Chapter 23 Class Notes C23-1 I. Roosevelt s Rise to Power (pages 678 680) A. The Republicans nominated Herbert Hoover to run for a second term as president. The Democrats selected New York Governor, Franklin Delano Roosevelt. Roosevelt became the first to deliver an acceptance speech to a nominating campaign. B. Roosevelt s policies to end the depression became known as the. Roosevelt won the election in a landslide. C. Roosevelt came from a wealthy New York family and was educated at Harvard and Columbia Law School. He was a distant of President Theodore Roosevelt. Franklin married Theodore s niece, Eleanor. D. Roosevelt s political career began in 1910, with a seat in the New York State Senate where he supported progressive reform and opposed party bosses. He was appointed assistant secretary of the by Woodrow Wilson. In 1920 he caught, a paralyzing disease with no cure. Roosevelt did not give in to the crippling disease. He relied on his wife, Eleanor, to keep his name prominent in politics. E. Roosevelt narrowly won the race for New York governor. During his term as governor, Roosevelt used government power to help people deal with the economic challenges of the time. His struggle with polio made people feel he could somehow understand their. His popularity in New York paved the way for his run for president. II. Roosevelt Is Inaugurated (pages 680 681) A. Franklin Roosevelt won the November 1932 presidential election, but his inauguration would not occur until March 1933. During this time, unemployment continued to rise, bank runs increased, and people began converting their money into gold. B. Some bank runs occurred out of fear that Roosevelt would end the, which would reduce the value of the dollar. At that time, an ounce of gold equaled a set number of dollars. To reduce the value of the dollar, the United States would have to stop exchanging dollars for. C. People began taking gold and currency out of banks, resulting in over 4,000 banks collapsing by March 1933. Many governors declared, which closed the remaining banks before bank runs could put them out of business. C23-2 I. The Hundred Days Begins (pages 682 683) A. Between March 9 and June 16, 1933, referred to as the, Roosevelt sent many bills to Congress. Congress passed 15 major acts to help the economic crisis. These programs made up the First. B. To generate new ideas and New Deal programs, Roosevelt put together a group of advisers in the fields of academia, business, agriculture, government, law, and social work. C. Roosevelt s advisers were divided into three main groups. The first group supported the of Theodore Roosevelt and believed government and business should work together to manage the economy. The second group distrusted big business and wanted government planners to run key parts of the economy. The third group supported the of Woodrow Wilson and felt it was the government s responsibility to restore competition to the economy. II. Fixing the Banks and the Stock Market (pages 683 685)
A. When Roosevelt took office, he knew the first thing he needed to do was to restore confidence in the system. He called a national bank holiday and called Congress into special session. B. Congress passed the Emergency Banking Relief Act, which required federal examiners to survey the nation s banks and issue Treasury Department licenses to financially sound banks. In Roosevelt s first, where he spoke on the radio directly to the people, he assured Americans that the banks were now secure. The following day deposits in every city outweighed withdrawals, ending the banking crisis. C. New regulations for banks and the stock market were implemented with the Securities Act of 1933 and the Glass- Steagall Banking Act. Under the Securities Act of 1933, companies that sold stocks and bonds had to provide complete and truthful information to investors. D. The Securities and Exchange Commission (SEC) was created to regulate the stock market and prevent fraud. E. The Glass-Steagall Act separated commercial banking from investment banking. It no longer allowed depositors money to be risked by on the stock market. The act created the Federal Deposit Insurance Corporation (FDIC) that provided government insurance for up to a certain amount. III. Managing Farms and Industry (pages 685 686) A. Roosevelt asked Congress to pass the Agricultural Adjustment Act a plan that paid not to raise certain crops to lower crop production. The act was administered by the Agricultural Adjustment Administration (AAA). While the plan reduced production, increased prices, and helped some farmers, thousands of tenant farmers were unemployed and homeless. Large commercial farmers who raised one crop profited more than small farmers who raised several products. B. The National Industrial Recovery Act (NIRA) suspended laws and allowed business, labor, and government to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry. The program was run by the National Recovery Administration (NRA), and it urged consumers to buy only from companies who signed agreements with the NRA. The gains of the NRA were short-lived and actually caused industrial production to fall. It was declared by the Supreme Court in 1935. IV. Providing Debt Relief (page 686) A. Several policies were introduced by Roosevelt to help Americans deal with their debt. B. The Home Owners Loan Corporation (HOLC) bought the mortgages of homeowners behind on payments and restructured them with longer terms of repayment and lower rates. The HOLC gave loans only to those employed. It foreclosed on property if payment could not be made. The result was 100,000 foreclosures. However, the HOLC refinanced 1 out of every 5 mortgages in the United States. C. The Farm Credit Administration (FCA) was established to help farmers their mortgages. While the FCA loans helped many farmers in the short term, the loans may have slowed overall economic recovery by giving money to poor inefficient farmers instead of to businesses. V. Spending and Relief Programs (pages 686 688) A. Roosevelt supported a series of government agencies to begin work programs for the unemployed. B. The Civilian Conservation Corps (CCC) gave unemployed men aged 18 to 25 the opportunity to with the national forestry service planting, fighting forest fires, and building. By the time it closed in 1942, the CCC had employed three million men. C. The Federal Emergency Relief Administration (FERA) was created to channel money to help state and local agencies fund projects.
