Chapter 23 The New Deal

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The New Deal

Written and Published by Natalie, John, Tom, Jennis, Karla

Approved by Mr. Timmons

American International School

Chapter 23

The New Deal

Section 1: A New Deal Fights the Depression

Electing Franklin Delano Roosevelt

Many Americans felt depression about Hoover, that’s why they wanted to change

the new president. They wanted to replace Hoover by Franklin Delano Roosevelt who

was president Theodore Roosevelt’s cousin. FDR had proved to be an effective which

were reform – mind leader and working to combat the problems.

Waiting for Roosevelt to Take Over

While FDR wait until 1933, he worked with team of carefully picked advisers. He

started with a New Deal program which focus on three goals: relief for the needy,

economy recovery, and financial reform.

The Hundred Days

http://en.wikipedia.org/wiki/Franklin_D._Roosevelt

http://en.wikipedia.org/wiki/New_Deal

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Lasting from March 9 to June 16, Roosevelt administration launched a period

known as Hundred Days. This congress passed more than 15 major pieces of New Deal

legislation. On March 5,1933 Roosevelt declared a bank holiday and closed all of them to

stop people from taking out more money because of wide spread bank failures.

An Important Fireside Chat

On March 12, before the first bank reopen, Roosevelt explaining in clear, simple

language about his New Deal. He explained why the nation welfare depended on the

public support government and the bank system.He also said the bank fail not because

they were weak, but even the strong banks could not meet such heavy demands. Few

weeks later, many Americans returned their saving back to the bank.

Regulating Banking and Finance

Congress took another step to pass the Glass – Steagall Act in 1933, established

FDIC. It provided federal insurance for individual bank accounts. The Federal Securities

Act passed in May 1933, required to provide complete information on all stock. In June

1934, Congress created the Securities and Exchange Commission (SEC) to prevent

people with inside information about companies from “rigging” the stock market of their

own profit. In addition, Roosevelt wanted to approve a bill allowing the manufacture and

sale of some alcohol. End 1933, the 21st Amendment had repealed prohibition altogether.

http://www.youtube.com/watch?v=wHpvhG6IFlw

http://en.wikipedia.org/wiki/Securities_Act_of_1933



http://www.investopedia.com/terms/s/sec.asp




Rural assistance

The Agricultural Adjustment Act (AAA) sought to raise crop prices by

lowering production.

Government achieved by paying farmer to leave every acres of land unseeded. It

also paid cotton growers $200 million to plow under 10 million acres of their crop and

paid hog farmer to slaughter 6 million pigs. That led to the hunger that many Americans

had to suffered. Focus on the badly depressed Tennessee River Valley, the TVA created

thousands of jobs, and provided flood control.

Providing Work Projects

The Civilian Conservation Corps (CCC) put young man from 18 to 25 years old

to work building roads, developing parks, planting trees. It supplied free food and

uniforms. In period of 8 years, the men of CCC planted more than 200 million trees

http://www.livinghistoryfarm.org/farminginthe30s/water_11.html

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preventing another Dust Bowl. The PWA which created in June 1933 was a part of the

National Industrial Recovery Act (NIRA) provided money to states to create jobs.

Roosevelt established the Civil Works Administration in November 1933 when that

program failed. It provided 4 million immediate jobs during winter. Although some

critics claimed that this program was wasting a lot of money, it also build more than half

a million miles of road.

Promoting Fair Practices

The NIRA promoted industrial growth by establishing codes of fair practice. It

created the NRA to set up prices of many products. Its aim was to promote recovery by

interrupting the trend of wage cuts, failing prices, and layoffs. The codes of fair practice

representatives of workers and consumers. Many business and politicians were critical of

the NRA. There were charges the code served large business interests and increasing

code violations.

Food, Clothing, and Shelter

The HOLC provided government loans to homeowners. The 1934 National Housing

Act created the Federal Housing Administration. The Federal Emergency Relief

Administration provide direct relief for the needy. Half of the money was given to the

states, the rest of it was distributed to states to support work relief programs. Harry

Hopkins believed that money helped people buy food, gain confidence and respect.

