FDR-New Deal Flashcards
EBA
1933 emergency banking act
Authorised the RFC to buy stock and if necessary buy up bank debt in order to make the institutions in ancillary sound when they reopened
EBA
After the 4 days
Between 11-15 March nearly 70% of banks that had functioned before the Bank holiday had reopened for business. The RFC went across the nation and separated the solvent banks from insolvent ones. Those with unimpaired Capitol were given licence to reopen. The rest were refinanced by the RFC and reorganised prior to being opened again.
AAA
1934 Agricultural Adjustment Act Caused rural Depopulation AAA gave 4.5m to farmers between 1934-1940. Farm production cut by 6%. Brought and slaughtered 6m pigs and paid farmers to destroy their crops Called unconstitutional in 1936
The glass Steagall Act
1933
Commercial banks that had relied on small scale depositors were banned from banking. They were forbidden from using depositors’ money
FDIC
1933 Federal Deposit Insurance Corporation
Established to provide a system of Federal guarantees for bank deposits (up to $2,500) on the margin bills/loans were banned
Fireside chats
The day before the first banks reopened FDR gave his first fireside chat. Stressed the need for national partnership based on trust. Restored confidence as told them banks would be approved by the govt. by March 15th deposits exceeded withdrawals. By April nearly $1b had flowed back into the system
EBRA
1933 emergency banking relief act
US taken off of gold standard by forbidding the export of the metal except under license from the treasury. Those who had gold had to turn it in at the Fed Reserve Banks for $20.60. Took congress 40 minutes to debate this
Truth in Securities Act
1933
Required banks to offer clients realistic information about the securities they were selling
False statements about the sales of securities were outlawed
The Securities Act (SEC)
1934 set up the Securities Exchange Commission
Regulated the stock market and tired to prevent fraudulent activity
Prospective issuers of securities had to file detailed financial statements with the FTC and wait for 20 days b4 the securities could be issued. Anyone who dealt with these were legally liable for the accuracy
Joseph Kennedy put in charge
1934-1941 SEC increased from 698 people to 1678 and had a budget of $5.3 m
SEC halted issue of $155m of fraudulent services
Economy Act
1933 slashed numbers of salaries of his govt. employees (he led by example)
Cut ex-soldier pensions but treated the “bonus army” better than Hoover; greeting them personally with refreshments and entertainment
They left peacefully
NIRA
National Industrial Recovery Act. Established 2 orgs-NRA and PWA
As these two were had different ideals suggests bad organisation. Aims:voluntary,raising profits, minimum wages.
NIRA heralded as business, govt and people working together but led to dissolution.
NRA
National Recovery Act
Hugh Johnson. Covered over 90% of the nations industrial capacity. A total of 541 codes were established. Created legally binding codes for regulating wages, prices and competition. Larger businesses benefitted as anti-trust measures were suspended for 2 years.
Workers benefitted from section 7a
Long standing goals-child labour ended in Southern cotton mills
Section 7a
In a month, John Lewis’ Mine Workers union had shot up by 100,000 members. Another 50,000 workers joined the newly created Union for rubber tyres.
Some companies responded with violence to strikers and by firing employees.
Violence erupted in 1934 as over 1 m workers walked off their jobs in 1,856 separate strikes.
HORC
Home owners refinancing corporation-1933
Offered lower rates of interest over an extended borrowing period.
Established HOLC
HOLC
Home Owners Loan Corporation-1933
Aimed to help families avoid foreclosure on their homes by offering refinancing on better terms.
By 1951 it had assisted 1 million families in keeping their homes.
Wagner-Steagall National Housing Act
1937
A public housing programme
Federal Housing Administration
1934
Offered government backed insurance on long term mortgages
Did the housing legislation work?
White middle class suburban families mainly benefitted
Low income, unemployed or those living in the inner cities did not benefit (usually minority families)
BUT massively boosted home ownership over the next 30 years
John Collier
Appointed Commissioner for Indian affairs in 1933.
Wanted to restore tribal life and revive values (he had lived with the Pueblo Indians for years).
Managed to get 12,000 NA’s recruited to the CCC.
Criticised by some NA accusing him of wanting to transform reservations into living museums but mostly people liked him.
IRA
Indian Reorganisation Act:1934
Two policies:
Assimilation
Allotment-their territory in reservations being divided+distributed to individual Indians to own
Tribes reorganised and allowed to vote as well as govern themselves
Nothing to relieve poverty and discrimination
75 of 245 tribes voted against this
TVA
Tennessee Valley Authority 1933
Generates electricity outside of independent companies
Electricity drew industries into the region
Provided cheaper electricity many felt federal government had no right to interfere in state business
By 1945 75% of all properties had electricity (only 2% in 1932)
Average incomes went up by 200% between 1929-1945
PWA
Public Works Administration
Part of NIRA
Built large scale public works eg dams, bridges+schools
Aimed to spend $3.3b in first year and $6b in all
Only spent $110m in first 6 months
Between July 1933+March 1939 it funded 34,000 projects as well as 79% of new schools and 1/3 of hospitals
By June it had spent entire find on 13,266 federal projects and 2,407 non federal projects
For every PWA worker 2 additional workers were employed indirectly
FERA
Federal Emergency Relief Act 1933 Was originally ERA created by Hoover Led by Harry Hopkins Allocated budget of $500 million Half of budget spent directly (the dole) Other half spend with a ratio of 1:3 (one federal dollar for 3 state ones) Ran from May 1933 to Dec 1935 Gave states 3.1b 1935 FERA replaced by WPA
CCC
Civilian Conservation Corporation
Part of FERA
Robert Fechner in charge
Operated from 1933-1942
Young men ages 17-28 recruited to work in national forests in every state
Paid $30 sent $25 home
Maximum enrolment at any one time was 300,000 in 9 years
By 1933 there were 1,463 working camps
200,000 AAs enrolled and were segregated but given equal pay and housing
Separate Indian division
No women enrolled
