FDR and the New Deal

FDR Background Distant cousin of Teddy Roosevelt Married Eleanor, Teddy’s niece Entered politics in NY state Senate Contracts polio – eventually wheelchair bound Governor of NY 1928 – popular b/c Cut taxes for farmers, convinced NY legislature to help unemployed New Yorkers

FDR and Eleanor

Roosevelt Inaugurated FDR represented a new energy, optimism = gave people hope Struggle with polio, programs in NY Democratic nom for President in 1932

Roosevelt Inaugurated Before inauguration March 4, 1933 bank runs increased People believed value of money would decrease Feared Roosevelt would abandon the gold standard People wanted to take money out and convert it to gold “…the only thing we have to fear is fear itself…”

Emergency Banking Relief Act On March 5, 1933, FDR declared national bank holiday Called special session of Congress to get Act passed Federal examiners survey nation’s banks, Treasury Dept licensed financially sound banks

Emergency Banking Relief Act Fireside chats – direct talks FDR held with the American people by radio Assured people that their money was safe in banks on March 12, 1933 “I assure you that it is safer to keep your money in a reopened bank than under the mattress.”

Regulating Banks and Brokers The Securities Act - Companies that sold stocks had to provide truthful information to investors Congress created the Securities and Exchange Commission (SEC) to regulate stock market

Regulating Banks and Brokers Glass-Steagall Act – separate commercial and investment banking Commercial banks cannot speculate with deposits Federal Deposit Insurance Corporation (FDIC) – gov’t insurance for bank deposits

FDIC