New_Deal_formation

8/7/2019 New_Deal_formation

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Objective: To examine the formation of the New Deal.


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Franklin Delano Roosevelt

Franklin Delano Roosevelt (FDR) won the 1932 Presidential

election.


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In his inauguration speech, FDR stated that, the only thing

we have to fear is fear itself.

Inauguration of FDR, March 4, 1933


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I am certain that my fellow Americans expect that on my

induction into the Presidency I will address them with a candorand a decision which the present situation of our people impel.

This is preeminently the time to speak the truth, the whole truth,

frankly and boldly. Nor need we shrink from honestly facing

conditions in our country today. This great Nation will endure as

it has endured, will revive and will prosper. So, first of all, let me

assert my firm belief that the only thing we have to fear isfear itself nameless, unreasoning, unjustified terror whichparalyzes needed efforts to convert retreat into advance. In every

dark hour of our national life a leadership of frankness and vigorhas met with that understanding and support of the people

themselves which is essential to victory. I am convinced that you

will again give that support to leadership in these critical days.

FDRs Inauguration Speech - March 4, 1933


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In such a spirit on my part and on yours we face our

common difficulties. They concern, thank God, only material

things. Values have shrunken to fantastic levels; taxes have risen;

our ability to pay has fallen; government of all kinds is faced by

serious curtailment of income; the means of exchange are frozen

in the currents of trade; the withered leaves of industrial

enterprise lie on every side; farmers find no markets for their

produce; the savings of many years in thousands of families aregone.

More important, a host of unemployed citizens face the

grim problem of existence, and an equally great number toil with

little return. Only a foolish optimist can deny the dark realities ofthe moment.


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FDR gathered

information from

many economicexperts, known as the

Brain Trust, on how

to fight the

depression.


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Bank run, New York City, 1931

Saving the Banks


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Roosevelt declared a bank holiday, closing every bank in

the nation for eight days.


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Congress then

passed the

Emergency Banking

Relief Act, which

only allowed banks to

open if they had

enough funds to pay

their depositors.

FDR signing the

Emergency Banking

Relief Act into law.


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Fireside Chats

FDR gave 30 radio speeches to the nation, which became

known as fireside chats.

FDRsfirst

fireside

chat on

the bankcrisis.

(March

12,

1933)


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Fireside Chat On the Bank Crisis - March 12, 1933

I want to talk for a few minutes with the people of the United

States about banking -- with the comparatively few who

understand the mechanics of banking but more particularly

with the overwhelming majority who use banks for the making

of deposits and the drawing of checks. I want to tell you what

has been done in the last few days, why it was done, and what

the next steps are going to be. I recognize that the many

proclamations from State Capitols and from Washington, the

legislation, the Treasury regulations, etc., couched for the most

part in banking and legal terms should be explained for thebenefit of the average citizen. I owe this in particular because

of the fortitude and good temper with which everybody has

accepted the inconvenience and hardships of the banking

holiday.


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I know that when you understand what we in Washington have

been about I shall continue to have your cooperation as fully

as I have had your sympathy and help during the past week.

First of all let me state the simple fact that when you

deposit money in a bank the bank does not put the money into

a safe deposit vault. It invests your money in many different

forms of credit-bonds, commercial paper, mortgages and many

other kinds of loans. In other words, the bank puts your money

to work to keep the wheels of industry and of agriculture

turning around. A comparatively small part of the money you

put into the bank is kept in currency -- an amount which in

normal times is wholly sufficient to cover the cash needs ofthe average citizen. In other words the total amount of all the

currency in the country is only a small fraction of the total

deposits in all of the banks.


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What, then, happened during the last few days of February and

the first few days of March? Because of undermined

confidence on the part of the public, there was a general rush

by a large portion of our population to turn bank deposits into

currency or gold. -- A rush so great that the soundest banks

could not get enough currency to meet the demand. The reason

for this was that on the spur of the moment it was, of course,

impossible to sell perfectly sound assets of a bank and convert

them into cash except at panic prices far below their real

value.

By the afternoon of March 3 scarcely a bank in the

country was open to do business. Proclamations temporarilyclosing them in whole or in part had been issued by the

Governors in almost all the states.


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It was then that I issued the proclamation providing for the

nation-wide bank holiday, and this was the first step in the

Government's reconstruction of our financial and economic

fabric.

