THE GREAT DEPRESSION AND
THE NEW DEAL
Hundred Days Congress
Emergency Relief Act
Works Progress Administration
National Recovery Administration
Grand Coulee Dam
Agricultural Adjustment Administration
2nd Agricultural Adjustment Act of 1938
Wagner/ National Labor Relations Act of 1935-
What events & problems
led to the Great
What were the
consequences & results
of the Great Depression?
oHow did America
respond to the Great
oWhat businesses &
from the Great
FDR IN A POLITICAL WHEELCHAIR
Suffered from paralysis= more humble to common ppl.
Taught himself in patience, tolerance, & compassion.
Asset=his wife, she was the “conscience of the new deal”.
Worked with husband a lot. Became 1st most active 1st lady.
Influenced policies of nat’l gov. battled for the poor & oppressed.
Condemned by conservative, loved by liberals, =1 of most
FDR’s political appeal=amazing.
Great orator of time. Sponsored state funding to relieve human
struggles. Deep concern for the “plight of the “forgotten man”.
Believed $ was less worth it than humanity.
Dems. nominated FDR in June 1932. Dem platform= repeal of
prohibition, attack the Hover depression, & promised a balanced
budget & social & economic reforms.
PRESIDENTIAL HOPEFULS OF 1932
In next campaign FDR attacked the Rep Old Dealers, FDR=eager to prove
FDR consistently preached a New Deal for the “forgotten man”-(annoying
Most=writeen by “Brains Trust”-small group of reform minded ppl,
mainly college professors
FDR promised a balanced budget & scolded Hoover’s deficits.
Dems=very high-spirited found in “happy days are here” song.
Herbert Hoover=remained in WH(battling depression) Never insisted that
FDR’s victory led to nation deeper into a depression
Campaign=bad for RepsHoover took the reigns. He reaffirmed his faith
in Am. Free enterprise &individual initiative & predicted that if the
Hawley-Smoot Act was repealed, Am. Would prosper=such a down
attitude= very diff. from FDR’s optimistic attitude & promises.
HOOVER’S HUMILIATION IN 1932
o Hoover= put into office when prosperity was rising. Hoover won by a lot to FDR.
o 1 feature of election
o Beginning of a distinct shift of blacks over to the FDR camp. Blacks=the worst
off from depression. Beg in 1932, they became a vital part of the Dem party
(esp in urban centers in N.)
Hard times ruined Reps (bc 1932 election= anti-Hoover & pro-FDR
Dems let nat’l vote pull them. A lot of majority demanded change-a new deal
rather than the new deal. Any Dem. Candidate prob could have won.
The lame duck period before the inauguration began to end.
Hoover was still pres. For 4 more months, but he=helpless to start any long-
range policies wo/ cooperation of FDR, victorious pres=uncooperative.
Hoover succeeded in planning 2 meetings to discuss the war-debt situation,
FDR didn’t assume responsibility for problem. Hoover (privately said) that he
wanted to bind his successor to an anti-inflationary policy. But winner has
choice not loser.
Am. Economic force went to end . Banks were locking doors, workers
protesting, ppl stuffed $ under mattresses. Hooverites blamed FDR of
deliberately permitting the depression to worsen so he could emerge & seem
FDR AND THE THREE R’S : RELIEF,
March 4,1933- FDR broadcast provided the Am ppl with inspirational
He denounced the “$ changers” who brought on problems &
declared that the gov. must declare war on the Great Depression.
FDR moved decisively
With total responsibility, he declared a nationwide banking
holiday (March 6-10) as prelude to opening better banks.
Summoned the Dem Cong. into special cession to cope with the
nat’l emergency. For 100 Days (March9- June 16, 1933) members
cranked out a lot of remedial leg. Some derived from progressive
ideals, but mostly sought to deal with the desperate problem.
FDR THE MAN WHO CHANGED AMERICA
FDR AND THE THREE RS” RELIEF
RECOVERY , REFORM
FDR’s New Deal 3 goals=Relief, recovery, & reform
Short-range goals-relief & immediate recovery.
Long-range goals- permanent recovery & reform of current abuses
(esp. those that led to problem)
Goals of 3 R’s often overlapped & got in way of other.
New Deal program launched forward.
