Docstoc

HSC Modern History_ USA 1919-41_ Part Two The Great Depression and

Document Sample
HSC Modern History_ USA 1919-41_ Part Two The Great Depression and Powered By Docstoc
					HSC Modern History, USA 1919-41, Part Two

The Great Depression and its impact

Effects of the Depression on different groups in society: workers, women, farmers, Afro-Americans

The Nature of the Great Depression

        Described by the historian A Maldwyn Jones in 1995;
              o ‘Infinitely more severe than previous slumps, it affected more people and lasted longer’
              o ‘Misery and want stalked the entire country’
              o ‘During the 1920s Americans had enjoyed the highest standard of living ever attained anywhere. Then, almost
                   overnight, the world’s richest country plunged into destitution’
        Unemployment accelerated in the early 1930s: 8m unemployed by mid 1931; 13m unemployed by mid 1932; 14m or a
         quarter of the workforce unemployed by mid 1933
        Between 1929 and 1933;
              o Industrial production was cut by more than half
                            Eg employees of the United States Steel Company reduced to working one day a fortnight for less than $2
                             a week in Indiana by 1933
                            Eg total Ford employees declined from 120,000 to <40,000
                                       Detroit became ‘clogged with dead tissue... and its life is bleeding away’ an observer
              o Real incomes dropped by more than a third
              o Average weekly wage in the manufacturing industry dropped from $24 to $16
              o 5000 banks closed w the savings of 9m lost
              o Residential construction fell by 80%
        Led to a deteriorating quality of life, adverse social effects and emotional despair
              o ‘The depression has got me licked. There is no work to be had. I can’t accept charity and I am too proud to appeal to
                   my friends and I am too honest to steal. So I can see no other course’ suicide note of a mechanic in Houston,
                   autumn of 1930
              o ‘No one can live and work in New York in this winter without a profound sense of uneasiness’ university professor
                   in New York, December 1932
        ‘Most of the rich remained quite comfortable... throughout the Depression decade’ Historian Robert McElvaine

The Effect of the Great Depression on Workers

Background
       Quality of life in the working class was relatively poor prior to the GD
              o Extensive inequality: wealthiest 1% gained 20% of total national income
              o Extensive poverty: 6m families existed on or below the national poverty line, earning less than $1,000pa in 1920s;
                  60% of the population living on or below the national poverty line at time of Hoover’s inauguration in 1929
              o Poor working conditions and wage rates: lax safety regulations caused 25,000 deaths and 100,000 permanent
                  disabilities annually; due to prevalence of yellow dog contracts, paternalistic approach to employment (‘welfare
                  capitalism’ or the ‘American plan of employment’)
              o Instability in employment due to technological changes
              o Resulting from: policy of ‘rugged individualism’, laissez-faire economic policies, lack of government support for
                  labour (eg legislation banning child labour ruled unconstitutional by Supreme Court in 1920s)
              o Despite 50% rise in disposable incomes between 1922 and 1928
       Climate of limited support for workers
              o Anti-unionism emerged w the Bolshevik Revolution (1917), increased immigration intake following WWI, frequent
                  strikes throughout 1919, 1920
                             Eg in summer of 1919, 1 in 5 workers were on strike
              o Resulted in a decline in union-membership from 5m (1920) to 3.5m (1929)
Employment
       ‘If one defines failure as the inability to provide a minimum standard of living for a large part of the population... then the
        economic did not ‘almost’ fail, it did fail’ Historian David Shannon
       Unemployment accelerated from 1.5m or 3% of the workforce (1929) to a peak of 13m or 25% of the workforce (1933)
              o This approached 50% in capital-producing cities such as Detroit and Chicago
                             Eg 100,000 workers laid off by 1929 and 220,000 laid off by 1931 w 260,000 initially employed by General
                              Motors, Detroit
              o This was particularly prevalent in such industries as manufacturing and agriculture
                             Eg 70% fall in employment in the manufacturing industries in 1929 alone
              o This was particularly prevalent amongst AA workers
                             Eg in Chicago; 4% of the population, 16% of the unemployed
              o This was accompanied by underemployment as a third of the employed were part time by 1931
              o This was not countered by unemployment insurance or public relief
                             ‘Public relief was woefully inadequate’ Historian David Shannon
              o This rate did not drop below 10% under 1941
               o    Due to a substantial fall in business investment and profits
                              Eg business investment fall from $24b to $3b between 1929 and 1933
                              Eg corporate profits fell from $3b to $0.6b between 1929 and 1932
                              Eg industrial production fell by almost 50% between 1929 and 1932
         Affected workers of all classes, particularly those of the middle and working classes
                o ‘It is mistake to think that the only people hard hit by the depression were those marginal members of society
                    before the calamity struck… the Depression affected all classes of American society to a greater or lesser degree’
                    Historian David Shannon
         ‘If something is not done and starvation is going to continue the doors of revolt in this country are going to be thrown open’ a
          Labor leader, 1933
Society
        Spurred growth of radical political groups amongst workers (eg communism, fascism, anarchism)
             o ‘Communism had filtered through to a large part of the labour world as the only hope in the midst of despair’
                  Historian Robert Goldstein
                             Eg membership of the Communist Party rose from <10,000 (1930) to >20,000 (1934)
             o Popularity obtained by extremists leftist/rightist, xenophobic, racist organisations
                             Eg the Black Shirts, Silver Shirts, White Shirts, Khaki Shirts
                             Eg totalitarian regimes brought forward ‘men of far greater intelligence, far stronger character and far
                              more courage than the system of elections’ President of Columbia University
             o Spurred by widespread hunger, low standard of living and desperation
                             Eg ‘Some people actually starved to death in the United States during the Depression’ Historian David
                              Shannon
                             Overcrowding due to widespread eviction, destruction of homes
                                        Eg 12+ people living in a 3 bedroom apartment was regarded as normal by the NY Department
                                         of Health by 1933
                             Significant homelessness
                                        Eg ‘several hundred’ homeless women reported sleeping in city parks in Chicago by 1931
                                        Shanty towns of ‘Hoovervilles’ sprung up in cities across the country
                             Deteriorating working conditions
                                        Eg child labour became more prevalent as industry, families became more desperate
                                        Eg clothing of a steel worker caught fire at least once a week
                                        ‘In Georgia, a concentration camp was built for pickets’ Historian William Manchester
        Spurred growth in union membership and activity
             o Initially an exasperated response to organised labour
                             ‘During the early 1930s, labour was being attacked and there was little organisation’ William Manchester
                             Eg 6% of the workforce affiliated w the American Federation of Labor in 1929
                             Eg only 10% of the workforce was unionised in 1933
             o Demonstrated by:
                             Growth in the number of strikes and the response received from >2,000 (1934), largely violent and
                              unfavourable response to almost 5,000 (1937) w 80%+ receiving a favourable response
                             Growth in union membership from 3.5m (1929) to 8m (1938)
             o Deterred by:
                             Fear; ‘when he *Matthew Josephson+ asked *unemployed+ residents of a municipal why they didn’t
                              protest about their conditions, the men replied: ‘We don’t dare complain about anything. We’re too
                              afraid of being kicked out’’ Historian Robert Goldstein
                                        Eg 2 strikers of the Republican Steel Company killed in Ohio in 1937
                                        Eg 4 strikers killed, 8 strikers injured on Memorial Day Massacre in South Chicago
                             Means of intimidation such as strike breakers, private armies and ‘company spies’
        Spurred a split in the union movement
             o Split in American Federation of Labor occurred at its 1935 convention
                             Some believed that the movement should incorporate unskilled workers
                                        Formation of the Committee on Industrial Organisations (CIO) in 1935; evolved into the
                                         Congress of Industrial Organisations in 1937
                                        Under leadership of labour leader John Lewis
                                        Claimed almost 4m members by 1937
                                        Inclusive of unskilled workers from mass producing industries (eg automobiles, steel, glass)
                             Some believed that the movement should remain exclusively skilled
Workers and the New Deal
        Government initiatives to manage industrial relations include:
             o National Recovery Administration (June 1933)
                             As established under the National Industrial Recovery Act
                             Attempted to maintain labour standards through the creation of voluntary ‘codes of fair competition’ for
                              industry regarding production limits, wage levels, working hours, prices, trade union rights
                                        Those involved put blue eagles on their packages to press other companies to become involved
                                        By 1934, 500+ codes had been established, 20m+ employees working under such codes
                             Aimed to reform capitalism
                             Only moderately successful as various trade associations were on its committees, w only 10% labour
                              representation, 1% consumer representation
                             ‘The best that could be said of the NRA was that it held the line for a time against further degradation of
                              labour standards’ Kennedy
                             Ruled unconstitutional by the Supreme Court in May 1935
              o    National Labour Relations Act (July 1935)
                             Attempted to provide framework for the protection of workers
                             Established the National Labour Relations Board which granted workers the right to join and establish a
                              trade union, to bargain collectively and to use industrial action and was assigned the power to bargain on
                              behalf of workers, stop companies from using blacklists and company unions
              o    Walsh-Healey Public Contract Act (1936)
                             Effective in setting minimum wages for government contracted companies, establishing an 8-hour
                              working day and a 40-hour working week and enforcing the abolition on child labour
              o    Initiatives such as the Civilian Conservation Corps (May 1933), Public Works Administration (June 1933), Civil Works
                   Administration (November 1933) and Works Progress Administration (April 1935) to create employment

