TOMERNOTES
AP US History Chapter 37
Roosevelt
Franklin Delano Roosevelt
Political experience. New York Governor Franklin D. Roosevelt, fifth cousin of Theodore
Roosevelt, was born to a wealthy family, graduated from Harvard, was elected to the New York
legislature, served as governor of New York, was nominated (not elected) for vice president, and
served as SoN.
Personal qualities. Roosevelt suffered infantile paralysis and required a wheelchair. The disease
showed up when he was young. He was charming and witty, but sometimes superficial and
arrogant. In his fight for mobility, he learned to be patient, tolerant, compassionate, and strong.
Roosevelt had a lot of political appeal, a commanding presence, and a golden speaking
voice that made him the premier American orator of his generation.
Roosevelt supported heavy spending to relieve suffering. Although he was frugal, he
believed money, rather than human life, is expendable. He was concerned for the “forgotten man,”
often mentioned in his speeches.
Eleanor Roosevelt
Eleanor Roosevelt, niece of Theodore Roosevelt, was FDR’s wife and distant cousin.
After overcoming the misery of an unhappy childhood, she followed her husband through his
campaigns and made countless trips on his behalf. She became the most active First Lady in
history. She gave speeches and had a newspaper column. She battled for the poor and oppressed.
At one meeting in Birmingham, Alabama, she sat in between the aisle separating black and white
seating sections.
*Election of 1932: Roosevelt (D), Hoover (R)*
Democratic. FDR was the Democratic candidate, although Al Smith was looking forward for
another chance and didn’t get it, resulting in a broken friendship between him and FDR. FDR
preached a New Deal for the “forgotten man,” although he was very vague when doing so. The
Brain Trust, a small group of reform-minded intellectuals, wrote many of his speeches and later
functioned as a kitchen cabinet that wrote much of the New Deal legislation. FDR promised to
spend money on reform but maintain a balanced budget, although critics saw him as communist
for providing the private sector with aid. The Democratic platform promised: a repeal of
prohibition (stronger than Republicans), an end to the “Hoover depression,” and social and
economic reforms while maintaining a balanced budget. Roosevelt became unique by accepting
his nomination in person.
Republican. Hoover was unenthusiastically nominated for re-election. The Republican platform
claimed: successful Republican antidepression policies helped and should be allowed to continue,
and Republicans would repeal prohibition and give control back to the states (not as enthusiastic
as Democrats). He was more pessimistic than FDR, reaffirming his faith in free-enterprise and
laissez-faire and claiming that if the Hawley-Smoot Tariff were repealed, things would be terrible.
Outcome. Roosevelt received 22,809,638 popular votes and 472 electoral votes. Hoover received
15,758,901 popular votes and 59 electoral votes (6 strongly-Republican states).
African American shift. African Americans were freed from slavery by Republicans, and so
generally voted Republican. However, this all changed for this election. Since blacks were to the
first to be fired and the last to be hired, they were more “depressed” than whites.
Analysis. No president has ever run re-election if they experienced an economic panic or disaster.
Hoover was no exception. People wanted things to change and wanted to try something new. Any
Democratic candidate probably would have won.
Lame duck cooperation with FDR. Hoover’s lame duck period would last until March 4, 1933,
when FDR would be inaugurated. He couldn’t do much without the support of the person
Americans looked up to, FDR. But FDR was uncooperative and didn’t want to assume
responsibility without authority. Why did Hoover want to cooperate wit FDR? He later confessed
that he wanted to get FDR to endorse an anti-inflation policy, which would have made many of
the later New Deal programs impossible. This would allow the Republicans to say FDR lied. They
also used the fact that he didn’t cooperate to say that he worsened the depression. Meanwhile,
unemployment was at 25%, higher than it ever was before or since, banks were closing
everywhere, and people were storing their cash under their beds.
Roosevelt’s Initial Actions
Inauguration day speech. On Inauguration Day, March 4, 1933, Roosevelt denounced those who
caused the depression, promise to fight the Great Depression as if it were an invading armed
foreign nation, and said, “Let me assert my firm belief that the only thing we have to fear is fear
itself.”