FDR cracked the whip
Green cong. Shared the fear of the countrythey were ready to rubber-
stamp bills drafted by the White House advisers –(measures that FDR
called must legs).
Cong. Gave FDR extreme bank-check powers
FDR=delighted to give executive leadership & cong. Responded to it.
Didn’t know always want to do, but was driven by intuition. His next play
depended on the outcome of the previous play. Public=so desperate that
any movement (even in wrong direction) was better than none.
The Frantic 100 Days Cong. Passed # essentials of the New Deal
“three R’s”. (important long range measures were added later)
Reforms owed much to the legacy of pre-WW1 progressive movement.
Many=long over due.
New Deal embraced progressive ideals- unemployment insurance, old-age
insurance, min-wage regulations, conservation & development of natural
resources, & restrictions on child labor. Few reforms mad small gains in
some of states. # of these forward-looking reforms had been adopted earlier
by W. Euro.
ROOSEVELT MANAGES THE $$$$
Banking chaos needed immediate action
Cong. Got together & made the Emergency Banking Relief Act of
1933- gave the pres the power to regulate banking transactions &
foreign exchange & to reopen banks able to pay debts.
FDR now turned to the radio to deliver the 1st of his 30 famous
Gave assurances that it was now safer to keep $$$ in reopened banks
than “under mattresses” banks unlocked their doors & ppl’s
The Emergency (100 days) Cong. Reinforced
pub.Reliance on the banking system by enacting the
Glass-Steagall Banking Reform Act.
Provided for the Fed. Deposit Insurance Co. (insured individual deposits
up to $5,000)ended the chain of bank failures.
ROOSEVELT MANAGES THE $$$S
FDR moved fast elsewhere in the finanacial area
He sought to protect the melting gold reserve & prevent panicky
Ordered all private holdings of gold to be surrendered to the Treasury
in exchange for paper $$$ & then took the nation of the gold standard.
Emergency Cong. Canceled the gold-payment clause in all
contracts & authorized repayment of paper $$$better “managed
currency” in future.
Goal of FDR’s “managed currency”= inflation (he believed it would
relieve debtors’ burdens & stimulate New production.
FDR main tool to get inflation=gold buying. Instructed the treasury to
buy gold at increasing pricestherefore increasing the price of gold,
results=policy increased # of $$$ in circulation as gold holders cashed
it in at increasing prices.
But inflationary resultprovoked the wrath of “sound-$$$” critics.
Gold-buying scheme ended in Feb. 1934- when FDR returned the
nation to a limited gold standard for purposes of internat’l trade only.
Thereafter the US pledged itself to pay foreign bills (if requested ) in
gold. But domestic circulation of gold cont’d to be banned, gold coins
became collectors’ items.
CREATING JOBS FOR THE JOBLESS
Overwhelming unemployment needed prompt action.
1/4 of ppl= jobless (highest level of unemployment in history). FDR=
not hesitant to use fed $$$ to assist the unemployed & benefit
The 100 Days Cong. Responded to FDR’s spurs with the
creation of the Civilian Conservation Corps (CCC)
=maybe the most popular of all the New Deal agencies.
Law provided employment in gov. camps for 3 mil uniformed young
men,work=useful.recruits=required to help parents by sending home
most of their payhuman & natural resources were conserved.
1st major effort of the new cong. To deal with those all unemployed=
Emergency Relief Act
main goal=immediate relief rather than long-range recovery.
Federal Emergency Relief Admin. (FERA)= handed over to
Harry L. Hopkins-(became 1 of most influential advisers). Granted
$3 billion to the states for direct sharing payments or for wages on
CREATING JOBS FOR THE JOBLESS CONT.
Immediate Relief= given 2 large groups & special groups by the 100
Agricultural Adjustment Act (ACA)-made available millions of
$$$ to help farmers meet their mortgages.
Home Owners’ Loan Corporation (HOLC)- designed to
refinance mortgages on nonfarm homes, assisted 1 mil badly hurt
households, agency bailed out mortgage-holding banks & bolted
the political loyalties of relieved mid-class homeowners securely to
the Dem party.
FDR (felt continuous plague of unemployment) Established
the Civil Works Admin. (CWA) in 1933
Branch of FERAHopkins helped.
Designed to provide temporary jobs during the cruel winter
emergency , served as a useful purpose. Put a premium on shovel-
leaning slow motionscheme=widely criticized.
