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258-499: The Roosevelt administration 's New Deal reforms expanded the agency, enabling it to direct disaster relief funds and provide loans for agriculture, exports, and housing. The RFC closed in 1957 when prosperity had been restored and for-profit private financial institutions could handle its mission. In total, the RFC gave US$ 2 billion in aid to state and local governments and made many loans, nearly all of which were repaid. In 1931, amidst

516-602: A complex system of registration for all securities sold in America, with a clear-cut set of rules and guidelines that everyone had to follow. By mandating the disclosure of business information and allowing investors to make informed decisions, the SEC largely succeed in its goal of restoring investor confidence. As part of the first hundred days, Roosevelt fostered the passage of the Securities Act of 1933 . The act expanded

774-435: A complex system of registration for all securities sold in America, with a clear-cut set of rules and guidelines that everyone had to follow. By mandating the disclosure of business information and allowing investors to make informed decisions, the SEC largely succeed in its goal of restoring investor confidence. As part of the first hundred days, Roosevelt fostered the passage of the Securities Act of 1933 . The act expanded

1032-471: A congressional committee, and he did not reintroduce the bill in subsequent sessions. Presidency of Franklin D. Roosevelt, first and second terms The first term of the presidency of Franklin D. Roosevelt began on March 4, 1933, when he was inaugurated as the 32nd president of the United States , and the second term of his presidency ended on January 20, 1941, with his inauguration to

1290-502: A healthy society. Roosevelt was a strong supporter of the recreation and sports dimension of his programs. The WPA spent $ 941 million on recreational facilities, including 5,900 athletic fields and playgrounds, 770 swimming pools 1,700 parks and 8,300 recreational buildings. The National Youth Administration (NYA) was a semi-autonomous unit within the WPA. It worked closely with high schools and colleges to set up work-study programs. Under

1548-453: A healthy society. Roosevelt was a strong supporter of the recreation and sports dimension of his programs. The WPA spent $ 941 million on recreational facilities, including 5,900 athletic fields and playgrounds, 770 swimming pools 1,700 parks and 8,300 recreational buildings. The National Youth Administration (NYA) was a semi-autonomous unit within the WPA. It worked closely with high schools and colleges to set up work-study programs. Under

1806-654: A large scale, and it established a long-lasting federal role in the planning of the entire agricultural sector of the economy. In 1936, the Supreme Court declared the AAA to be unconstitutional for technical reasons. With the passage of the Agricultural Adjustment Act of 1938 , the AAA was replaced by a similar program that did win Court approval. Instead of paying farmers for letting fields lie barren,

2064-410: A large scale, and it established a long-lasting federal role in the planning of the entire agricultural sector of the economy. In 1936, the Supreme Court declared the AAA to be unconstitutional for technical reasons. With the passage of the Agricultural Adjustment Act of 1938 , the AAA was replaced by a similar program that did win Court approval. Instead of paying farmers for letting fields lie barren,

2322-509: A mission for reform that included William O. Douglas , and Abe Fortas , both of whom were later named to the Supreme Court. The SEC had four missions. First and most important was to restore investor confidence in the securities market, which had practically collapsed because of doubts about its internal integrity, and the external threats supposedly posed by anti-business elements in the Roosevelt administration. Second, in terms of integrity,

2580-452: A mission for reform that included William O. Douglas , and Abe Fortas , both of whom were later named to the Supreme Court. The SEC had four missions. First and most important was to restore investor confidence in the securities market, which had practically collapsed because of doubts about its internal integrity, and the external threats supposedly posed by anti-business elements in the Roosevelt administration. Second, in terms of integrity,

2838-530: A practice called bank running . The RFC also had a division that gave the states loans for emergency relief needs. In a case study of Mississippi , Vogt (1985) examined two areas of RFC funding: aid to banking, which helped many Mississippi banks survive the economic crisis, and work relief, which Roosevelt used to pump money into the state's relief program by extending loans to businesses and local government projects. Although charges of political influence and racial discrimination were levied against RFC activities,

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3096-428: A realignment that made his New Deal Coalition of labor unions, big city machines, white ethnics, African Americans, and rural white Southerners dominant in national politics until the 1960s and defined modern American liberalism . During his first hundred days in office, Roosevelt spearheaded unprecedented major legislation and issued a profusion of executive orders . The Emergency Banking Act helped put an end to

3354-741: A run on banks, while the 1933 Banking Act and the Securities Exchange Act of 1934 provided major reforms in the financial sector. To provide relief to unemployed workers, Roosevelt presided over the establishment of several agencies, including the Civilian Conservation Corps , the Public Works Administration , and the Federal Emergency Relief Administration . The Roosevelt administration established

3612-653: A series of severe dust storms known as the Dust Bowl , provoking migration from the affected regions. The 1933 Agricultural Adjustment Act created the Agricultural Adjustment Administration (AAA). The act reflected the demands of leaders of major farm organizations, especially the Farm Bureau , and reflected debates among Roosevelt's farm advisers such as Wallace, M.L. Wilson , Rexford Tugwell , and George Peek . The aim of

3870-443: A series of severe dust storms known as the Dust Bowl , provoking migration from the affected regions. The 1933 Agricultural Adjustment Act created the Agricultural Adjustment Administration (AAA). The act reflected the demands of leaders of major farm organizations, especially the Farm Bureau , and reflected debates among Roosevelt's farm advisers such as Wallace, M.L. Wilson , Rexford Tugwell , and George Peek . The aim of

4128-659: A third term . Roosevelt, the Democratic governor of the largest state, New York, took office after defeating incumbent President Herbert Hoover , his Republican opponent in the 1932 presidential election . Roosevelt led the implementation of the New Deal , a series of programs designed to provide relief, recovery, and reform to Americans and the American economy during the Great Depression . He also presided over

4386-425: A third term and three months of a fourth term , becoming the only president to serve more than two terms, breaking Washington's two term tradition and laying the groundwork for the passage of the 22nd Amendment . Roosevelt's first term is unique in that it is the only presidential term not equal to four years in length since George Washington was elected to his second term as a result of the 20th Amendment . With

4644-425: A third term and three months of a fourth term , becoming the only president to serve more than two terms, breaking Washington's two term tradition and laying the groundwork for the passage of the 22nd Amendment . Roosevelt's first term is unique in that it is the only presidential term not equal to four years in length since George Washington was elected to his second term as a result of the 20th Amendment . With

4902-478: A vicious cycle in which low prices encouraged individual farmers to engage in greater production, which in turn lowered prices by providing greater supply. The Hoover administration had created the Federal Farm Board to help address the issue of overproduction by purchasing agricultural surpluses, but it failed to stabilize prices. In the 1930s, Midwestern farmers would additionally have to contend with

5160-410: A vicious cycle in which low prices encouraged individual farmers to engage in greater production, which in turn lowered prices by providing greater supply. The Hoover administration had created the Federal Farm Board to help address the issue of overproduction by purchasing agricultural surpluses, but it failed to stabilize prices. In the 1930s, Midwestern farmers would additionally have to contend with

5418-560: A year. In August 1939, on the eve of World War II, it greatly expanded to build munitions factories. In 1941, it disbursed US$ 1.8 billion. The total loaned or otherwise disbursed by the RFC from 1932 through 1941 was US$ 9.465 billion. Chairmen of the Board of Directors Administrators and Deputy Administrators The first RFC president was the former US Vice President Charles Dawes . He soon resigned to attend to his bank in Chicago , which

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5676-429: The 1932 presidential election . Roosevelt led the implementation of the New Deal , a series of programs designed to provide relief, recovery, and reform to Americans and the American economy during the Great Depression . He also presided over a realignment that made his New Deal Coalition of labor unions, big city machines, white ethnics, African Americans, and rural white Southerners dominant in national politics until

5934-554: The Agricultural Adjustment Administration to implement new policies designed to prevent agricultural overproduction. It also established several agencies, most notably the National Recovery Administration , to reform the industrial sector, though it lasted only two years. After his party's sweeping success in the 1934 mid-term elections, Roosevelt presided over the Second New Deal. It featured

6192-655: The Aid to Dependent Children , which provided aid to families headed by single mothers. A third major piece of legislation, the National Labor Relations Act of 1935 , guaranteed workers the right of collective bargaining and established the National Labor Relations Board . The result was rapid growth in union membership. After winning re-election in 1936, the second term was a series of disappointments. Roosevelt sought to enlarge

6450-826: The All-American Canal and launched the Central Valley Project , both of which irrigated dramatically increased agricultural production in California's Central Valley . Roosevelt also presided over the establishment of conservation programs and laws such as the Soil Conservation Service, the Great Plains Shelterbelt , and the Taylor Grazing Act of 1934 . Throughout his first two terms there

6708-402: The All-American Canal and launched the Central Valley Project , both of which irrigated dramatically increased agricultural production in California's Central Valley . Roosevelt also presided over the establishment of conservation programs and laws such as the Soil Conservation Service, the Great Plains Shelterbelt , and the Taylor Grazing Act of 1934 . Throughout his first two terms there

6966-747: The American Legion and the Veterans of Foreign Wars also won their campaign to transform their benefits from payments due in 1945 to immediate cash when Congress overrode the president's veto and passed the Bonus Act in January ;1936. The Bonus Act pumped sums equal to 2% of the GDP into the consumer economy and had a major stimulus effect. Government spending increased from 8.0% of gross national product (GNP) under Hoover in 1932 to 10.2% of

7224-462: The American Legion and the Veterans of Foreign Wars also won their campaign to transform their benefits from payments due in 1945 to immediate cash when Congress overrode the president's veto and passed the Bonus Act in January 1936. The Bonus Act pumped sums equal to 2% of the GDP into the consumer economy and had a major stimulus effect. Government spending increased from 8.0% of gross national product (GNP) under Hoover in 1932 to 10.2% of

7482-495: The Farm Security Administration (FSA), represented the first national programs to help migrants and marginal farmers, whose plight gained national attention through the 1939 novel and film The Grapes of Wrath . New Deal leaders resisted demands of the poor for loans to buy farms, as many leaders thought that there were already too many farmers. The Roosevelt administration made a major effort to upgrade

7740-413: The Farm Security Administration (FSA), represented the first national programs to help migrants and marginal farmers, whose plight gained national attention through the 1939 novel and film The Grapes of Wrath . New Deal leaders resisted demands of the poor for loans to buy farms, as many leaders thought that there were already too many farmers. The Roosevelt administration made a major effort to upgrade

7998-625: The Federal Insurance Contributions Act tax . Social Security taxes would be collected from employers by the states, with employers and employees contributing equally to the tax. Because the Social Security tax was regressive , and Social Security benefits were based on how much each individual had paid into the system, the program would not contribute to income redistribution in the way that some reformers, including Perkins, had hoped. In addition to creating

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8256-469: The Federal Insurance Contributions Act tax . Social Security taxes would be collected from employers by the states, with employers and employees contributing equally to the tax. Because the Social Security tax was regressive , and Social Security benefits were based on how much each individual had paid into the system, the program would not contribute to income redistribution in the way that some reformers, including Perkins, had hoped. In addition to creating

8514-936: The Lend-Lease Act and general counsel of the Foreign Economic Administration , joined as well. Lauchlin Currie , formerly of the Federal Reserve Board staff, was the deputy administrator to Leo Crowley . The RFC established eight new corporations and purchased an existing corporation. Its eight wartime subsidiaries were the Metals Reserve Company, Rubber Reserve Company , Defense Plant Corporation , Defense Supplies Corporation, War Damage Corporation, US Commercial Company, Rubber Development Corporation, and Petroleum Reserve Corporation. These corporations helped fund

