Objectives: Examine and evaluate the reaction to the crash
DO NOW: WHAT WERE THE PRIMARY
CAUSES OF THE CRASH
FDR’S NEW DEAL
DEPRESSION STATS
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1929– 3 million unemployed, family income 2300
1932-12.5 million (25%), family income 1400
683,000 vagrants thrown off trains
People starving in NYC (Cameroon sent aid)
By 1940 1.5 million married women living separate from husband
200,000 vagrant children wandering the countryside
Mexican Americans and African Americans hit especially hard
 70% Unemployment in Charleston among blacks
HOOVER OPPOSED WELFARE
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Hoover believed that it was not the
government responsibility to provide welfare.
He believed that giving money to the poor
would crush their sense of self-worth and
prevent them from reaching their potential as
US citizens
Many saw him as callous
 Refused request for 25 million to feed
farmers but approved 45 million to
feed their livestock.
 Rejected a request to pay teachers
and city workers in Chicago but
approved a 90 million dollar loan to
help the Central Republic Bank
HOOVERS REACTIONS CONTINUED
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Hawley –Smoot Tariff
 Tariffs on farm and industrial goods
(RFC) Reconstruction Finance Corporation– 1932– Established to
provide support to banks and corporations that provided public
support such as low-cost housing.
 Created the largest peacetime deficit in history
 He attempted to thwart this by implementing the Revenue Act
of 1932 which raised taxes
Home Loan Bank Board– Offered funds to mortgage companies
and financial institutions that would produce loans for
homebuilding and mortgages
BONUS ARMY
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WWI veterans were promised a 1000 dollar bonus that would
mature in 45.
The Vets wanted their money early, hopped on empty train
boxcars and headed for Washington.
20000 veterans and their families staged a protest at a camp at
Anacostia Flats just southeast of the capital.
The Senate turned down their request
Troops were sent in led by Douglas MacArthur and George
Patton to attack the encampment.
Tents and shack were torched and protesters were expelled.
100 injured and 1 infant killed.
Hoover and the republicans were voted out of office in 1932 in a
landslide victory for the Democrats 472-59
FDR
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Born into a wealthy family
Worried about super wealth and rift
between rich and poor
Harvard, then Colombia Law
Rode on shirttails of cousin Theodore
Polio at age of 39 changed him into
serious determined politician
Empathy for suffering
GOVERNOR OF NEW YORK
Democratic Governor of New York
 Demonstrated his ability to initiate reforms
 Surrounded himself with reformers and liberals
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 “Ours
must be the party of liberal thought, of
planned action, of enlightened international
outlook, and of the greatest good for the greatest
number of citizens.”
NEW ADMINISTRATION
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FDR was extremely
progressive when establishing
his new cabinet.
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Frances Perkins– First woman
to be appointed to a cabinet
post
 Former progressive
 Appointed Secretary of
Labor
 Till 1945 she helped
provide jobs
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African Americans were given
jobs in more than 100
policymaking posts
Mary McLeod Bethune was
appointed as director of the
Division of Negro Affairs of the
National Youth Administration
She advised FDR on programs
to help African Americans
She also developed the
Federal Council on Negro
Affairs by organizing the black
officeholders. They would
meet to establish new ideas to
help Af. Am.
ELEANOR ROOSEVELT
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Traveled for her husband
Reported to him on country’s condition and the effects of the
programs
She often took controversial stances that sometimes negatively
impacted FDR
 Example– She sat between the whites and blacks in the
Jim Crow south during a meeting of the Southern
Conference for Human Welfare
Many thought the first lady was suppose to be “lady like” but
they eventually got use to her.
LAME DUCK AMENDMENT
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FDR was elected in November but
was not inaugurated until March (This
was normal)
Hoover could not get anything done
because he did not have support
anymore (Lame Duck)
As a result– “Lame Duck”
Amendment (20th) that moved
inauguration to January 20th
Nevertheless, FDR needed to wait till
March
A NEW HOPE
2nd Bonus Army march (a
different reaction)
 Roosevelt offered a spot to
camp
 Eleanor (1st lady) paid a
visit to vets
Immediate “Fireside Chats” to
help restore hope
A “New Deal” – promises of
“bold, persistent
experimentation”
FIRST 100 DAYS
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Between March and June Roosevelt aggressively sought to
enact legislation that would provide relief, stimulate the
economy and provide jobs
March-June of 1933- 15 pieces of legislation
Bank Holiday=first order of business --an order to all banks to
close for 4 days.
He then pushed through congress the Emergency Banking Act
(EBA) --inspected the financial health of all the banks
 Banks were found healthy which reassured Americans
This was followed by the Economy Act (EA) which was
established to balance the budget
MORE MEASURES
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FDR also passed the Glass-Steagall Banking Act
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Federal Deposit Insurance Corporation (FDIC) to insure
deposits