The Effect of the Great Depression on Women

Background
       Proportion of women in employment had increased in the early 1900s
             o Eg from 18% of the workforce (1900) to 22% of the workforce (1930)
             o Eg 10m women working in the 1920s
       Female workforce predominantly engaged in traditional industries (eg teaching, textiles, domestic service), comprised of
        single women in their 20’s
       Encountered discrimination in labour force and society
             o Eg failure of the Equal Rights Amendment Act in 1923, which proposed full economic and social rights for women
             o Eg Supreme Court ruled state legislation attempting to establish a minimum wage for women as unconstitutional
       Newly established rights and freedoms emerged in the 1920s
                                                                                                 th
             o Eg gained right to vote, participate in the political progress w passing of the 19 amendment in 1920
             o Encapsulated in the image of the flapper
                          Demonstrated a revolution of the morals, manners, dress of young women
                          Inclusive of women from the working and middle classes
                          Representative of the ‘new woman’, characterised by a distaste for traditional dress and behavioural
                           codes, short bobbed hair, knee length skirts
                          ‘The outstanding characteristic of the flapper is not her uniform but her independence and her will to be
                           prosperous’ journalist Samuel Crowther
Employment
       Predominantly adverse effect upon plight for female equality, emancipation
       Trend of more women, including married women, working
             o Eg married women working rose from 12% to 16% during the 1930s
             o Eg by 1930, almost a quarter of the workforce was comprised of women
             o Women became more profitable to hire as they were cheaper, were engaged in industries less affected by the GD
             o Intended to supplement small or no income earned by male breadwinners
             o Significant growth in women’s participation in the clerical industry
                          Eg one third of white women working in clerical sector by 1940s
             o Such women were often victimised, considered a threat to employed/unemployed men
                          Some states imposed restrictions upon working women
                          Eg in a 1936 poll, 82% of responders said that women should not be working
       Many women became unemployed, homeless, underpaid during the GD
             o Particularly at its outset
                          Eg middle class families laid off domestic servants almost immediately
             o Eg 2m single women unemployed by 1932
       Reduced opportunity for educated women (teachers, librarians, nurses, etc) to enter the workforce
       AA and native American women experienced substantial unemployment, barriers to employment
             o Eg only 1% of AA female workers were employed in white-collar industries
       Increased female participation in unions
             o Eg an additional 500,000 women became members of trade unions during the 1930s
             o Demanded improved working conditions and an equal wage
Women and the New Deal
       Granted a role model and advocate for the feminist cause; Eleanor Roosevelt
             o Encouraged female participation in the construction and administration of New Deal programs
                          Eg Mary McLeod Bethune headed the Division of Negro Affairs in the National Youth Administration
                          Believed that ‘women should not be judged, when it comes to appointing them or electing them, purely
                           because they are women’
             o Held 300+ press conferences for women only, compelling newspapers to hire female journalists
                          Such conferences were directed at women and encouraged feminine political opinion
              o  Administered ‘She She She’ camps, a program parallel to the male-only CCC and which employed urban women in
                 outdoor nature-based activities
                          90 residential camps benefited 5,000 women yearly by 1936
             o Ensured women’s inclusion in the National Youth Administration and Federal Arts Program
             o Encouraged female participation in the labour force, particularly in unconventional industries
                          ‘If I were of debutante age, I would enter a factory where I could learn a skill and be of useful’
                          Argued that all people have the right to work and be productive
             o Administered government funding for the construction of childcare centres
        New Deal programs did not greatly improve the quality of life, employment prospects of women
             o Gender-based wage differentials confirmed by the minimum wage and conditions established by the NRA (1933)
                 and Fair Standards Act (1938)
                          Wage rate for women receiving below the minimum improved
                          Permitted a gender-based wage differential of up to 30%
                          Eg by 1939, a female school teacher earned an average of 20% less than her male counterparts
             o Welfare benefits instituted by the Social Security Act (1935) assisted widows, unemployed and divorced women
                          This included the Aid to Dependent Children, an organisation that provided support for women, children
                           of families whose husbands, fathers had abandoned them
                                     AA women excluded in some areas, young women experienced humiliation in gaining relief
        New Deal programs did benefit women to a minor degree
             o Eg Women’s and Professional Division of the WPA offered educated women careers in white-collar occupations,
                 including teachers, librarians, nurses
             o Eg White House conference on the Emergency Needs of Women, instigated by ER, established employment for
                 women in distributing food and clothing to the poor
                          2,600 women participated in a program in Mississippi, sewing up to 4m garments (as suggested by
                           Historian Anthony Badger)
        New Deal did enable greater female participation in the public service
             o Eg Frances Perkins was the first woman to be appointed to the Cabinet, as occurred under FDR
             o Eg first female ambassador appointed, increased female federal judges under FDR

The Effect of the Great Depression on Farmers

Background
         Agricultural sector experienced recession throughout the 1920s
               o Due to: an increasing mechanisation of industry; high supply relative to demand w declining population growth,
                    recovery of European markets, increasing level of production (eg by 1930, the agricultural industry produced 4x its
                    level in 1900); lack of government intervention (eg McNary-Haugen Bill passed twice through Congress in 1927 but
                    vetoed by President Coolidge)
               o Characterised by: decline in agricultural prices (eg decline in cost of corn from $1.50 a bushel in 1918 to 50c a
                    bushel in 1920); decline in total farm income from $10b (1919) to $4b (1921); decline in rural share of national
                    income from 15% (1920) to 9% (1928); increase in farm foreclosures (eg 100,000 farm foreclosures 1920-24); high
                    levels of debt; mass migration to urban centres (eg 2m farmers left countryside for cities in 1920s)
         Large ‘farmer’ population w 40% of the nation’s population, states regarded as rural in 1920
Declining Prices and Quality of Life
         Demand for food plummeted further w the onset of the GD
               o Anecdotal evidence suggests that a wagon of oats could not buy a $4 pair of shoes
               o Eg total receipts from the tobacco crop in 1932 were a third of what they were in 1929
               o Eg price of pigs recorded its sharpest yearly fall in the mid-western corn belt in 1931
               o ‘In the fall of 1932, many farmers found that to transport their products to the market and sell them would only put
                    them more in the red... while starvation was a real possibility in the cities, some farmers used their corn for fuel’
                    Historian David Shannon
         Plummeting profits, inclining losses led to a declining quality of life in rural areas
               o Times described as ‘tough as jail house stew’ in Mississippi
               o Rural farmers’ union leader Ed O’Neal proposed in 1933 that unless something was done to improve the rural
                    situation, ‘we will have a revolution in the countryside within less than twelve months’
               o Eg 300 desperate farmers rioted in Arkansas in January 1931 proposing that they had been forced to loot food
                    because they had not been provided w any
               o Eg judge attempting to foreclose a farm mobbed by 600 farmers masked in blue handkerchiefs who smeared him w
                    tractor grease and attempted to hang him in Iowa in April 1933
               o Described by a song written by Bob Miller in the 1930s
                              ‘Seven cent cotton and forty cent meat, how in the world can a poor man eat? Poor getting poorer all
                               around here, kids coming regular every year’
Dustbowl of the Mid-West
         Period of severe dust storms occurred throughout 20s and 30s, exacerbating poor agricultural yield and quality of life in the
          Great Plains of the mid-west
               o Statistical evidence:
                              Dust storms encountered in <100 counties in mid-1920s, >700 counties in 19+ states by 1934
                              Increase in major dust storms reported by the weather bureau from <15 (1932) to >35 (1933)
                              20 dust storms occurred simultaneously on April 14, 1935 or ‘Black Sunday’
                              >175 dust storms in April 1933 alone
                              Affected up to 100m acres of agricultural land in total
              o ‘The dust was everywhere, you would have to sweep it out, shovel it out. The dust storm would come every few
                    days. You couldn’t see – it was like smoke, only it was red’ Loye Stoops, young woman from Oklahoma
              o Occasionally blanketed cities on the east coast in layers of dust
              o Endured throughout the mid-western states, particularly Texas, Oklahoma, New Mexico, Colorado, Kansas
        Causes of an increased intensity and frequency of dust storms include:
              o Exploitation of farm land and consequent erosion of land
                              Immigration to the region accelerated between 1900 and 1930 following an unusually fertile period,
                               booming agricultural prices during WWI
                              European methods of cultivation were unsustainable, dried out the land
              o Four distinct periods of drought (1930-31, 1934, 1936, 1939-40) exacerbated erosion of land
                              Ordinary rain pattern returned to the area by 1941
                              Particularly severe in Arkansas, Oklahoma, Nebraska, North and South Dakota
                              Compounded by strong winds, high temperatures, low humidity, hurricanes, tornadoes
        Effects of an increased intensity and frequency of dust storms include:
              o Perpetuation of a cycle of disadvantage, poverty and homeless for affected farmers
                              Due to an increase in debt levels and foreclosures
              o Displacement of agricultural families
                              Eg 500,000+ became homeless w increased foreclosures, destruction of homes
                                         >40% were tenant farmers owned by larger enterprises and thus vulnerable to foreclosure
                              Mass migration to urban areas on the west and east coasts
                                         Eg 2.5m farmers moved to urban areas in search of work, improved living conditions
                                                o Up to 400,000 moved to California
                                                o Often victimised, branded lazy, irresponsible, untrustworthy
                              ‘The dispossessed were drawn west, from Kansas, Oklahoma, Texas, New Mexico, Nevada and Arkansas,
                               families and tribes dusted out, tractored out. Carloads, caravans, homeless and hungry, twenty thousand
                               and fifty thousand, a hundred thousand and two hundred thousand’ Historian John Steinbeck
Farmers and Hoover
        Agricultural Marketing Act passed in 1929
              o Instituted the Federal Farm Board, provided it w $500m to create voluntary cooperatives attempting to restore
                    ‘order’ to the agricultural industry
              o Failed w the collapse of the Board in 1933, having lost almost $400m
Farmers and the New Deal
        Government initiatives to combat the negative effect of the GD upon farmers include:
              o Civilian Conservation Corps (March 1933)
                              Established under terms of the Unemployment Relief Act
                              Operated from April 1933, for 7 yrs
                              Large-scale projects included: planting trees, building public parks, draining swamps, restocking rivers w
                               fish, constructing forest trails, restoring battlefields
                              Intended to improve the quality of the environment, provide employment for men aged 18-25
                              3m young men participated in the CCC between 1933 and 1941
                              30,000 wildlife shelters built, battlefields from Civil and Independence Wars restored
                              Incorporated the Drought Relief Service (established 1935) which planed 200m trees on the Great Plains
                               to inhibit erosion, encouraged the adoption of sustainable farming methods
              o Tennessee Valley Authority (May 1933)
                              Damns constructed along the Tennessee Valley River to prevent annual flooding, washing away the top
                               soil of arable land and destroying farms
                                         Affected 2.5m people within the area, spanned 7 states, covered 40,000 square miles s
                                         FDR described the situation as ‘the nation’s number one economic problem’
                                         Dams utilised to produce hydroelectricity
                                                o Proportion of farms in area supplied w electricity rose from 2% (1933) to 75% (1945)
                                         Encourage new, more sustainable methods of farming
                              Intended to improve the quality of arable land, rural life in the region
                              Projects executed in Tennessee, North Carolina, Virginia, Kentucky, Mississippi, Alabama, Georgia
              o Agricultural Adjustment Act (May 1933)
                              Subsidies provided to famers to reduce crop acreage, crops and livestock destroyed (‘organised scarcity’)
                                         ‘Wallace reluctantly agreed to a proposal by farm leaders to forestall a glut in the hog market by
                                          slaughtering over six million little pigs and more than two hundred thousand cows... the country
                                          was horrified’ Historian William Leuchtenberg
                              Intended to place downwards pressure on agricultural prices, provide short term relief for farmers
                              Headed by George Peek, under authority of Henry Wallace, the US Agricultural Secretary
                              Declared unconstitutional by the Supreme Court in 1936, replaced by the Soil Conservation and Domestic
                               Allotment Act
              o Federal Emergency Relief Administration (May 1933)
                              Provided immediate relief for impoverished farmers ($85m allocated to rehabilitate ruined farmland)
              o     Frazier-Lemke Bankruptcy Act (1934)
                              Permitted farmers to delay the foreclosure of farm mortgages
              o Federal Surplus Relief Corporation (1935)
                              Distributed surplus agricultural produce to the hungry
              o Bankhead-Jones Farm Tenancy Act (1937)
                              Established the Farm Security Administration which leant money to tenant farmers to assist in the
                               purchase of land
        Relief provided to farmers in the form of federal emergency relief
              o Eg >20% of farmers received aid from the government in 1937
        Efforts effective in reducing the amount of airborne soil by 65% by 1938
        Efforts led to an increased support for FDR, the Democratic Party amongst farmers
              o ‘Rural farm vote went to the New Deal’ Historian Bruce Dennett
              o Eg 60% of Iowa farmers voted for the Democratic Party in 1936 (up from 30% in the previous election)

