped_many_desperate_poor_people_keep_their_land_and_homes.
PROGRESS CHECKSummarizing How_did_the_government_restore_confidence_in_the_banking_system?
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Farms and Industry GUIDING QUESTION How_did_New_Deal_legislation_try_to_stabilize_agriculture_and_industry?_
many_of_Roosevelt’s_advisers_believed_that_both_farmers_and_businesses_were_having_problems_because_prices_were_too_low_and_production_was_too_high._Congress_passed_the_agricultural_adjustment_act_to_help_the_nation’s_farmers._the_act_was_based_on_a_simple_idea—that_prices_for_farm_products_were_low_because_farmers_grew_too_much_food._Under_this_act,_the_government’s_agricultural_
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Roosevelt and the New Deal, 1933-1941
adjustment_administration_(aaa)_would_pay_farmers_not_to_keep_certain_livestock,_grow_certain_crops,_and_produce_dairy_products._Over_the_next_two_years,_farmers_stopped_using_millions_of_acres_of_farmland._they_received_more_than_$1_billion_in_support_payments._the_program_met_its_goal._But_it_also_made_food_prices_go_up_during_a_depression._as_a_result,_it_drew_a_great_deal_of_criticism._also,_not_all_farmers_benefited._thousands_of_tenant_farmers_lost_their_jobs_and_homes_when_landlords_took_their_fields_of_these_tenant_farmers_out_of_production._many_of_these_tenant_farmers_were_african_americans.the_government_began_focusing_on_manufacturing_in_June_1933._Congress_
passed_the_National_Industrial_Recovery_act_(NIRa)._this_law_allowed_the_National_Recovery_administration_(NRa)_to_suspend_antitrust_laws._It_also_allowed_business,_workers,_and_government_to_work_together_with_rules_for_each_industry._they_called_these_rules_codes_of_fair_competition._Codes_set_prices_and_minimum_wages._Codes_also_shortened_workers’_hours_to_create_more_jobs._they_allowed_unionization._Finally,_they_helped_businesses_develop_industry-wide_codes_of_fair_competition._the_NRa_helped_a_few_industries,_but_the_codes_were_difficult_to_manage._employers_disliked_that_the_NRa_allowed_workers_to_form_unions._they_also_argued_that_paying_minimum_wages_forced_them_to_raise_prices._after_the_NRa_was_established,_industrial_production_fell._the_NRa_was_declared_unconstitutional_in_1935._
PROGRESS CHECKExamining How_was_the_agricultural_adjustment_act_intended_to_stabilize_the_agricultural_industry?
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Relief Programs GUIDING QUESTION How_did_New_Deal_programs_differ_from_President_Hoover’s_attempts_to_combat_the_Depression?
many_of_President_Roosevelt’s_advisers_felt_the_Depression_could_be_solved_by_adjusting_prices_and_helping_people_pay_their_debts._Other_advisers_said_that_the_fundamental_cause_of_the_Depression_was_that_consumers_were_not_buying_enough._those_advisers_thought_that_the_economy_would_improve_if_poor_people_had_money_to_spend._However,_Roosevelt_and_his_advisers_did_not_want_to_give_money_to_the_unemployed,_so_they_supported_work_programs_for_the_unemployed._
The CCC the_Civilian_Conservation_Corps_(CCC)_was_the_most_popular_New_Deal_work_relief_program._the_CCC_gave_jobs_to_unemployed_young_men_between_18_and_25_years_old._Supervised_by_the_forestry_service,_the_men_planted_trees,_fought_forest_fires,_and_built_reservoirs._In_one_project,_the_workers_planted_a_line_of_more_than_200_million_trees_known_as_the_Shelter_Belt._the_line_of_trees_went_from_north_texas_to_North_Dakota._the_CCC_hoped_the_trees_would_prevent_another_Dust_Bowl.the_young_men_lived_in_camps_near_their_work_areas._they_earned_$30_a_month._
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Roosevelt and the New Deal, 1933-1941