A DAY FOR EVERY DEMAGOGUE
Direct relief from Washington to needy families helped pull the nation through
the rough winter of 1933-1934.
But the persistence of unemployment & suffering showed that the
emergency relief had cont’d
1 danger signal= appearance of # of demagogues (notably a magnetic
Father Charles Coughlin-catholic priest in Michigan, slogan= “social
justice”. Anti-new deal, began broadcasting in 1930.
Also notorious among new group of agitators= those who capitalized on pop.
Discontent to make extreme promises
Senator Huey P. (“ Kingflash”) Long(LA, most known)- publicized his
“share out wealth” program-promised to make “every man a king” , every
fam was to get $5000 at expense of prosperous.
H. L. Mencken called Long’s chief lieutenant, Gerald L. K. Smith the
deadliest orator ever. Ppl’s fear of Long becoming a fascist dictator ended
when he was shot in 1935.
Dr. Francis E. Townsend (CA)-retired person whose savings were
rapidly wiped out.
Attracted support of 5 mil “senior citizens” with his plan that spoke the
earth’s need. Each person >60 was to get $200 a month as long as it was
used in 1 month.
A DAY FOR EVERY DEMAGOGUE CONT.
Cong. Authorized the Works Progress Admin. (WPA)-partly to
quiet upset made by stupid proposals
Goal=employment on useful projects, launched by Hopkins
Spent $11 bil on pub buildings, bridges, & roads.
Not all projects fixed infrastructure. Small missions made critics
9 mil ppl were given jobs over the years.
WPA also found part-time jobs for needy high school &
college students & unemployed white collar workers.
Talent was nourished, self-respect was preserved, a lot of art was
made & published.
NEW VISIBILITY FOR WOMEN
Am. Women began to have a greater part in the nation’s political & intellectual
Elanor Rosevelt=most visible women in the Roosevelt White House, but
not only female voice.
Frances Perkins (sec of labor)-became 1st women cabinet member.
Mary McLeod Bethune –director of the offices of minority affairs in the
Nat’l Youth Admin, was the highest-ranking African Am. in the
Women also made great contributions in social sciences. (esp in fairly new field
Ruth Benedict- continued the work of her mentor, Franz Boas, by
developing the “culture & personality movement” in the 1930s & 1940s.
Landmark work= Patterns of Culture (1934)-established the study of
cultures as collective personalities.
Each culture had its own “more or less consistent pattern of thought &
Margaret Mead- 1 of Benedict’s student, studied adolescent ppl among
Pacific Island ppls to advance bold ideas about sexuality, gender roles,
& intergenerational relationships, 34 books, helped popularize cultural
anthropology & achieved a celebrity status rare among social scientists.
NEW VISIBILITY FOR WOMEN CONT.
Pear S. Buck- novelist who won similar acclaim.
Raised in China by presbys, introduced readers to Chinese
Best selling novel= The Good Earth (1931), earned noble prize for
Used fame to advance humanitarian causes
HELPING INDUSTRY & LABOR
Emergency Cong. authorized the Nat’l Recovery Admin (NRA)-
daring attempt to stimulate nationwide comeback
Scheme=most complex & far-reaching effort by the New Dealers
to have immediate relief & long-range recovery. Designed to help
industry, labor, & the unemployed.
Individual Industries were to work out codes of “fair
competition” under which employment hrs. were
shortenedgiving a > amount of ppl jobs.
Ceiling placed on the max hrs. of labor, flooring placed under wages to
establish min levels.
Labor under the NRA=was granted more benefits
Workers were guaranteed the right to organize & bargain collectively
through representatives that they choose. The “yellow dog” contract was
forbidden & certain safeguarding restrictions were placed on the use of
Industrial recovery through the NRA “fair competition”codes would
be at best painful bc they called for self-denial by management & labor.
Patriotism was aroused & increased
Blue eagle was designed as the symbol for the NRA.
There was an upswing in business activity.
HELPING INDUSTRY & LABOR CONT.
But the seemingly high-flying eagle gradually began to fall to earth.
Too much self-sacrifice was expected of labor, industry, & the pub for such a
scheme to work.
Critics called the NRA names, symbolized by what Henry Ford called it,
“that damn Roosevelt buzzard”.
A new age of chiselry came as some businessppl publicly displayed a blue bird
on their windows but secretly violated the codes.
