Alphabet Agencies Flashcards
Banking and Finance - EBRA
1933 - Emergency Banking Relief Act
- US taken off gold standard
- required those who had gold to return it to Fed. Reserve Banks for $20.6 and ounce and made the dollar no longer redeemable by gold
Banking and Finance - Emergency Banking Act
1933
- to strengthen banks capital position
- authorised Reconstruction Finance Corporation to buy up stock and bank debts in order to make institutions financially sound
Banking and Finance - The Glass Steagall Act
1933
- Commercial banks banned from banking that had fuelled speculation
- bank officials not allowed to take personal loans from own banks
- Federal Deposit Insurance Corporation est. to provide system of Fed. guarantees for bank deposits
- shares purchased ‘on the margin’ banned
Regulation of the Stock Market - The Truth in Securities Act
1933
- required brokers to offer clients realistic information about the securities they were selling
Regulation of the Stock Market - The Securities Act
1934
- est. new agency - Securities Exchange Commission
- regulated stock market and tried to prevent fraudulent activity such as insider dealing
Economies in Government - The Economy Act
1933
- slashed government salary
- cut ex-soldier pensions
- refused to give veterans their bonus
Agriculture - AAA
1933 - Agricultural Adjustment Administration
- set up to apply terms of Agricultural Adjustment Act
- deemed unconstitutional in 1935
Agriculture - Under AAA - Farm Credit Act
- gov. agencies arranged for $100 million to be available to re-finance mortgages
Agriculture - Under AAA - The Frazier-Lemke Act
- lent money to farmers who had already had their farms and houses re-possessed so they could recover them - interest only set at 1%
Agriculture - Commodity Credit Agency
- made loans to farmers to store products
- loans would only have to be repaid when the farmer could get a certain price
- targeted: corn, cotton, milk etc
- payment to be financed by tax on food processing
Industrial Recovery - NIRA
1933
- est. 2 crucial organisations:
1. NRA
2. Public Works Administration
Industrial Recovery - NRA
1933 - National Recovery Administration
- created 514 legally binding codes regulating wages, prices and competition
- key obj. was to restore purchasing power and avoid excess competition
- larger businesses benefited as anti-rust measures were abandoned
- workers benefited from the right to collective bargaining
- Section 7a made management engage with talks with employers, assisting trade unions
- rarely enforced e.g. Ford never subscribed
- minimum wages agreed made it very difficult to smaller firms to abide by
Industrial Recovery - PWA
1922 - Public Works Administration
- $3.3 billion made available
- est. to provide funding for Public Works schemes
- road building, hospitals. schools, etc
- cautious start, only spending $110 million in the first 6 months
- funded building of 34,000 constructions and employed thousands
Industrial Recovery - TVA
1933 - Tennessee Valley Authority
- regional planning of a deprived area with hydro-electricity production, environmental conservation, flood control and educational and health projects
- 20 dams constructed
- agriculture transformed
Relief - FERA
1933 - Federal Emergency Relief Act
- allocated budget of $500 million to provide help for the unemployed
- half spent directly; other half spent with ratio of $1:$3 (1 fed dollar for every 3 state dollars)
- many states felt uncomfortable giving money to the poor
- those who claimed relief shunned adn treated abnormally