The Effect of the Great Depression on Afro-Americans

Background
        Great Migration oversaw the movement of 13% of the AA population from the South to Northern capital producing cities (eg
         New York, Chicago, Detroit, Washington DC) between 1910 and 1940
               o By 1930, 20% of the AA population lived in Northern urban areas
               o Brought about by an increasing social and political influence of the KKK in southern states, spread of the boll weevil,
                     agricultural recession, Jim Crow laws, increased employment opportunities for AA (eg Ford employed 10,000 AA in
                     1926; up from 50 in 1916)
               o Effected a disenchantment w Northern life
                              ‘The sprawling impersonal cities of the North were not quite the land of promise they had expected’ B.
                               Quarles, 1969
               o Led to the development of the ‘New Negro’, an urban, educated, literate, active AA and the ‘Harlem Renaissance’,
                     w growth in AA literature, music, film, pride, prosperity
        GD was preceded by a period of racial tension
               o Epitomised by race riots (1919-20), growth in influence and magnitude of the KKK, failure of the anti-lynching bill
Employment
        High level of unemployment amongst the AA community as whites entered occupations previously dominated by AAs
               o Eg 33% of AA in the South were unemployed in 1931
               o Eg 38% of AA required financial assistance by the government by 1934
               o Eg unemployment rate for AA in capital-producing cities such as Chicago and Detroit approached 50% by 1933
        Most AAs were engaged in low-skilled, blue collar, ‘undesirable’ work
               o Eg 1 in 20 AA males were employed in white-collar occupations in 1940
               o Eg 60% of AA female workers employed in the domestic industry in 1940
        The GD exacerbated unemployment, insufficient education and skill levels amongst AAs
               o This was particularly evident in the South (eg no black police officers existed in Mississippi, S Carolina, Louisiana,
                     Georgia and Alabama in 1940)
        AA participation in unionism increased
               o Eg Brotherhood of the Sleeping Car Porters (BSCP) encouraged improvements in wages and conditions for AA
                     porters from 1937
                              This set precedent for the establishment of a series of other AA unions
               o National Negro Congress established under the leadership of labour unions
                              Instrumental in promoting AA economic and social interests
Society
        The GD prompted and/or exacerbated damaging social trends upon the AA community
               o Eg illiteracy, social disorganisation, physical isolation, disenfranchisement, poverty, hunger, suicide, divorce
        Self-help groups established by black women to assist AA families
               o Eg Alpha Kappa Alpha’s Mississippi Health Project provided subsidised health care for AA families in 1935-42
               o Eg Housewives League of Detroit encouraged AA to purchase goods from AA businesses
Lynching
        Social disarray due to the GD prompted an increase in the activity of lynching
               o Eg 63 AAs lynched between 1933 and 1935
               o Eg AA citizen Claud Niel, on trial for murder at the time, was seized by a mob, lynched before a crowd of thousands
                     in October 1934
               o Eg 2 AA citizens were seized from jail in Mississippi, set alight and hung in 1937
        Civil rights campaigners sought congressional support to pass the anti-lynching bill, introduced in 1919 but not passed in 1922
               o Roosevelt failed to provide public support for the bill; ‘I’ve got to get legislation passed by Congress to save
                     America... if I come out with the anti-lynching bill now, they [Southern conservatives] will block every bill I ask
                     Congress to pass to keep American from collapsing’
        Insufficient action prompted the formation of the Association of Southern Women for the Prevention of Lynching
               o Received support from ER
               o Failed to gain adequate standing, bill did not pass when it was put to Congress in 1935 and 1938
African Americans and the New Deal
        African Americans tended to vote for the Republican party prior to the reign of FDR as it abolished slavery under president
         Abraham Lincoln
               o AA voting was also restricted by intimidation, literacy tests, poll tax
               o Eg in the 1932 presidential election, FDR won 59% of the white vote, 23% of the AA vote in Chicago
        Initial effect of the New Deal upon the AA community was negative
               o Eg TVA constructed a model tone, ‘Norris’ or a ‘vision of villages and clean small factories’, which excluded AAs
               o Eg CCC segregated its camps for workers
               o Eg Agricultural Adjustment Act discriminated AA participation, led to job losses
               o Eg National Recovery Administration permitted race-based wage differentials
               o Eg did not legislate against Southern lynching and Jim Crow Laws
               o This prompted the African American newspaper ‘Crisis’ to suggest to its readers in 1935 that they ‘ought to realise
                     by now that the powers-that-be in the Roosevelt administration have nothing for them’
        New Deal demonstrated a series of beneficial effects upon the AA community
               o Eg relief payments to AAs increased from 18% of the AA population (end of 1933) to 30% of the AA population
                     (beginning of 1935)
               o Eg non-discriminatory programs of the WPA provided employment, such that a third of the AA population received
                     its income from the WPA by 1939
               o Eg ‘black cabinet’ or board of prominent AAs to advise New Deal policy established
                              This included such personalities as Mary McLeod Bethune, who headed the Division of Negro Affairs in
                               the National Youth Administration
        1936 presidential election demonstrated a shift in the AA vote from the Republican party to the Democratic party
               o Eg In Cleveland, all African American voters vote for FDR
               o Eg In Chicago, AA vote for FDR was twice that of the 1932 election
               o Eg 75% of the AA vote believed to be in favour of FDR
               o Eg overwhelming support for FDR revealed by a magazine poll in Chicago in 1938

