Shafer Chapter 1 Terms

Question 1

Emergency Banking Act of 1933

Answer 1

1. Reopened solvent banks, closed insolvent ones, gave federal gov’t authority to manage transition
2. Passed in 6 hours and 56 minutes, which is crazy fast and a testament to the Democratic majority.

Question 2

Major achievements in “First Hundred Days” of FDR’s Presidency

Answer 2

1. 13 major acts of legislation passed, which was unprecedented at the time and still is today
2. Set inflation of currency, direct economic relief and regulation, institutionalization of public employment, and more
3. Some legislation passed over FDR despite vetoes, mainly cash bonuses for veterans of WWI.

Question 3

Controversies over National Industrial Recovery Act

Answer 3

1. Gov’t sponsored cartelization of major industries in the economy
2. would’ve been most extensive intervention in the economy of all the New Deal policies
3. Presidential alternative of Public Works Administration sets max hours/minimum wages, enables co-optation

Question 4

1935’s “Second New Deal” major new programs/legislation

Answer 4

1. Social Security Act- gave security to poor/dependent
2. Emergency Relief Appropriations Act- mix of large/small relief operations
3. Holding Company Act- attempt to break up major electricity conglomerates
4. Banking Act- created Open Market Committee on Federal Reserve Boards, set discount/interest rates
5. Wealth Tax Act- more heavy taxation of rich

Question 5

FDR’s court-packing plan, creation/resolution and long term consequences

Answer 5

1. Polarization between Supreme Court/President, threatened New Deal Policies
2. FDR threatened with Judicial Procedures Reform Bill in 1937, which would give him six judges to appoint
3. Never passed, but judges began to reverse decisions towards the New Deal
4. Threatened checks/balances and the Judicial branch’s independence

Question 6

Behavior of Southern Democrats in High New Deal

Answer 6

1. Major dissidents in Democratic Party, but voted mostly with Northern Dems
2. More stable, didn’t lose seats in 1938 with backlash against New Deal.

Question 7

Why Democrats suffered major losses in 1938 midterm elections

Answer 7

1. Big recession in 1937 (after FDR claimed to be out of the Depression) hurt the Democrats, lost 70 House seats