D. In 1933 Congress authorized the Public Works Administration to begin a series of construction projects, creating additional. E. Harry Hopkins, the head of FERA, set up the Civil Works Administration (CWA), which hired workers directly and put them on the government s payroll. It was shut down when Roosevelt became fearful of the amount of money spent on the program. F. The most important aspect of Roosevelt s New Deal was the change in the of the American people. People became hopeful and optimistic, and their faith in America was restored. C23-3 I. Challenges to the New Deal (pages 689 691) A. Support of Roosevelt and his began to fade in 1935. The effectiveness of the New Deal was questioned by right and left wing politicians. B. Roosevelt used spending to pay for his programs. He abandoned a balanced budget and borrowed money to pay for his programs. C. The League was created as business leaders and anti-new Deal politicians from both parties organized to oppose the New Deal. D. Left wing Democratic senator Huey Long proposed taking property from the rich and dividing it up amongst the poor. It was believed that if he ran as a third party candidate, he would take 10 percent of Roosevelt s vote, possibly enough for a Republican victory. E. Father Charles Coughlin, a Catholic priest in Detroit, gave further support to through his popular radio broadcast. F. Dr. Francis Townsend, a former public health official, proposed that the federal government pay citizens over the age of 60 a pension of $200 a month. This would increase spending and create additional for younger people. II. Launching the Second New Deal (pages 691 692) A. In 1935 Roosevelt s second New Deal began with a series of programs and reforms to speed up recovery and provide economic security to every American. Roosevelt hoped the plan would increase his chances of being re-elected in 1936. B. The Works Progress Administration (WPA) was a federal agency headed by Harry Hopkins. It spent $11 billion over several years, creating jobs for workers. Its most controversial aspect was offering work to, musicians, theater people, and. C. In the Supreme Court case Schechter v. United States, the court struck down the National Industrial Recovery Act. The Court ruled that the Constitution did not allow Congress to delegate its to the executive branch. It ruled the NIRA codes unconstitutional. D. Roosevelt feared that the Court would strike down the New Deal. He ordered Congress to remain in session until his new bills were passed. This was nicknamed the second hundred days by the press. III. The Rise of Industrial Unions (pages 692 694) A. New labor legislation was created because Roosevelt believed in high union wages to allow more spending power to boost the economy. B. In July of 1935, the National Labor Relations Act ( ) was passed, guaranteeing workers the right to organize unions without employer interference. The law set up the National Labor Relations Board (NLRB), which organized factory elections by secret ballot to determine if workers wanted to form a union. Binding
was also set up, in which a neutral party would listen to both sides and decide the issue. This gave dissatisfied union members a process to voice their complaints. C. In 1935 the Committee for Industrial Organization (CIO) was formed to organize industrial unions. D. After two union men were demoted at the General Motors auto-body plant in Cleveland, Ohio, workers protested with a where they stopped working but refused to leave the plant. Workers at the company s plant in Flint, Michigan, did the same. Violence broke out, and finally the company gave in. The United Auto Workers (UAW) was formed and quickly became one of the most powerful unions in the United States. IV. The Social Security Act (page 694) A. The Social Security Act became law in 1935, providing security for the elderly, unemployed workers, and other needy people. The bill would provide a monthly benefit and unemployment insurance. Workers earned the right to receive the benefits by paying premiums. B. Social Security helped many people, but initially it left out many of the neediest members of society, such as farmers and domestic workers. C23-4 I. Roosevelt s Second Term (pages 695 698) A. Millions of voters owed their jobs, homes, and bank accounts to the New Deal. By the election of 1936, Democratic Party membership shifted from mainly white Southerners to include farmers, laborers, African Americans, new immigrants, ethnic minorities, women, progressives, and intellectuals. First lady Eleanor Roosevelt spoke with many people from these various groups, and she persuaded her husband to address some of their concerns in his New Deal programs. B. Roosevelt s Secretary of Labor,, was the first woman appointed to a cabinet post. C. Roosevelt won the 1936 election in one of the biggest landslides in American history. D. The Supreme Court did not support the president s New Deal programs. In January 1936, the Court declared the Agricultural Adjustment Act unconstitutional. After the election, Roosevelt attempted to change the political balance of the Supreme Court with the plan. Roosevelt sent Congress a bill to increase the number of justices on the Supreme Court. It was a political mistake and split the Democratic Party. Americans felt it would give the president too much power. E. In 1937 a sudden rise in unemployment further hurt Roosevelt s popularity. When he cut spending just as the first Social Security payroll taxes decreased paychecks, the economy plummeted and two million people were out of work. This recession led to a debate about how to handle the situation. Treasury Secretary Henry Morgenthau wanted to balance the budget and cut spending. The opposition pushed for more government spending. They supported Keynesianism, the theories of British economist John Maynard Keynes. In his book, he argued that the government needed to spend heavily during a recession to jump-start the. F. In 1938 Roosevelt asked Congress for $3.75 billion for the PWA, WPA, and other programs. II. The Last New Deal Reforms (pages 698 699) A. Roosevelt s successes were limited in his second term in office. B. The 1937, promoted by Eleanor Roosevelt, created the United States Housing Authority to subsidize loans for builders willing to buy blocks of slums and build low-cost housing. C. The Farm Security Administration gave loans to farmers to purchase farms. Congress kept appropriations low, believing that the plan made agricultural problems worse.
D. The Fair Labor Standards Act of 1938 gave protection to workers, abolished, and created a 40- hour workweek for workers. E. New Deal legislation began to get blocked as Congress began to turn against the New Deal. The New Deal era ended by 1939. III. The Legacy of the New Deal (pages 699 700) A. The New Deal had limited success, but gave Americans a stronger sense of security and stability. B. The New Deal operated to balance competing economic interests. The New Deal s mediating role established the, which helped work out conflicts among different interests. C. The New Deal brought a new public attitude regarding the government. The program gave Americans a that provided safeguards and relief programs to protect them from economic disaster.