Attempts to halt the Depression: the Hoover Presidency, the FDR years

Attempts to Halt the Great Depression under President Hoover

Introduction to Herbert Hoover
          Born August 10, 1874 in West Branch, Iowa as a Quaker
          Sent to live w disciplinarian schoolmaster uncle w the death of his father at 6, death of his mother at 9
                o Under which he developed an aloofness or ‘glacial reserve’
          Successful businessman having spent 14 yrs supervising the mining operations of large corporations
                o Firmly advocated doctrine of collective bargaining, an eight hour working day and increased safety for miners in his
                      publication the ‘Principles of Mining’
                o In 1914, at 40, he retired from active engagement in business having gained $4m
                o A key example of the hardworking, well-respected American, rising from a humble origin to international
                      prominence and fortune
          Entered the political world as food administrator under President Wilson in 1917
                o Accompanied Wilson to Versailles as food administration, the Economic Director of the Supreme Economic Council,
                      Chairman of the Inter Allied Food Council, Chairman of the European Coal Council and personal advisor
          Appointed Secretary of Commerce by President Harding upon acquisition of the presidency in 1921
                o A position in which he remained for 8 yrs
                o Presented his economic philosophies in the publication ‘American Individualism’ in 1922
                o Attempted to ‘bring efficiency, coherence and drive to the business community’ John Traynor
          Accepted Republican Presidential nomination in August 1928
                o ‘We in America today are nearer to the final triumph over poverty than ever before in the history of any land. The
                      poorhouse is vanishing from among us’ Hoover
                o Retained conventional Republican economic ideologies retained by predecessors Harding, Coolidge
                               Advocated tax cuts, balanced budget, low interest rates, minimal federal government intervention
          Economic ideologies centred on ‘rugged individualism’
                o Maintained faith in the economy to return to upturn w moderate and voluntaristic government intervention
                               Considered the government to be a facilitator of cooperative and voluntary community service
                               Supported by Secretary of the Treasury Andrew Mellon, who proposed the GD to be a means of cleansing
                                the economy of it ‘rottenness’
                o ‘We want to see a nation built of home owners and farm owners... we want to see them in steady jobs’
          Inaugurated as president on March 4, 1929
                o ‘In no nation are the fruits of accomplishment more secure’ Hoover
                               Promised a ‘chicken in every pot’, ‘a car in every garage’
                o After gaining 58% of the vote, against Al Smith’s 41%
                o ‘We are in the mood for magic... we had summoned a great engineer to solve our problems for us... the modern
                      technical mind was for the first time at the head of the government’ journalist
Initiatives to Halt Economic Depression
> Voluntarism
          Responded to the Wall Street Crash w reassurance and confidence
                 o Suggested than the economy is on a ‘sound and prosperous basis’ during the crisis
                 o Proposed that the ‘major forces of depression now lie outside the United States’ in December 1929
         Initiatives were initially bound by a central ‘voluntarist’ approach
                 o Eg Agricultural Marketing Act passed in June 1929
                               Instituted the Federal Farm Board, provided it w an initial $500m
                               Crafted voluntary cooperatives attempting to ‘restore order’ to the agricultural industry
                               Failed w the collapse of the Federal Farm Board in 1933 after having lost $350m+
                 o Eg key meeting w 400+ corporate and political leaders at the outset of the depression in November 1929
                               Outcomes included:
                                           Action by the Federal Reserve: a lowering of the discount rate through increased open market
                                            purchases to permit an easing of credit; ban placed on lending to stock market speculators
                                           Action by the railway and public utility industries: promise to expand infrastructure and
                                            maintenance projects
                                           Petition to business leaders to maintain wages and employment
                                           Petition to states to increase expenditure on infrastructure and maintenance
                                           Petition to Congress to expand federal expenditure on infrastructure by $100m+
                               ‘[It is] not a dictation or interference by the government with business. It is a request’ President Hoover
                 o Eg Emergency Committee for Employment established in October 1930
                               Attempted to institute and coordinate voluntary relief agencies
                 o Eg National Credit Association established in November 1931
                               Attempted to create a pool of credit to secure weaker financial institutions by petitioning stable banks to
                                pledge funds
                               Failed as the credit pool was reduced from an initial $500m to $10m within weeks
         Voluntarist initiatives proved predominantly unsuccessful
                 o Pledges to maintain wages and employment were broken by most corporations, including General Motors and US
                     Steel, by 1931
                 o Efforts to improve unemployment relief were unsuccessful
                               Eg relief payments to unemployed in Philadelphia reduced to $4 per family per week in 1931 and
                                suspended indefinitely by 1931
                               Eg relief expenditure in 1932 accounted for less than a month’s wages for 800,000 New Yorkers
                 o Effected a loss of faith in Hoover, Republican party
                               Eg Republican party lost eight seats in the senate, majority in the house of representatives by Nov 1930
> Balanced Budget
         Attempted to maintain a balanced budget throughout
                 o Personal income and other taxes increased to provide a greater volume of government revenue
                               Eg Revenue Act (1932) instituted an unprecedented tax increase, drawing an additional 1.9m employees
                                into the tax base
                 o Government expenditure increased at an equivalent rate
                               Eg an additional $2.2b spent by the federal government in 1931
                 o Dominant Republican economic ideology of the time
> Rising Tariffs
         Instituted the Smoot Hawley tariff w the passing of the Smoot Hawley Tariff Act in June 1930
                 o Evidence suggests that Hoover did not personally support the act and was pressured into passing it by Congress
                 o Tariffs risen on 20,000+ imports to record high levels
                 o Resulted in the implementation of retaliatory tariffs by America’s trading partners
                               This effectively closed foreign markets to American exports
                               US exports plummeted 60% between 1929 and 1933
                 o 1000+ economists signed a petition to appeal to Hoover to veto the motion in May 1930
                               ‘That act intensified nationalism all over the world... it encouraged further protectionism and led to a
                                further decline in world trade’ an economist
> Interventionalism
         Interventionalist initiatives adopted from 1932 w presidential election (1933) approaching
                 o Eg placed 1 yr moratorium on all intergovernmental debts and reparations in June 1931
                               Following the collapse of the major Austrian bank Kredit-Anstalt
                               Attempted to re-establish foreign demand for American exports
                 o Eg Reconstruction Finance Corporation established in January 1932
                               Resulting from the failure of the voluntary National Credit Association
                               Allocated $500m, the capacity to borrow another $1.5b initially
                                           Had provided $1.2b in loans within first 6 months of operation
                                           Granted $2b to state and local governments for public works programs in July
                               Headed by Charles Dawes
                               Provided funds to unstable corporations, including banks, insurance agencies, railway companies, to
                                promote investment
                               Limited effectiveness as companies were concerned w short-term issues rather than long-term income
                                producing investment
                 o Eg Glass-Steagall Act passed in February 1932
                               Permitted a greater volume of funds to be leant by the Federal Reserve to insecure corporations
                                          $750m in government gold reserves allocated initially
          Interventionalist activities did not succeed in reducing unemployment and improving the quality of life
                o ‘The measures taken by Hoover were too little, too late, and came nowhere near to tackling the enormous
                      problems which the American economy faced’ Historian Doug Willoughby
Opposition to Hoover’s Efforts
          Portrayed as cold, callous, unimaginative and hardhearted by the public and press
          W plummeting public support, remarked at the end of 1931 that ‘we are now faced with the problem, not of saving Germany
           or Britain, but of saving ourselves’
          Policy of individualism, limited government intervention met w opposition from the press
                o Eg ‘the great advantage of allowing nature to take her course is that... there is no need to take concrete action’
                      New York Times journalist
          Bonus Army Incident of 1932
                o 20,000 unemployed war veterans marched in Washington DC in May 1932, demanding the early payment of the
                      veterans’ bonus which had been approved by Congress in 1924 but was to be paid in 20 yrs time
                o Proposal put to Congress suggesting the early payment of the bonuses, rejected in mid-June
                                Total bonus payments worth $3.5b; an opportunity to pump prime the economy
                                Veterans protested by building settlements on Anacosta Flats in south west Washington DC, suggesting
                                 that they would stay there until their demands were met
                o President Hoover developed a plan to evict the ‘army’ by the end of July
                                1,000 soldiers equipped w tear gas, tanks, machine guns evicted the veterans, burnt the settlement
                                          2 veterans were killed, up to 1,000 veterans were injured
                o Public was shocked, distressed by the incident
                                Hoover was considered to be cruel, heartless and insensitive
                                The Washington News reported; ‘what a pitiful spectacle’
Historical Interpretations of Hoover’s Efforts
          ‘Hoover was not the heartless ogre that a generation and more of Democrats have depicted. He was... a man of principle... he
           believed firmly in individualism... he wanted everyone to have a chance to succeed... and opposed heavily concentrated
           wealth... he wanted communities of ‘socially responsible individualists’ to provide for the unemployed’ Robert McElvaine
          Acknowledge that Hoover’s response of ‘voluntary charity, local and state relief’ was inadequate to address the magnitude
           and scope of the GD
          Acknowledge that Hoover’s interventionalist efforts formed the basis of many of FDR’s future policies
                o ‘Practically the whole New Deal was extrapolated from the programs that Hoover started’ Rexford Tugwell,
                      Columbia University economist, architect of the ND
Conclusion to the Hoover Presidency
          November 8 1932 presidential election won by FDR
                o FDR gained 57% of the vote, 42 states
                o Hoover gained 40% of the vote, 6 states
          Deep distrust, hatred existed between Hoover and FDR
                o Eg Hoover deemed a ‘fat, timid capon’ by FDR, FDR’s ‘nonsense... tirades... glittering generalisations... ignorance’
                      criticised by Hoover
          On his last day in office, Hoover proposed ‘We are at the end of our strength. There is nothing we can do’
          The presidency had physically and emotionally wore out Hoover
                o ‘The president, white-faced, exhausted, stumbling in speech, repeatedly losing his place in his manuscript, swayed
                      on the platform’ recalls Historian Arthur Schlesinger
Evidence of failure
          Unprecedented rise in unemployment
                o 10m (20%) unemployed by 1932
                o Unemployment rate approached 50% in cities such as Detroit, Chicago
                                Eg General Motors Detroit; 100,000 workers laid off in 1929, 220,000 workers laid off in 1931 w original
                                 260,000 employed
                o High level of unemployment among African Americans
                                Eg in Chicago; 4% of population, 16% of unemployed
                o A third of the employed were part time by 1931
          Collapse of the bank system in 1931
                o Prior to its collapse, the system was comprised of 25,000 banks under 52 regulatory bodies
                o Began w the collapse of Louisville’s National Bank of Kentucky, spread quickly to surrounding states
                                Bonds sold on a depressed market, further depreciating the value of those assets owned by the banks
                                Spread to urban areas in December 1930 w the collapse of New York’s Bank of the United States, taking
                                 the savings of 400,000 people
                o Banks failing at a rate of 500 a year by 1931
                o 600 banks went bankrupt in the final 6 days of 1931
                o 1352 banks had failed in 1931
          Between 1929 and March 1933;
                o 5000 banks had failed; $7m in savings were lost
                o 600,000+ had lost their homes
                o 1300 municipalities and several states were bankrupt
                o GNP had dropped to half of its 1929 level
                o Business investment had fallen from $24b to $3b
                o Agriculture fell from $6b to $2b; construction fell by 20%; steel and iron fell by 60%
                o Marriage rate fell by 22%; birth rate fell by 15%; divorce rate rose by 25%
         ‘If something is not done and starvation is going to continue the doors of revolt in this country are going to be thrown open’
          labour leader in 1932