8772-539: The Norris–La Guardia Act of 1932, its passage left labor unions in a favorable legal and political environment. Other factors, including popular works that depicted the struggles of the working class, declining ethnic rivalries, and the La Follette Committee 's investigation of anti-labor abuses, further swung the public mood in favor of labor. The result was a tremendous growth of membership in

9030-404: The Norris–La Guardia Act of 1932, its passage left labor unions in a favorable legal and political environment. Other factors, including popular works that depicted the struggles of the working class, declining ethnic rivalries, and the La Follette Committee 's investigation of anti-labor abuses, further swung the public mood in favor of labor. The result was a tremendous growth of membership in

9288-608: The Public Works Administration (PWA), was created to fund infrastructure projects, and was led by Secretary of the Interior Harold Ickes , one of the most aggressive of the New Deal empire builders. Seeking to increase the federal role in providing work relief, Hopkins successfully pushed for the creation of the Civil Works Administration (CWA), which would provide employment for anyone who

9546-400: The Public Works Administration (PWA), was created to fund infrastructure projects, and was led by Secretary of the Interior Harold Ickes , one of the most aggressive of the New Deal empire builders. Seeking to increase the federal role in providing work relief, Hopkins successfully pushed for the creation of the Civil Works Administration (CWA), which would provide employment for anyone who

9804-579: The Steel Workers Organizing Committee . The total number of labor union members grew from three million in 1933 to eight million at the end of the 1930s, with the vast majority of union members living outside of the South. Roosevelt argued that the emergency spending programs for relief were temporary, and he rejected the deficit spending proposed by economists such as John Maynard Keynes . He kept his campaign promise to cut

10062-437: The Steel Workers Organizing Committee . The total number of labor union members grew from three million in 1933 to eight million at the end of the 1930s, with the vast majority of union members living outside of the South. Roosevelt argued that the emergency spending programs for relief were temporary, and he rejected the deficit spending proposed by economists such as John Maynard Keynes . He kept his campaign promise to cut

10320-487: The Wagner Act , guaranteed workers the right to collective bargaining through unions of their own choice. It prohibited unfair labor practices such as discrimination against union members. The act also established the National Labor Relations Board (NLRB) to facilitate wage agreements and to suppress labor disturbances. The Wagner Act did not compel employers to reach agreement with their employees, but, together with

10578-429: The Wagner Act , guaranteed workers the right to collective bargaining through unions of their own choice. It prohibited unfair labor practices such as discrimination against union members. The act also established the National Labor Relations Board (NLRB) to facilitate wage agreements and to suppress labor disturbances. The Wagner Act did not compel employers to reach agreement with their employees, but, together with

Reconstruction Finance Corporation - Misplaced Pages Continue

10836-610: The Works Progress Administration (WPA), the largest work relief agency, and the Social Security Act , which created a national old-age pension program known as Social Security . The New Deal also established a national unemployment insurance program, as well as the Aid to Dependent Children , which provided aid to families headed by single mothers. A third major piece of legislation, the National Labor Relations Act of 1935 , guaranteed workers

11094-521: The securitization of mortgages , thereby allowing mortgages to be sold on the secondary mortgage market . The housing institutions established under the New Deal did not appreciably contribute to new house building in the 1930s, but they played a major role in the post-war housing boom. Roosevelt had generally avoided the Prohibition issue, but when his party and the general public swung against Prohibition in 1932, he campaigned for repeal. During

11352-462: The securitization of mortgages , thereby allowing mortgages to be sold on the secondary mortgage market . The housing institutions established under the New Deal did not appreciably contribute to new house building in the 1930s, but they played a major role in the post-war housing boom. Roosevelt had generally avoided the Prohibition issue, but when his party and the general public swung against Prohibition in 1932, he campaigned for repeal. During

11610-490: The 1934 mid-term elections, Roosevelt proposed the " Second New Deal ." It consisted of government programs that were designed to help provide not just recovery, but also long-term stability and security for ordinary Americans. In April 1935, Roosevelt won passage of the Emergency Relief Appropriation Act of 1935 , which, unlike the work relief programs of 1933, allowed for a long-term role for

11868-400: The 1934 mid-term elections, Roosevelt proposed the " Second New Deal ." It consisted of government programs that were designed to help provide not just recovery, but also long-term stability and security for ordinary Americans. In April 1935, Roosevelt won passage of the Emergency Relief Appropriation Act of 1935 , which, unlike the work relief programs of 1933, allowed for a long-term role for

12126-445: The 1960s and defined modern American liberalism . During his first hundred days in office, Roosevelt spearheaded unprecedented major legislation and issued a profusion of executive orders . The Emergency Banking Act helped put an end to a run on banks, while the 1933 Banking Act and the Securities Exchange Act of 1934 provided major reforms in the financial sector. To provide relief to unemployed workers, Roosevelt presided over

12384-517: The 1960s. In 1941 Mrs. Roosevelt became co-head of the Office of Civil Defense , the major civil defense agency. She tried to involve women at the local level, but she feuded with her counterpart, Mayor Fiorello H. La Guardia , and had little impact on policy. Historian Alan Brinkley states that gender equality was not on the national agenda: Despite expectations that the 1936 landslide heralded an expansion of liberal programs, everything went wrong for

12642-465: The 1960s. In 1941 Mrs. Roosevelt became co-head of the Office of Civil Defense , the major civil defense agency. She tried to involve women at the local level, but she feuded with her counterpart, Mayor Fiorello H. La Guardia , and had little impact on policy. Historian Alan Brinkley states that gender equality was not on the national agenda: Despite expectations that the 1936 landslide heralded an expansion of liberal programs, everything went wrong for

12900-531: The AAA was to raise prices for commodities through artificial scarcity. The AAA used a system of "domestic allotments", setting the total output of corn, cotton, dairy products, hogs, rice, tobacco, and wheat. The AAA paid land owners subsidies for leaving some of their land idle; funding for the subsidies was provided by a new tax on food processing. The goal was to force up farm prices to the point of "parity," an index based on 1910–1914 prices. To meet 1933 goals, 10 million acres (40,000 km ) of growing cotton

13158-531: The AAA was to raise prices for commodities through artificial scarcity. The AAA used a system of "domestic allotments", setting the total output of corn, cotton, dairy products, hogs, rice, tobacco, and wheat. The AAA paid land owners subsidies for leaving some of their land idle; funding for the subsidies was provided by a new tax on food processing. The goal was to force up farm prices to the point of "parity," an index based on 1910–1914 prices. To meet 1933 goals, 10 million acres (40,000 km ) of growing cotton

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13416-596: The CCC. Finally, Roosevelt was a superb communicator with the people, and with Congress, using speeches and especially highly publicized trips visiting key conservation locales. Roosevelt's favorite agency, the CCC, expended most of its effort on environmental projects. In the dozen years after its creation, the CCC built 13,000 miles of trails, planted two billion trees, and upgraded 125,000 miles of dirt roads. Every state had its own state parks, and Roosevelt made sure that WPA and CCC projects were set up to upgrade them as well as

13674-547: The CCC. Finally, Roosevelt was a superb communicator with the people, and with Congress, using speeches and especially highly publicized trips visiting key conservation locales. Roosevelt's favorite agency, the CCC, expended most of its effort on environmental projects. In the dozen years after its creation, the CCC built 13,000 miles of trails, planted two billion trees, and upgraded 125,000 miles of dirt roads. Every state had its own state parks, and Roosevelt made sure that WPA and CCC projects were set up to upgrade them as well as

13932-518: The GNP in 1936. In mid-1935, Roosevelt began to prioritize a major reform of the tax code. He sought higher taxes on top incomes, a higher estate tax , a graduated corporate tax , and the implementation of a tax on intercorporate dividends. In response, Congress passed the Revenue Act of 1935 , which raised relatively little revenue but did increase taxes on the highest earners. A top tax rate of 79%

14190-410: The GNP in 1936. In mid-1935, Roosevelt began to prioritize a major reform of the tax code. He sought higher taxes on top incomes, a higher estate tax , a graduated corporate tax , and the implementation of a tax on intercorporate dividends. In response, Congress passed the Revenue Act of 1935 , which raised relatively little revenue but did increase taxes on the highest earners. A top tax rate of 79%

14448-533: The House and Senate. Though Hull was not a foreign policy expert, he was a long-time advocate of tariff reduction, was respected by his Senate colleagues, and did not hold ambitions for the presidency. Roosevelt's inaugural cabinet included several influential Republicans, including Secretary of the Treasury William H. Woodin , a well-connected industrialist who was personally close to Roosevelt, Secretary of

14706-414: The House and Senate. Though Hull was not a foreign policy expert, he was a long-time advocate of tariff reduction, was respected by his Senate colleagues, and did not hold ambitions for the presidency. Roosevelt's inaugural cabinet included several influential Republicans, including Secretary of the Treasury William H. Woodin , a well-connected industrialist who was personally close to Roosevelt, Secretary of

14964-555: The Hundred Days he signed the Cullen–Harrison Act redefining weak beer (3.2% alcohol) as the maximum allowed. The 21st Amendment was ratified later that year; he was not involved in the amendment but was given much of the credit. The repeal of prohibition brought in new tax revenues to federal, state and local governments and helped Roosevelt keep a campaign promise that attracted widespread popular support. It also weakened

15222-433: The Hundred Days he signed the Cullen–Harrison Act redefining weak beer (3.2% alcohol) as the maximum allowed. The 21st Amendment was ratified later that year; he was not involved in the amendment but was given much of the credit. The repeal of prohibition brought in new tax revenues to federal, state and local governments and helped Roosevelt keep a campaign promise that attracted widespread popular support. It also weakened

15480-606: The Interior Harold L. Ickes , a progressive Republican who would play an important role in the New Deal, and Secretary of Agriculture Henry A. Wallace , who had advised the Roosevelt campaign on farm policies. Roosevelt also appointed the first female cabinet member, Secretary of Labor Frances C. Perkins . Farley became Postmaster General, taking charge of major patronage issues. Howe became Roosevelt's personal secretary until his death in 1936. The selections of Hull, Woodin, and Secretary of Commerce Daniel C. Roper reassured

15738-541: The Interior Harold L. Ickes , a progressive Republican who would play an important role in the New Deal, and Secretary of Agriculture Henry A. Wallace , who had advised the Roosevelt campaign on farm policies. Roosevelt also appointed the first female cabinet member, Secretary of Labor Frances C. Perkins . Farley became Postmaster General, taking charge of major patronage issues. Howe became Roosevelt's personal secretary until his death in 1936. The selections of Hull, Woodin, and Secretary of Commerce Daniel C. Roper reassured

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15996-607: The Interior; the new department that would include the Forest Service. For Ickes, the land itself had a higher purpose than mere human usage; Wallace wanted the optimum economic productivity of public lands. Both Interior and Agriculture had very strong supporters in Congress, and Roosevelt's plan went nowhere. The status quo triumphed. The New Deal approach to education was a radical departure from previous practices. It

16254-431: The Interior; the new department that would include the Forest Service. For Ickes, the land itself had a higher purpose than mere human usage; Wallace wanted the optimum economic productivity of public lands. Both Interior and Agriculture had very strong supporters in Congress, and Roosevelt's plan went nowhere. The status quo triumphed. The New Deal approach to education was a radical departure from previous practices. It

