The New DealForging a New Deal

Chapter 13 Section 1

Angela Brown

The New Deal became FDR’s program of relief, recovery, and reform aimed at combating problems caused by the Depression.

FDR was not sure exactly how the New Deal would work…

Restoring the Nation’s Hope

Both Eleanor and FDR smoothed public fears Second Bonus March – provided campsites

for veterans – Eleanor paid them a visit Demonstrated new administrations approach

to unrest FDR’s “Fireside Chats” – address nation on

radio the first Sunday after taking office Easy manner and confidence made people

feel better

The First Hundred Days

Had promised “bold, persistent experimentation” no one knew what that would include

From March Inaugration – June 1933 Pushed many programs through

Congress to provide relief, create jobs and stimulate economic recovery

Roosevelt

2 forms of Public communications met with press twice a week – put

achievement and plans in headlines Fireside Chats – talked about

programs and purposes to the nation

“It’s common sense to take a method and try it. If it fails admit it frankly and try another. But above all try something.”

Should government programs to help the elderly and poor be temporary responses to crisis or should they be permanent?

Closing the Banks

March 5, 1933 – FDR ordered all banks to close for next four days

Pushed Congress to pass Emergency Banking Act

Authorized the government to inspect the financial health of all banks

Government found most banks healthy – 2/3 reopened by March 15

Americans gained confidence in banking system

They began to put more money into their accounts than they took out

Allowed banks to make loans that would help stimulate the economy

June – Congress established - Federal Deposit Insurance Corporation (FDIC) to insure bank deposits up to $5000.

Confidence increased further

Providing Relief and Creating Jobs May Congress passed Federal Emergency

Relief Administration (Fera) Sent funds to overburdened local relief

agencies Gave out $5 million in first two hours in office

(Harry Hopkins) Fera put money into Public – works programs

– government funded projects to build public facilities

Nov. 1933 Civil Works Administration (CWA) gave jobs building roads, parks, airports – 4 million employed – boosted moral

March 1933 Civilian Conservation Corps (CCC) – FDR’s favorite program – 2.5 unmarried young men restored/maintained forests, beaches, and parks

CCC earned $1 a day – lived in camp free, received food, med. Care and job training

Eleanor created similar program for young women 8500 took part

Native American workers built schools, hospitals, and irrigation systems (through Indian Affairs)

Indian Reorganization Act of 1934 – ended sale of tribal lands begun under Dawes Act (1887) and restored ownership of some lands to Indian groups.

A Helping Hand to Business

National Industrial Recovery Act (NIRA) – established the National Recovery Administration (NRA) – an agency that set out to balance the unstable economy through sensible planning

Industry wide codes to spell out fair practices – regulated wages, working conditions, production, and even prices, set a minimum wage and gave organized labor collective bargaining rights (allowed workers to negotiate as a group)

Worked for a while but higher wages = higher prices – people stopped buying

Businesses soon complained that the codes were too complicated and control by the NRA was too rigid.

Best part of NIRA – Public Works Administration (PWA) – built Grand Caulee Dam on the Columbia River in Washington, Causeway connecting Key West to Florida Mainland, Triborough Bridge in NY City

Federal Securities Act – required companies to provide information about their finances if they offered stock for sale

Congress reformed Stock Market Congress set up Securities and Exchange

Commission (SEC) to regulate the stock market – tell companies what info must be included in their financial statements

Congress gave Federal Reserve board power to regulate the purchase of stock on-margin

Saving Homes and Farms

Home Owner’s Loan Corporation (HOLC) refinanced, or reshaped terms of mortgage payments more manageable – 3 year period made about one million low-interest loans

Agricultural Adjustment Administration (AAA) tried to raise farm prices through subsidies or government financial assistance

new tax used to pay farmers not to raise certain crops and animals

Saving Homes and Farms

hoped lower production would raise prices

Many people could not understand destroying food while so many were hungry – (farmers plowed under crops to get subsidies)

The TVA

Tennessee Valley Authority (TVA) – May 1933 helped farmers and created jobs in one of the country’s least developed regions

Reactivating a hydroelectric power facility started during WWI = cheap electric power, flood control, and recreational opportunities to the entire Tennesse River Valley

New Deal Personnel

Frances Perkins – Sec. Of Labor until 1945 first woman in a cabinet post –pressed for laws to help employed and unemployed

Est. Department of Labor and the Bureau of Labor Statistics – min wage, max work week, disabled workers compensation

Two dozen women held key New Deal positions

African Americans held more than one hundred policy-making posts

Mary McLeod – African American woman – highest position of any African American woman – director of the division of Negro Affairs of the National Youth Administration

Advised FDR on programs that aided African Americans

Formed Federal Council on Negro Affairs – known as black cabinet – met weekly to prioritize

Eleanor Roosevelt

Most important advisor/colleagues – traveled and reported on effect on programs

Wealthy, educated – FDR’s distant cousin – they had 6 children

During WWI volunteered Reshaped position of First Lady –

toured country in place of her husband

Eleanor Roosevelt

Held own press conferences with women correspondences

Newspaper column “My Day” drummed up support for the New Deal

At Southern Conference for Human Welfare - interracial group – refused Jim Crow laws – sat in center aisle between divided races – symbolism of act made huge publicity – embarrassed FDR

Eleanor Roosevelt

Eleanor’s activities troubled some Americans

First Lady should be a gracious hostess many came to admire her

unconventional style (Compare to Hillary Clinton – Is there

room for personal differences in the role of First Lady?)