The second step was the legislation promptly and

patriotically passed by the Congress confirming my

proclamation and broadening my powers so that it became

possible in view of the requirement of time to entend (sic) the

holiday and lift the ban of that holiday gradually


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FDRs

first

firesidechat

reassured

people

thatbanks

were safe

to use

again.


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Fireside chat #15 On National Defense, May 26, 1940


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The New Deal

FDR developed manynew bills that created

programs to help end the

Great Depression.

These programs were

known as the New Deal.


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Criticism of the New Deal

He wanted to put heavy

taxes on the rich and to use the

money to give every Americanfamily a house, a car, and a

decent income.

Senator Huey Long:


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He criticized FDRon his radio show

for not taking

stronger action

against bankers andrich investors.

Criticism of theNew Deal

Father Coughlin:(listen: Somebody

Must be Blamed)


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It complained that

the New Deal

interfered too much

with business and

peoples lives.

Liberty League:



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Francis Townsend:

He proposed givingevery American overage 60 a pension of$200 per month.

However, people receiving the pension would have to retire,freeing up the job for a younger American.

In addition, every person that receives the pension would berequired to spend it immediately in order to spur the economy.



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FDR and theSupreme Court

Ex.) AAA

The Conflict:

February 10, 1937,Columbus (Ohio)

Dispatch,

"Trying to Change

the Umpiring"

The Supreme

Court ruled that

many New Deal

laws wereunconstitutional.


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After winning the

1936 presidential

election, FDR

proposed increasing

the number of

Supreme Court

Justices from 9 to

15.

February 14, 1937,

Waterbury (CT)

Republican, "Do WeWant A

Ventriloquist Act In

The Supreme

Court?"


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* This would allow FDR

to appoint 6 new pro-New

Deal Justices to the

Supreme Court.

February 18, 1937,

Oakland (California)

Tribune, "New Blood"


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February 28, 1937,

Richmond (Virginia)Times Dispatch,

"What Has Become of

the Old-Fashioned

Man...?"

The Results:

Many Americans,

including New Deal

supporters, felt that FDR

was unfairly trying to

control the Supreme

Court.


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March 11, 1937,

Cleveland (Ohio) News,

"The Three Must Pull

Together"


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June 16, 1937,Providence (R.I.)

Bulletin,

" Pulling No

Punches"


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August 26, 1937

Newport (R.I.) News,"And That's The Versatile

Quarterback Who Said If

One Play Didn't Work He'd

Try Something Else."


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* However, one anti-NewDeal Justice eventually

changed his mind, and

FDR appointed a pro-New

Deal Justice to theSupreme Court after an

anti-New Deal Justice

retired.

FDR withdrew his plan

six months later.

August 30, 1937

Brooklyn Citizen,

"Good For Another Meal"


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Objective: To examine the labor problems of the 1930s.

Do Now: What is a union, and what is their purpose?

Union - an organization of workers formed to protect the

rights and advance the interests of its members concerning

wages, benefits, and working conditions


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Labor Reforms

Wagner Act (1935):

Protected workersfrom unfair

management practices

Ex.) firing a workerfor joining a union

The Wagner Act was the single

most important piece of labor

legislation enacted in the UnitedStates in the 20th century. It was

enacted to eliminate employers'

interference with the organization

of workers into unions.

(:53)


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* Union membership grew from 3 million to 9 millionduring the 1930s.

Guaranteed workers the right to collective bargaining

(video 2:09)

* Unions increased their bargaining and political power.


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Sitdown strikes were

used successfully by

workers when

businesses refused to

recognize their unions.

The 44-day Flint Sit-

down Strike ended on

Feb. 11, 1937. It

established the UAW asthe sole bargaining

representative for

workers at the worlds

largest corporation.


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. Fl in t s i t -dow ners readin and re lax in


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Flint sit-down strike ends on

February 11, 1937, after 44 days.


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Fair Labor Standards Act (1938):

- Set a minimum wage at 40 cents an hour

- Set the maximum workweek to 44 hours and the

minimum working age to 16 in certain industries.


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"I did not vote forthat"-- the Court plan

was not universally

popular with FDR

supporters


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The public looked for leadership in 1932, and some

celebrated FDR's "bold experimentation" speech


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Cartoons

showed the

NRA as

FDR's"shield",

and as an

agency

which couldunite labor

and

management


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New Deal Supporters:

New Deal programs were necessary for the public good.

They believed that industries needed to be regulated by the

government in order to prevent another depression.

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