(2d) Roosevelt and the First New Deal, 1933-35

Question 1

When was Franklin Delano Roosevelt elected?

Answer 1

1932

Question 2

What did Roosevelt promise to do when he was elected?

Answer 2

promised a New Deal to restore faith in the economy through the goals of Relief, Recovery and Reform. No specific blueprint about how this would be achieved. Committed to a balanced budget. Charismatic, appealed to population through ‘fireside chats’.

Question 3

What did the 1st 100 days see?

Answer 3

The first 100 days saw more legislation passed than any previous time in history. Transformed role of Federal Government and the expectations placed upon it by the people.

Question 4

What did the emergency legislation set up?

Answer 4

The emergency legislation was passed and set up ‘alphabet agencies’ to deal with the problems of the Depression.

Question 5

When was the Federal Emergency Relief Administration (FERA)?

Answer 5

May 1933

Question 6

What did Federal Emergency Relief Administration (FERA) include?

Answer 6

Given $500 million to divide equally among states to provide unemployment relief

Half given by FERA to the states

Other half kept back, to give states $1 for every $3 of their own funds they spent on relief

Question 7

How many alphabet alphabet angles were there?

Answer 7

16

Question 8

When was the Agricultural Adjustment Agency?

Answer 8

1933

Question 9

What were the negatives to FERA?

Answer 9

Some states refused to comply

Insufficient for scale of problem but set precedent for direct government relief

Question 10

What did the AAA do?

Answer 10

Paid farmers to produce less to tackle problem of overproduction

Question 11

What were the impacts of the AAA?

Answer 11

Prices did increase: Cotton rose from 6.5 to 10 cents per pound

Contentious issues such as the slaughter of 6 million pigs

Total farm income rose from $4.5 billion 1932 to $6.9 billion 1934

AAA did cause problems later on

Question 12

What was the The National Industry Recovery Act (NIRA),?

Answer 12

set up the National Recovery Administration (NRA).

Firms that participated agreed to codes of practice such as good working conditions and product standards.

Question 13

What was set up as part of the NRA?

Answer 13

Public Works Administration (PWA),

Question 14

What did the PWA include?

Answer 14

funded with $3.3 billion with the aim of pump priming (pumping government money in to get things working again)

The hope was that spending on public works such as road building would stimulate the economy and create permanent jobs.

Question 15

What was the downside to the PWA?

Answer 15

Many workers ended up unemployed again after contracts ended

Offered temporary relief but less successful in long term recovery

Question 16

What had the CCC done by 1935?

Answer 16

This was one of Roosevelt’s proudest agencies.

By 1935, 500,000 young people (mainly men) were given useful jobs such as tree conservation in national parks.

Question 17

When was the Emergency Banking relief Act?

Answer 17

March 1933:

Question 18

What did The Emergency Banking Relief Act (EBRA) include?

Answer 18

6th March 1933, all banks closed for 4 days

He gave the first fireside chat aiming to restore confidence in the banks again by explaining the situation in simple terms

EBRA gave the Treasury authority to investigate any bank, and Reconstruction Finance Corporation was authorised to buy up their debts

Question 19

How much money had been put back into the banks by 1st April due to EBRA?

Answer 19

$1 billion had been redeposited in banks

Question 20

What was the The Glass-Steagall Act?

Answer 20

Longer term measure that aimed to reform banking system to prevent another collapse.

Question 21

What did the The glass-steagall act include?

Answer 21

Banned savings banks from speculative investment

Gave Federal Reserve Board more ability to supervise and regulate

Set up Federal Deposit Insurance Corporation which insured individual bank deposits of up to $2,500. State banks had to join the Federal Reserve system to qualify

Question 22

What are the Criticisms of the glass-steagall act?

Answer 22

Some wanted more direct government control

some felt banks were being subsidised to stay open as a reward for their inefficiency

Federal Reserve given too much control.

Question 23

What acts regulated the stock exchange?

Answer 23

The Truth in Securities Act:

The Securities Act 1934:

Question 24

What was the Truth in Securities Act?

Answer 24

brokers had to be honest about securities they were selling

Question 25

What did the Securities Act include?

Answer 25

set up the Securities Exchange Commission (SEC) to oversee the stock market and prevent fraudulent activities such as insider dealing

Question 26

What opposition did the The Truth in Securities Act and The Securities Act 1934 get?

Answer 26

Opposition from Wall Street, but successful. Famous broker Richard Witney arrested for embezzlement in 1938.

Question 27

What did the right think of the New deal?

Answer 27

The New Deal was too radical

Government involvement too direct, taxes too high to pay for ND

Question 28

Give an example of Far right opposition to the 1st New Deal?

Answer 28

Liberty League formed April 1934 with some Democrats and Republicans who believed free market economy should be left alone. Fell away after Roosevelt’s 1936 Presidential victory

Question 29

What did the opposition from the left think about the 1st new deal?

give some examples?

Answer 29

The New Deal was not doing enough

End Poverty in California (EPIC)
‘Share our Wealth’
Old Age Revolving Pensions Inc
Father Charles Coughlin and the National Society for Social Justice
The Thunder on the Left:

Question 30

What was the End Poverty in California (EPIC)

Answer 30

idea of Upton Sinclair which attracted initial popularity. Unemployed people would work in state-run cooperatives and be paid in a currency to spend in other cooperatives.

Question 31

What was the ‘Share our Wealth’ campaign?

Answer 31

led by Louisiana Senator Huey Long.

Confiscate all private fortunes over $3 million; Government fund old age pensions and introduce minimum wage; guarantee every family income of $2,000 - $3,000 a year.

Question 32

Was Rooveelt worried about Louisiana Senator Huey Long.?

Answer 32

Roosevelt worried Long would stand against him in 1936 election, but he was assassinated in 1935

Question 33

Was was the Old Age Revolving Pensions Inc

Answer 33

Dr Francis Townsend proposed $200 a month to everyone over 60 to spend and not save, which would boost consumption and create jobs for the young.

Question 34

What did Father Charles Coughlin want to do?

Answer 34

Father Charles Coughlin and the National Society for Social Justice: Favoured redistribution of wealth, would have formed alliance with Huey Long.

Question 35

What did the 1934 Mid-term Congressional Elections see?

Answer 35

The Democrats make gains in both Houses giving Roosevelt confidence to prep for a Second New Deal.

1936 Presidential Election was an easy victory.