Attempts to Halt the Great Depression under President Roosevelt

Introduction to Franklin Delano Roosevelt
          Born January 30, 1882 in Hyde Park, New York
          Relatively sheltered and privileged upbringing
                 o Educational experiences instilled the belief that the rich and privileged had a duty to help the less fortunate
                 o Educated at Groton, an exclusive all-boys private school in upstate New York
                 o Educated at Harvard University and Columbia Law School
                               Voted editor of the Harvard Student Newspaper ‘The Crimson’
          Entered political world in 1910
                 o Twice elected to the New York State Legislature between 1910 and 1913
          Appointed Assistant Secretary of the Navy w the appointment of Woodrow Wilson as president in 1913
                 o Served in this position for 7 yrs
          Political losses sustained in 1914 (failed to become a senator for New York) and 1920 (failed to become vice president
           candidate for the National Democratic Party)
          Acquired poliomyelitis in August 1921, after returning from a family holiday at Campobello (the family’s holiday estate in New
           Brunswick, Canada)
                 o Became permanently crippled, could not walk without the aid of leg braces
                 o ‘His illness made it possible for him to identify with the humiliations and defeat of depression America... A man who
                      could not walk became president of a country that had lost hope’ Historian Ted Morgan
                 o ‘The man emerged completely warm-hearted, with new humility of spirit and a firmer understanding of profound
                      philosophical concepts’ Labour Secretary Frances Perkins
          Gained the governorship of New York in 1928 and re-elected in 1930 by a record margin
                 o Enacted progressive policies which would later be reflected in his presidency
                               Eg reforestation schemes, regulation of working hours for women and children, introduction of old-age
                                pensions, large-scale system of relief established in 1931
          Nominated as the Democratic candidate for the presidency in mid 1932
The Election of 1932
          Nomination of FDR
                 o Confidence was high at the Democratic Convention of June 1932 that the chosen candidate would win presidency
                               Nine candidates up for nomination of which three had substantial support (presidential candidate of 1928
                                Al Smith, speaker of the House of Representatives John Nance Garner, Franklin D. Roosevelt)
                 o FDR retained the support of urban and rural communities
                               Eg had gained governorship of New York in 1930, had spent a substantial time in Warm Springs, Georgia
                 o FDR won on narrow margin after four ballots and after Garner pulled out
                               Upon nomination, proposed; ‘I pledge myself to a New Deal for the American people’
          Process of campaigning
                 o FDR criticised Hoover’s policies
                               ‘I accuse the present administration of being the greater spending Administration in peace times in all our
                                history’ speech in Iowa in September 1932
                               ‘I regard reduction in Federal spending as one of the most important issues of this campaign’ speech in
                                Pittsburgh in October 1932
                               Demanded the repeal of prohibition to create a source of tax revenue, increased employment
                 o Hoover viciously responded to FDR’s criticisms
                               ‘They are proposing changes and so-called new deals which would destroy the very foundations of our
                                American system. Our system is founded on the conception that only through freedom to the individual,
                                will his initiative and enterprise be summoned to spur the march of progress’ speech in October 1932
          Presidential election occurred on November 8, 1932
                 o FDR proclaimed a strong victory, winning 57% of the vote and 42 states against Hoover’s 40% and 6 states
          FDR was inaugurated as president on March 4, 1933
                 o ‘Let me first assert my firm belief that the only thing we have to fear is fear itself’
                 o Suggested that the nation was in a state comparable to war
Initiatives to Halt Economic Depression
> The First New Deal (1933-34)
          Central objective was recovery from the effects of the GD, as applied through legislation, executive orders and effective
           communication between the federal government and the people
                 o Aimed to reduce unemployment, supervise the activities of banking, credit and investment institutions, end stock
                      market speculation and ensure stability in the currency
          Established by FDR, cabinet members, group of unofficial advisers regarded as ‘The Brains Trust’ (included Professor Felix
           Frankfurter of Harvard Law School, Rexford Tugwell of Columbia University)
          Key legislative measures of the First New Deal include:
o   Emergency Banking Act passed on March 9, 1933
              All banks were required to close on March 6 for four days
              Asserted that all bank accounts were to be inspected and that only those properly managed, able to be
               liquidated were permitted to continue to exist
                         Unstable banks were reorganised by government officials
              Aimed to restore consumer confidence to the banking system
              $1b in currency had been returned to bank deposits by the beginning of April
o   Economy Act passed on March 15, 1933
              Instituted a 15% cut to the income earned by those in the public sector
              Instituted a 25% cut to the budgets of all government departments
              This enabled a $1b saving
o   Cullen-Harrison Act (an amendment to the Volstead Act) passed on March 23, 1933
              Allowed the manufacture, sale of products containing 4% alcohol in volume, including beer and light wine
              Followed by a repeal of the eighteenth amendment w the institution of the twenty first amendment on
               December 5, 1933
              Attempted to reopen the alcohol industry, re-establish jobs and an important source of gov revenue
o   Civilian Conservation Corps established on March 31, 1933 (CCC)
              Established under terms of the Unemployment Relief Act
              Operated from April 1933, for 7 yrs
              Large-scale projects included: planting trees, building public parks, draining swamps, restocking rivers w
               fish, constructing forest trails, restoring battlefields
              Intended to improve the quality of the environment, provide employment for men aged 18-25
              3m young men participated in the CCC between 1933 and 1941
              Incorporated the Drought Relief Service (established 1935) which planed 200m trees on the Great Plains
               to inhibit erosion, encouraged the adoption of sustainable farming methods
o   Measures passed to take the US off the gold standard in March, April 1933
              By prohibiting the trade-in of currency for gold and the private export of gold
              Attempted to reduce the value of the US$ abroad, increase export volumes
                         Succeeded; by June, foreigners could purchase 15% more for the same amount
              Furthered by an increase in the purchase of gold for the government by the RFC in October
o   Federal Emergency Relief Administration established on May 16, 1933 (FERA)
              Extrapolated from Hoover’s Reconstruction Finance Corporation
              Headed by Secretary of Commerce Harry Hopkins
              Aimed to alleviate destitution through the provision of funds for local and state relief organisations,
               establishment of small-scale work relief schemes
              $3b+ provided to local and state relief agencies, 20m+ provided w employment
              Signified the beginning of direct government relief and state welfare
              Termination in December 1935
o   Tennessee Valley Authority established on May 18, 1933 (TVA)
              Damns constructed along the Tennessee Valley River to prevent annual flooding, washing away the top
               soil of arable land and destroying farms
                         Affected 2.5m people within the area, spanned 7 states, covered 40,000 square miless
                         FDR described the situation as ‘the nation’s number one economic problem’
                         Dams utilised to produce hydroelectricity
                                o Proportion of farms in area supplied w electricity rose from 2% (1933) to 75% (1945)
                         Encourage new, more sustainable methods of farming
              Intended to improve the quality of arable land, rural life in the region
              Projects executed in Tennessee, North Carolina, Virginia, Kentucky, Mississippi, Alabama, Georgia
              ‘Of all the works of the new Deal, that undertaken and wrought by the TVA may live the longest for bold
               simplicity of conception and honesty in execution’ Historian Broadus Mitchell
o   Agricultural Adjustment Act passed in May 1933 (AAA)
              Subsidies provided to famers to reduce crop acreage, crops and livestock destroyed (‘organised scarcity’)
                         ‘Wallace reluctantly agreed to a proposal by farm leaders to forestall a glut in the hog market by
                          slaughtering over six million little pigs and more than two hundred thousand cows... the country
                          was horrified’ Historian William Leuchtenberg
              Intended to place downwards pressure on agricultural prices, provide short term relief for farmers
              Headed by George Peek, under authority of Henry Wallace, the US Agricultural Secretary
              Met w minor resistance by the KKK in 1933
              Effected reduced foreclosures, stabilisation of farm prices and profits, increase in rate of farm ownership,
               greater prosperity for famers
                         Eg rise in the price of cotton, wheat, corn; 50% rise in net farm income (1932-36)
              Developed into compulsory measures (eg Bankhead Cotton Control Act, Kerr-Smith Tobacco Control Act)
              Declared unconstitutional by the Supreme Court in 1936, replaced by the Soil Conservation and Domestic
               Allotment Act
o   National Recovery Administration established on June 16, 1933 (NRA)
              As established under the National Industrial Recovery Act
                             Attempted to maintain labour standards through the creation of voluntary ‘codes of fair competition’ for
                              industry regarding production limits, wage levels, working hours, prices, trade union rights
                                         Those involved put blue eagles on their packages to press other companies to become involved
                                         By 1934, 500+ codes had been established, 20m+ employees working under such codes
                             Aimed to reform capitalism
                             Only moderately successful as various trade associations were on its committees, w only 10% labour
                              representation, 1% consumer representation
                              ‘The best that could be said of the NRA was that it held the line for a time against further degradation of
                              labour standards’ Kennedy
                             Ruled unconstitutional by the Supreme Court in May 1935
              o Public Works Administration established on June 16, 1933 (PWA)
                             As established under the National Industrial Recovery Act
                             Headed by Secretary of the Interior Harold Ickes
                             Aimed to provide employment for skilled workers, stabilise consumer purchasing power, improve public
                              welfare and revive industry through public construction
                             Provided 8m with employment, spent $3.3b on income
                             Constructed 70% of the nation’s schools and 35% of the nation’s hospitals; constructed four dams (eg
                              Coulee Dam in Washington); electrified the railway from New York to Washington DC; constructed 50
                              airports between 1933 and 1939
                             Failed to provide work for unskilled labour
              o Second Glass-Steagall Act passed on June 16, 1933
                             Increased regulation over the banking system; commercial banks prohibited from engaging in investment
                              banking; banks officials prohibited from taking personal loans out of their own banks; Federal Reserve
                              Board to monitor domestic market operations; established the Federal Deposit Insurance Corporation
                              which guaranteed bank deposits under $2,500
              o Civil Works Administration established on November 8, 1933 (CWA)
                             As established under the Federal Emergency Relief Administration
                             Attempted to provide employment through the construction and maintenance of public works
                             Employed 4m Americans in total, paid $1b in income
                             Constructed 12m feet of sewerage pipes, 200,000+ miles of roads, 40,000+ schools, 3,000+ playgrounds
                              and 1,000 airports
                             Terminated on March 31 1934 due to its expensive nature
              o Securities and Exchange Act passed on June 6, 1934
                             Attempted to reduce stock market speculation, w greater government regulation over stock exchanges
                                         Eg margin lending could not exceed 45% of the price of the stock
                             Instituted the Securities Exchange Commission to oversee stock market activities, prevent fraud
              o Wheeler-Howard Indian Reorganisation Act passed on June 18, 1934
                             Restored tribal tenure of government-created reservation land to Native Americans; created an annual
                              fund for loans to Native Americans to buy land; gave affirmative action rights to Native Americans in civil-
                              service positions within the US Indian Bureau
        Other key measures of the First New Deal include:
              o ‘Fireside Chats’ in which FDR addressed the nation informally through the medium of radio