16512-635: The Neutrality Acts prevented the United States from becoming closely involved. After the Fall of France in June 1940, Roosevelt increased aid to the British and began to build up American military power. In the 1940 presidential election , Roosevelt defeated Republican Wendell Willkie , an internationalist who largely refrained from criticizing Roosevelt's foreign policy. Roosevelt later went on to serve

16770-414: The Neutrality Acts prevented the United States from becoming closely involved. After the Fall of France in June 1940, Roosevelt increased aid to the British and began to build up American military power. In the 1940 presidential election , Roosevelt defeated Republican Wendell Willkie , an internationalist who largely refrained from criticizing Roosevelt's foreign policy. Roosevelt later went on to serve

17028-556: The New Dealers. The Democrats feuded and divided, with even Vice President Garner breaking with the president. The labor movement grew stronger but then began fighting itself, while the economy declined sharply. Anti-Roosevelt forces gained strength and the New Deal Coalition lost heavily in the 1938 midterm elections. Roosevelt suffered what historians call the "second term curse." The victors were overconfident, ignoring

17286-427: The New Dealers. The Democrats feuded and divided, with even Vice President Garner breaking with the president. The labor movement grew stronger but then began fighting itself, while the economy declined sharply. Anti-Roosevelt forces gained strength and the New Deal Coalition lost heavily in the 1938 midterm elections. Roosevelt suffered what historians call the "second term curse." The victors were overconfident, ignoring

17544-525: The RFC authorized over US$ 2 billion of loans and investments each year, with a peak of over US$ 6 billion authorized in 1943. The magnitude of RFC lending had increased substantially during the war. The Petroleum Reserves Corporation was transferred to the Office of Economic Warfare , which was consolidated into the Foreign Economic Administration , which was transferred to the Reconstruction Finance Corporation and changed to

17802-604: The RFC during World War I , was a governor of the Federal Reserve, and chairman of the Board of the RFC. Essentially, the RFC was the "discount lending" arm of the Federal Reserve. The initial funding for the RFC came from the sale of US$ 500 million worth of stocks and bonds to the United States Treasury . To obtain more capital, it sold US$ 1.5 billion in bonds to the Treasury, which then sold them to

18060-471: The RFC to buy gold to change its market price. The original legislation did not call for identities of the banks receiving loans nor of any reports to Congress. This, however, was changed in July 1932 to make the RFC transparent. Bankers soon were hesitant to ask the RFC for a loan since depositers would become aware and begin to consider the possibility of their bank failing causing them to withdraw their deposits,

18318-542: The RFC to create its own mortgage company to sell and insure mortgages. The Federal National Mortgage Association (also known as Fannie Mae) was established and funded by the RFC. It later became a private corporation. An Export–Import Bank was also created to encourage trade with the Soviet Union . Another bank was established to fund trade with all other foreign nations a month later. They eventually merged and make loans available to exports. Roosevelt wanted to reduce

18576-471: The RFC were no longer in demand. During the late 1940s RFC made a large loan to Northwest Orient Airlines earmarked for the purchase of ten Boeing Stratocruiser airliners. The loan became controversial, seen as a political favor to the Boeing Corporation, who supported the re-election campaign of President Harry S. Truman , and sparked a congressional inquiry. President Dwight D. Eisenhower

18834-502: The RFC's funding, streamlined the bureaucracy, and used it to help restore business prosperity, especially in banking and railroads. Roosevelt appointed Texas banker Jesse H. Jones to lead the agency, and Jones turned the RFC into an empire with loans made in every state. Under the New Deal, the powers of the RFC were greatly expanded. The agency now purchased bank stock and extended loans for agriculture, housing, exports, businesses, governments, and disaster relief. Roosevelt soon directed

19092-419: The SEC had to get rid of the penny ante swindles based on false information, fraudulent devices, and unsound get-rich-quick schemes. Thirdly, and much more important than the frauds, the SEC had to end the million-dollar insider maneuvers in major corporations, whereby insiders with access to information about the condition of the company knew when to buy or sell their own securities. Finally, the SEC had to set up

19350-419: The SEC had to get rid of the penny ante swindles based on false information, fraudulent devices, and unsound get-rich-quick schemes. Thirdly, and much more important than the frauds, the SEC had to end the million-dollar insider maneuvers in major corporations, whereby insiders with access to information about the condition of the company knew when to buy or sell their own securities. Finally, the SEC had to set up

19608-595: The Social Security Act ultimately included only relatively small health care grants designed to help rural communities and the disabled. Roosevelt declined to include a large-scale health insurance program largely because of the lack of active popular, congressional, or interest group support for such a program. Roosevelt's strategy was to wait for demand for a program to materialize, and then, if he thought it popular enough, to throw his support behind it. Jaap Kooijman writes that Roosevelt succeeded in "pacifying

19866-524: The Social Security Act ultimately included only relatively small health care grants designed to help rural communities and the disabled. Roosevelt declined to include a large-scale health insurance program largely because of the lack of active popular, congressional, or interest group support for such a program. Roosevelt's strategy was to wait for demand for a program to materialize, and then, if he thought it popular enough, to throw his support behind it. Jaap Kooijman writes that Roosevelt succeeded in "pacifying

20124-423: The Social Security program, the Social Security Act also established a state-administered unemployment insurance system and the Aid to Dependent Children program, which provided aid to families headed by single mothers. Compared with the social security systems in western European countries, the Social Security Act of 1935 was rather conservative. But for the first time the federal government took responsibility for

20382-423: The Social Security program, the Social Security Act also established a state-administered unemployment insurance system and the Aid to Dependent Children program, which provided aid to families headed by single mothers. Compared with the social security systems in western European countries, the Social Security Act of 1935 was rather conservative. But for the first time the federal government took responsibility for

20640-483: The Supreme Court , but his proposal was defeated in Congress. Roosevelt had little success in passing domestic legislation in his second term, as the bipartisan Conservative Coalition blocked most of his legislative proposals. One success was the Fair Labor Standards Act . The 1930s were a high point of isolationism in the United States. The key foreign policy initiative of Roosevelt's first term

20898-485: The United States had little experience with social insurance programs. For most American workers, retirement due to old age was not a realistic option. In the 1930s, physician Francis Townsend galvanized support for his pension proposal, which called for the federal government to issue direct $ 200-a-month payments to the elderly. Roosevelt was attracted to the general thinking behind Townsend's plan because it would provide for those no longer capable of working while at

21156-485: The United States had little experience with social insurance programs. For most American workers, retirement due to old age was not a realistic option. In the 1930s, physician Francis Townsend galvanized support for his pension proposal, which called for the federal government to issue direct $ 200-a-month payments to the elderly. Roosevelt was attracted to the general thinking behind Townsend's plan because it would provide for those no longer capable of working while at

21414-576: The United States off the gold standard . Going off the gold standard allowed Roosevelt to pursue inflationary policies, to overcome the sharp fall in prices that hurt the economy. Inflation would reduce the effective size of public and private debt. As part of his inflationary policies, Roosevelt refused to take part in efforts at the London Economic Conference to stabilize currency exchange rates. Roosevelt's "bombshell" message to that conference effectively ended any major efforts by

21672-497: The United States off the gold standard . Going off the gold standard allowed Roosevelt to pursue inflationary policies, to overcome the sharp fall in prices that hurt the economy. Inflation would reduce the effective size of public and private debt. As part of his inflationary policies, Roosevelt refused to take part in efforts at the London Economic Conference to stabilize currency exchange rates. Roosevelt's "bombshell" message to that conference effectively ended any major efforts by

21930-513: The WPA became the primary New Deal work relief program, and FERA was discontinued. Though nominally charged only with undertaking construction projects that cost over $ 25,000, the WPA provided grants for other programs, such as the Federal Writers' Project . Like the CWA and the CCC, the WPA typically was based on collaboration with local government, which provided the plans, the site, and

22188-400: The WPA became the primary New Deal work relief program, and FERA was discontinued. Though nominally charged only with undertaking construction projects that cost over $ 25,000, the WPA provided grants for other programs, such as the Federal Writers' Project . Like the CWA and the CCC, the WPA typically was based on collaboration with local government, which provided the plans, the site, and

22446-675: The War Assets Corporation, and the War Assets Administration (the disposal function of the RFC was transferred to WAC on January 15, 1946, and to the WAA in March 1946) processed approximately 61,600 remaining World War II aircraft, Some 34,700 “utility“ type were sold for primarily commercial purposes, and 26,900 primarily combat types auctioned for scrapping. Most of the transports and trainers could be used in

22704-572: The War Assets Corporation. The War Assets Corporation was dissolved after March 25, 1946. Most lending to wartime subsidiaries ended in 1945, and all such lending ended in 1948. After the war, the Reconstruction Finance Corporation established five large storage, sales, and scrapping centers for Army Air Forces aircraft at the Albuquerque AAF , New Mexico ; Altus AAF , Oklahoma ; Kingman AAF , Arizona ; Ontario Army Air Field , California ; and Walnut Ridge AAF , Arkansas . Estimates of

22962-609: The War Damage Corporation provided for such insurance without compensation, but by express Congressional enactment Congress added §5(g) to the Reconstruction Finance Corporation Act, 15 USCA §606(b)(2) requiring that on and after July 1, 1942, the War Damage Corporation should issue insurance policies upon the payment of annual premiums. Under the terms of War Damage Corporation's charter an authorized capital stock of US$ 100,000,000

23220-685: The administration began to view it as ineffective. The Supreme Court found the NRA to be unconstitutional by unanimous decision in May 1935, and there was little public protest at its closing. To replace the regulatory role of the NRA, the New Deal established or strengthened several durable agencies designed to regulate specific industries. In 1934, Congress established the Federal Communications Commission , which provided regulation to telephones and radio. The Civil Aeronautics Board

23478-499: The administration began to view it as ineffective. The Supreme Court found the NRA to be unconstitutional by unanimous decision in May 1935, and there was little public protest at its closing. To replace the regulatory role of the NRA, the New Deal established or strengthened several durable agencies designed to regulate specific industries. In 1934, Congress established the Federal Communications Commission , which provided regulation to telephones and radio. The Civil Aeronautics Board

23736-750: The administration launched the Tennessee Valley Authority (TVA), a project involving dam construction planning on an unprecedented scale in order to curb flooding, generate electricity, and modernize the very poor farms in the Tennessee Valley region of the Southern United States. Under the leadership of Arthur Ernest Morgan , the TVA built planned communities such as Norris, Tennessee that were designed to serve as models of cooperative, egalitarian living. Though

23994-481: The administration launched the Tennessee Valley Authority (TVA), a project involving dam construction planning on an unprecedented scale in order to curb flooding, generate electricity, and modernize the very poor farms in the Tennessee Valley region of the Southern United States. Under the leadership of Arthur Ernest Morgan , the TVA built planned communities such as Norris, Tennessee that were designed to serve as models of cooperative, egalitarian living. Though

24252-439: The administration pressured companies to agree to the codes and urged consumers to purchase products from companies in compliance with the codes. As each NRA code was unique to a specific industry, NRA negotiators held a great deal of sway in setting the details of the codes, and many of the codes favored managers over workers. The NRA became increasingly unpopular among the general public due to its micromanagement, and many within

24510-439: The administration pressured companies to agree to the codes and urged consumers to purchase products from companies in compliance with the codes. As each NRA code was unique to a specific industry, NRA negotiators held a great deal of sway in setting the details of the codes, and many of the codes favored managers over workers. The NRA became increasingly unpopular among the general public due to its micromanagement, and many within

