UNIT 4 (USA 1918-41) 9-10 Flashcards
Welfare for Farmers - Banking Act
What Agency helped farmers struggling for money
The FSA (Farm Security Administration)
What was the FSA
The Farm Security Administration helped rural people buy land for farming rather than working as tenants on wealthy farms
How much was given in loans in the FSA
It gave $1 billion in loans by 1941 to buy land to resettle families
How did FDR help to increase the crop prices
The AAA was changed in the 2nd New Deal, continuing to limit the production of crops, instead of just paying farmers to stop over farming, they heavily taxed farmers who grew more products than they were allowed
What benefit did the government controlling the amount of produce have
Prices rose and farmers could make a profit, which helped after the dustbowl
What did the Banking Act do
Created a board with financial powers
What was the board created
A board of Governors of the Federal Reserve System was created in 1935, chosen by the president
How did the Banking Act cause powerful banks to have less power
They had financial powers (e.g, setting interest rates)
How did the Banking Act strengthen the banking system
By increasing central powers, banks became more stable and none were closed in 1936
Why was another stock market crash less likely to happen
Interest could be carefully monitored and controlled by the Government