                             First chat March 12, 1933, in which FDR addressed the banking crisis by proposing that ‘I can assure you
                              that it is safer to keep our money in a reopened bank than under the mattress’
                             Received audiences of up to 60m
                             Intended to re-establish public confidence
                             ‘Roosevelt was the first President to master the technique of reaching people directly over the radio... he
                              talked like a father discussing public affairs with his family in the living room’ William Leuchtenberg
        Public response to the First New Deal
              o ‘I never heard of a President like you Mr Roosevelt. Mrs and I are old folds and don’t amount to much, but we are
                    joined with those millions of other in praying for you every night’ letter to FDR
              o ‘*President Roosevelt+ is the first man in the White House to understand that my boss is a son of a bitch’ employee
> The Second New Deal (1935-41)
        Central objectives include:
              o Relief for the aged, infirm and unemployed through the provision of social security
              o Reform of business, employment and financial practices to restore consumer and investor confidences
              o Realignment of voter sentiment to ensure the perpetuation of the ideologies of the New Deal
              o Reconstruction of the office of the American Presidency through the expansion of its legislative functions
        FDR retained the presidency in the 1936 presidential election
              o Received 60% of the vote, securing all states except for Vermont and Maine, defeating R candidate Alfred Landon
        Commenced in early 1935 when FDR presented Congress a major legislative program
              o Described by Walter Lipmann as ‘the most comprehensive programme of reform ever achieved in this country by
                    any administration’
        Key legislative measures of the Second New Deal include:
              o Emergency Relief Appropriation Act passed on April 8, 1935
                             Allocated $5.5b to provide employment for the unemployed, establish new relief agencies
              o Works Progress Administration established on April 8, 1935 (WPA)
                            As funded through the Emergency Relief Appropriation Act and established by a presidential order
                            Aimed to provide employment through the construction of public works and to promote nationalism
                            Headed by Harry Hopkins and the largest New Deal Agency
                            Included the National Youth Administration which aimed to improve the job prospects and studies of
                             youth, 3 in 10 of which were out of work in April, 1935
                            Employed skilled and unskilled for the duration of 1 yr
                            Employed 20% of the workforce had at some time worked for the WPA by 1941
                            Provided 8.5m (including 4.5m youths) with work between 1935 and 1943
                                       70%+ of which were employed in infrastructure programs
                            Constructed 1,000 airport landings, 8,000 schools and hospitals, 12,000 playgrounds, the Lincoln Tunnel
                             which connects Manhattan Island to New Jersey, Fort Knox or the centre of US gold reserves in Kentucky
              o Resettlement Administration established on April 30, 1935 (RA)
                            Resulting from the amalgamation of all rural rehabilitation projects
                            Aimed to move 500,000 from overworked land to new ‘greenbelt’ communities (eg Greenbelt in
                             Maryland, Greenville in Ohio and Greendale in Wisconsin), instil sustainable methods of farming
                                       Only succeeded in resettling 4,400 families over 2 yrs due to cost, reluctance to move
                            Headed by Rexford Tugwell
              o Rural Electrification Administration established on May 11, 1935 (REA)
                            Provided low-interest loans to corporations extending electricity to rural areas
                            Succeeded in electrifying almost 300,000 rural households by 1939; increasing the proportion of rural
                             households with access to electricity from 10% (1935) to 40% (1941)
              o National Labor Relations (Wagner) Act passed on July 5, 1935
                            Attempted to provide framework for the protection of workers
                            Established the National Labour Relations Board which granted workers the right to join and establish a
                             trade union, to bargain collectively and to use industrial action and was assigned the power to bargain on
                             behalf of workers, stop companies from using blacklists and company unions
                            Elicited a rise trade union membership from 3.3m (1933) to 9m (1939)
                            Sparked protest from the American Liberty League and American Federation of Labor (claimed that it
                             favoured rival Congress of Industrial Organisations)
                            Helped to rebalance the power between labour and capital
              o Social Security Act passed on August 14, 1935
                            Became necessary w only 27 states providing old-age pensions, 1 state (Wisconsin) providing
                             unemployment insurance
                            Instituted a compulsory scheme of old-age pensions, a federal-state system of unemployment insurance
                            Financed by employees and employers through a 3% payroll tax
                            Established the Aid to Families with Dependent Children (ADC), a system of welfare for fatherless families
                             as thousands of fathers abandoned their families seeking work
                            Flaws include:
                                       Unemployment benefits were low as they were based on a percentage of income whilst
                                        working and not the cost of living; were paid for only 20 weeks at $10-$85 per week; did not
                                        cover casual workers, domestic servants and farm labourers
                                              o Two thirds of AA and half of women within the labour force were not covered
                                              o ‘*The Social Security Act is+ a sieve with holes just big enough for the majority of
                                                   Negroes to fall through’ NAACP
                                       No benefits provided to the sick due to lobbying by the health industry
                                       First payment made in 1940
              o Revenue Act passed on August 30, 1935
                            Increased personal income tax rates on higher tax brackets (those earning over $50,000), corporate taxes
                             and levies on gifts and estates
                            Popularly deemed the ‘Soak the Rich Tax’
              o Public Utilities Holding Company Act passed in August, 1935
                            Limited the operation of electricity and gas companies to one state
              o Soil Conservation and Domestic Allotment Act passed on April 27, 1936
                            Attempted to reduce erosion by subsidising farmers for reducing the production of crops which
                             contribute to erosion (eg wheat, cotton)
                            Replaced the AAA when it was declared unconstitutional by the Supreme Court in January 1936
              o Walsh-Healey Public Contract Act passed on June 30, 1936
                            Set minimum wage for government contracted companies, established an 8-hour working day and a 40-
                             hour working week and enforced the abolition on child labour
        Other key measures of the Second New Deal include:
              o Failed to pass the Wagner-Costigan Anti-Lynching Bill
                            ‘If I come out for the anti-lynching bill now, [Southern conservatives] will block every bill I ask Congress to
                             pass to keep America from collapsing’ FDR
                            Introduced in 1919, but failed to pass in 1922 and 1935
> Opposition to the New Deal
        Sources of opposition to the New Deal include: large-scale private enterprise, conservative businessmen and politicians (both
         Republicans and Democrats), individuals (eg Huey Long, Father Charles Coughlin, Dr Frances Townsend), Supreme Court
        Opposition from conservative business and politicians
             o Republican Party rigorously opposed New Deal measures
                           Traditionally represented the interest of the wealthy, large corporations, conservatives
                           Criticised substantial government expenditure and budget deficits; tax increases for high income earners
                            and the wealthy; increased government intervention and regulation of enterprise through implementing
                            minimum wage rates, anti-trust legislation and permitting unionism
                           Considered threatening to capitalism, individual liberty
             o American Liberty League criticised New Deal measures
                           Founded in 1934 and intended to preserve the individual liberties being eroded by the ND
                           Heavily supported by large corporations and wealthy businessmen
                           Gained support from Democratic conservatives Al Smith, John Davis (former presidential candidates)
        Opposition from individuals
             o Huey Long and the ‘Share our Wealth’ movement
                           Louisianan Senator from 1932, expressed support for FDR and ND policies
                           Extended leftist policies of the ND to form the ‘Share our Wealth’ programs
                                      Promised that personal wealth over $3m would be confiscated; every family would be provided
                                       w $4,000-$5,000 to purchase a car, home and radio; free education, minimum wage, pensions
                                       for the elderly, veterans and impoverished would be implemented if elected president
                           Executed reforms as Governor of Louisiana between 1928 and 1930
                                      Claimed 7.5m members organised in 27,000 branches by 1935
                           Assassination in 1935 prevented him from standing as candidate in the 1936 presidential election
             o Father Charles Coughlin
                           Catholic minister active in Detroit
                           Drew a large following, appealing to middle class through weekly radio broadcasts throughout the 1930s
                                      At its height, gained an audience of 40m+
                           Provided support for the ND in 1933, suggesting that ‘The New Deal is Christ’s Deal’
                           Withdrew support in 1934 when a main supporter was accused of profiting from illegal SM operations
                           Established the National Union for Social Justice in 1935 which promised employment, fair wages
                                      Produced a candidate in the 1936 presidential election, William Lemke from N Dakota, who was
                                       not a serious threat to FDR, polling less than 1m votes
             o Dr Frances Townsend
                           Californian doctor who formed the Old Age Revolving Pensions Ltd. in 1934
                                      Proposed $200 per month to all retired citizens over 60, to be financed by a 2% tax on business
                                      Aimed to encourage people to retire, clearing employment
                                      ‘Townsend Clubs’ gained 5m members by 1935
                                      Organisation collapsed in 1936 when partner Robert Clements was convicted of fraud
        Opposition from the Supreme Court
             o Schechter Poultry Corporation v. United States (‘Sick Chickens’ case) in May, 1935
                           NRA accused SPC of failing to comply w its codes of fair competition, which it had accepted in 1933, by
                            selling diseased chickens and paying workers below the minimum wage rate
                                      Convicted in 1935, but SPC lodged an appeal to the Supreme Court
                           Supreme Court ruled the relevant NRA code illegal on May 27, 1935 (‘Black Monday’)
                                      Supreme Court proposed that the interstate commerce clause of the NIRA was unconstitutional
                                       as it undermined the division between state and federal government
             o Butler et al. V. United States in January 1936
                           Ruled the AAA unconstitutional as it undermined the division between state and federal government
             o 8 other ND laws and agencies declared to be unconstitutional in January 1936
                           These laws and institutions were amended to ensure their perpetuation
             o FDR responded by lodging a bill to Congress which would allow him to increase the size of the Supreme Court, from
                  9 to 15 judges on February 5, 1937
                           Defeated in the senate on July 22, 1937
                           Journalist Walter Lippmann claimed that FDR was ‘drunk with power’
                           Contributed to a decline in economic activity dubbed the ‘Roosevelt Recession’
                                      Cuts in spending to the WPA, PWA due to inclining concern for inflation in June 1937
                                      Eg unemployment rose from 14% to 19%, Federal Reserve Board index fell 60% in 1937
                                      Recovery began in April 1938 w a $1b contribution to the PWA, $1.4b contribution to the WPA
                                      Elicited a decline in the popularity of FDR
                                             o One poll stated support for FDR dropped from 62% to 54% bw Dec 1937, Nov 1938
                           Contributed to a decline in the confidence of FDR; ‘it looks as if all the courage has oozed out of the
                            President... ever since the Court fight, he has acted like a beaten man’ Harold Ickes
                           Contributed to a split in the Democratic party w renewed protest from conservatives
             o Schechter decision reversed by the Supreme Court in March/April 1937

