The First New Deal Chapter 10, section 1

The Hundred Days Period of FDR’s first 100 days in office Consisted of “bold, persistent experimentation” Congress passed 15 major acts to meet economic crisis Set a pace for new legislation that has never been equaled

The Hundred Days The New Deal was not based on strategy FDR sought advice from wide range of advisors FDR did make the final decision on all matters

The Hundred Days FDR’s first task: to restore confidence in the banking system

The Hundred Days FDR declared a national bank holiday—closed all banks Emergency Banking Relief Act passed in 38 minutes—federal examiners surveyed all of the nation’s banks 2/3 were sound and allowed to reopen

The Hundred Days March 12, 1933—FDR held his first “fireside chat” The next day, deposits outweighed withdrawals—banking crisis was over

The Hundred Days Federal Deposit Insurance Corporation (FDIC)-provided gov’t insurance for bank deposits up to a certain amount

The Hundred Days Securities and Exchange Commission (SEC)—created to regulate the stock market and prevent fraud (stocks had to include truthful information)

The Hundred Days FDR turned attention to the problems of farmers Suffered because prices were too low and production too high

The Hundred Days Agricultural Adjustment Administration (AAA)—created to run the farm program AAA paid over $1 billion dollars in 1933 for farmers to plow over fields/kill baby pigs to lower farm surplus Successful Farm surplus fell by 1936

The Hundred Days FDR turned attention to industry National Recovery Administration (NRA)—controlled industrial production and prices with industry-created codes of fair competition Declared unconstitutional by the Supreme Court in 1935

The Hundred Days Some of FDR’s advisors believed that debt was the main obstacle to economic recovery Most money spent on mortgages than goods

The Hundred Days Home Owners’ Loan Corporation (HOLC)—created to help homeowners pay their mortgages Restructured mortgages to make it easier for families to pay

The Hundred Days Other advisors believed low consumption was the root of all problems Fastest way out of depression was to put money in hands of individuals

The Hundred Days FDR did not want to simply give out money Believed people would keep work skills and self-respect if they earned their money A series of gov’t agencies will be created to organize work programs for the unemployed

The Hundred Days Civilian Conservation Corps (CCC)— Most highly praised relief program in the New Deal Employed single men for natural resource conservation Paid $30 a month, employed over 3 million

The Hundred Days Federal Emergency Relief Administration (FERA)— Created to channel money to state and local agencies to fund relief projects Ran by Harry Hopkins

The Hundred Days Public Works Administration (PWA)— 1/3 of nation’s unemployed were in construction PWA created a series of construction projects Built highways, dams, schools, and other gov’t facilities

The Hundred Days By the end of his first year, FDR had convinced Congress to pass an array of programs and policies They did not end the depression, but provided relief for millions of Americans FDR’s actions had inspired hope and optimisim