twenty-five_dollars_of_that_was_sent_directly_to_their_families._the_average_CCC_worker_returned_home_after_six_to_twelve_months._On_his_return,_a_worker_usually_was_better_fed_and_had_more_self-respect._CCC_programs_also_taught_more_than_40,000_of_their_workers_to_read_and_write._Over_time,_the_CCC_put_3_million_young_men_to_work_outdoors._among_these_workers_were_80,000_Native_americans,_who_helped_reclaim_the_land_they_had_once_owned._after_a_second_Bonus_army_march_on_Washington_in_1933,_Roosevelt_added_250,000_veterans_to_the_CCC_as_well._
FERA and the PWA Congress_also_set_up_the_Federal_emergency_Relief_administration_(FeRa)._Roosevelt_chose_a_former_social_worker_named_Harry_Hopkins_to_run_FeRa._at_first,_FeRa_did_not_create_projects_for_the_unemployed._Instead,_it_gave_money_to_state_and_local_agencies._those_agencies_used_the_money_to_pay_for_state_and_local_relief_projects._Hopkins_spent_$5_million_on_relief_projects._Critics_complained_that_some_of_the_
projects_did_not_make_sense_in_the_long_run._Hopkins_said_that_he_was_not_worried_about_the_long_run._He_wanted_to_make_sure_people_had_enough_money_to_eat_every_day.In_June_1933_Congress_agreed_to_the_creation_of_the_Public_Works_administration_
(PWa)._One-third_of_the_nation’s_unemployed_were_in_the_construction_industry._the_PWa_put_these_people_to_work._they_built_highways,_dams,_schools,_and_other_government_structures._the_PWa_gave_contracts_to_construction_companies._Construction_companies_that_
wanted_to_work_for_the_PWa_could_not_discriminate_against_african_americans._thus_the_agency_weakened_some_of_the_racial_barriers_in_the_construction_business.
The CWA By_the_fall_of_1933,_neither_FeRa_nor_the_PWa_had_reduced_unemployment_much._Hopkins_knew_that_the_federal_government_needed_to_act_quickly._Otherwise,_many_unemployed_people_would_be_in_serious_trouble_when_winter_began._Hopkins_explained_the_problem_to_President_Roosevelt._Roosevelt_gave_Hopkins_permission_to_set_up_the_Civil_Works_administration_(CWa)._the_CWa_hired_workers_directly._It_employed_4_million_people,_including_300,000_
women._the_agency_built_or_improved_1,000_airports,_500,000_miles_of_roads,_40,000_school_buildings,_and_3,500_playgrounds_and_parks._the_program_spent_nearly_$1_billion_in_just_five_months._the_CWa_did_help_many_people_get_through_the_winter._However,_the_agency_was_spending_money_very_quickly._Roosevelt_was_concerned_about_this_spending._He_did_not_want_americans_to_get_used_to_the_federal_government_providing_them_with_jobs._Warning_that_the_CWa_would_make_the_country_dependent,_Roosevelt_insisted_that_it_be_ended_the_following_spring._Hopkins_believed_that_the_CWa_had_been_successful_during_its_short_life_because_its_workers_had_built_so_many_important_public_works_throughout_the_nation.
Success of the First New Deal During_his_first_year_in_office,_Roosevelt_convinced_Congress_to_pass_a_great_deal_of_legislation._the_First_New_Deal_did_not_make_the_country_rich_again._However,_its_programs_showed_Roosevelt’s_energy_and_willingness_to_experiment._Banks_were_reopened._many_people_were_able_to_get_loans_to_keep_their_homes_and_farms._
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Roman Civilization
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Roosevelt and the New Deal, 1933-1941
more_people_were_employed._Perhaps_the_most_important_result_was_a_change_in_the_spirit_of_the_american_people._Roosevelt’s_actions_had_inspired_hope_and_restored_americans’_faith_in_their_nation._
PROGRESS CHECKIdentifying How_did_the_relief_programs_help_combat_the_Depression?
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