Assessment of the New Deal

Successes of the First and Second New Deal
Employment
         Elicited partial economic recovery
                o Eg industrial production in the manufacturing industry regained its 1929 level in 1939
                o Eg reduction to the unemployment rate from 25% (1933) to 14% (1937) to 17% (1939)
         Favoured large scale employment creation programs rather than the provision of social security
                o Eg Civil Conservation Corps (March 1933), Tennessee Valley Authority (May 1933), Public Works Administration
                     (June 1933), Civil Works Administration (November 1933), Works Progress Administration (April 1935)
         Employment provided for skilled and unskilled workers
                o Eg Public Works Administration (June 1933) provided work for skilled labour
                o Eg Works Progress Administration (April 1935) provided work for unskilled labour
Welfare
         Established a federal system of welfare through the Social Security Act (August 1935)
                o Amended the traditional ideology of ‘Rugged Individualism’
                o Became necessary w only 27 states providing old-age pensions, 1 state providing unemployment insurance
                o Instituted a compulsory scheme of old-age pensions, a federal-state system of unemployment insurance
                o Established the Aid to Families with Dependent Children (ADC), a system of welfare for fatherless families as
                     thousands of fathers abandoned their families seeking work
The Role of Government
         Redefined the role and level of economic intervention of federal government
                o Eg assumed a more direct responsibility, administering social welfare, regulating capitalism and ensuring
                     widespread economic prosperity
                o ‘The New Deal changed American life by changing the relationship between Americans and their government. In
                     1930, the federal government consumed less than 4% of GNP... by 1936 the federal government consumed 9% of
                     GNP and through the WPA employed 7% of the workforce’ Michael Barone
                o ‘People began to experience the federal government as a concrete part of their daily lives’ James McPherson
         Redefined the role of the presidency as most identified the New Deal directly w FDR
                o Success of the New Deal stems from the warmth, compassion and enthusiasm of FDR
                              As expressed through his pragmatic approach, speeches and fireside chats
Restoration of Confidence
         Restored overall national confidence in capitalism
                o As proposed by the re-election of FDR in 1936, 1940 and 1940, sayings such as ‘FDR gave me a job’
         Restored consumer and investor confidence in the banking system
                o Through such measures as;
                              Emergency Banking Act (March 1933)
                                        All bank accounts to be inspected and those that were not properly managed or unable to be
                                         liquidated were reorganised by government officials
                                        Complimented with the first fireside chat on March 12, in which FDR asserted that ‘I can assure
                                         you that it is safer to keep your money in a reopened bank than under the mattress’
                                        Succeeded in ending the banking crisis
                                               o Eg $1b in currency had been returned to bank deposits by the beginning of April
                              Second Glass-Steagall Act (June 1933)
                                        Regulated the banking system
                                               o Eg commercial banks prohibited from engaging in investment banking
                                               o Eg banks officials prohibited from taking personal loans out of their own banks
                                               o Eg Federal Reserve Board to monitor domestic market operations
                                        Established the Federal Deposit Insurance Corporation which guaranteed bank deposits <$2,500
                                        Encouraged the flow funds to bank deposits
Impact on Various Groups
> Industry
         The New Deal elicited an increase in industrial production
                o Eg 22% increase in the volume of industrial production between May 1933 and May 1935
                o Administered by the National Recovery Administration (May 1933)
> Workers
         The New Deal elicited a series of beneficial effects upon the working community
                o Guaranteed adequate protection and conditions for workers
                              Eg all workers granted the right to join and form a trade union and to engage in industrial disputation,
                               and to bargain collectively
                                        As instituted by the National Labor Relations (Wagner) Act (July 1935)
                              Eg minimum wage and conditions established for government contracted companies, 8 hour working day
                               and 40 hour working week introduced and abolition of child labour enforced
                                        As instituted by the Walsh-Healey Public Contract Act (June 1936)
                              Eg voluntary regulation of production, wage rates, working hours, prices, trade union rights introduced
                                        As administered by the National Recovery Administration (June 1933)
                                        ‘The NRA... held the line for a time against further degradation of labour standards’ Kennedy
         Beneficial effects demonstrated by:
                o A decline in the unemployment rate, from 25% (1933) to 14% (1937), 7% of which was absorbed by public sector
                o A rise in trade union membership, from 3.3m (1933) to 9m (1939)
               o    Unprecedented working class support
                           Eg ‘*President Roosevelt+ is the first man in the White House to understand that my boss is a son of a
                            bitch’ an employee
> Farmers
         The New Deal elicited a series of beneficial effects upon the agricultural community
               o Improvements to the agricultural environment
                              Eg trees planted (200m along the Great Plains), public parks built, swamps drained, rivers restocked w
                               fish, sustainable methods of farming taught and encouraged
                                         As accomplished by the Civilian Conservation Corps (March 1933) and its Drought Relief Service
                                          (established 1935)
                              Eg restoration of the Tennessee Valley through the construction of dams and introduction of sustainable
                               methods of faming, augmenting the quality and quantity of arable land in the region
                                         As accomplished by the Tennessee Valley Authority (May 1933)
                              Eg 65% reduction to airborne soil by 1938, effecting a reduction to magnitude, incidence of dust storms
                                         As accomplished by the Drought Relief Service (established 1935) of the Civilian Conservation
                                          Corps (March 1933), which planted 200m trees on the Great Plains to inhibit erosion and
                                          encouraged the adoption of sustainable farming methods
               o Improvements to rural quality of life
                              Eg electrification of the Tennessee Valley, increasing the proportion of farms supplied with electricity in
                               the area from 2% (1933) to 75% (1945)
                                         As accomplished by the Tennessee Valley Authority (May 1933)
                              Eg electrification of rural areas across the nation
                                         As accomplished by the Rural Electrification Administration (May 1935), which, by providing low
                                          interest loans to corporations extending electricity to rural areas, succeeded in electrifying
                                          300,000 households by 1939, increasing the proportion of rural households w access to
                                          electricity from 10% (1935) to 40% (1941)
                              Eg reduced foreclosures, stabilisation of farm prices and profits
                                         As accomplished by the Agricultural Adjustment Act (May 1933) and its successor the Soil
                                          Conservation and Domestic Allotment Act (April 1936), the Farm Security Administration (1937)
                                          which leant money to tenant farmers to assist in the purchase of land, the Frazier-Lemke
                                          Bankruptcy act (1934) which permitted farmers to delay the foreclosure of farm mortgages, and
                                          such additional measures as the Bankhead Cotton Control Act, Kerr-Smith Tobacco Control Act
                              Eg resettlement of farmers from overworked, ineffective land to new ‘greenbelt’ communities utilising
                               sustainable method of farming
                                         As accomplished by the Resettlement Administration (April 1935), which succeeded in moving
                                          4,400 within its two yrs of operation
                              Eg provided short term relief for farmers suffering from drought and depressed prices
                                         As accomplished by relief agencies such as the Federal Emergency Relief Administration (May
                                          1933) which allocated $85m to rehabilitate ruined farmland, such that by 1937, >20% of
                                          farmers received aid from the federal government
         Beneficial effects demonstrated by:
               o Rise in the prices of various agricultural commodities, such as wheat, cotton, corn
               o Rise in net farm income between 1932 and 1936
> African Americans
         The New Deal elicited a series of beneficial effects upon the AA community
               o Eg relief payments to AAs increased from 18% of the AA population (end of 1933) to 30% of the AA population
                    (beginning of 1935)
                              Nearly a third of all AA households received income from the WPA by 1939
               o Eg non-discriminatory programs of the WPA provided employment, such that a third of the AA population received
                    its income from the WPA by 1939
               o Eg ‘black cabinet’ or board of prominent AAs to advise New Deal policy established
                              This included such personalities as Mary McLeod Bethune, who headed the Division of Negro Affairs in
                               the National Youth Administration
         Beneficial effect demonstrated by a shift in the AA vote from the Republican party to the Democratic party in the 1936
          presidential election
               o Eg In Cleveland, all African American voters vote for FDR
               o Eg In Chicago, AA vote for FDR was twice that of the 1932 election
               o Eg 75% of the AA vote believed to be in favour of FDR
               o Eg overwhelming support for FDR revealed by a magazine poll in Chicago in 1938
> Women
         The New Deal elicited a series of beneficial effects upon women
               o Eg Women’s and Professional Division of the WPA offered educated women careers in white-collar occupations,
                    including teachers, librarians, nurses
               o Eg White House conference on the Emergency Needs of Women, instigated by ER, established employment for
                    women in distributing food and clothing to the poor
                              2,600 women participated in a program in Mississippi, sewing up to 4m garments (as suggested by
                               Historian Anthony Badger)
               o    Eg enabled greater female participation in the public service
                            Frances Perkins was the first woman to be appointed to the Cabinet, as occurred under FDR
                            First female ambassador appointed, increased female federal judges under FDR
               o    Eg granted a role model and advocate for the feminist cause; Eleanor Roosevelt
                            Encouraged female participation in the construction and administration of New Deal programs
                                      Eg Mary McLeod Bethune headed the Division of Negro Affairs in the National Youth
                                       Administration
                                      Believed that ‘women should not be judged, when it comes to appointing them or electing
                                       them, purely because they are women’
                            Held 300+ press conferences for women only, compelling newspapers to hire female journalists
                                      Such conferences were directed at women and encouraged feminine political opinion
                            Administered ‘She She She’ camps, a program parallel to the male-only CCC and which employed urban
                             women in outdoor nature-based activities
                                      90 residential camps benefited 5,000 women yearly by 1936
                            Ensured women’s inclusion in the National Youth Administration and Federal Arts Program
                            Encouraged female participation in the labour force, particularly in unconventional industries
                                      ‘If I were of debutante age, I would enter a factory where I could learn a skill and be of useful’
                                      Argued that all people have the right to work and be productive
                            Administered government funding for the construction of childcare centres
> Native Americans
          The New Deal elicited a series of beneficial effects upon Native Americans
               o Eg restoration of tribal tenure of government-created reservation lands
               o Eg establishment of an annual fund for loans to Native Americans to purchase land
               o Eg granted affirmative action rights to Native Americans in civil-service positions within the US Indian Bureau
                             As accomplished by the Wheeler-Howard Indian Reorganisation Act (June 1934)
> Artists and entertainers
          Employment provided through the Federal Arts Program (FAP) and the Public Works of Art Project (PWAP)
               o 3350 murals, 18,000 sculptures, 108,000 easel paintings, 250,000 prints, 2m posters created through these
                    programs bw 1933 and 1945
                             The mural style was ‘humanitarian, didactic and propagandist in purpose’ Powell, 1997
               o Development of classic music w 36 symphony orchestras government funded