24768-495: The administration's weaknesses. The minority party after losing two elections was eager to strike back. Lawrence Summers states: For the entirety of Roosevelt's first term, the Court consisted of the liberal " Three Musketeers ," the conservative " Four Horsemen ," and the two swing votes in Chief Justice Charles Evans Hughes and Associate Justice Owen Roberts. The more conservative members of

25026-404: The administration's weaknesses. The minority party after losing two elections was eager to strike back. Lawrence Summers states: For the entirety of Roosevelt's first term, the Court consisted of the liberal " Three Musketeers ," the conservative " Four Horsemen ," and the two swing votes in Chief Justice Charles Evans Hughes and Associate Justice Owen Roberts. The more conservative members of

25284-399: The agency made positive contributions and established a federal agency in local communities which provided a reservoir of experienced personnel to implement expanding New Deal programs. Roosevelt saw this corporation as an advantage to the national government. The RFC could finance projects without Congress approving them and the loans would not be included in budget expenditures. Soon the RFC

25542-477: The approval of the President of the United States pursuant to §5(d) of the Reconstruction Finance Corporation Act or 1932, 15 USCA §606(b) for the purpose of providing insurance covering damage to property of American nationals not otherwise available from private insurers arising from "enemy attack including by the military, naval of air forces of the United States in resisting enemy attack". Prior to July 1, 1942,

25800-465: The bad economy, Hoover's re-election hopes were further hampered by the Bonus March 1932 , which ended with the violent dispersal of thousands of protesting veterans. Roosevelt won 472 of the 531 electoral votes and 57.4% of the popular vote, making him the first Democrat since 1876 to win a majority of the popular vote , and he won a larger percentage of the vote than any Democrat before him since

26058-406: The bad economy, Hoover's re-election hopes were further hampered by the Bonus March 1932 , which ended with the violent dispersal of thousands of protesting veterans. Roosevelt won 472 of the 531 electoral votes and 57.4% of the popular vote, making him the first Democrat since 1876 to win a majority of the popular vote , and he won a larger percentage of the vote than any Democrat before him since

26316-426: The big-city criminal gangs and rural bootleggers who had profited heavily from illegal liquor sales. The "Second New Deal" is the designation historians use for the dramatic domestic policies passed during the last two years of Roosevelt's first term. Unlike his efforts in the first two years to be inclusive of all established interest groups, Roosevelt moved left and focused on helping labor unions, poor farmers, and

26574-426: The big-city criminal gangs and rural bootleggers who had profited heavily from illegal liquor sales. The "Second New Deal" is the designation historians use for the dramatic domestic policies passed during the last two years of Roosevelt's first term. Unlike his efforts in the first two years to be inclusive of all established interest groups, Roosevelt moved left and focused on helping labor unions, poor farmers, and

26832-445: The bill used federal assistance to stabilize privately owned banks. The ensuing " First 100 Days " of the 73rd Congress saw an unprecedented amount of legislation and set a benchmark against which future presidents would be compared. When the banks reopened on Monday, March 13, stock prices rose by 15 percent and bank deposits exceeded withdrawals, thus ending the bank panic. In another measure designed to give Americans confidence in

27090-445: The bill used federal assistance to stabilize privately owned banks. The ensuing " First 100 Days " of the 73rd Congress saw an unprecedented amount of legislation and set a benchmark against which future presidents would be compared. When the banks reopened on Monday, March 13, stock prices rose by 15 percent and bank deposits exceeded withdrawals, thus ending the bank panic. In another measure designed to give Americans confidence in

27348-536: The bipartisan Conservative Coalition blocked most of his legislative proposals. One success was the Fair Labor Standards Act . The 1930s were a high point of isolationism in the United States. The key foreign policy initiative of Roosevelt's first term was the Good Neighbor Policy , in which the U.S. took a non-interventionist stance in Latin American affairs. Foreign policy issues came to

27606-419: The blame for the economic crisis on bankers and financiers, the quest for profit, and the self-interest basis of capitalism: Primarily this is because rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by

27864-419: The blame for the economic crisis on bankers and financiers, the quest for profit, and the self-interest basis of capitalism: Primarily this is because rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by

28122-536: The breadwinner in the family. During the 1930s there was a strong national consensus that in times of job shortages, it was wrong for the government to employ both a husband and his wife. Nevertheless, relief agencies did find jobs for women, and the WPA employed about 500,000. The largest number, 295,000, worked on sewing projects, producing 300 million items of clothing and mattresses for people on relief and for public institutions such as orphanages. Many other women worked in school lunch programs. Between 1929 and 1939,

28380-536: The breadwinner in the family. During the 1930s there was a strong national consensus that in times of job shortages, it was wrong for the government to employ both a husband and his wife. Nevertheless, relief agencies did find jobs for women, and the WPA employed about 500,000. The largest number, 295,000, worked on sewing projects, producing 300 million items of clothing and mattresses for people on relief and for public institutions such as orphanages. Many other women worked in school lunch programs. Between 1929 and 1939,

28638-427: The business community, while Wallace, Perkins, and Ickes appealed to Roosevelt's left-wing supporters. Most of Roosevelt's cabinet selections would remain in place until 1936, but ill health forced Woodin to resign in 1933, and he was succeeded by Henry Morgenthau Jr. , who became the most powerful member of the cabinet, followed by Wallace. When Roosevelt took office on March 4, 1933, the economy had hit bottom. In

28896-427: The business community, while Wallace, Perkins, and Ickes appealed to Roosevelt's left-wing supporters. Most of Roosevelt's cabinet selections would remain in place until 1936, but ill health forced Woodin to resign in 1933, and he was succeeded by Henry Morgenthau Jr. , who became the most powerful member of the cabinet, followed by Wallace. When Roosevelt took office on March 4, 1933, the economy had hit bottom. In

29154-546: The cabinet was Secretary of Labor Frances Perkins. Roosevelt also appointed Florence E. Allen to the Court of Appeals for the Sixth Circuit , making her the first woman to serve on a federal appeals court. First Lady Eleanor Roosevelt played a highly visible role in building a network of women in advisory roles and in promoting relief programs. The New Deal thereby placed more women in public life—a record that stood until

29412-432: The cabinet was Secretary of Labor Frances Perkins. Roosevelt also appointed Florence E. Allen to the Court of Appeals for the Sixth Circuit , making her the first woman to serve on a federal appeals court. First Lady Eleanor Roosevelt played a highly visible role in building a network of women in advisory roles and in promoting relief programs. The New Deal thereby placed more women in public life—a record that stood until

29670-435: The cities. It gave a temporary jobs to unemployed teachers in cities like Boston. Although New Deal leaders refused to give money to impoverished school districts, it did give money to impoverished high school and college students. The CWA used "work study" programs to fund students, both male and female. Women received recognition from the Roosevelt administration. In relief programs, they were eligible for jobs if they were

29928-435: The cities. It gave a temporary jobs to unemployed teachers in cities like Boston. Although New Deal leaders refused to give money to impoverished school districts, it did give money to impoverished high school and college students. The CWA used "work study" programs to fund students, both male and female. Women received recognition from the Roosevelt administration. In relief programs, they were eligible for jobs if they were

30186-406: The civil fleet, with trainers disposed of for US$ 875 to US$ 2,400. The fighters and bombers were of little peacetime value, with a smattering being sold for conversions to useful civilian purposes like aerial firefighting (a mere handful survived such second careers to be preserved as warbirds preservation and exhibits in aviation museums ). After World War II ended, the type of loans provided by

30444-485: The codes with the approval and guidance of NIRA officials. Other provisions encouraged the formation of unions and suspended anti-trust laws. Roosevelt appointed Hugh S. Johnson as the head of the NRA, based on his experience in directing the national economy in World War I. Johnson used the NRA to curb industrial overproduction and excessive competition through price cutting. He sought to keep wages high. The NRA won

30702-428: The codes with the approval and guidance of NIRA officials. Other provisions encouraged the formation of unions and suspended anti-trust laws. Roosevelt appointed Hugh S. Johnson as the head of the NRA, based on his experience in directing the national economy in World War I. Johnson used the NRA to curb industrial overproduction and excessive competition through price cutting. He sought to keep wages high. The NRA won

30960-492: The convention with a delegate lead due to his success in the 1932 Democratic primaries , but most delegates entered the convention unbound to any particular candidate. On the first presidential ballot of the convention, Roosevelt received the votes of more than half but less than two-thirds of the delegates, with Smith finishing in a distant second place. Speaker of the House John Nance Garner , who controlled

31218-416: The convention with a delegate lead due to his success in the 1932 Democratic primaries , but most delegates entered the convention unbound to any particular candidate. On the first presidential ballot of the convention, Roosevelt received the votes of more than half but less than two-thirds of the delegates, with Smith finishing in a distant second place. Speaker of the House John Nance Garner , who controlled

31476-495: The country's general lack of confidence in the current board; and Hoover's inability to find any other man who had the ability and was both nationally respected and available. Like the Federal Reserve, the RFC tended to bail out the banks that benefited the public the most. Butkiewicz (1995) shows that the RFC initially succeeded in reducing bank failures, but the publication of the names of loan recipients beginning in August 1932 (at

31734-469: The court adhered to principles of the Lochner era , a period in which courts had struck down numerous economic regulations on the basis of freedom of contract . Reformers like Theodore Roosevelt had long protested the judicial activism of the courts, and Franklin Roosevelt's ambitious domestic programs inevitably came to the attention of the Supreme Court. The court struck down a major New Deal program for

31992-415: The court adhered to principles of the Lochner era , a period in which courts had struck down numerous economic regulations on the basis of freedom of contract . Reformers like Theodore Roosevelt had long protested the judicial activism of the courts, and Franklin Roosevelt's ambitious domestic programs inevitably came to the attention of the Supreme Court. The court struck down a major New Deal program for

32250-405: The demand of Congress) significantly reduced its effectiveness, because it appeared that political considerations had motivated certain loans. Partisan politics hindered the RFC's efforts, though in 1932, monetary conditions improved because the RFC slowed the decline in the nation's money supply. The original legislation establishing the RFC did not limit it to lending to financial institutions; it

32508-562: The development of synthetic rubber , the construction and operation of a tin smelter, and the establishment of abaca ( Manila hemp ) plantations in Central America . Both natural rubber and abaca (used to produce rope products) had been produced primarily in South Asia , which came under Japanese control during the war. The RFC's programs encouraged the development of alternative sources of these materials. Synthetic rubber, which

32766-510: The dollar. Roosevelt himself was dubious about insuring bank deposits, saying, "We do not wish to make the United States Government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future." But public support was overwhelmingly in favor, and the number of bank failures dropped to near zero. Relief for the unemployed was a major priority for the New Deal, and Roosevelt copied

33024-433: The dollar. Roosevelt himself was dubious about insuring bank deposits, saying, "We do not wish to make the United States Government liable for the mistakes and errors of individual banks, and put a premium on unsound banking in the future." But public support was overwhelmingly in favor, and the number of bank failures dropped to near zero. Relief for the unemployed was a major priority for the New Deal, and Roosevelt copied

33282-482: The economic security of the aged, the temporarily unemployed, dependent children and the handicapped. Reflecting the continuing importance of the Social Security Act, biographer Kenneth S. Davis later called the Social Security Act "the most important single piece of social legislation in all American history." Though the Committee on Economic Security had originally sought to develop a national health care system,