Bank holiday & Hundred Days. Now that Roosevelt had authority, he worked decisively. He
declared a nationwide banking holiday from March 6-10, after which banks would be re-opened
on a sounder basis.
Roosevelt called the Democratic Congress into special session and declared the Hundred
Days, March 9-June16, 1933, during which Congress pushed through a record number of
legislation to deal with the emergency.
Three R’s. The New Deal aimed at what’s called the “three R’s”: relief, recovery, and reform.
Short range goals: relief and immediate recovery. Long range goals: permanent recovery and
reform of abuses that cause boom-or-bust. The three-R’s often overlapped and got in each other’s
way. Each New Deal program or act fits into an R category.
Loyal Congress. Congress was panicked just like the public, and was ready to pass anything that
Roosevelt threw at it. They even gave Roosevelt legislative powers.
FDR’s experimentation. Roosevelt didn’t always know where he was going, but he wanted to do
things by intuition, he said, just as a quarterback’s plays depend on the success of the previous
plays. The public wanted action, even in the wrong direction, instead of no movement at all.
Progressive reform. Immediate legislation was passed to ease the emergency, but long range
legislation reflected progressive reform that was forgotten during WWI and prevented by the new
Old Guard of the 1920s. The New Dealers enacted this legislation, including unemployment
insurance, old-age insurance, minimum-wage regulations, conservation and development of
natural resources, and restrictions on child labor. Some states already had such legislation, and
western European countries had so as well, meaning the US was behind on social welfare.
Money and Banking
Emergency Banking Relief Act of 1933. In its first eight hours, Congress completed the
Emergency Banking Relief Act of 1933, which gave the president power to regulate banking
transactions and foreign exchange and to reopen solvent banks.
“Fireside chats”. Roosevelt delivered thirty famous “fireside chats” through the radio that assured
people of the safety of keeping money in banks rather than at home. Confidence returned and
banks reopened.
Glass-Steagall Banking Reform Act. In order to increase public reliance on the banking system,
Congress enacted the Glass Steagall Banking Reform Act, which created the Federal Deposit
Insurance Corporation, which insured individual deposits of up to $5,000 (later increased). This
ended the epidemic of bank failures that dated back to the “wildcat” banks of Andrew Jackson.
Removal of gold as currency. In response to the melting federal gold reserve and the fear of
people saving gold, Roosevelt wanted to take the country off the gold standard. He ordered all
gold to be turned in to the government in exchange for a “managed currency” that would create
helpful inflation. Congress canceled gold-payment clauses in existing contracts in exchange for
paper money. Roosevelt increased the price of gold to encourage people to turn in. It shot up from
$21 an ounce in 1933 to $35 an ounce in 1934, which stayed this way for nearly 4 decades. More
money in circulation meant inflation. In February 1934, Roosevelt reinstated gold for use in
foreign exchanges, maintaining the $35/ounce ratio, although domestic circulation of gold was
still prohibited.
Employment
On inauguration day, employment was at 25%. Roosevelt used federal money to assist the
unemployed.
CCC. Roosevelt had Congress create the Civilian Conservation Corps. There were too many
people and not much that was needed to do. But the government had many things it needed done.
So this corps created government camps where 3 million uniformed young men found something
to do, including reforestation, fire fighting, flood control, and swamp drainage. They were paid
and were forced to give most of their salary to their parents. This removed excess labor, gave
money where it was needed (private sector), and got the government’s work done. Some
complained that this was militarizing the youth.
FERA. Congress also had to deal with unemployed adults. So they created the Federal Emergency
Relief Act, which created the Federal Emergency Relief Administration (FERA), which was
supposed to provide immediate relief. The leader of this administration would be Harry L.
Hopkins, a New York social worker and one of the most influential advisers to Roosevelt. The
agency was basically supposed to give away money to states, who were then supposed to either
directly give it away to the unemployed or pay those who did work projects (similar to the CCC).
