Chapter 23 Roosevelt and the New Deal Section 1 Roosevelt Takes Office Section 2 The First New Deal.

Chapter 23Roosevelt and the New Deal

Section 1Roosevelt Takes Office

Section 2The First New Deal

Part I

Roosevelt Takes Office

• Herbert Hoover ran for a second term in 1932.

• The Democrats selected New York Governor, Franklin Delano Roosevelt.

Roosevelt is Inaugurated

• Unemployment ctd. to rise, bank runs increased, and people converted their money into gold.

• Many governors declared bank holidays, which closed the remaining banks before bank runs could put them out of business.

The Hundred Days Begins

• March 9 – June 16, 1933 – Hundred Days

• Congress passed 15 major acts to help the economic crisis.

• These programs made up the First New Deal.

A Divided Administration

• Advisors divided into 3 main groups– 1)Supporters of “New Nationalism” – gov’t &

business should work together to manage the economy.

– 2)Distrusted big business & wanted gov’t to run key parts of the economy.

– 3)Supported “New Freedom” – felt it was gov’t responsibility to restore competition to the economy.

Fixing the Banks & Stock Market

• He called a national bank holiday, and called Congress into special session.

• Passed the Emergency Banking Relief Act, which required federal examiners to survey the nation’s banks and issue Treasury Department licenses to financially sound banks.

“Fireside Chat”

• Roosevelt spoke directly to the people, in his “fireside chat,” assuring the Americans that the banks were secure.

• The following day deposits in every city outweighed withdrawals, ending the banking crisis.

Part II

The First New Deal

• The First New Deal created many agencies that helped bring the country out of the Depression.

• They are as follows….

Securities & Exchange Commission (SEC)

• Created to regulate the stock market and prevent fraud.

Federal Deposit Insurance Corporation (FDIC)

• Provided government insurance for bank deposits up to $2500.

Agricultural Adjustment Administration (AAA)

• Paid farmers not to raise certain crops to lower crop production.

National Industrial Recovery Act (NIRA)

• Suspended antitrust laws and allowed business, labor, and gov’t to cooperate in setting up voluntary rules, known as codes of fair competition, for each industry.

National Recovery Administration (NRA)

• Ran the NIRA.

• Controlled industrial production and prices with industry-created codes of fair competition.

• Declared unconstitutional in 1935.

Home Owners’ Loan Corporation (HOLC)

• Bought mortgages of homeowners behind on payments and restructured them with longer terms of repayment and lower interest rates.

Farm Credit Administration (FCA)

• Helped farmers refinance mortgages.

Civilian Conservation Corps (CCC)

• Gave unemployed men aged 18-25 the opportunity to work with the national forestry service.

Federal Emergency Relief Administration (FERA)

• Channeled money to help state and local agencies fund relief projects.

Public Works Administration (PWA)

• Series of construction projects, creating additional jobs.

Civil Works Administration (CWA)

• Hired workers directly and put them on the government’s payroll.

Tennessee Valley Authority (TVA)

• Built hydroelectric plants and dams aimed at improving seven Southern states and attracting industry to the South.

TEST