Complete collapse=inevitable in 1935 when the Sup. Ct. shot down industry
Schechter “sick chicken” decision. The judges said that cong. Could not
“delegate leg powers” to the executive & declared that cong. Control of
interstate commerce could not apply to local bus. (like that of the Schechter
Public Works Administration
Goal=for industrial recovery & unemployment relief, leader= Harold L.
Ickes (sec of interior), bull mooser,
Primary purpose=long-range recovery, >$4 bil was spent on projects.
1 great achievement= the Grand Coulee Dam on the Columbia R. –largest
structure made by humans since the Great Wall. In darkness of time, the
dam seemed like a highlight. Made possible the irrigation of millions of acres
of new farmland, created > electrical power in a region with little industry &
virtually no market for additional power. The dam would come to a stroke,
transforming the region with abundant water & power.
HELPING INDUSTRY & LABOR CONT.
Special stimulants helped the recovery of 1 part of business-the liquor
The imminent repeal of the prohibition act gave an opportunity to
raise needed fed revenue & provide employment.
FDR disliked the act that the 100 Days Cong. Said that legalized
light wine & beer with a certain alcohol contentprohibition was
officially repealed by the 21 Amendment (1933).
THE CAUSES & EFFECTS OF THE GREAT
PAYING FARMERS NOT TO FARM
Farmers had been suffering from overproduction & low prices (esp. in grain). During
the depression, conditions became worse
# of mortgages were foreclosed, corn was burned for fuel.
Radical new approach to farm recovery= when the
Emergency Cong. Established the Agricultural
Adjustment Admin (AAA)
Goal= to establish “parity prices” (parity=the price set for a product that gave it
the same real power, in purchasing power) for basic commodities.
The AAA would eliminate price depressing surpluses by paying growers to
reduce their crop acreage.
The $$$ needed would be raised by taxing processors of farm products & would
in turn shift the burden of consumers.
The AAA got off to a wobbly star
Ppl misused a lot of their food (ex. Used meet as fertilizer)
This “sinful” destruction of food (at a time when ppl were hungry) increased
condemnation of the Am. Economic system by # voices
“Subsidized scarcity”raised farm income (but got a lot
Farmers, food processors, consumers, & taxpayers=
Paying the farmers to not farmincreased unemployment, at a time when other
New Deal agencies were trying to decrease it.
Sup Ct. killed the AAA in 1936-by declaring its regulatory taxation provisions
PAYING FARMERS NOT TO FARM CONT.
The New Deal Cong. Tried to pass the Soil Conservation &
Domestic Allotment Act of 1936 (to try to recover)
Withdrawal of acreage from production= achieved by paying
farmers to plant soil-conserving crops.
With emphasis on conservation, the Supreme Ct. approved it.
The 2nd Agricultural Adjustment Act of 1938= more
Comprehensive substitute (still continued conservation
If growers observed acreage restrictions on specific
commodities, they would be eligible for parity payments
, designed to give farmers a fairer price & a more
substantial share of the national income.
Both goals= partially achieved.
DUST BOWLS & BLACK BLIZZARDS
Nature had been somewhat scarce
Late in 1933-there was a drought in states of the trans-Mississippi Great Plains,
rainless weeks followed, windy weather, & dust bowls.
Drought & wind triggered the dust storm but were not the only causes.
High grain prices during WW1 enticed farmers to buy a lot of acres of marginal land
Dry farming techniques & mechanization had revolutionized Great Plains ag. Steam
tractor & disk plow tore up the sod leaving dust in the air.
Refugees fled their ruined acres (burned & blown out)
In 5 yrs, 350,000 Oklahomans & Arkansans went to S. California.
Shown in John Steinbeck's The Grapes of Wrath (1939)
New Dealers=zealous & sympathetic toward soil-tillers, made # efforts to relieve their
The Frazier-Lemke Farm Bankruptcy Act (1934)- made possible a suspension of
mortgage foreclosures for 5 yrs, but was voided in 1935 by Supreme Ct, a revised law
limiting the grace period was issued
Resettlement Admin (1935)- the pres. Had to remove near-farmless farmers to better
land. >200 trees were successfully planted on bare prairies by the Civilian Conservation
Native Ams. Felt the far-reaching hand of the New Deal reform
John Collier-(Commissioner of Indian Affairs), sought to reverse the forced-
assimilation policies in place, he promoted the Indian Reorganization Act of 1934-
encouraged tribes to establish local self-gov & to preserve their native crafts &
traditions, helped to stop the loss of Indian lands & revived tribes’ interest in culture &
identity. Not all Indians were , some refused to accept it.