33540-425: The economic security of the aged, the temporarily unemployed, dependent children and the handicapped. Reflecting the continuing importance of the Social Security Act, biographer Kenneth S. Davis later called the Social Security Act "the most important single piece of social legislation in all American history." Though the Committee on Economic Security had originally sought to develop a national health care system,

33798-649: The economy hurting badly after the Wall Street Crash of 1929 , many Democrats hoped that the 1932 elections would see the election of the first Democratic president since 1916. Roosevelt's 1930 gubernatorial re-election victory in New York established him as the front-runner for the nomination. With the help of Louis Howe and James Farley , Roosevelt rallied some of the supporters of the Wilson while also appealing to many conservatives, establishing himself as

34056-474: The economy hurting badly after the Wall Street Crash of 1929 , many Democrats hoped that the 1932 elections would see the election of the first Democratic president since 1916. Roosevelt's 1930 gubernatorial re-election victory in New York established him as the front-runner for the nomination. With the help of Louis Howe and James Farley , Roosevelt rallied some of the supporters of the Wilson while also appealing to many conservatives, establishing himself as

34314-518: The environment and conservation starting with his youthful interest in forestry on his family estate. Although FDR was never an outdoorsman or sportsman on TR's scale, his growth of the national systems were comparable. FDR created 140 national wildlife refuges (especially for birds) and established 29 national forests and 29 national parks and monuments, including Everglades National Park and Olympic National Park . His environmental policy can be divided into three major domains. First of all his focus

34572-518: The environment and conservation starting with his youthful interest in forestry on his family estate. Although FDR was never an outdoorsman or sportsman on TR's scale, his growth of the national systems were comparable. FDR created 140 national wildlife refuges (especially for birds) and established 29 national forests and 29 national parks and monuments, including Everglades National Park and Olympic National Park . His environmental policy can be divided into three major domains. First of all his focus

34830-431: The establishment of several agencies, including the Civilian Conservation Corps , the Public Works Administration , and the Federal Emergency Relief Administration . The Roosevelt administration established the Agricultural Adjustment Administration to implement new policies designed to prevent agricultural overproduction. It also established several agencies, most notably the National Recovery Administration , to reform

35088-471: The financial system, Congress enacted the Glass–Steagall Act , which curbed speculation by limiting the investments commercial banks could make and ending affiliations between commercial banks and securities firms. Depositors in open banks received insurance coverage from the new Federal Deposit Insurance Corporation (FDIC), while depositors in permanently closed banks were eventually repaid 85 cents on

35346-411: The financial system, Congress enacted the Glass–Steagall Act , which curbed speculation by limiting the investments commercial banks could make and ending affiliations between commercial banks and securities firms. Depositors in open banks received insurance coverage from the new Federal Deposit Insurance Corporation (FDIC), while depositors in permanently closed banks were eventually repaid 85 cents on

35604-531: The first time through its holding in the 1935 case of A.L.A. Schechter Poultry Corp. v. United States , and the following year it struck down the AAA in the case of United States v. Butler . By the beginning of 1937, the Court had cases on the docket regarding the constitutionality of the Social Security Act and the National Labor Relations Act. Presidency of Franklin D. Roosevelt, first and second terms The first term of

35862-485: The fore in the late 1930s, as Nazi Germany , Japan , and Italy took aggressive actions against their neighbors. In response to fears that the United States would be drawn into foreign conflicts, Congress passed the Neutrality Acts , a series of laws that prevented trade with belligerents. After Japan invaded China and Germany invaded Poland , Roosevelt provided aid to China , Great Britain, and France , but

36120-470: The general election, Roosevelt faced incumbent Republican President Herbert Hoover . Engaging in a cross-country campaign, Roosevelt promised to increase the federal government's role in the economy and to lower the tariff as part of a " New Deal ." Hoover argued that the economic collapse had chiefly been the product of international disturbances, and he accused Roosevelt of promoting class conflict with his novel economic policies. Already unpopular due to

36378-470: The general election, Roosevelt faced incumbent Republican President Herbert Hoover . Engaging in a cross-country campaign, Roosevelt promised to increase the federal government's role in the economy and to lower the tariff as part of a " New Deal ." Hoover argued that the economic collapse had chiefly been the product of international disturbances, and he accused Roosevelt of promoting class conflict with his novel economic policies. Already unpopular due to

36636-531: The general public. In its first couple of years, the RFC needed a loan of US$ 51.3 billion from the Treasury and US$ 3.1 billion from the public. The RFC lent to solvent institutions that could not be sold to repay their existing liabilities but would be able to do so in the long run. A main reason for such loans was to ensure that depositors got their money back. The Reconstruction Finance Corporation spent US$ 1.5 billion in 1932, US$ 1.8 billion in 1933, and US$ 1.8 billion in 1934 before dropping to about US$ 350 million

36894-543: The gold value of the US dollar. In order to accomplish this, the RFC purchased large amounts of gold until a price floor was set. The RFC's powers, which had grown even before World War II began, further expanded during the war. President Roosevelt merged the RFC and the Federal Deposit Insurance Corporation (FDIC), which was one of the landmarks of the New Deal. Oscar Cox, a primary author of

37152-709: The government as the employer of last resort. Roosevelt, among others, feared that the private sector would never again be able to provide full employment on its own. The major program created by the Emergency Relief Appropriation Act was the Works Progress Administration (WPA), led by Harry Hopkins. The WPA financed a variety of projects such as hospitals, schools, and roads, and employed more than 8.5 million workers who built 650,000 miles of highways and roads, 125,000 public buildings, as well as bridges, reservoirs, irrigation systems, and other projects. Ickes's PWA continued to function, but

37410-618: The government as the employer of last resort. Roosevelt, among others, feared that the private sector would never again be able to provide full employment on its own. The major program created by the Emergency Relief Appropriation Act was the Works Progress Administration (WPA), led by Harry Hopkins. The WPA financed a variety of projects such as hospitals, schools, and roads, and employed more than 8.5 million workers who built 650,000 miles of highways and roads, 125,000 public buildings, as well as bridges, reservoirs, irrigation systems, and other projects. Ickes's PWA continued to function, but

37668-610: The government would serve as a permanent employer of last resort . The most popular of all New Deal agencies – and Roosevelt's favorite– was the Civilian Conservation Corps (CCC). The CCC hired 250,000 unemployed young men to work for six months on rural projects. It was directed by Robert Fechner , a former union executive who promised labor unions that the enrollees would not be trained in skills that would compete with unemployed union members. Instead, they did unskilled construction labor, especially building roads and recreational facilities in state and national parks. Each CCC camp

37926-610: The government would serve as a permanent employer of last resort . The most popular of all New Deal agencies – and Roosevelt's favorite– was the Civilian Conservation Corps (CCC). The CCC hired 250,000 unemployed young men to work for six months on rural projects. It was directed by Robert Fechner , a former union executive who promised labor unions that the enrollees would not be trained in skills that would compete with unemployed union members. Instead, they did unskilled construction labor, especially building roads and recreational facilities in state and national parks. Each CCC camp

38184-406: The growth of trusts, Hise had favored the creation of governmental organizations charged with regulating trusts. The NRA tried to end cutthroat competition by forcing industries to come up with codes that established the rules of operation for all firms within specific industries, such as minimum prices, minimum wages, agreements not to compete, and production restrictions. Industry leaders negotiated

38442-406: The growth of trusts, Hise had favored the creation of governmental organizations charged with regulating trusts. The NRA tried to end cutthroat competition by forcing industries to come up with codes that established the rules of operation for all firms within specific industries, such as minimum prices, minimum wages, agreements not to compete, and production restrictions. Industry leaders negotiated

38700-545: The health facilities available to a sickly population. The Farm Credit Administration refinanced many mortgages, reducing the number of displaced farming families. In 1935, the administration created the Rural Electrification Administration (REA), which built electric lines in rural areas providing electricity for the first time to millions. In the decade following the establishment of the REA,

38958-404: The health facilities available to a sickly population. The Farm Credit Administration refinanced many mortgages, reducing the number of displaced farming families. In 1935, the administration created the Rural Electrification Administration (REA), which built electric lines in rural areas providing electricity for the first time to millions. In the decade following the establishment of the REA,

39216-432: The hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence... The money changers have fled from their high seats in

39474-432: The hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence... The money changers have fled from their high seats in

39732-413: The heavy equipment, while the federal government provided the labor. Building new recreational facilities in public parks fit the model, and tens of thousands of recreation and sports facilities were built in both rural and urban areas. These projects had the main goal of providing jobs for the unemployed, but they also played to a widespread demand at the time for bodily fitness and the need of recreation in

39990-413: The heavy equipment, while the federal government provided the labor. Building new recreational facilities in public parks fit the model, and tens of thousands of recreation and sports facilities were built in both rural and urban areas. These projects had the main goal of providing jobs for the unemployed, but they also played to a widespread demand at the time for bodily fitness and the need of recreation in

40248-507: The high rates of bank failure , deflation , and unemployment that characterized the Great Depression in the United States, Federal Reserve board member Eugene Meyer proposed the establishment of a government agency empowered to make loans to banks and businesses in critical sectors of the US economy. Modeled after the War Finance Corporation , a government corporation that financially supported industries critical to

40506-450: The industrial sector, though it lasted only two years. After his party's sweeping success in the 1934 mid-term elections, Roosevelt presided over the Second New Deal. It featured the Works Progress Administration (WPA), the largest work relief agency, and the Social Security Act , which created a national old-age pension program known as Social Security . The New Deal also established a national unemployment insurance program, as well as

40764-539: The labor unions, especially in the mass-production sector. When the Flint sit-down strike threatened the production of General Motors , Roosevelt broke with the precedent set by many former presidents and refused to intervene; the strike ultimately led to the unionization of both General Motors and its rivals in the American automobile industry. In the aftermath of the Flint sit-down strike, U.S. Steel granted recognition to

41022-436: The labor unions, especially in the mass-production sector. When the Flint sit-down strike threatened the production of General Motors , Roosevelt broke with the precedent set by many former presidents and refused to intervene; the strike ultimately led to the unionization of both General Motors and its rivals in the American automobile industry. In the aftermath of the Flint sit-down strike, U.S. Steel granted recognition to

41280-465: The leadership of Aubrey Williams , the NYA developed apprenticeship programs and residential camps specializing in teaching vocational skills. It was one of the first agencies that made an explicit effort to enroll black students. The NYA work-study program reached up to 500,000 students per month in high schools, colleges, and graduate schools. The NYA also set up its own high schools, entirely separate from

41538-416: The leadership of Aubrey Williams , the NYA developed apprenticeship programs and residential camps specializing in teaching vocational skills. It was one of the first agencies that made an explicit effort to enroll black students. The NYA work-study program reached up to 500,000 students per month in high schools, colleges, and graduate schools. The NYA also set up its own high schools, entirely separate from

41796-491: The leading candidate in the South and West. The chief opposition to Roosevelt's candidacy came from Northeastern liberals such as Al Smith , the 1928 Democratic presidential nominee and a former close ally. Smith hoped to deny Roosevelt the two-thirds support necessary to win the party's presidential nomination 1932 Democratic National Convention , and then emerge as the nominee after multiple rounds of balloting. Roosevelt entered

42054-440: The leading candidate in the South and West. The chief opposition to Roosevelt's candidacy came from Northeastern liberals such as Al Smith , the 1928 Democratic presidential nominee and a former close ally. Smith hoped to deny Roosevelt the two-thirds support necessary to win the party's presidential nomination 1932 Democratic National Convention , and then emerge as the nominee after multiple rounds of balloting. Roosevelt entered

