The New Deal- Restoring Hope

• FDR’s leadership was encouraging.1. Promised government activism

2. He had an optimistic personality

3. Delivered 16 “Fireside Chats”

4. >450,000 letters were sent to the White House within weeks; an average of 5-8000/ week throughout the 30s.

• Hundred Days1. Immediately after taking office FDR called

Congress into session.

2. Over the next 100 days they passed 15 pieces of legislation

• The Banking Crisis was FDR’s 1st Concern1. On March 6, 1933 FDR declared a bank holiday,

closing ALL banks to stop massive withdrawals.

2. The Emergency Banking Act, March 9a. Authorized the government to examine all banks

b. Could reopen on March 15 is passed an inspection that showed it had enough cash reserve

c. The opening mornign, >$1 billion were deposited

3. Federal Deposit Insurance Corp (FDIC), June 1933- insured deposits up to $2500

• Farmers1. Farm Credit Administration, March 28

a. Provided low interest, long-term loans to farmers

b. Farmers paid off mortgages

2. Home Owners Loan Corp. (HOLC)a. Refinanced home loans and low rates for long

terms.

b. ~1 million homes were saved

• Unemployment1. Federal Emergency Relief Administration

(FERA), May 1933a. Gave ½ billion dollars in aid to state and local

agencies.

b. 8 million families were surviving on this assistance

c. Americans were not satisfied; they wanted jobs, not money

• 2. Civil Works Administration (CWA)a. 1033-1934 it paid $750 million in wages to 4 million

men and women.b. “Made-work” projects such as raking leaves or

picking up litter in parks.

3. Civilian Conservation Corps (CCC) 1933a. Geared toward men 18-25 (2.5 million in 10 years)b. Earned $1/day for planting tress, cleaning brush, laying out park trails, and developing campgrounds and beaches

• Economic Recovery1. National Industrial Recover Act (NIRA), June 1933-

designed to simulate industrial and business activity and lower unemployment

a. Public Works Administration (PWA)-contracted with private businesses to construct roads, public buildings, and other public works projects.

b. National Recovery Administration (NRA)-encouraged businesses to work togethr to stabilize prices, wages, hours, and production levels.

c. Was found unconstitutional in 1935.