Failures of the First and Second New Deal

Employment
         Failed to institute a substantial reduction in unemployment
                o Eg reduction to the unemployment rate from 25% (1933) to 14% (1937) to 17% (1939)
                               In 1937, 7% of the workforce had become employed by the government, such that only a 2% reduction to
                                unemployment in the private sector may be discerned
                o Eg most jobs generated by the New Deal were temporary in nature, including
                               Workers employed by the Works Progress Administration (April 1935) were engaged for duration of 1 yr
Overall Philosophy and Legacy
         Create duplication and wastage of government resources
                o ‘It created some overlapping programs and contradictory policies’ Kennedy
         Contradicted traditional American philosophies of ‘Rugged Individualism’ and ‘Social Darwinism’
         Did not succeed in ending the Great Depression
                o Consensus amongst historians that the Great Depression ended w the onset of WWII
         Failed to provide a systematic and consistent response to the Great Depression
                o ‘The new deal... was not a carefully thought out plan but rather a series of contradictory responses to the ongoing
                     economic contraction’ James McPherson
                o ‘*Scholars+ lamented its incompleteness, its alleged political timidity and its supposedly premature demise’ Kennedy
         Received criticism from the right and left of the political spectrum
                o Considered by some to be too conservative
                               Eg it was suggested by Barton Bernstein in a 1968 essay that the New Deal ‘may have saved capitalism
                                itself... but failed to help – and in many cases actually harmed – those groups most in need of assistance’
                o Considered by some to be too progressive
                               Eg journalist John T. Flynn proposed in a 1944 book that ‘the New Dealers... began to flirt with the alluring
                                pastime of reconstructing the capitalist system... and in the process of this new career they began to
                                fashion doctrines that turned out to be the principles of fascism’
                               FDR retorted criticisms from the right and left, asserting that ‘*people+ will try to give you new and
                                strange names for what we are doing. Sometimes they call it fascism, sometimes communism, sometimes
                                regimentation, sometimes socialism. But in doing so, they are trying to make complex and theoretical
                                something that is really very simple and practical’
Quality of Life
         Failed to eradicate mass poverty
                o Eg FDR stated in his inaugural address of 1937, ‘I see a third of our nation ill-housed, ill-clad and ill-nourished’
Economy
         Considered by some to have delayed recovery from the Great Depression
               o ‘New deal labour and industrial policies did not lift the economy out of the Depression as President Roosevelt and
                     his economic planners had hoped... New Deal policies are an important contributing factor to the persistence of the
                     Great Depression’ economist Harold L. Cole
               o Eg in a 1995 survey amongst economic historians, 27% concurred that the New Deal delayed economic recovery,
                     22% concurred that the New Deal delayed economic recovery conditionally, 51% argued that the New Deal did not
                     delay economic recovery
         Measures were inhibited by an arguably high degree of fiscal conservatism
               o Characterised by the recruitment of fiscal conservatives (eg Lewis Douglas, Director of the Budget 1933-34 and
                     Henry Morgenthau Jr., Secretary of the Treasury 1934-45)
               o Due to significant public outrage at increasing deficit spending and fiscal debt, as suggested by opinion polls
         Failed to reconstruct the capitalist system through;
               o A failure to redistribute national income
                              Eg the national income profile of 1940 closely resembled that of 1940
               o A failure to challenge private ownership of the means to production
         Did not facilitate economic recovery from the Great Depression
               o This was spurred by economic mobilisation at the outset of WWII
         Left a legacy of debt, as the most expensive government program ever undertaken
Impact on Various Groups
> Industry
         The New Deal elicited a series of detrimental effects upon corporations
               o Facilitated an increase in the magnitude, incidence and success rate of industrial unrest
                              Eg growth in union membership from 3.5m in 1933 to 8m in 1940
                              Eg growth in the number of strikes and the response received from >2,000 (1934), largely violent and
                               unfavourable response to almost 5,000 (1937) w 80%+ receiving a favourable response
               o Destabilised industry as businesses became less inclined to engage in long term investment and economic activity w
                     the ND’s inconsistent and often contradictory measures
                              Eg the bureaucratic National Recovery Administration (June 1933) retained 500+ codes, prohibited 4,000-
                               5,000 business practices, contained 3,000 administrative orders recorded over a total of 10m pages
                                         ‘It requires no imagination to appreciate the difficulty the businessman has in keeping informed
                                          with these codes – supplemental codes, code amendments, executive orders, administrative
                                          orders, office orders, interpretations, rules, regulations’ journalist Raymond Clapper
         Detrimental effects demonstrated by:
               o Opposition from conservative business and politicians
                              Republican Party rigorously opposed New Deal measures
                                         Traditionally represented the interest of the wealthy, large corporations, conservatives
                                         Criticised substantial government expenditure and budget deficits; tax increases for high
                                          income earners and the wealthy; increased government intervention, regulation of enterprise
                                          through implementing minimum wage rates, anti-trust legislation and permitting unionism
                                         Considered threatening to capitalism, individual liberty
                              American Liberty League criticised New Deal measures
                                         Founded in 1934 and intended to preserve the individual liberties being eroded by the ND
                                         Heavily supported by large corporations and wealthy businessmen
                                         Gained support from Democratic conservatives Al Smith, John Davis (former presidential
                                          candidates)
> Workers
         The New Deal elicited a series of detrimental effects upon working communities
               o Enabled the exploitation of workers under pretence of security of the National Recovery Administration (June 1933)
                              Violation of the ‘codes of fair competition’ created by the NRA were prevalent
                                         ‘The NRA was discovering that it could not enforce its rules... only the most violent police
                                          methods could procure enforcement... without these harsh methods many code authorities
                                          said there could be no compliance because the public was not at the back of it’ John Flynn
                              Infiltrated by trade associations w only 10% labour representation and 1% consumer representation
                              ‘The best that could be said of the NRA was that it held the line for a time against further degradation of
                               labour standards’ David Kennedy
                              Ruled unconstitutional by the Supreme Court in May 1935
               o Facilitated a split in the trade union movement
                              Split in American Federation of Labor occurred at its 1935 convention
                                         Some believed that the movement should incorporate unskilled workers
                                                o Formation of the Committee on Industrial Organisations (CIO) in 1935; evolved into
                                                     the Congress of Industrial Organisations in 1937
                                                o Under leadership of labour leader John Lewis
                                                o Claimed almost 4m members by 1937
                                                o Inclusive of unskilled workers from mass producing industries (eg automobiles, steel)
                                         Some believed that the movement should remain exclusively skilled
         Detrimental effects demonstrated by:
               o Growth in trade union membership from 3.5m in 1933 to 8m in 1940
              o Growth in the number of strikes from >2,000 (1934) to almost 5,000 (1937)
> Farmers
         The New Deal facilitated an increase in the regulation of agricultural markets
              o Through such measures as the Agricultural Adjustment Act (May 1933), Soil Conservation and Domestic Allotment
                   Act (April 1936), Bankhead Cotton Control Act, Kerr-Smith Tobacco Control Act
> African Americans
         The New Deal elicited a series of detrimental effects upon the AA community
              o Eg TVA constructed a model town, ‘Norris’ or a ‘vision of villages and clean small factories’, which excluded AAs
              o Eg CCC segregated its camps for workers
              o Eg Agricultural Adjustment Act discriminated AA participation, led to job losses
              o Eg National Recovery Administration permitted race-based wage differentials
              o Eg did not legislate against Southern lynching and Jim Crow Laws
                             ‘If I come out for the anti-lynching bill now, [Southern conservatives] will block every bill I ask Congress to
                              pass to keep America from collapsing’ FDR
                             Introduced in 1919, but failed to pass in 1922 and 1935
              o Eg failed to solve racial violence and scapegoating
                             As suggested by a regional revival of the KKK, infiltration of the fascist organisation ‘The Black Shirts’
              o This prompted the African American newspaper ‘Crisis’ to suggest to its readers in 1935 that they ‘ought to realise
                   by now that the powers-that-be in the Roosevelt administration have nothing for them’
> Women
         The New Deal elicited a series of detrimental effects upon women
              o Eg Gender-based wage differentials confirmed by the minimum wage and conditions established by the NRA (1933)
                   and Fair Standards Act (1938)
                             Wage rate for women receiving below the minimum improved
                             Permitted a gender-based wage differential of up to 30%
                             Eg by 1939, a female school teacher earned an average of 20% less than her male counterparts
              o Eg welfare benefits instituted by the Social Security Act (1935) assisted widows, unemployed and divorced women
                             This included the Aid to Dependent Children, an organisation that provided support for women, children
                              of families whose husbands, fathers had abandoned them
                                        AA women excluded in some areas, young women experienced humiliation in gaining relief

				
DOCUMENT INFO