AAA & HOLC. To help farmers and home owners, Congress passed the Agricultural
Adjustment Act (AAA) (see “Farming” for more), which gave away millions of dollars to
farmers to help them meet mortgages, and the Home Owners’ Loan Corporation (HOLC), which
refinanced homes, helped a million people who were under tough conditions, helped mortgageholding banks, and secured the middle-class to the Democratic party.
CWA. FDR personally created the Civil Works Administration (CWA) under the FERA and
therefore under Harry Hopkins^. It was created in late 1933 when winter was coming, which
would further hurt the economy. So this agency was to prevent winter damage by creating tens of
thousands of jobs such as leaf-raking and other jobs made just so people can be able to do
something. These jobs are called “boondoggling.”
WPA. Congress created the Works Progress Administration (WPA) in 1935. It seems to do
pretty much what the CCC and CWA did (creating employment on useful projects such as
building buildings, bridges, and hard-surfaced roads). They also did weird jobs like controlling
crickets, making a monkey pen, and (future Nobel Prize novelist John Steinbeck’s job) counting
dogs. However, they also did artsy things like acting, playing music, writing, teaching tap
dancing, and painting post office walls. People complained that their tax dollars were being
wasted.
Critics & Overly Optimistic Agitators
Father Coughlin. In 1930, Father Charles Coughlin, a Catholic priest, began broadcasting his
anti-New Deal thoughts on radio. His slogan was “Social Justice.” He reached 40 million fans.
Eventually he became too anti-Semitic, fascistic, and demagogic that his company removed him.
Huey Long. Louisiana Senator Huey P. (“Kingfish”) Long publicized his “Share Our Wealth”
program which promised to make “Every Man a King” by having the prosperous give everyone
$5,000. H. L. Mencken hated Long’s chief lieutenant, Gerald L. K. Smith. People feared Long
would become a fascist dictator until he was assassinated in the state capitol in 1935.
Dr. Francis E. Townsend. One man, Dr. Francis E. Townsend, was a retired physician from
California who lost all his savings and had an idea. He had the support of 5 million seniors by
promising to give every senior $200 a month as long as they would spend it by the end of the
month. This might have even cost the equivalent of half the national income.
Industry & Labor
National Recovery Administration (NRA)
Congress passed the most complex and far-reaching effort of the New Deal that combined
immediate relief with long-range recovery: the National Recovery Act which created the National
Recovery Administration (NRA). It was supposed to help the unemployed, labor and industry.
Unemployed. The NRA forced industries to work together in order to have people share jobs by
working less. If a company has a person that used to work all day, work only mornings instead,
another person could be hired for the evening, therefore removing another person from
unemployment. So a maximum was made for hours worked. However, people who worked less
would get paid less. So the NRA created minimum wages. Another problem could be that a
company that adheres to this would not be able to compete with another company that doesn’t.
This was worked out by having companies cooperate and all go through with the plan.
Labor. The NRA allowed workers the right to organize and bargain through the representatives
they choose rather than ones their company chooses for them. Some companies used to have their
employees sign an antiunion contract, which was now forbidden under the NRA. Thirdly, safety
restrictions were placed on child labor.
Industry. ‘Industrial recovery through the NRA “fair competition” codes would at best be painful,
for these called for self-denial by both management and labor.’ (?)
Publicity. Mass meetings and huge parades were held for promotion of the NRA, one with
200,000 marchers. A blue eagle was adopted as the NRA symbol, which was displayed with the
slogan, “We Do Our Part.” The Philadelphia Eagles football team was created.
Fall. People, like Henry Ford, criticized the NRA. Some people (“chiselers”) displayed the eagle
logo but violated the codes. It was about to collapse, when the Supreme Court shot it down
anyway through the Schechter case, through which the Supreme Court unanimously said that
Congress couldn’t give it’s powers to the executive branch and Congress can’t control businesses
like it does interstate commerce. Roosevelt wasn’t happy, but in hindsight, it was a good thing the
NRA died (doesn’t say why).