Faith in the banking system began to rise
 Results---More
deposits=More loans=More jobs=More
money=More deposits
STILL MORE LEGISLATION
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Federal Securities Act
passed in May of 1933
required to provide financial
information if they were
traded publicly
Securities and Exchange
Commission (SEC) followed
which regulated the sale of
stock on margin
July of 1933 FDR dropped
the gold standard which
increased money supply
=inflation =lower value of
dollar =more exports
=higher farm good prices
DO NOW

What was the “New Deal”
STILL MORE RELIEF
Federal Emergency Relief Administration
(FERA)– support agencies that provide support
 Also provided a great deal of money to public
works programs– Government funded projects
to build bridges, buildings, sidewalks, dams,
etc.
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CWA AND THE CCC
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Civil Works Administration (CWA) established to build
roads, airports, etc.= 4 million employed
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The Civilian Conservation Corps (CCC) FDR’s favorite
program established in March of 1933. Put 2.5
million unmarried men to work in parks, beaches,
forests, etc. Earned $30 per month but provided food,
healthcare and camps to live in.
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Eleanor worked to establish a section of the CCC for
women as well
FDR KEEPS GOING
 National
Industrial Recovery Act (NIRA)
NRA
National Recovery Administration to help
stabilize the economy
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Established codes to regulate wages, restrain competition,
regulate prices, working conditions and production. Also
established a minimum wage
Public
Works Administration (PWA)
…AND GOING
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Indian Reorganization Act 1934= Part of the
public works programs
Ended the sale of tribal lands that began
under the Dawes Act of 1887
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Home Owners’ Loan Corporation (HOLC)–
Refinanced mortgages to make them more
manageable to pay off
June 1933 to June 1936 more than 1
million low-interest loans
…AND GOING…
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National Housing Act of 1934 established the Federal
Housing Administration (FHA) which was established
to improve housing conditions, insure mortgages and
stabilize the real estate market.
Agricultural Adjustment Administration (AAA)

paying subsidies for the reduction of certain crop
production.
Farmers
plowed under perfectly good crops
which angered Americans
MORE PROBLEMS
Drought and misuse of farmland led to Dust
Bowl
 Government responded by establishing SCS
(Soil Conservation Service) to push more
responsible farming methods (crop rotation,
terracing and building barriers)
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AGENCIES CONT.
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Works Progress
Administration (WPA)
provided work for more
that 8 million
Americans.
The National Youth
Administration within
the WPA did the same
for 16-25 year-olds
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AAA (Ag)– Ag.
Adjustment Admin.
Failed many farm
workers because the
farms stopped
producing
FSA– Farm Security
Administration
established to loan
more than 1 billion to
farmers to set up
camps for migrant
workers.
…AND GOING…
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Tennessee Valley Authority (TVA)
 was
created in 1933 to create jobs in the
Tennessee River Valley.
 Operated in Tennessee, Mississippi, Alabama,
Georgia and North Carolina
 Jobs focused on power generation, flood reduction
and local industrial development
TVA
GRAND COULEE DAM AND BOULDER DAM
(HOOVER)
THE 2ND NEW DEAL GETS UNDERWAY
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Focused on the ordinary Americans.
 It
included more social welfare
 business regulations
 union support
 higher taxes on the rich
MORE LEGISLATION
LABOR
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(REA) Rural Electrification
Administration– Gave money  NIRA
to farm cooperatives and
 Wagner Act– Legalized collective
bargaining and closed shops (workplaces only
electric companies to build
open to union members). Also outlawed spying
power plants and extend lines
and blacklisting
1930—10%
 National Labor Relations Board (NLRB
1934—25%
)established to enforce the provisions
Eventually– 98%
 Fair Labor Standards Act– No child labor
and minimum wage.
SOCIAL SECURITY
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Social Security System established to provide financial
security to people who needed it.
 Pensions-- Regular payments to workers or spouses
over 65.
 Unemployment Insurance– those employing 8+
paid tax to fund this program that would provide
money for those who lost their jobs
 Aid for children, blind and disabled