By the end of the Hundred Days

http://en.wikipedia.org/wiki/National_Industrial_Recovery_Act




President Roosevelt

Many critics argued that the New Deal did not help the poor and reform the

economic system.

The Supreme Court Reacts

By the mid 1930s, conservative opposition to the New Deal had received a boost

from two Supreme Court decisions. In 1935 the Court struck down the NIRA as

unconstitutional. In the following year, the Supreme Court struck down the AAA on the

grounds that agriculture is a local matter and should be regulated by the states rather than

by the federal government. Afraid about the Court’s decisions could affect the New Deal,

Roosevelt proposed in February 1937 that congress enacts a court reform bill to

reorganize the federal judiciary and allow him to appoint six new Supreme Court justices.

Over the next four years, because of further resignations, Roosevelt was able to appoint

seven new justices.

Three fiery critics

In 1934, some of strongest conservative opponents of the New Deal banded together to

form an organization called the American Liberty League.

http://en.wikipedia.org/wiki/Supreme_court

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A physician named Dr. Francis Townsend believed Roosevelt wasn’t doing

enough to help poor and elderly, he would provided monthly benefits to the aged.

Huey Long

Long created a program called Share Our Wealth and promised something for

everyone. At the same year, Long was assassinated by a lone gunman. Roosevelt knew

more needed to be done to help people and to solve the nation’s economy problems.

(Go to page 24 for vocabulary)

http://en.wikipedia.org/wiki/Huey_Long




Section 2: The Second New Deal Takes Hold

The Second Hundred Day

Continue the successful of the first Hundred Day New Deal, the President

Roosevelt open a second activity called the Second Hundred Day. This activity mostly

focused on farmers and workers by passing many laws that are more complete and

helpful than the old ones.

Reelecting FDR:

In 1936, presidential election was opened to choose the president for a second

term. The winner belongs to the President Roosevelt with high votes in Democrats.

Helping Farmers:

The Soil Conservation and Domestic Allotment Act replace with the Agriculture

Adjustment Act to help the farmers and improved crop production. They also passed a

http://www.u-s-history.com/pages/h1851.html

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second Agriculture Adjustment Act (AAA) without processing tax for farm subsidies. In

addition, they provided loan money for workers and farmers to buy land through the

Farm Security Administration (FSA).

Roosevelt Extends Relief

Works Progress Administration (WPA) was passed to create and give jobs to

unskilled workers as soon as possible. Not only this program helped more than 8 million

unskilled workers got a job but also it helped the country to constructed or repaired

651,000 miles of road and streets, build 850 airports and more than 125,000 buildings. To

help people knew more about WPA, they tried to write guides to cities, collect historical

slave narratives, paint on the school’s wall and performed around the country. Moreover,

they also opened another program named National Youth Administration (NYA) to

provide education, jobs, guides and entertainment for young people.

http://www.indiana.edu/~liblilly/wpa/wpa_info.html

http://digital.library.okstate.edu/encyclopedia/entries/N/NA014.html




Improving Labor and other Reforms

For the workers, they reform another act named Wagner Act to protect the right

of workers and set up National Labor Relations Board to hear what they say about unfair

practices. The government also gives workers the maximum hour per week and minimum

wages an hour by passing Fair Labor Standards Act

For the retirees, unemployment and people with disabled, they passed the Social

Security Act to help them with pension and aids. Finally the government expand and

regulating utilities by financing money and worked with electricity.

http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/wagner.htm

http://www.nationalcenter.org/SocialSecurityAct.html



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Section 3: The New Deal Affects Many Group The New Deal Brings New Opportunities

The New Deal gave not only some important opportunities but also some

difficulties for women. Indeed, they held some important positions in government. For

example, Frances Perkins became the first female cabinet member. She created the

Social Security system and supervised labor legislation. Two female diplomats and a

female federal judge were also appointed.

Frances Perkins

But women were still discriminated by male workers and other groups. They were

hired fewer than men and had lower minimum wages.

