New Deal Timeline Q's Flashcards
FDR’s % of the vote;
- November 1932
- November 1936
- 1932 : 57%
- 1936 : 61%
Quote of FDR’s in 1933 on what the New Deal would be;
“well thought out blueprint for radical change”
Dates of Congress’ 100days of cooperation
19th March - 16th June
How many significant measures passed in 100 days?
16
What was the 100days initially to deal with?
What did Roosevelt do?
banking
used it to take advantage of other problems
e.g farming
Between what days was the Emergency Banking Act composed?
5th-9th March
Moley “brains trust” quote on Emergency Banking Act
“American capitalism was saved in 8 days”
When was the Trading With the Enemy Act passed? What did it allow government?
5th March 1933
Increased powers to govern banking
What did the government do under the Trading with the Enemy Act?
What was the aim?
Why was this limited?
Establish 4 day Bank holiday
aimed to stop run on the banks
X32 states had already closed their banks
When was the Emergency Banking Act passed? What body did it use?
9th March 1933
Reconstruction Finance Corporation
What was the job of the reconstruction finance corporation?
What was the aim of this?
- legacy of Hoover’s
- buy bank stock and assume bank debt
to increase banks capital and soundness
How did the RFC under FDR differ to Hoovers?
Hoover had LOANED money to banks
FDR was INCREASING their CAPITAL
When did FDR announce banks would reopen?
How far was this successful?
By when had $1billion been deposited?
12th March 1933
3/4 open by end of March
Beginning of April - $1billion deposited
Was the Emergency Banking Act and Bank Holiday successful? What evidence is there?
Yes - increased public confidence
$1billion registered in bank deposits
What did FDR do in March 1933 to show he was cutting the budget?
Why did he do this?
What did this show about his economic spending?
Cut civil service salaries
and veteran benefits
Previously criticised Hoover for spending too much
Never abandoned fiscal conservatism
When was the Securities Act for Regulating Wall Street?
What did it mandate?
May 1933
- those who issued misleading prospectuses liable as criminals
- full info whenever new securities were to be issued
- regular financial disclosures
What did the Securities Act for Regulating Wall Street set up in 1934? What was its role?
What did it create?
Securities and Exchange Commission
Role:
- oversee stock exchange and punish wrongdoers
- prohibit buying stock on the margin
Created more equitable conditions for investors
When was the Civilian Conservation Corps set up? When was it shut down?
Within 2 years how many did it employ?
During its duration how many men did it employ?
March 1933 - 1941
0.5million men in 2,500 camps within 2 yrs
3million men during its duration
What was the minimum wage in the CCC? Why did FDR favour this approach?
$50 monthly
80% had to be sent back to family
Favoured jobs over creation of dependency
Type of people employed within the CCC and numbers;
- no women
- 250,000 black
- 12,000 N.Americans
=strict segregation
When was the TVA set up?
Where did it run through?
What did the standard of living in the 30s and 40s for those involved increase by?
May 1933
Tennessee and 7 of the poorest states
200% increase in standard of living
TVA rate of electricity
National rate of electricity
$2.5kwH = TVA
$5.5kwH = national
Why was the TVA unusual for its time?
- unusual entrance of gov into business
- 1st publicly owned electricity organisation
- gov in direct competition with utility companies
When did the USA leave the gold standard?
When did Britain do this?
USA - June 1933
Britain - Sept 1931
When was the Glass-Steagall act? What was its main objective?
June 1933
Prohibit commercial banks participating in investment banking business
What was the aim of the Glass-Steagall Act?
decrease banks participating in speculative activity
restore public confidence
stop run on banks
What body did the Glass-Steagall Act introduce that can be seen as a reform? How long did it last until?
Federal Deposit Insurance Corporation
1999
Why was the Federal Deposit Insurance Corporation criticised in hindsight?
kept open many small banks which should have been nationalised
which was a key problem of the 1920s
When was the gold buying act?
What type of tactic was this? What was its aim?
october - december 1933
Warren-Pearson tactic
method of devaluing currency
What was the real damage of the gold buying act?
What did it show Roosevelt was doing?
critical time lost in a solution economists had foretold would not be successful
Roosevelt was experimenting
When was the CWA introduced?
How long did it last until?
November 1933
lasted until April 1934
How many people did the CWA provide temporary employment?
What was their average weekly wage?
4million
$15 weekly
Why was the CWA established?
What was it spending monthly and what does this show?
PWA was too slow to mobilise
established as form of immediate relief
spending $200monthly
= shows PWAs limitations
When was 21st amendment repealed? what did this lead to?
- wine production of Pacific coast
- grain demand
= tackles underconsumption - gov now earning tax revenue again
When was the London Economic Conference?
July 1933
What X2 bodies did the National Industrial Recovery Act set up? when was it established?
November 1933
- PWA
- NRA
NRA caused production costs to increase by what? What did this do?
It was also responsible for what % of wage increases?
production costs = 40% increase
disincentivised hiring
26% of wage increases
Number of codes and % of industries the NRA went across
541 codes
90% of industries
NRA was an example of relief / reform / recovery?
relief - no direct / immediate relief
reform - in part due to increasing conditions / labor recognition
recovery - did not stimulate employment / production increases
How much was appropriated for the PWA?
How much did it spend in the first 6months?
What did Roosevelt do to mitigate this?
$3.3billion
only $110million in first 6 months
created CWA
Was the PWA successful with housing?