42312-702: The local and state revenues that it disappeared during the depression, they were well organized, and made repeated concerted efforts in 1934, 1937, and 1939, all to no avail. The federal government had a highly professional Office of Education; Roosevelt cut its budget and staff, and refused to consult with its leader John Ward Studebaker . The CCC programs were deliberately designed not teach skills that would put them in competition with unemployed union members. The CCC did have its own classes. They were voluntary, took place after work, and focused on teaching basic literacy to young men who had dropped out before entering high school. The NYA set up its own high schools independent of

42570-702: The local and state revenues that it disappeared during the depression, they were well organized, and made repeated concerted efforts in 1934, 1937, and 1939, all to no avail. The federal government had a highly professional Office of Education; Roosevelt cut its budget and staff, and refused to consult with its leader John Ward Studebaker . The CCC programs were deliberately designed not teach skills that would put them in competition with unemployed union members. The CCC did have its own classes. They were voluntary, took place after work, and focused on teaching basic literacy to young men who had dropped out before entering high school. The NYA set up its own high schools independent of

42828-427: The locally controlled public schools. The relief programs did offer indirect help to public schools. The CWA and FERA focused on hiring unemployed people on relief, and putting them to work on public buildings, including public schools. It built or upgraded 40,000 schools, plus thousands of playgrounds and athletic fields. It gave jobs to 50,000 teachers to keep rural schools open and to teach adult education classes in

43086-427: The locally controlled public schools. The relief programs did offer indirect help to public schools. The CWA and FERA focused on hiring unemployed people on relief, and putting them to work on public buildings, including public schools. It built or upgraded 40,000 schools, plus thousands of playgrounds and athletic fields. It gave jobs to 50,000 teachers to keep rural schools open and to teach adult education classes in

43344-566: The midst of the Great Depression . A quarter of the American workforce was unemployed, two million people were homeless, and industrial production had fallen by more than half since 1929. By the evening of March 4, 32 of the 48 states – as well as the District of Columbia – had closed their banks. The New York Federal Reserve Bank was unable to open on the 5th, as huge sums had been withdrawn by panicky customers in previous days. Beginning with his inauguration address, Roosevelt laid

43602-510: The midst of the Great Depression . A quarter of the American workforce was unemployed, two million people were homeless, and industrial production had fallen by more than half since 1929. By the evening of March 4, 32 of the 48 states – as well as the District of Columbia – had closed their banks. The New York Federal Reserve Bank was unable to open on the 5th, as huge sums had been withdrawn by panicky customers in previous days. Beginning with his inauguration address, Roosevelt laid

43860-422: The money supply and respond to business cycles. The Securities Exchange Act of 1934 established the independent Securities and Exchange Commission to end irresponsible market manipulations and the dissemination of false information about securities. Roosevelt named Joseph P. Kennedy , a famously successful speculator himself, to head the SEC and clean up Wall Street. Kennedy appointed a hard-driving team with

44118-422: The money supply and respond to business cycles. The Securities Exchange Act of 1934 established the independent Securities and Exchange Commission to end irresponsible market manipulations and the dissemination of false information about securities. Roosevelt named Joseph P. Kennedy , a famously successful speculator himself, to head the SEC and clean up Wall Street. Kennedy appointed a hard-driving team with

44376-578: The more ambitious experiments of the TVA generally failed to take hold, by 1940, the TVA had become the largest producer of electric power in the country. The Roosevelt administration also established the Bonneville Power Authority , which performed similar functions to the TVA in the Pacific Northwest , albeit on a smaller scale. The Roosevelt administration launched the National Recovery Administration (NRA) as one of

44634-432: The more ambitious experiments of the TVA generally failed to take hold, by 1940, the TVA had become the largest producer of electric power in the country. The Roosevelt administration also established the Bonneville Power Authority , which performed similar functions to the TVA in the Pacific Northwest , albeit on a smaller scale. The Roosevelt administration launched the National Recovery Administration (NRA) as one of

44892-500: The nation's workforce, and New Dealers hoped that an agricultural recovery would help stimulate the broader economy. Leadership of the farm programs of the New Deal lay with Secretary of Agriculture Henry Wallace, a dynamic, intellectual reformer. The persistent farm crisis of the 1920s was further exacerbated by the onset of the Great Depression, and foreclosures were common among debt-ridden farms. Farmers were locked in

45150-433: The nation's workforce, and New Dealers hoped that an agricultural recovery would help stimulate the broader economy. Leadership of the farm programs of the New Deal lay with Secretary of Agriculture Henry Wallace, a dynamic, intellectual reformer. The persistent farm crisis of the 1920s was further exacerbated by the onset of the Great Depression, and foreclosures were common among debt-ridden farms. Farmers were locked in

45408-625: The national systems. Roosevelt was particularly supportive of water management projects, which could provide hydroelectricity , improve river navigation, and supply water for irrigation. His administration initiated the construction of numerous dams located in the South and the West. Although proposals to replicate the Tennessee Valley Authority in the Pacific Northwest were not acted upon, the administration completed

45666-426: The national systems. Roosevelt was particularly supportive of water management projects, which could provide hydroelectricity , improve river navigation, and supply water for irrigation. His administration initiated the construction of numerous dams located in the South and the West. Although proposals to replicate the Tennessee Valley Authority in the Pacific Northwest were not acted upon, the administration completed

45924-501: The new program subsidized them for planting soil enriching hay crops such as alfalfa that would not be sold on the market. Federal regulation of agricultural production has been modified many times since then, but the basic philosophy of subsidizing farmers remains in effect. Many rural families lived in severe poverty, especially in the South. Agencies such as the Resettlement Administration and its successor,

46182-420: The new program subsidized them for planting soil enriching hay crops such as alfalfa that would not be sold on the market. Federal regulation of agricultural production has been modified many times since then, but the basic philosophy of subsidizing farmers remains in effect. Many rural families lived in severe poverty, especially in the South. Agencies such as the Resettlement Administration and its successor,

46440-404: The number of surplus airplanes ran as high as 150,000. By the summer of 1945, at least 30 sales-storage depots and 23 sales centers were in operation. In November 1945, it was estimated that a total of 117,210 aircraft would be transferred as surplus. Many thousands ended up sold or gifted by the US military to the air forces of friendly allies around the globe. Between 1945 and June 1947, the RFC,

46698-594: The opponents without discouraging the reformers." During World War II, a group of congressmen introduced the Wagner-Murray-Dingell Bill , which would provide federally funded universal health care . Roosevelt never endorsed it, and with conservatives in control of Congress, it stood little chance of passage. Health insurance would be proposed in Truman's Fair Deal , but it was defeated. The National Labor Relations Act (NLRB) of 1935, also known as

46956-462: The opponents without discouraging the reformers." During World War II, a group of congressmen introduced the Wagner-Murray-Dingell Bill , which would provide federally funded universal health care . Roosevelt never endorsed it, and with conservatives in control of Congress, it stood little chance of passage. Health insurance would be proposed in Truman's Fair Deal , but it was defeated. The National Labor Relations Act (NLRB) of 1935, also known as

47214-604: The party's founding in 1828. In the concurrent congressional elections , the Democrats took control of the Senate and built upon their majority in the House. Though congressional Democratic leadership was dominated by conservative Southerners, over half of the members of the incoming 73rd Congress had been elected since 1930. Many of these new members were eager to take action to combat the Depression, even if it meant defying

47472-435: The party's founding in 1828. In the concurrent congressional elections , the Democrats took control of the Senate and built upon their majority in the House. Though congressional Democratic leadership was dominated by conservative Southerners, over half of the members of the incoming 73rd Congress had been elected since 1930. Many of these new members were eager to take action to combat the Depression, even if it meant defying

47730-490: The percentage of female government employees increased from 14.3 percent to 18.8 percent, and women made up nearly half of the workforce of the WPA. From 1930 to 1940, the number of employed women rose 24 percent from 10.5 million to 13 million. Few women worked in the high-unemployment sectors like mining and heavy industry. They worked in clerical jobs or light factories (such as food). Roosevelt appointed more women to office than any previous president. The very first woman in

47988-490: The percentage of female government employees increased from 14.3 percent to 18.8 percent, and women made up nearly half of the workforce of the WPA. From 1930 to 1940, the number of employed women rose 24 percent from 10.5 million to 13 million. Few women worked in the high-unemployment sectors like mining and heavy industry. They worked in clerical jobs or light factories (such as food). Roosevelt appointed more women to office than any previous president. The very first woman in

48246-400: The pledges of two million businesses to create and follow NRA codes, and Blue Eagle symbols, which indicated that a company cooperated with the NRA, became ubiquitous. The NRA targeted ten essential industries deemed crucial to an economic recovery, starting with textile industry and next turning to coal, oil, steel, automobiles, and lumber. Though unwilling to dictate the codes to industries,

48504-400: The pledges of two million businesses to create and follow NRA codes, and Blue Eagle symbols, which indicated that a company cooperated with the NRA, became ubiquitous. The NRA targeted ten essential industries deemed crucial to an economic recovery, starting with textile industry and next turning to coal, oil, steel, automobiles, and lumber. Though unwilling to dictate the codes to industries,

48762-404: The political orthodoxy of the previous years. Roosevelt appointed powerful men to top positions but made certain he made all the major decisions, regardless of delays, inefficiency or resentment. Analyzing the president's administrative style, historian James MacGregor Burns concludes: For his first Secretary of State, Roosevelt selected Cordell Hull , a prominent Tennessean who had served in

49020-404: The political orthodoxy of the previous years. Roosevelt appointed powerful men to top positions but made certain he made all the major decisions, regardless of delays, inefficiency or resentment. Analyzing the president's administrative style, historian James MacGregor Burns concludes: For his first Secretary of State, Roosevelt selected Cordell Hull , a prominent Tennessean who had served in

49278-641: The powers of the Federal Trade Commission and required companies issuing securities to disclose information regarding the securities they issued. Another major securities law, the Public Utility Holding Company Act of 1935 , broke up large public utility holding companies . The law arose from concerns that the holding companies had used elaborate measures to extract profits from subsidiary utility companies while taking advantage of customers. House construction

49536-475: The powers of the Federal Trade Commission and required companies issuing securities to disclose information regarding the securities they issued. Another major securities law, the Public Utility Holding Company Act of 1935 , broke up large public utility holding companies . The law arose from concerns that the holding companies had used elaborate measures to extract profits from subsidiary utility companies while taking advantage of customers. House construction

49794-405: The presidency of Franklin D. Roosevelt began on March 4, 1933, when he was inaugurated as the 32nd president of the United States , and the second term of his presidency ended on January 20, 1941, with his inauguration to a third term . Roosevelt, the Democratic governor of the largest state, New York, took office after defeating incumbent President Herbert Hoover , his Republican opponent in

50052-402: The program was expanded to provide payments to widows and dependents of Social Security recipients. Job categories that were not covered by the act included workers in agricultural labor, domestic service, government employees, and many teachers, nurses, hospital employees, librarians, and social workers. The program was funded through a newly established a payroll tax which later became known as

50310-402: The program was expanded to provide payments to widows and dependents of Social Security recipients. Job categories that were not covered by the act included workers in agricultural labor, domestic service, government employees, and many teachers, nurses, hospital employees, librarians, and social workers. The program was funded through a newly established a payroll tax which later became known as

