Chapter 23
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Election of 1932

Hoover v. Roosevelt

Franklin Roosevelt promised New Deal

Avoided making specific promises

Roosevelt favored repeal of prohibition whereas Hoover wanted revision

Hoover looked tired and gloomy and worn out

Roosevelt was optimistic and confident

Biggest Democratic victory since Civil War

Democrats won big majorities in House and Senate

The New Deal

First hundred days

Enormous amount of legislation passed

Roosevelt called special session of Congress

Fireside chats

Use of radio to explain things and restore confidence

First one used to explain Emergency Banking Relief Act

Emergency Banking Relief Act

Ordered a nationwide bank holiday

Treasury Department would inspect nationís banks

Those banks that were sound could reopen at once

Those that needed help could receive loans

Insolvent ones would stay closed

Restored confidence in banking system

Took US off gold standard

Civilian Conservation Corps

Unemployed single males between 17 and 28

Built roads, planted trees, helped in soil erosion and flood control projects

Lived in camps run by army officers

$30 a month($22 of which was sent to dependent families)

Free food and uniforms

Federal Emergency Relief Act

$250 million given to states to be spent on food and clothing for the unemployed

Additional $250 million given as matching funds

Civil Works Administration

Gave aid to people through local authorities

Created government jobs, many of which were unnecessary

Agricultural Adjustment Act

Paid farmers a certain amount for land left unseeded

Caused prices to rise and farmers to receive more income

Tennessee Valley Authority

Regional planning

Helped conserve and develop natural resources by building dams to control the Tennessee River and to provide hydroelectric power

Resulted in new factories, new energy and new jobs

Economy Act

Lowered salaries of government workers

Reduced payments to veterans

Home Owner's Loan Corporation

Government loans to homeowners facing foreclosures

Glass-Steagall Act

Set up Federal Deposit Insurance Corporation to protect deposits up to $5000

National Industrial Recovery Act

National Recovery Administration

Set up fair trade codes

Price controls

40 hour work week

Abolished child labor

Set a minimum wage

Recognized right to unionize

Set up National Labor Board to settle disputes

Public Works Administration

Government spent money on necessary projects to create jobs

The Second New Deal

Began in 1935 after 1934 elections gave Democrats an even larger majority in Congress

Emphasis shifted from relief and recovery to reform

Works Progress Administration

Create jobs

1935-1941(8 million jobs)


Writers, artists, musicians, actors


Accused of exchanging jobs for votes

Social Security Act

Pension for retired workers

Death benefits to children under 18

Not tied to need

Tax split between employer and employee

Securities and Exchange Commission

Power to prevent insider trading

Joe Kennedy put in charge

Revenue Act of 1935

Attempt to break up large accumulations of wealth

Increased gift and estate taxes

Increased rates for those with higher incomes

Graduated corporate tax that favored small business over large

Banking Act of 1935

Replaced old Federal Reserve Board with 7 member board appointed by the president

New Deal under attack

NIRA and AAA declared unconstitutional

Liberty League

Most members rich

Opposed New Deal as an attack on the rich


Thought New Deal did not go far enough

Upton Sinclair

Wanted higher income and inheritance taxes

$50 a month pension for the elderly

Dr. Francis Townsend

Devised a plan to pay everyone over 60 $200 a month

Defeated in Congress but helped push through Social Security Act

Father Charles Coughlin

Radio preacher

Wanted to nationalize banks, public utilities, and natural resources

Huey Long (Kingfish)


Elected to Senate in 1930

"Share the Wealth" program

$5000 guaranteed yearly income for every family

Take over wealth of millionaires

Divide up some of nationís land and natural resources

Rooseveltís biggest threat until he was killed in 1935

Election of 1936


"Are you better off now than you were 4 years ago"

Alf Landon-Republican


Landon got 8 electoral votes

Coalition formed

Blacks, labor unions, Catholics, the South

Court packing plan

Claimed federal judiciary could not keep up with caseload

More judges needed some judges too old

Proposed that judges retire within 6 months of turning 70

If they do not, president has the power to appoint new judges

Six members of Supreme Court over 70

Roosevelt would be able to enlarge # to 15

Set off protest that Roosevelt was grabbing too much power

Bill failed to get through Congress

Two judges changed votes on New Deal legislation

Conservative judge died

Roosevelt appointed Hugo Black

Roosevelt appointed 7 judges in the next 4 years

Attempt to pack Court strengthened opposition to New Deal

1938 elections brought in many Republicans and conservative southern Democrats

By 1939 New Deal was over

Changes during 1930's

Industrial unionism grew

Committee for Industrial Organization formed within the AFL

Began signing unskilled and semiskilled workers

Jealousy caused AFL to expel CIO unions in 1937

CIO changed name to Congress of Industrial Organizations

AFL-CIO combined again in 1955

Some advances for blacks

New Deal programs supposedly color blind

Blacks used as administrators of agencies

Roosevelt listened to opinions of highly placed black government workers

CIO included black members

Supreme Court upheld right of counsel for blacks and right to be tried by juries that included blacks

Roosevelt entertained blacks at the White House

In 1939 the DAR refused use of Constitution Hall for Marion Anderson concert

Eleanor Roosevelt resigned from organization and arranged for concert to be held at Lincoln Memorial

Some advances for women

Eleanor Roosevelt

Very assertive

Represented Franklin at meetings

Campaigned for him

Helped make policy concerning women and minorities

Women were most popular movie stars

Joan Crawford, Bette Davis

Margaret Mitchell wrote Gone With The Wind which won Pulitzer Prize in 1937

Amelia Earhart was first woman to fly across the Atlantic alone in 1932

Lost in Pacific attempting around the world flight

Disagreement over New Deal


Raised income of farmers and workers

Helped preserve natural resources

Provided cushion for sick and aged

Enabled unions to organize

Added to material wealth of nation

Ended business excesses

Guaranteed safety of bank deposits

Reduced unemployment


Raised national debt

Doubled federal bureaucracy

Failed to end the depression

7.5 million still unemployed in 1940

Real end brought about by WWII

Politically it changed peopleís views about the role of government

Government responsible for economic welfare