How many other construction projects did they complete in its lifespan?
limited with housing - only 25,000 units
34,000 projects
Building projects, opinion by Kirkendall
building projects didn’t end the depression
but enabled people to survive who would have had an impossible time surviving without them
Who was the PWA run by?
What was his ideology clearly due to slow mobilisation of PWA?
Ickes
reluctance to deviate from self-help / limited government intervention
What was FERA?
When was it set up and how much was it appropriated?
Federal Emergency Relief Act
1933
appropriated $500million
Who would distribute the money provided by FERA?
What was its main limitation? Who acknowledged this?
states would distribute
= not direct government aid
- not enough to survive / stimulate consumerism / pay mortgages on
Hopkins himself acknowledged this
How much did the AAA pay in benefits payments?
Who funded this?
$1.5billion by 1936
paid for by food processors
How many Okies moved away due to dust bowl / being tenant farmers during 1930s?
300,000
What did the Butler vs USA decision cause in terms of farming?
- decline in farm prices
- decline in amount government was expecting from tax receipts
Value of farm products;
- 1936
- 1932
- 1914
1936 - $7billion
1932 - $4billion
1914 - 1936 prices only 80% of this
What was the plan of the AAA?
What did this plan tackle in terms of the farming chain?
to increase crop prices by paying gamers a subsidy to compensate for voluntary cutbacks in production
tackeld overproduction - ignored underconsumption
What board was set up to review the NRA?
When?
What did it find?
What does this suggest about the NRA and big business?
National Recovery Review Board
1934
reported the NRA favoured big business > small
suggests NRA reinforced big businesses
higher production costs were disadvantage to smaller businesses
NRA was not as large a disadvantage to businesses as conservatives suggest
What was the role of the Securities and Exchange Commission?
What type of conditions did it create?
prohibit buying stock on the margin
oversaw stock exchange and punished wrong-doers
created better conditions for US businesses as was more equitable market for investors
How many workers went on strike in 1934?
What did this do in relation to the threat from the left?
1.5million workers
hyperbolised the threat
What did FDR do in relation to the tariffs set by Hoover?
Why was this actually beneficial?
did not modify them
allowing cheap foreign goods onto market would have destroyed any hope of increasing prices
What was the Trade Agreements Act? When was it signed?
What did it show about the New Deal?
1934
recognition that rejection of international cooperation had gone too far
gave FDR power to revise tariffs up to 50%
Never developed coherent trade policy
What X2 legislations in relation to housing were passed in 1934?
Federal Housing Administration
Home Owners Loan Corporation
Role of federal housing administration?
What did this stimulate and how?
gave federal insurance on special mortgages for those buying new homes
stimulation of construction industry via assisting provision of purchasing power
Role of home owners loan corporation?
When was it set up?
Was it successful?
protect individuals from home repossession via refinancing mortgages at more easily repayable rates
1934
no relief to unemployed - could not afford mortgage even at low rates
250,000 homes repossessed by 1937
What X2 pieces of farm legislation were introduced in 1934?
- Farm Mortgage Refinancing Act
- Franzier-Lemke Federal Farm Bankruptcy Act
Role of Franzier-Lemke
Who did it aid?
When was it ruled unconstitutional?
restricts banks ability to repossess farms
aided farmers at risk of foreclosure
unconditional in 9:0 verdict May 1935 Black Monday
What Act was passed in 1934 in relation to Native Americans?
What did this do?
Indian Reorganisation Act
reversed Dawes Act
allows collective land ownership
advancement of cultural industry
Who ran the Indian Reorganisation Act?
What body / individual?
Bureau of Indian Affairs
John Collier
Farm foreclosures;
- 1931
- 1933
- 1937
- 1931 : 19
- 1933 : 39
- 1937 : 18
1934 Midterm elections information;
- democrats gain largest majority to date
69/96 seats in Congress - increase in radicals
e. g farm labour party
What was the role of the Farm Mortgage Refinancing Act?
reschedule farmers debts
to avoid foreclosures
What X2 bodies were involved in the Emergency Relief and Appropriation Act? When was this act passed?
1935
- WPA
- Resettlement Agency
How many people did the WPA employ in its existence? What % of these were women at its peak year?
How long was its existence?
8yr existence
8.5million people during duration
at peak year only 15% of workforce were women
What were the wages like provided by the WPA?
- more than relief
- less than private employment
- averaged $52 weekly
Who led the WPA?
What was he quoted as saying?
What was his position remembered as?
What had he previously led?
Hopkins
“give a man dole and you sink his body and destroy his spirit”
most powerful man in the administration after FDR
previously led FERA
What type of projects did the WPA engage in?
mass of variety and volume
_ 1.2billion school lunches
- 150 new airports
- Federal Theatre Project
How many did the Federal Writers Project employ at its peak?
6,000 journalists
What was the expenditure of the WPA between 1936-39?
$7billion
What was a limitation of employment by the WAP?
- wages less than private business
- employment only for one year
What shows the extent to which the WPA supported a large proportion of the population?
What does this show?
20% of the male workforce at one point had worked for the WPA
Shows the New Deal was a temporary holding measure, not a solution
What was the WPA not allowed to do, a clause which appeased big business?
not allowed to do large scale projects
What was the situation with the arts subsidies and the WPA?
stability and want to decrease expenditure meant arts subsidies scrapped in 1939
however popularity meant all states found local sponsors to continue to fund the programmes
Resettlement Administration led by who?
What was his aim?
Tugwell
move 500,000 to Greenbelt sites
How successful was the Resettlement Administration?
only 4,440 families moved
Only X3 greenbelt sites created