BATTLING BANKERS & BIG BUSINESSES
Reformist New Dealers= determined to curb the “$$$
changers” (who played loose & fast with gullible investors)
“Truth In Securities Act”-required promoters to transmit to the
investor sworn info. about the soundness of their stocks &
bonds.(passed by the 100 days cong)
1934-cong. took further steps to protect the public against fraud,
deception, & inside manipulation.
Authorized the Securities & Exchange Commission (SEC)-
designed to act as a watchdog admin agency. Stock markers were
to operate more as trading marts & less gambling.
New Dealers directed their hate at public utility holding co. (super
Possibilities of controlling with a min. of capital.
The Public utility Holding Co. Act of 1935- delivered a “death
sentence” to this type of bloated growth, except where it was
THE TVA HARNESSES THE TENNESSEE
The sprawling electric-power industry attracted the interest of New Deal
Rose from nothing to a lot in a few decades.
As a pub. Utility, it reached directly & regularly into the wallets of
tons of consumers for vitally needed services.
Passionate New Dealers accused it of taking from the public at
The Tennessee R. provided New Dealers with a rare opportunity.
Had good tributaries, was in a poor region.
By developing hydro-electric potential of the entire area, Washington
could have get immediate advantages (putting ppl to work) & long-
term project for reforming the power monopoly.
Tennessee Valley Authority (TVA)- 1933 passed by the 100 Days
Result of the vision & zeal of George W. Norris of Nebraska.
TVA=the most revolutionary of all the New Deal schemes.
New agency (TVA)= determined to discover precisely how much the
production & distribution of electricity costs, so that they could test the
fairness of rates charged by private companies.
Utility corps. Lashed back charging that the low cost of TVA power
was due to dishonest bookkeeping & the absence of taxes.
THE TVA HARNESSES THE TENNESSEE
The New Dealers pointed a prideful finger at the amazing
achievements of the TVA
TVA brought full employment, blessings of cheap electric power,
low-cost housing, abundant cheap nitrates, the restoration of
eroded soil, reforestation, improved navigation, & flood control.
Rivers & poverty stricken areas were transformed. The idea of
hydro-electric power from dams would drive growth of the Urban
West, & the waters would nurture the land.
The conservative reaction against the “socialist” New Deal would
confine the TVA’s brand of federally guided resource management
& comprehensive regional development to the Tennessee Valley.
HOUSING & SOCIAL SECURITY
The New Deal created new policies for housing construction
Federal Housing Admin-1934, to speed recovery & better homes,
set up by FDR.
The building industry was to be stimulated by small loans to
householders, to improve their dwellings & complete new ones.
FHA= so popular, 1 of the few agencies to outlast FDR
Cong. Bolstered the FHA program in 1937- by authorizing the United
States Housing Authority (USHA)-an agency designed to lend $$$ to
states or communities for low-cost construction.
New buildings fell greatly short of ppl’s needs. New Deal efforts to
expand the project met opposition from real estate promoters,
builders, & landlords.
For the 1st time in a century, the slum areas in Am stopped growing &
Republican opposition to the sweeping new leg=bitter
The GOP national chairman falsely charged that every worker would
have to wear a metal dog tag for life.
Social Security was greatly inspired by the ex. Of some of the more highly
industrialized nations of Europe.
By 1939- ?45 mil ppl were eligible for social security benefits & in a
few yrs, workers were added & the payments to them were increased.
Am workers had to be employed to get coverage
A NEW DEAL FOR LABOR
The NRA blue eagles(called for collective bargaining) had been a helpful
force of organized labor
New Deal principles brought some slackening of unemployment,
labor began to feel more secure & more self-assertive.
Summer of 1934- series of walkouts occurred. Strike in San Francisco.
When the Supreme Court ended the NRA, cong, sympathetic to labor
unions attempted to fix it.