50568-459: The programs he had initiated as governor of New York as well as the programs Hoover had started. The Federal Emergency Relief Administration (FERA), the largest program from 1933 to 1935, involved giving money to localities to operate work relief projects to employ those on direct relief. FERA was led by Harry Hopkins, who had helmed a similar program under Roosevelt in New York. Another agency,

50826-403: The programs he had initiated as governor of New York as well as the programs Hoover had started. The Federal Emergency Relief Administration (FERA), the largest program from 1933 to 1935, involved giving money to localities to operate work relief projects to employ those on direct relief. FERA was led by Harry Hopkins, who had helmed a similar program under Roosevelt in New York. Another agency,

51084-520: The public school system or academic schools of education. The United States was the lone modern industrial country where people faced the Depression without any national system of social security, though a handful of states had poorly-funded old-age insurance programs. The federal government had provided pensions to veterans in the aftermath of the Civil War and other wars, and some states had established voluntary old-age pension systems, but otherwise

51342-463: The public school system or academic schools of education. The United States was the lone modern industrial country where people faced the Depression without any national system of social security, though a handful of states had poorly-funded old-age insurance programs. The federal government had provided pensions to veterans in the aftermath of the Civil War and other wars, and some states had established voluntary old-age pension systems, but otherwise

51600-648: The regular federal budget — including a reduction in military spending from $ 752 million in 1932 to $ 531 million in 1934. He made a 40% cut in spending on veterans' benefits by removing 500,000 veterans and widows from the pension rolls and reducing benefits for the remainder, as well as cutting the salaries of federal employees and reducing spending on research and education. The veterans were well organized and strongly protested, and most benefits were restored or increased by 1934. In June 1933, Roosevelt restored $ 50 million in pension payments, and Congress added another $ 46 million more. Veterans groups such as

51858-648: The regular federal budget — including a reduction in military spending from $ 752 million in 1932 to $ 531 million in 1934. He made a 40% cut in spending on veterans' benefits by removing 500,000 veterans and widows from the pension rolls and reducing benefits for the remainder, as well as cutting the salaries of federal employees and reducing spending on research and education. The veterans were well organized and strongly protested, and most benefits were restored or increased by 1934. In June 1933, Roosevelt restored $ 50 million in pension payments, and Congress added another $ 46 million more. Veterans groups such as

52116-399: The right of collective bargaining and established the National Labor Relations Board . The result was rapid growth in union membership. After winning re-election in 1936, the second term was a series of disappointments. Roosevelt sought to enlarge the Supreme Court , but his proposal was defeated in Congress. Roosevelt had little success in passing domestic legislation in his second term, as

52374-450: The same time stimulating demand in the economy and decreasing the supply of labor. In 1934, Roosevelt charged the Committee on Economic Security, chaired by Secretary of Labor Perkins, with developing an old-age pension program, an unemployment insurance system, and a national health care program. The proposal for a national health care system was dropped, but the committee developed an unemployment insurance program largely administered by

52632-450: The same time stimulating demand in the economy and decreasing the supply of labor. In 1934, Roosevelt charged the Committee on Economic Security, chaired by Secretary of Labor Perkins, with developing an old-age pension program, an unemployment insurance system, and a national health care program. The proposal for a national health care system was dropped, but the committee developed an unemployment insurance program largely administered by

52890-472: The severity of the crisis. Working with the outgoing secretary of the treasury, Ogden Mills , the Roosevelt administration spent the next few days putting together a bill designed to rescue the banking industry. When the special session of Congress that had been called by Roosevelt opened on March 9, Congress quickly passed Roosevelt's Emergency Banking Act . Rather than nationalizing the financial industry, as some radicals hoped and many conservatives feared,

53148-472: The severity of the crisis. Working with the outgoing secretary of the treasury, Ogden Mills , the Roosevelt administration spent the next few days putting together a bill designed to rescue the banking industry. When the special session of Congress that had been called by Roosevelt opened on March 9, Congress quickly passed Roosevelt's Emergency Banking Act . Rather than nationalizing the financial industry, as some radicals hoped and many conservatives feared,

53406-468: The share of farms with electricity went from under 20 percent to approximately 90 percent. Roosevelt appointed John Collier to lead the Bureau of Indian Affairs , and Collier presided over a shift in policy towards Native Americans that de-emphasized cultural assimilation . Native Americans worked in the CCC and other New Deal programs, including the newly formed Soil Conservation Service . In 1933,

53664-416: The share of farms with electricity went from under 20 percent to approximately 90 percent. Roosevelt appointed John Collier to lead the Bureau of Indian Affairs , and Collier presided over a shift in policy towards Native Americans that de-emphasized cultural assimilation . Native Americans worked in the CCC and other New Deal programs, including the newly formed Soil Conservation Service . In 1933,

53922-497: The states. The committee also developed an old-age plan that, at Roosevelt's insistence, would be funded by individual contributions from workers. In January 1935, Roosevelt proposed the Social Security Act , which he presented as a more practical alternative to the Townsend Plan. After a series of congressional hearings, the Social Security Act became law in August 1935. During the congressional debate over Social Security,

54180-434: The states. The committee also developed an old-age plan that, at Roosevelt's insistence, would be funded by individual contributions from workers. In January 1935, Roosevelt proposed the Social Security Act , which he presented as a more practical alternative to the Townsend Plan. After a series of congressional hearings, the Social Security Act became law in August 1935. During the congressional debate over Social Security,

54438-463: The temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit. Historians categorize Roosevelt's economic program into three categories: "relief, recovery and reform." Relief was urgently needed by tens of millions of unemployed. Recovery meant boosting the economy back to normal. Reform meant long-term fixes of what

54696-463: The temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit. Historians categorize Roosevelt's economic program into three categories: "relief, recovery and reform." Relief was urgently needed by tens of millions of unemployed. Recovery meant boosting the economy back to normal. Reform meant long-term fixes of what

54954-468: The time Roosevelt took office, gubernatorial proclamations had closed the banks in 32 states; in the remaining states, many banks were closed and depositors were permitted to withdraw only five percent of their deposits. On March 5, Roosevelt declared a federal bank holiday, closing every bank in the nation. Though some questioned Roosevelt's constitutional authority to declare a bank holiday, his action received little immediate political resistance in light of

55212-468: The time Roosevelt took office, gubernatorial proclamations had closed the banks in 32 states; in the remaining states, many banks were closed and depositors were permitted to withdraw only five percent of their deposits. On March 5, Roosevelt declared a federal bank holiday, closing every bank in the nation. Though some questioned Roosevelt's constitutional authority to declare a bank holiday, his action received little immediate political resistance in light of

55470-464: The tin and abaca programs were handled by General Services Administration . The Commodity Credit Corporation , which was created to help farmers, remained in operation. Another establishment kept in operation is the Export–Import Bank, which encourages exports. In 1991, Rep. Jamie L. Whitten (Democrat of Mississippi) introduced a bill to reestablish the RFC, but it did not receive a hearing by

55728-562: The two major programs designed to restore economic prosperity, along with the AAA. The NRA was established by the National Industrial Recovery Act (NIRA) of 1933, and was designed to implement reforms in the industrial sector. The framers of the NRA were heavily influenced by the work of Charles R. Van Hise , a Progressive academic who saw trusts as an inevitable feature of an industrialized society. Rather than advocating for antitrust laws designed to prevent

55986-475: The two major programs designed to restore economic prosperity, along with the AAA. The NRA was established by the National Industrial Recovery Act (NIRA) of 1933, and was designed to implement reforms in the industrial sector. The framers of the NRA were heavily influenced by the work of Charles R. Van Hise , a Progressive academic who saw trusts as an inevitable feature of an industrialized society. Rather than advocating for antitrust laws designed to prevent

56244-461: The unemployed. He energetically battled growing opposition from conservatives, business and banking interests. By 1935, the economy was 21% bigger than its nadir, but the real gross national product was still 11% below the apex reached in 1929. It finally caught up and passed 1929 during 1936. Unemployment remained a major problem at 20%. However farm incomes were recovering. With the economy still in depression, and following Democratic triumphs in

56502-461: The unemployed. He energetically battled growing opposition from conservatives, business and banking interests. By 1935, the economy was 21% bigger than its nadir, but the real gross national product was still 11% below the apex reached in 1929. It finally caught up and passed 1929 during 1936. Unemployment remained a major problem at 20%. However farm incomes were recovering. With the economy still in depression, and following Democratic triumphs in

56760-405: The votes of Texas and California, threw his support behind Roosevelt after the third ballot, and Roosevelt clinched the nomination on the fourth ballot. With little input from Roosevelt, Garner won the vice presidential nomination. Roosevelt flew in from New York after learning that he had won the nomination, becoming the first major party presidential nominee to accept the nomination in person. In

57018-405: The votes of Texas and California, threw his support behind Roosevelt after the third ballot, and Roosevelt clinched the nomination on the fourth ballot. With little input from Roosevelt, Garner won the vice presidential nomination. Roosevelt flew in from New York after learning that he had won the nomination, becoming the first major party presidential nominee to accept the nomination in person. In

57276-500: The war effort during World War I, its purpose would be to stimulate economic growth in the United States and restore public confidence in banking and the economy. It would replace the National Credit Corporation , an agency created in 1931 to restore the liquidity of banks on the brink of failure with loans funded by the interbank lending market . On January 22, 1932, the Reconstruction Finance Corporation Act

57534-441: The world powers to collaborate on ending the worldwide depression, and allowed Roosevelt a free hand in economic policy. Though Roosevelt was willing to negotiate regarding tariffs, he refused to accept a fixed exchange-rate system or to reduce European debts incurred during World War I . In October 1933, the Roosevelt administration began a policy of buying gold in the hopes that such purchases would lead to inflation. The program

57792-441: The world powers to collaborate on ending the worldwide depression, and allowed Roosevelt a free hand in economic policy. Though Roosevelt was willing to negotiate regarding tariffs, he refused to accept a fixed exchange-rate system or to reduce European debts incurred during World War I . In October 1933, the Roosevelt administration began a policy of buying gold in the hopes that such purchases would lead to inflation. The program

58050-618: Was a fierce turf battle over control of the United States Forest Service , which Agriculture Secretary Henry Wallace insisted on keeping, but Interior Secretary Harold Ickes wanted so he could merge it with the National Park Service . The Brownlow Committee report on administrative management convinced Roosevelt to propose the creation of a new Department of Conservation to replace the Department of

58308-405: Was a fierce turf battle over control of the United States Forest Service , which Agriculture Secretary Henry Wallace insisted on keeping, but Interior Secretary Harold Ickes wanted so he could merge it with the National Park Service . The Brownlow Committee report on administrative management convinced Roosevelt to propose the creation of a new Department of Conservation to replace the Department of

58566-505: Was able to buy bank preferred stock with the Emergency Banking Act of 1933. Buying stock would serve as collateral when banks needed loans. This, however, was somewhat controversial because if the RFC was a shareholder than it could interfere with salaries and bank management. The Federal Deposit Insurance Corporation (FDIC) was later created to help decrease bank failures and insure bank deposits. The second main assistance

58824-429: Was administered by an Army reserve officer. Food, clothing, supplies, and medical and dental services were purchased locally. The young men who worked at CCC camps were paid a dollar a day, most of which went to their parents. Blacks were enrolled in their own camps, and the CCC operated an entirely separate division for Indians. Roosevelt placed a high emphasis on agricultural issues. Farmers made up thirty percent of