Public Works Administration (PWA)
The National Recovery Act also created the Public Works Administration (PWA), which
was intended for long-term industrial and unemployment relief. It spent over $4 billion on 34,000
projects, the most spectacular of which was the Grand Coulee Dam on the Columbia River, the
largest man-made structure since the Great Wall of China. The PWA was headed by SoI Harold
L. Ickes, who worked slowly to prevent waste or extravagance, preventing maximum relief.
Alcohol
The 21st Amendment reversed the 18th Amendment and brought back the liquor industry,
which was stimulated by FDR’s legislation. A new industry meant more jobs, and more products
to tax. Congress, in one of its earliest acts, legalized liquor with under 3.2% alcohol by weight and
put a tax of $5 on every barrel. Apparently according to our book, Congress legalized liquor after
FDR was elected and before the 18th Amendment was repealed in late 1933.
Farming
Since WWI, there was an overproduction of crops, especially grain, which caused low
prices. This led to foreclosed mortgages, burning corn for fuel, and even battles between farmers
and sabotaging of shipments that led to martial law in Iowa.
Agricultural Adjustment Administration (AAA)
Congress passed the Agricultural Adjustment Act^ that authorized the Agricultural
Adjustment Act (AAA). Basic commodities would have “parity prices,” or the same value they
had from 1909 to 1914. This would mean that consumers would pay more, and processors of farm
products, like flour millers, would receive more money. The AAA would tax this extra money and
use it to pay farmers to reduce their crop acreage. Less land to farm on would mean less products,
a reduced amount of crops, and a raise in prices that would hopefully eventually reach the parity
price and equal things out so that the government would no longer have to be involved.
Analysis. The AAA started off wrong. Many farmers had just planted their cotton for the 1933
farming season, when they found they would have to be paid for getting rid of this land. So they
harvested whatever they had, too early. Millions of pigs were quickly purchased and slaughtered
to take advantage of high prices and before land would be sold. Some meat was given for relief,
some was used as fertilizer, and many condemned this as a waste when thousands were going
hungry.
Criticism and fall. Farming income did increase, but everyone involved was still unhappy to
some degree. Also, paying farmers not to farm actually increased unemployment. The Supreme
Court in 1936 declared the AAA’s taxing policies unconstitutional.
Soil Conservation and Domestic Allotment Act of 1936
In response to the death of the AAA, Congress passed the Soil Conservation and Allotment
Act of 1936 that received the approval of the Supreme Court. The act found another way of
reducing production of crops by paying farmers to plant their land with soil-conservation crops
and legumes or leave their soil fallow to regain nutrients. Therefore, less land would be used to
grow crops.
Second Agricultural Adjustment Act of 1938
Congress passed the Second Agricultural Adjustment Act of 1938. If farmers would
restrict their growing of specified commodities, like cotton and wheat, the government would
supplement their sales by paying the remaining cost of their crops to reach “parity prices.”
Weather Damage
Natural damage. Late in 1933, a huge drought struck the Mississippi region. A rainless period
was then followed by strong winds that kicked up dirt and darkened the region of Missouri, Texas,
Kansas, Arkansas, and Oklahoma. This area became known as the Dust Bowl. People had to wear
protective masks and wait for what they thought was the end of the world or second coming of
Christ. Some dirt even reached and covered up Boston.
Manmade damage. During World War I, grain prices were high and the tractor was invented,
causing farmers to buy and farm more and more land. This loosened up the soil, which nature now
blew into the air.
Refugees. What would you do if you lived in the Dust Bowl at this time? Most people would
leave and that’s what they did. In five years, 350,000 Oklahomans (“Okies”) and Arkansans
(“Arkies”) migrated for southern California. John Steinbeck^ wrote about this migration in The
Grapes of Wrath (1939).
Federal aid. The Dust Bowl drought happened during the New Deal, so some legislation could go
to help the suffering farmers. Congress passed the Frazier-Lemke Farm Bankruptcy Act in 1934
that allowed farmers to suspend their mortgage foreclosures for 5 years. The Supreme Court
voided this act. So a revised law was created to allow suspended mortgage foreclosures for 3
years. The Supreme Court allowed this.
Roosevelt set up the Resettlement Administration that would move farmers in the Dust
Bowl with little or useless land to better land. It also had the CCC plant 200,000,000 young trees
on the dustbowl to block wind and prevent erosion.