Wagner/ National Labor Relations Act of 1935-(fruit of cong.
attempts)-created a powerful new Nation Labor Relations Board for
admin purposes & reasserted the right of labor to engage in self-
organization & to bargain collectively through representatives of its
Wagner Act= 1 of the real milestones on the rough road of the U.S.
Under the encouragement of a very sympathetic National Labor Relations
Board, a # of unskilled workers began to organize themselves into
Leader-John J. Lewis-boss of the United Mine Workers. 1935-
formed the Committee for Industrial Organization (CIO). But skilled
workers had only shown some sympathy for the cause of unskilled
labor. In 1936- friction with the CIO prohibited the establishment of
unions associated with the newer association.
FRANKLIN D. ROOSEVELT & THE NEW DEAL
Impact of the NEW Deal
A NEW DEAL FOR LABOR CONT.
The Rebellious CIO moved on a scale into a huge automobile industry
Late in 1936- the workers resorted to a revolutionary technique-the sit-down
strike:they refused to leave the factory building of General Motors at Flint,
Michigan, & prevented the importation of strikebreakers.
Conservative respecters of private property were scandalized. The CIO won a
victory when its union, was recognized by General Motors as a sole bargaining
agency for its employees.
Unskilled workers now pressed their advantage
The US Steel co. went on costly strike when it voluntarily granted rights of
unionization to its CIO-organized employees. steel co. fought back. 1937- the
Memorial Day massacre at the plant of Rep. Steel co. in S. Chicago
Fair Labor Standards Act (1938)-better deal for labor continued.
Industries involved in interstate commerce were to set up min-wage & max-hr
Goals= 40 cents an hr & a 40 hr week
labor of children under 16= forbidden.
Reforms=opposed by many industrialists, (esp those in S. textile
manufacturers who profited from low-wage labor)
The exclusion of ag. Service, & domestic workers meant that blacks, Mexican
Ams., & women did not benefit bc they weren't concentrated in these fields.
A NEW DEAL FOR LABOR CONT.
In later New Deal days, labor unionization thrived
Pres. encouraged unionization, pres got great support at voting
time from labor leaders & many appreciative working ppls.
The CIO surged ahead, totally separating from the AF of L in 1938.
The Committee for Industrial Organization=formally
reconstituted as the Congress of Industrial Organizations (the
new CIO) under the presidency of John J. Lewis.
By 1940- the CIO had 4 mil members in its unions. Still bitter
feuding continued with the AF of L.
LONDON CHALLENGES “THE CHAMP”
As the pres. Campaign of 1836 neared, the New Dealers were on top of the world
They achieved great progress, millions were grateful to their great gov. Dems
renominated FDR on platform for New Deal.
Republics= hard-pressed to find someone to nominate for pres.
Nominated Alfred M. Landon-moderate , accepted some New Deal reforms
(not Social security Act), condemned the New Deal platform of FDR for its
radicalism, experimentation, confusion, & waste.
FDR denounced the “economic royalists” who sought to “hide behind the flag of
the constitution”, he welcomed their hatred.
Landon lost by A LOT
Democrats were returned to cong. Democrats now got >2/3 of cong.
The battle of 1936-the needy economic groups were lined up against the greedy
CIO units contributed a lot to FDR’s win. Many left-wingers turned to FDR.
Blacks had now been shaken off of their traditional allegiance to the Rep.
FDR won mainly bc he appealed to the “forgotten man”.
Some of his supporters weren’t very passionate- “reliefers”.
FDR had forged a powerful & lasting coalition of the South, blacks, urbanites,
& the poor. =esp effective in marshaling the support of the multitudes “new
immigrants”-mostly catholics & jews who came to city. FDR appointed
NINE OLD MEN ON THE BENCH
FDR took pres. Oath on Jan. 20,1937.
FDR interpreted his reelection as a mandate to continue New Deal
reforms. But thought old men stood in way of path.
In 9 major cases, the FDR admin had been prevented from succeeded
7 times. Court=ultraconservative
FDR had impatience of the obstructive conservatism of the court.
Felt that men were hanging on, FDR felt that voters called for reform.
In his eyes democracy meant rule by the ppl. If the Am way of life was
to be preserved, FDR thought that the Supreme Court would have to
get in line with the supreme court of pub. opinion.
FDR finally got a court case that he regarded as an answer to prayer.