59082-429: Was administered by an Army reserve officer. Food, clothing, supplies, and medical and dental services were purchased locally. The young men who worked at CCC camps were paid a dollar a day, most of which went to their parents. Blacks were enrolled in their own camps, and the CCC operated an entirely separate division for Indians. Roosevelt placed a high emphasis on agricultural issues. Farmers made up thirty percent of

59340-474: Was also authorized to provide loans for railroad construction and crop lands. An amendment passed in July 1932 allowed the RFC to provide loans to state and municipal governments. The purpose of these loans was to finance projects like dams and bridges, and the money would be repaid by charging fees to use these structures. To help with unemployment, a relief program was created that would be repaid by tax receipts. The Presidency of Franklin D. Roosevelt increased

59598-669: Was established in 1938 to regulate the fast-growing commercial aviation industry, while in 1935 the authority of the Interstate Commerce Commission was extended to the trucking industry . The Federal Trade Commission also received new duties. The Agricultural Adjustment Act included the Thomas Amendment, a provision that allowed the president to reduce the gold content of the dollar, to coin silver dollars, and issue $ 3 billion in fiat money not backed by gold or silver. In April 1933, Roosevelt took

59856-518: Was established in 1938 to regulate the fast-growing commercial aviation industry, while in 1935 the authority of the Interstate Commerce Commission was extended to the trucking industry . The Federal Trade Commission also received new duties. The Agricultural Adjustment Act included the Thomas Amendment, a provision that allowed the president to reduce the gold content of the dollar, to coin silver dollars, and issue $ 3 billion in fiat money not backed by gold or silver. In April 1933, Roosevelt took

60114-434: Was in danger of failing, and President Herbert Hoover appointed Atlee Pomerene of Ohio to head the agency in July 1932. The presidency of the RFC thus switched from a Republican to a Democrat . Hoover's reasons for reorganizing the RFC included: the broken health and resignations of Eugene Meyer , Paul Bestor, and Charles Dawes; the failure of banks to perform their duties to their clientele or to aid American industry;

60372-428: Was in office when legislation terminated the RFC. It was "abolished as an independent agency by act of Congress (1953) and was transferred to the Department of the Treasury to wind up its affairs, effective June 1954. It was totally disbanded in 1957." The Small Business Administration was established to provide loans to small business, and training programs were created. Several federal agencies took over RFC assets, and

60630-484: Was not produced in the United States prior to the war, quickly became the primary source of rubber in the postwar years. The War Insurance Corporation was established December 13, 1941 by Act of June 10, 1941 (55 Stat. 249), was renamed the War Damage Corporation by Act of March 27, 1942 (56 Stat. 175), and its charter filed March 31, 1942. It had been created by the Federal Loan Administrator with

60888-427: Was on a few issues that had long concerned environmentalists: clean air and water, land management, preservation of forest lands, protection of wildlife, conservation of natural resources, and the creation of national parks and monuments. Second, he created permanent institutional structures with environmental missions, including permanent institutions like the Tennessee Valley Authority and temporary operations such as

61146-427: Was on a few issues that had long concerned environmentalists: clean air and water, land management, preservation of forest lands, protection of wildlife, conservation of natural resources, and the creation of national parks and monuments. Second, he created permanent institutional structures with environmental missions, including permanent institutions like the Tennessee Valley Authority and temporary operations such as

61404-434: Was plowed up, bountiful crops were left to rot, and six million piglets were killed and discarded. Farm incomes increased significantly in the first three years of the New Deal, as prices for commodities rose. However, some sharecroppers suffered under the new system, as some landowners pocketed the federal subsidies distributed for keeping lands fallow. The AAA was the first federal agricultural program to operate on such

61662-434: Was plowed up, bountiful crops were left to rot, and six million piglets were killed and discarded. Farm incomes increased significantly in the first three years of the New Deal, as prices for commodities rose. However, some sharecroppers suffered under the new system, as some landowners pocketed the federal subsidies distributed for keeping lands fallow. The AAA was the first federal agricultural program to operate on such

61920-631: Was provided, all of which was subscribed for by the Reconstruction Finance Corporation. The corporation was transferred from the Federal Loan Agency to the Department of Commerce by Executive Order #9071 of February 24, 1942, returned to the Federal Loan Agency by Act of February 24, 1945 (59 Stat. 5), and abolished by Act of June 30, 1947 (61 Stat. 202) with its functions assumed by Reconstruction Finance Corporation. The powers of War Damage Corporation, except for purposes of liquidation, terminated as of January 22, 1947. From 1941 through 1945,

62178-473: Was set for income above $ 5 million; in 1935, just one individual, John D. Rockefeller , paid the top tax rate. In early 1936, following the passage of the Bonus Act, Roosevelt again sought to increase taxes on corporate profits. Congress passed a bill that raised less revenue that Roosevelt's proposals, but did impose an undistributed profits tax on corporate earnings. Roosevelt had a lifelong interest in

62436-416: Was set for income above $ 5 million; in 1935, just one individual, John D. Rockefeller , paid the top tax rate. In early 1936, following the passage of the Bonus Act, Roosevelt again sought to increase taxes on corporate profits. Congress passed a bill that raised less revenue that Roosevelt's proposals, but did impose an undistributed profits tax on corporate earnings. Roosevelt had a lifelong interest in

62694-479: Was signed into law by President Herbert Hoover after being passed by Congress with broad bipartisan support. The Reconstruction Finance Corporation (RFC) began its operations on February2, 1932. Like the Federal Reserve, the RFC would loan to banks, but it was designed to serve state-chartered banks and small banks in rural areas that were not part of the Federal Reserve System. Another distinction

62952-524: Was specifically designed for the poor and staffed largely by women on relief. It was not based on professionalism, nor was it designed by experts. Instead it was premised on the anti-elitist notion that a good teacher does not need paper credentials, that learning does not need a formal classroom and that the highest priority should go to the bottom tier of society. Leaders in the public schools were shocked: they were shut out as consultants and as recipients of New Deal funding. They desperately needed cash to cover

63210-524: Was specifically designed for the poor and staffed largely by women on relief. It was not based on professionalism, nor was it designed by experts. Instead it was premised on the anti-elitist notion that a good teacher does not need paper credentials, that learning does not need a formal classroom and that the highest priority should go to the bottom tier of society. Leaders in the public schools were shocked: they were shut out as consultants and as recipients of New Deal funding. They desperately needed cash to cover

63468-615: Was strongly criticized by observers like Keynes, as well as hard money administration officials such as Dean Acheson , but it did appease many in rural communities. In 1935, Congress passed the Banking Act of 1935 , which brought the Federal Open Market Committee under the direct control of the Federal Reserve Board of Governors , thereby increasing the Federal Reserve's ability to control

63726-401: Was strongly criticized by observers like Keynes, as well as hard money administration officials such as Dean Acheson , but it did appease many in rural communities. In 1935, Congress passed the Banking Act of 1935 , which brought the Federal Open Market Committee under the direct control of the Federal Reserve Board of Governors , thereby increasing the Federal Reserve's ability to control

63984-425: Was that the RFC could make loans on the basis of collateral that the Federal Reserve and other lenders would not accept. The related Banking Act of 1932 , signed on February 27, broadened the Federal Reserve's lending powers, and gave it the power to make national policy to mitigate the problems with the economy. Eugene Meyer , who had pushed for both pieces of legislation, after heading up an organization similar to

64242-562: Was the Good Neighbor Policy , in which the U.S. took a non-interventionist stance in Latin American affairs. Foreign policy issues came to the fore in the late 1930s, as Nazi Germany , Japan , and Italy took aggressive actions against their neighbors. In response to fears that the United States would be drawn into foreign conflicts, Congress passed the Neutrality Acts , a series of laws that prevented trade with belligerents. After Japan invaded China and Germany invaded Poland , Roosevelt provided aid to China , Great Britain, and France , but

64500-436: Was the most urgent task facing the newly inaugurated administration. Thousands of smaller banks had failed or were on the verge of failing, and panicked depositors sought to remove their savings from banks for fear that they would lose their deposits after a bank failure. In the months after Roosevelt's election, several governors declared bank holidays, temporarily closing banks so that their deposits could not be withdrawn. By

64758-436: Was the most urgent task facing the newly inaugurated administration. Thousands of smaller banks had failed or were on the verge of failing, and panicked depositors sought to remove their savings from banks for fear that they would lose their deposits after a bank failure. In the months after Roosevelt's election, several governors declared bank holidays, temporarily closing banks so that their deposits could not be withdrawn. By

65016-537: Was to farmers and their crop lands. The Commodity Credit Corporation was established to provide assistance. The agriculture was hit hard with a drought and machinery like the tractor. One benefit it provided to these rural cities was the Electric Home and Farm Authority, which provided electricity and gas and assistance in buying appliances to use these services. The mortgage company was affected as well since families were not able to make their payments. This led

65274-411: Was unemployed. In less than four months, the CWA hired four million people, and during its five months of operation, the CWA built and repaired 200 swimming pools, 3,700 playgrounds, 40,000 schools, 250,000 miles (400,000 km) of road, and 12 million feet of sewer pipe. The CWA was widely popular, but Roosevelt canceled it in March 1934 due to cost concerns and the fear of establishing a precedent that

65532-411: Was unemployed. In less than four months, the CWA hired four million people, and during its five months of operation, the CWA built and repaired 200 swimming pools, 3,700 playgrounds, 40,000 schools, 250,000 miles (400,000 km) of road, and 12 million feet of sewer pipe. The CWA was widely popular, but Roosevelt canceled it in March 1934 due to cost concerns and the fear of establishing a precedent that

65790-716: Was widely seen as a potential component of an economic recovery. Though Keynes and Senator Wagner both favored large-scale public housing projects, the Roosevelt administration prioritized programs designed to boost private home-ownership . In 1933, Roosevelt established the Home Owners' Loan Corporation , which helped prevent mortgage foreclosures by offering refinancing programs. The Federal Housing Administration , established in 1934, set national home construction standards and provided insurance to long-term home mortgages. Another New Deal institution, Fannie Mae , made home lending more appealing to lenders by helping to provide for

66048-657: Was widely seen as a potential component of an economic recovery. Though Keynes and Senator Wagner both favored large-scale public housing projects, the Roosevelt administration prioritized programs designed to boost private home-ownership . In 1933, Roosevelt established the Home Owners' Loan Corporation , which helped prevent mortgage foreclosures by offering refinancing programs. The Federal Housing Administration , established in 1934, set national home construction standards and provided insurance to long-term home mortgages. Another New Deal institution, Fannie Mae , made home lending more appealing to lenders by helping to provide for

66306-550: Was wrong, especially with the financial and banking systems. Through Roosevelt's series of radio talks, known as fireside chats , he presented his proposals directly to the American public. To propose programs, Roosevelt relied on leading senators such as George Norris , Robert F. Wagner , and Hugo Black, as well as his Brain Trust of academic advisers. Like Hoover, he saw the Depression caused in part by people no longer spending or investing because they were afraid. Banking reform

66564-498: Was wrong, especially with the financial and banking systems. Through Roosevelt's series of radio talks, known as fireside chats , he presented his proposals directly to the American public. To propose programs, Roosevelt relied on leading senators such as George Norris , Robert F. Wagner , and Hugo Black, as well as his Brain Trust of academic advisers. Like Hoover, he saw the Depression caused in part by people no longer spending or investing because they were afraid. Banking reform

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