African – American Activism African Americans joined the civil right movement to support Roosevelt and the

New Deal. More than 100 African American were appointed to key government

positions. One of them was Mary McLeod Bethune, who headed the Division of Negro

Affairs of the National Youth Administration. H. Hastie and C. Weaver were appointed

to Roosevelt’s Department of Interior. A. Philip Randolph organized the first all-trade

black union. Marian Anderson’s performance was also noticed.

http://www.u-s-history.com/pages/h1603.html

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Mary McLeod Bethune Marian Anderson

Roosevelt still failed to support civil rights. He refused a federal anti-lynching

law and an end to the poll tax. African Americans were clearly discriminated from NRA,

CCC, and TVA. To protect tenant farmers and sharecroppers, increase job opportunities,

tenants’ groups were organized.

Mexican American Fortunes

This ethnic group had fewer benefits then African Americans, although

supporting New Deal, too. Most of them work on farms and were unprotected by state

and federal laws. They were discriminated by CCC and WPA, also being prevented from

trying to unionize.

Native Americans Gain Support Different from other groups, Native Americans received strong government

support from New Deal and full citizenship by law in 1924. In Indian affairs, John

Collier was appointed as the commissioner, who helped created the Indian

Reorganization Act of 1934 to support Native Americans. Some individual landowners

objected the act.

FDR Creates the New Deal Coalition

http://www.maquah.net/Kafkaesque/IndianCourt/IRA.htm






An alignment of groups called New Deal Coalition was created to support the

Democratic Party. The New Deal also helped the labor union members to have better

working conditions, increase bargaining power, and supported Roosevelt’s reelection.

Their members grew from 3 to more than 10 in 1933-1941. Some AFL formed the

Committee for Industrial Organization, what then changed to the Congress of Industrial

Organization (CIO).

However, the disputes among labor still continued. The sit-down strike was used

as an effective bargaining tactic in labor movement. The dispute at the Republic Steel in

Chicago in 1937 became the Memorial Day Massacre when ten killed and 84 wounded,

and that required the negotiation with union.

In 1936, President Roosevelt was reelected by the strong supports for Democratic

Party. They are from urban voters in large cities, especially in the North, and from

various religious, ethnic groups. He appointed many urban-immigrant officials, made

persuasive appeals that based on New Deal labor laws and work-relief programs to

reinforce his support.


http://www.kentlaw.edu/ilhs/memorial.htm




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Section 4: Culture in the 1930s

During the New Deal, movement of pictures, radio, art, and literature strongly blossomed.

The Lure of Motion Pictures and Radio

The radio and film industries flourished although the 1930s were a difficult time for

many Americans. At that time, approximately 65 percent of the population participated in

watching movies once a week. Radio was owned by nearly 90 percent of all America

households.

Movies provided wacky comedies, entertaining musicals, love stories, drama, and

gangster films. Later on, Hollywood, the film industry’s center came and

developed the “talking” pictures films in order to finish the period of silent films.

They also support to identify with a new era of sophistication and glamour. There

are several films which presented wealthy, funny, and romantic visions helped




audience to escape from the hard realities of the Depression. Gone with the

Wind was one of the most common and famous films of the era.

Radio also incarnated the democratic spirit of the times. Families typically

assembled several hours a day by their radio so as to pay attention together to

their favorite shows. Orson Wells who was an actor, director, producer, and

writer created one of the most renowned radio broadcasts of all time, “The War of

the World's” in 1938. Soap operas were played for homemakers broadcast in

middle of the day, while children’s programs were showed after school hours.

Some immediate news coverage became customary in society.

GONE WITH THE WIND

The

comedy

couple

George

Burns

and

Gracie

Allen

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The Arts in Depression America

Although many radio and movie productions were flourished during the 1930s,

the art and literature was sober and they also offered some serious critiques of American.

Uplifting messages about the strength of character and values of the American people

were conveyed by artistic work.

Artists were paid a living wage to produce posters, murals, and other public works

of art and teach in schools by The Federal Art Project, a branch of the WPA.

Many outstanding works painted by artists such as American Gothic of Grant

Wood in 1930.

Orson Wells and

his radio

broadcasts, The

War of the

World’s

The mural Industries of California, painted in 1934 by Ralph Stack

pole




Woody Guthrie was a folk singer and a composer who experienced the tragedies

of the Depression in 1932. He traveled many countries to seek a brighter life and wrote

many songs about the plight of poor Americans during the Depression.