= 1 of the most costly political misjudgments of his career. 1937,
FDR asked cong. For leg to permit him to + a new justice to the
Supreme Ct. for every member >70 who would not retire. Max
membership could only be 15. FDR said they needed new blood.
Charge which turned out to be false, brought accusations of
dishonesty. FDR=headstrong & not fully aware of the fact that the Ct.
had been sacred.
THE COURT CHANGES COURSE
Cong. & the nation= promptly convulsed over te scheme to “pack” the Supreme Ct.
with a “dictator bill”
FDR was written about abusively for attempting to break down the checks &
balances among the gov. accused of trying to be dictator. To citizens, mostly
Reps but some Dems saw basic liberties in jeopardy.
Meanwhile, the court had seen the end of it near
Justice Owen J. Roberts (formerly a conservative) began to vote on the
side of his liberal colleagues.
March 1937- the Ct. upheld the principle of a state min wage for women.
FDR’s “court-packing”= more undermind when cong. Voted full pay for justices
>70 who retired , 1 of oldest retired & was replaced.
Cong. Passed a court reform bill (only applied to lower courts)
FDR suffered his 1st major leg defeat at the loss of his own party in cong. Yet
FDR incidentally won his campaign. The cong. became more receptive to his
New Deal reforms. Succession of deaths & resignations enabled him to make 9
appointments to the tribunal .
FDR lost both the Court Battle & war
He aroused conservatives of both parties in cong. That few New Deal reforms
were passed after 1937. he ruined much of the political goodwill that got him
to win in 1936.
TWILIGHT OF THE NEW DEAL
FDR’s 1st term (1933-1937) did not get rid of the Depression
Unemployment continued, & recovery had been modest.
In 1937- the economy took a sharp downturn-severe depression
New Social security taxes took $$$ away from payrolls & as the admin cut back on
spending out of continuing revenue.
Only at this late did FDR embrace the recommendations of the British economist John
New Deal had worked a little but not much, in April 1937- FDR announced a bold
program to simulate the economy by planned deficit spending. This abrupt policy reversal
marked a major turning point in the gov’s relation to the economy.
“Keymesianism” became the new economic orthodoxy & remained so for decades.
FDR meanwhile had been pushing the remaining measures of the reform measures of the
Early 1937- he urged cong. To aurthorize a reorganization of national admin in the
interests of streamlined efficiency. Issue became tangled up with autocratic ambitions of
Supreme CtFDR lost
1939-cong. Gave him limited powers for admin reform in the Reorganization Act.
The New Dealers were accused of having the richest campaign chest in history
Cong. Adopted the Hatch Act of 1939- barred fed admin officials, except the highest-
policy making ppl, forbade the use of gov. funds for political purposes & collection of
campaign contributions from ppl receiving relief payments.
Hatch Act= broadened in 1940 to place limits on campaign contributions & expenditures
TWILIGHT OF THE NEW DEAL CONT.
By 1938, the New Deal lost most of its early momentum
FDR ran out of reform movements. In cong. Election of 1938, the
Reps for the 1st time cut into the New Deal majorities in Cong.
1938-1939- International crisis came to boil, shifted pub attention
away from domestic reform & helped save FDR political rep. the
New Deal had ended
NEW DEAL OR RAW DEAL?
Foes of the New Deal condemned its wasted, incompetence,
confusion. Said FDR did nothing.
FDR= further accused by conservatives of being Jewish & of
tapping too many Jewish leftists
Hardheaded business ppl were shocked by the lea-before-you-
look. They accused him of confusion noise, others appreciated
“bureaucratic meddling”= complaints of New-Dealers.
Bureaucracy did blossom.
The fed gov. became the largest single business in the country
Promises of budget balancing totally disappeared.
The national debt had increased greatly. America was trying to
squander back prosperity. Their wish-bones were becoming bigger
than their back-bones. Hard-pressed workers went West for relief.
NEW DEAL OR RAW DEAL? CONT
Accusing the New Deal, conservatives insisted that the
laborer & farmer were being pampered.
Business ppl (esp Reps) said that they could pull
themselves out of the depression if they had the fed gov.
they said private enterprise had been stifled by “planned
economy”. States’ rights were being ignored.
The aggressive leadership of FDR eventually became
Directed at his attempts to intimidate the Supreme Ct. &
create a “dummy congress”.