Indians
Indians sought New Deal reform as well. Commissioner of Indian Affairs John Collier
wanted to reverse the forced-assimilation policy of the Dawes Act of 1887. Inspired by the Pueblo
Indians, he promoted the Indian Reorganization Act of 1934 (the “Indian New Deal”) that
encouraged tribes to establish their own governments and preserve their cultures and traditions.
Some Native Americans felt this was making museums out of them. So 77 tribes refused to
organize, while nearly 200 established tribal governments.
Makers of America: The Dust Bowl Migrants
Dust Bowl. Loosened and dried up sand of the Dust Bowl (Oklahoma, Arkansas, northern Texas,
and western Missouri) kicked up into the air, covered the area, and pushed the Dust Bowl migrants
into southern California.
Early migrants. Many Okies migrated to southern California before the drought and bragged of a
good life in California. In the 20 years before the Great Depression, over 1 million people left the
Dust Bowl, a quarter of which went to California.
Dust Bowl migrants. After experiencing the sand storm, Dust Bowl migrants were told by
families of good life in California. They (like the Joad family of The Grapes of Wrath) packed into
buses, freight trains, or (mostly) their own cars to move to California. The state of California even
had to post a billboard at eastern border saying, “NO JOBS in California…If YOU are looking for
work—KEEP OUT.” This was ignored.
San Joaquin Valley. The San Joaquin Valley, the southern part of California’s agricultural
Central Valley, was a popular place for Dust Bowl migrants to settle, since its land was similar to
that of the Dust Bowl. Even this area suffered from the depression; its median income rested just
below the official poverty line. Food, shelter, clothing, work, and heat were scarce.
Government aid & “Okievilles”. The Farm Security Administration, created by the New Deal,
set up camps for Okies to live. Some Okies in California purchased lands and created makeshift
homes, which collectively became known as “Okievilles” or “Little Oklahomas”. During WWII,
many migrants went into the defense industry.
Stock Market & Big Businesses
Stock Market
Federal Securities Act. Roosevelt always blamed those who quickly sold their stocks and caused
the market to crash. So Congress passed the “Truth in Securities Act” a.k.a. Federal Securities Act
which required people to state the soundness of their stocks and bonds while selling.
Securities and Exchange Commission (SEC). To protect against fraud, deception, and inside
manipulation, Congress authorized the Securities and Exchange Commission (SEC) in 1934.
The stock markets from then were for trading rather than gambling.
Big Businesses
In 1932, Samuel Insull’s multibillion-dollar utility empire collapsed. The Public Utility
Holding Company Act of 1935 created a minimum of capital for utility companies, except where
deemed economically needed.
Tennessee Valley Authority (TVA)
Set-up. The electric-power industry rose in a few decades from nothing to an industry with a $13
billion investment. It charged customers a lot for vitally needed services. New Dealers didn’t like
this, especially since many waterpower sites came from the public.
Creation. The Tennessee River had a lot of electric potential. It also had 2.5 million of the most
poverty-stricken Americans on its shores. The government already owned Muscle Shoals, where
nitrates plants were erected for WWI. By creating hydroelectric plants, people could be given jobs,
electricity could be produced, and electric monopolies could be stopped. Congress authorized the
Tennessee Valley Authority (TVA) in 1933. An idea of Nebraska Senator George W. Norris,
the TVA was by far the most revolutionary New Deal program.
Since companies can always charge a lot for vital services and products (like oil) and lie
about their expenses to justify the high prices, the TVA set out to make its own electricity and find
out how much it really costs.
Criticism. Utility corporations argued that the TVA was inaccurately measuring the costs of
producing electricity. Corporations pointed to the taxes they had to pay that the TVA didn’t, and
the dishonest bookkeeping of the TVA that corporations said they didn’t have.
Success. The TVA brought the Tennessee River area full employment, cheap electric power, lowcost housing, abundant cheap nitrates, restoration of eroded soil, reforestation, improved
navigation, and flood control. The once-poverty-stricken area became one of the most flourishing
regions in the US. Foreigners tried to copy the TVA and similar programs were sought for other
US rivers. Eventually, the government would make use of 30% of water running off the Rocky
Mountains. Diverted water would make fertile the formerly-bone-dry western deserts. However,
conservatives tried to confine this success to the Tennessee River only.
