1. Chapter 12.1
The First New Deal
Pgs. 422 – 431

2. Roosevelt’s Rise to Power
He was from an elite family
Long political career
Progressive
Contracted polio, never walked on his own
Eleanor kept him in peoples minds
Won Governor of NY in 1928
Re-elected by huge margin
Gave people hope
Pg 423
New Deal vs. Old Hoover

3. The Hundred Days A Waiting game The New Deal Begins
Election & inauguration
Gold standard (again?)
Everyone wanted their money
In gold of course
Mini holidays
Banks closed, 25% unemployment… good luck
“The only thing we have to fear…”
The New Deal Begins
The first Hundred Days

4. Cont. A Divided Administration Roosevelt picked adversaries
He had the final say (sound familiar?)
Everyone agrees they need to do something
But what?
3 ideas
Work with big business
Run important pieces
Break up big business

5. Banks & Debt Relief Banking first The FDIC & SEC
People must have faith
National bank holiday
Government examine banks & approve reopening
“Fireside Chat”
People must trust him
They did
The FDIC & SEC
SEC – Securities & Exchange Commission
Glass-Steagall Act
FDIC – Federal Deposit Insurance Corporation

6. Cont. Mortgage & Debt Relief People spent money on debt not new stuff
Home Owner’s Loan Corporation (HOLC)
Gov. bought & refinanced peoples mortgage
No farmers & must have job
Helped 1 in 10 people
Farm Credit Administration (FCA)
Aid to farmers
Did it really help?

7. Farms & Industry The AAA Agricultural Adjustment Administration
Farm prices are to low from overproduction
Farmers were paid not to farm
It worked
Farm prices rose, so did farmers incomes
What’s the problem with higher farm prices?
Farm products are also called food

8. Cont. The NRA National Recovery Administration
Established industry codes
Wages, hours, prices etc.
Little real progress
Favored big companies
Helped unions (owners hated this)
Owners disliked minimum wages
Hard to enforce rules
Declared Unconstitutional in 1935

9. Relief Programs The CCC FERA & the PWA The Civilian Conservation Corps
Men 18 – 25 years old
Worked in forest & land management
Planted trees, fought forest fires etc.
Paid $30 but had to send $25 of it home
They were in camps and were provided food/shelter
FERA & the PWA
Federal Emergency Relief Agency
Sent $$$ to state/local relief agencies
Public Works Administration
Increased spending on contracting public works projects
Discouraged discrimination

10. Cont. The CWA Success of the First New Deal Civil Works Administration
Hired workers directly to the government
Continued with public works projects
Spent over $1 billion in 5 months
Roosevelt shut it down due to high costs
Success of the First New Deal
Lots of new legislation
Banks, homes, farms & jobs
People had hope
The Depression is still going on