American

Gothic

(1930) by

Grant

Wood

Woody Guthrie

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The Federal Writers’ Project supported people who became major writers. It also

helped Richard Wright, an African - American author who wrote his acclaimed

novel, Native Son in 1940. One of the country’s most famous authors of the

period was John Steinbeck. His novel was The Grapes of Wrath which was

published by The Federal Writers’ Project in 1939. Besides, some writers

examined a lot of difficulties of life in 1930s, while others showed human dignity

and the positive values of small-town life.


Richard

Wright and

his novel,

Native Son

(1940)

John

Steinbeck

and his

novel, The

Grapes of

Wrath

(1939)




Section 5: The Impacts of the New Deal

Supporters and

Critics of the New Deal

Over time since

the New Deal was

established, many

conservatives think that

President Roosevelt’s

policies made the federal

government too large

and too powerful in

order to prevent

enterprise and individual

initiatives. The

supporters contend that

the president struck a

reasonable balance

between two extreme:

unregulated capitalism

and over-regulated

socialism, and help the country recovers from it economic difficulties. On the other

hands, the critics think that President Roosevelt didn’t do much to socialize the economic

and to eliminate social and economic inequalities.

Expanding Government’s Role in the Economy

The federal government established many agencies to expand its power, such as

the Federal Deposit Insurance Corporation (FDIC) and Securities and Exchange

Commission (SEC) to regulate banking and investment activities. Besides, the federal

also infused the nation’s economy with millions of dollars, created federal jobs,

attempted to regulate supply and demand, and increased the government’s active

participation in settling labor and management disputes to shape the economy. What the

government did help to reduce the number of men, women, and children from suffering

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by providing them foods, jobs, and money. It also gave them hope and the sense of

dignity.

Protecting Workers’ Rights

The New Deal protected the workers’ right. The Wagner Act and the Fair Labor

Standards Act set standard for wages and hours banned child labor and ensure the right of

workers.




Today, the National Labor Relations Board (NLRB) is created under the

Wagner Act and the Fair Labor Standards Act.

Banking and Finance:

The SEC continued to supervise the stock market and enforce law regarding to the

sale of stock and bonds. To control the bank system, the FDIC assure with people that

their interests would be safe and would not be lost in the event of a bank failure.

Social Security:

Social security system helped a large number of poor Americans get some

assistance. It provides an old-age insurance program, an unemployment compensation

system, and aids for the disabled people and families with dependent children.

The Rural Scene:

The

New Deal also

had an impact

on the nation’s

agriculture. As

the second

Agricultural

Adjustment

Act was

passed in

1938, loans

were

determined by

the amount of

farmers’

surplus crops and the parity price.

The Environment:

http://www.nlrb.gov/

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In the New Deal, president Roosevelt highly committed to protect the nation’s

natural resources. The Civilian Conservation Crop planted trees, created walk path and

build fire lookout towers. The Soil Conservation Service taught farmers how to maintain

the soil through plowing, terracing and crop rotation. The Congress passed the Taylor

Grazing Act in 1934 helped reduce grazing on public lands.

To generate electricity and prevent flood in the Tennessee Valley, the Tennessee

Valley Authority was created. Furthermore, the government established wildlife refuges

and wilderness areas in the Nation Park. On the other hand, the strip-mining and coal

burning led to air, land, and water pollution.

In addition, the New Deal not only brought hope and gratitude for people for

benefits and protections they received, but also brought anger and criticisms who

believed that it took more of their money for taxes.




Vocabulary Vocabulary Section 1

Franklin Delano Roosevelt: also known as FDR, the two- term governor of New York

and a distant cousin of former president Theodore Roosevelt.

New Deal: President Franklin Roosevelt’s program to alleviate the problems of the Great

Depression, focusing on relief for the needy, economic recovery, and financial reform.

Glass- Steagall Act: The 1933 law that established the Federal Deposit Insurance

Corporation to protect individuals’ bank accounts.

Federal Securities Act: a law, enacted in 1933, that required corporations to provide

complete, accurate information on all stock offerings.