Housing
Federal Housing Administration (FHA). To stimulate the housing industry, Roosevelt created
the Federal Housing Administration (FHA), which gave small loans to householders to improve
homes and build new ones. The FHA is one of the few New Deal agencies to outlive Roosevelt.
United States Housing Authority (USHA). Congress supplemented the FHA by creating the
United States Housing Authority (USHA). This agency would lend money to states or
communities to build cheap housing. About 650,000 low-income people were housed as a result,
although much more was needed. People in the real-estate business were unhappy with this new
competition. However, poverty-stricken areas shrank for the first time after a century of growth.
Social Security
Social Security Act of 1935. The US made enormous improvements in unemployment insurance
and old-age pensions during the New Deal. The extremely significant Social Security Act of 1935
was one of the most complicated and far-reaching laws to ever pass Congress.
The act provided federal-state unemployment insurance to prevent future depressions. It
also provided payments ($10-$85 a month, later raised) to qualifying retired workers and was paid
for by a tax on employers and employees. Benefits were also given to the blind, the physically
handicapped, delinquent children, and other dependents.
Criticism. The act met bitter opposition. Hoover felt that democracy should reward those that live
by work rather than leisure.
Principle idea. The idea of Social Security was mostly taken from the industrialized European
nations. In America’s agricultural days when independent farms existed, families supported every
member, even the dependents. If kids could work, they were given chores. Everyone worked to the
best of their ability. Social security (and, interestingly enough, communism, both) adopted this
idea and applied it to entire communities. By WWII, 45 million people were eligible for some
kind of Social Security benefit, and further benefits were later added as payments increased.
Labor Unions & Protests.
NRA. The National Recovery Act^ decreased unemployment and therefore made workers more
secure and confident. They therefore demanded more from employers. A wave of walkout
occurred in the summer of 1934, including a general strike in San Francisco in response to a
“Bloody Thursday”. This strike ended only when civilians against the strike took things into their
own hands.
Wagner Act of 1935. The Supreme Court killed the NRA because of a few aspects it deemed
unconstitutional (can’t remember what? here: “Congress shouldn’t give it’s powers to the
executive branch or control businesses like it does interstate commerce”). Therefore, Congress
passed the Wagner Act of 1935 (also the National Labor Relations Act of 1935), which 1.)
created the National Labor Relations Board for administrative purposes, and 2.) reasserted the
right for workers to organize themselves and choose their own representatives. This act proved to
be a milestone in the labor movement.
CIO. Under protection from the Wagner Act, unskilled workers started forming unions as well.
Get this: In 1935, John L. Lewis, boss of the United Mine Workers, formed the Committee for
Industrial Organization (CIO) under the American Federation of Labor. So the CIO was a part
of the AFL. But the AFL fought for skilled workers and didn’t really care for unskilled workers.
So, in 1936, the AFL stopped supporting the CIO and its unions. Therefore, in 1938, the
CommitteeIO changed its name to the CongressIO and became fully independent from the AFL
and related to it only through its history.
Sit down strikes. The CIO later supported an automobile workers’ union. In 1936, the workers
used a revolutionary technique, which was later to be used by countless Americans and
Europeans: the sit down strike. Automobile workers refused to leave the General Motors factory
building at Flint, Michigan. Conservatives saw this as an invasion of private property. The result
was the that GM recognized the CIO union as the only bargaining agency of its employees. This
sit down strike was so important that there’s a memorial dedicated to it.
More on Labor
Steel companies. The large United States Steel Company feared a strike and voluntarily gave
union rights to its CIO-organized employees. Smaller companies, called “little steel,” refused to
follow and do so as well. One such company was the Republic Steel Company. Therefore, in
1937, CIO organized a strike and headed for the company, were stopped by police, demanded the
right to continue, and were shot at, leaving 10 dead in what’s called the Memorial Day massacre.
