Post on 27-Mar-2015
transcript
Chapter 23Roosevelt and the New Deal
Section 1Roosevelt Takes Office
Section 2The First New Deal
Part I
Roosevelt Takes Office
• Herbert Hoover ran for a second term in 1932.
• The Democrats selected New York Governor, Franklin Delano Roosevelt.
Roosevelt is Inaugurated
• Unemployment ctd. to rise, bank runs increased, and people converted their money into gold.
• Many governors declared bank holidays, which closed the remaining banks before bank runs could put them out of business.
The Hundred Days Begins
• March 9 – June 16, 1933 – Hundred Days
• Congress passed 15 major acts to help the economic crisis.
• These programs made up the First New Deal.
A Divided Administration
• Advisors divided into 3 main groups– 1)Supporters of “New Nationalism” – gov’t &
business should work together to manage the economy.
– 2)Distrusted big business & wanted gov’t to run key parts of the economy.
– 3)Supported “New Freedom” – felt it was gov’t responsibility to restore competition to the economy.
Fixing the Banks & Stock Market
• He called a national bank holiday, and called Congress into special session.
• Passed the Emergency Banking Relief Act, which required federal examiners to survey the nation’s banks and issue Treasury Department licenses to financially sound banks.
“Fireside Chat”
• Roosevelt spoke directly to the people, in his “fireside chat,” assuring the Americans that the banks were secure.
• The following day deposits in every city outweighed withdrawals, ending the banking crisis.
Part II
The First New Deal
• The First New Deal created many agencies that helped bring the country out of the Depression.
• They are as follows….
Securities & Exchange Commission (SEC)
• Created to regulate the stock market and prevent fraud.
Federal Deposit Insurance Corporation (FDIC)
• Provided government insurance for bank deposits up to $2500.
Agricultural Adjustment Administration (AAA)
• Paid farmers not to raise certain crops to lower crop production.
National Industrial Recovery Act (NIRA)
• Suspended antitrust laws and allowed business, labor, and gov’t to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry.
National Recovery Administration (NRA)
• Ran the NIRA.
• Controlled industrial production and prices with industry-created codes of fair competition.
• Declared unconstitutional in 1935.
Home Owners’ Loan Corporation (HOLC)
• Bought mortgages of homeowners behind on payments and restructured them with longer terms of repayment and lower interest rates.
Farm Credit Administration (FCA)
• Helped farmers refinance mortgages.
Civilian Conservation Corps (CCC)
• Gave unemployed men aged 18-25 the opportunity to work with the national forestry service.
Federal Emergency Relief Administration (FERA)
• Channeled money to help state and local agencies fund relief projects.
Public Works Administration (PWA)
• Series of construction projects, creating additional jobs.
Civil Works Administration (CWA)
• Hired workers directly and put them on the government’s payroll.
Tennessee Valley Authority (TVA)
• Built hydroelectric plants and dams aimed at improving seven Southern states and attracting industry to the South.
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