Agricultural Adjustment Act (AAA): a law enacted in 1933 to raise crop prices by

paying farmers to leave a certain amount of their land unplanted, thus lowering

production.

Civilian Conservation Corps (CCC): an agency, established as part of the New Deal,

that put young unemployed men to work building roads, developing parks, planting trees,

and helping in erosion- control and flood- control projects.

National Industrial Recovery Act (NIRA): a law enacted in 1933 to establish codes of

fair practice for industries and to promote industrial growth.

Deficit spending: a government’s spending of more money than it receives in revenue.

Huey Long: Senator of Louisiana who supported the New Deal at first but later turned

against Roosevelt.

Vocabulary Section 2

Eleanor Roosevelt: a social reformer who combined her deep humanitarian impulses

with great political skills.

Works Progress Administration (WPA): an agency, established as part of the Second

New Deal, that provided the unemployed with jobs in construction, garment making,

teaching, the arts, and other fields.

National Youth Administration: an agency that provided young Americans with aid

and employment during the Great Depression

Wagner Act: a law- also known as the National Labor Relations Act- enacted in 1935 to

protect workers’ rights after the Supreme Court declared the National Industrial Recovery

Act unconstitutional.

Social Security Act: a law enacted in 1935 to provide aid to retirees, the unemployed,

people with disabilities, and families with dependent children.


Frances Perkins: America’s first female cabinet member

Mary McLeod Bethune: an educator who dedicated herself to promoting opportunities

for young African Americans

John Collier: commissioner of Indian affairs

New Deal coalition: an alliance of diverse groups – including Southern whites, African

Americans, and unionized workers – who supported the policies of the Democratic Party

in the 1930s and 1940s

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Congress of Industrial Organizations (CIO): a labor organization composed of

industrial unions founded in 1938, it merged with the AFL in 1955


Gone With the Wind: a 1939 movie dealing with the life of Southern plantation owners

during the Civil War- one of the most popular films of all time.

Orson Welles: an actor, director, producer, and writer, created one of the most renowned

radio broadcast of all time, “The War of the Worlds.”

Grant Wood: America painters

Richard Wright: an African- American author, complete his acclaimed novel Native

Son (1940)

The Grapes of Wrath: a novel by John Steinbeck, published in 1939, that deals with a

family of Oklahomans who leave the Dust Bowl for California.


Federal Deposit Insurance Corporation (FDIC): an agency created in 1933 to insure

individuals’ bank accounts, protecting people against losses due to bank failure.

Securities and Exchange Commission (SEC): an agency, created in 1934, that monitors

the stock market and enforces laws regulating the sale of stocks and bonds.

National Labor Relations Board (NLRB): created under the Wagner Act, continues to

act as a mediator in labor disputes between unions and employers.

Parity: a government- supported level for the prices of agricultural products, intended to

keep farmers’ incomes steady.

Tennessee Valley Authority: a federal corporation established in 1933 to construct dams

and power plants in the Tennessee Valley region to generate electricity as well as to

prevent floods.




Citation Hilda, Solis. "The Mystery of the Frances Perkins Desk." Web log post. The Best

Possible Life. 31 Mar. 2009. Web. 20 May 2010.

<http://bestpossiblelife.wordpress.com/2009/03/>.

Rod, Sellers. "Memorial Day Massacre." Web log post. Chicago's East Side Industrial

Sites. Northeastern Illinois University. Web.

<http://www.neiu.edu/~reseller/memdaymasscr.htm>.

John, Simkin. "Franklin Delano Roosevelt." FDR Center's New Deal Information Service

(NDIS) (1988). Rpt. in Franklin D. Roosevelt, radio broadcast, Fireside Chat (9th March,

1937).

Eric, Weider. "WPA Approved by Congress." National Archives (1990). Rpt. in History

Net.

"The New Deal." Web log post. United States HISTORY. Online Highways LLC. Web.

20 May 2010. <http://www.u-s-history.com/pages/h1851.html>.

Brian, Bain. "The NLRB: The Wagner Act of 1935." Web log post. The University of St.

Francis. Web. 20 May 2010.

<http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/btopics/works/wagner.htm>.

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Chapter 23 The New Deal

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