Most damning indictment of the New Deal=if it failed
to cure the depression
Many economists believed that it would’ve ended better if
there was great deficit spending. The gap was not closed
btwn production & consumption.
A lot of farm surpluses.
FDR’S BALANCE SHEET
New Dealers defended their record.
Admitted that there was some waste, said that relief had been the
main goal of their war on depression. Argued that it had been
Apologists for FDR declared that they New Deal had relieved the
worst of the crisis in 1933.
Promoted idea of “balancing the human budget” & accepted the
principle that the fed gov. was morally bound to prevent mass
hunger & starvation by “managing” the economy. The Washington
regime was to be used not feared.
FDR should have been the business tycoons’ saint
He had pop resentment against business & may have saved the
Am system of free enterprise. His quarrel was with capitalists not
CHAPTER 33 REVIEW!!!!!!
1. FDR was mainly concerned with the rights of what social class?
a The upper class
b The “forgotten man”
2. The program that promised a balanced budget & scolded Hoover’s beliefs?
a New Deal
b Civil Service Commission
3. Suffered the most as a result of the depression
a Irish immigrants
b White Peasants
e Big business corporations
4. All of these are goals of the New Deal except:
b immediate recover
c greater control of big businesses over society
d permanent recovery
e reform of current abuses
5. What act gave the president the power to regulate banking transactions & foreign exchange & to reopen banks to
a National Labor Relations Act of 1935
b Emergency Banking Relief Act of 1933
c Fair Labor Standard Act
d Hatch Act of 1939
CHAPTER 33 REVIEW CONTINUED!!!!!!
6. What Emergency (100 days )Congress reinforced public reliance on the banking system with
a Hatch Act of 1939
b Emergency Banking Relief Act of 1933
c Fair Labor Standards Act
d Glass-Stegall Banking Reform Act
7. What was FDR’s goal for “managed currency”?
b free enterprise
d increased circulation of money
8. The Civilian Conservation Corporation provided employment in government camps for 3 million
young uniformed men…
a they were required to send $$$ they made back home
b they were allowed to keep the $$$ & spend it how they wanted
c conserved natural resources
d both a & c
e a, b, & c
9. True/ False- The goal of the Emergency Relief Act was long-term relief rather than immediate
10. Who became one of the most influential advisers?
a Harry Hopkins
c Margaret Mead
d Ruth Benedict
11. True/False- The Civil Workers Administration gave temporary jobs during the winter
CHAPTER 33 REVIEW CONTINUED!!!!!!
12.The Works Progress Administration was created to…
a arouse public opinion & hatred upon factories
b quiet upset made by stupid proposals
c employ a lot of people on useful projects & give them jobs
d both b & c
13. The 1st women cabinet member
a Mary McLeod Bethune
b Eleanor Roosevelt
c Frances Perkins
d Margaret Mead
e Pear S. Buck
14. Responsible for developing the personality & culture movement, wrote Patterns of Culture
a Eleanor Roosevelt
b Pear S. Buck
c Frances Perkins
d Margaret Mead
e Ruth Benedict
15. True/ False- The National Recovery Administration attempted to stimulate nationwide
comeback & help industry, labor, & those unemployed.
CHAPTER 33 REVIEW CONTINUED!!!!!!
16. This Administration was created to make “parity prices” for basic commodities & elimiate price
a Agricultural Adjustment Administration
b Public Workers Administration
c Civil Workers Administration
d Works Progress Administration
17. This organization was created to discover the exactly how much production & distribution of electricity
costs, so they could test the fairness of rates charged by private companies
18. True/ False- the National Labor Relations Act of 1935 made powerful new nation labor relations board
for administrative purposes & reasserted the rights of labor to engage in self-organization & bargain
collectively through representatives they could not choose.
19. The goal of this act was to establish a 40 hr week & 40 cents an hr pay. It was opposed by many
industrialists, & excluded agricultural service & domestic workers therefore Mexican Americans, blacks, &
women did not benefit.
a Glass-Stegall Banking Reform Act
b Fair Labor Standards Act
c National Labor Relations Act of 1935
d Emergency Relief Act
CHAPTER 33 REVIEW CONTINUED!!!!!!
20. True/ False- the Hatch Act of 1939 barred fed officials, allowed them to use government
funds for political purposes & collection of campaign contributions from ppl receiving relief