Fair Labor Standards Act. In 1938, Congress passed the Fair Labor Standards Act, also called
the Wages and Hours Bill. It regulated industries involved in interstate commerce. They had to set
minimum wages (goal: $0.40/hour, later raised) and maximum hours (goal: 40 hours/week). It
prohibited labor for those under 16 (still exists today!) and under 18 for dangerous jobs.
Industrials and those that relied on cheap labor were opposed to the act.
Success of unions. Late in the New Deal, labor unions flourished. Promoters used the slogan,
“Roosevelt wants you to join a union.” Union leaders and members who benefited often voted for
Roosevelt.
CIO. By the 1940s, the CIO had 4 million people as members of its unions, including 200,000
blacks. However, the CIO continued its feud with the AFL, hindering the labor movement.
*Election of 1936: Roosevelt (D), Landon (R)*
Democratic. The democrats obviously nominated Roosevelt for re-election with the party
platform being the success of the New Deal. They denounced big businesses and cried,
“Remember Hoover!”
Republican. The Republican Party nominated wealthy oilman Alfred M. Landon, who had little
distinction but that which he received for balancing the Kansas budget during an era of unbalanced
budgets. The Republican platform was that of criticism toward the New Deal. Landon was really
American, had a bad radio voice, and seemed like a schoolboy when giving speeches. He opposed
the Social Security Act, but people believed he would continue New Deal legislation.
American Liberty League. Wealthy Republicans and conservative Democrats created an antiNew Deal and anti-Roosevelt group called the American Liberty League. This angered FDR,
who said, “I welcome their hatred.”
Outcome. Roosevelt received 27,752,869 popular votes and 523 electoral votes. Landon received
16,674,665 popular votes and 8 electoral votes (2 states). The electoral outcome was the most
lopsided in 116 years. Over 2/3 of the seats in the House and Senate were filled by Democrats.
Analysis. This election revealed class struggles between the wealthy and poor. The CIO
contributed to Roosevelt by making workers happy. Blacks, who ditched the Republican Party
after Hoover, were happy with Roosevelt’s reforms and strongly attached to the Democratic Party.
Al Smith: “Nobody shoots at Santa Clause.” Similarly, nobody attacks someone who gives
him money, Roosevelt, although those who weren’t given money weren’t afraid to attack.
Roosevelt got votes from black, urbanites, and the poor.
Roosevelt also got the votes of new immigrants like the Catholics and Jews. In the 1920s,
4% of federal judges were Catholic. But 25% of judges nominated by Roosevelt were Catholic.
You can see why Catholics liked him.
Twentieth Amendment. Roosevelt was inaugurated on January 20, 1937, rather than the
traditional March 4. This was because the Twentieth Amendment had been ratified in 1933. It
changed the inauguration date and shrunk the lame duck period by 6 weeks.
Supreme Court
Roosevelt attacks
Reason. Roosevelt wanted to start his second term in office without interference from the
Supreme Court, which blocked 7 of 9 major cases. Also, 6 of its 9 justices were over 70 years old.
Roosevelt didn’t have an opportunity to appoint a single justice during his first term.
Some justices didn’t retire because they felt they needed to keep the radical Roosevelt in
check. Roosevelt felt that his two elections and the mid-term in between was a mandate from the
public to continue social legislation. Therefore, he thought, the Supreme Court should follow
democracy and the public’s decision by going along with social legislation.
Action. In 1937, Roosevelt proposed new legislation, called the court-packing scheme that
would allow the President to add a new member to the Supreme Court for every existing justice
over 70 years old. He reasoned that the current justices were old and behind in their work (wasn’t
true), and that new young members were needed to keep things moving.
Response. This was one of Roosevelt’s worst actions. People regarded the Supreme Court as an
American sacred court that’s not to be played with. The largely Democratic Congress was even
opposed to the “dictator bill” they felt would break down the delicate checks and balances.
Changes
Justice Roberts. Formerly conservative Justice Owen Roberts began to vote liberal for an
unknown reason. This turned the scale the other way. The court reversed its former opinion and
agreed with a state minimum wage for women. It agreed with the Wagner Act and the Social
Security Act.
Justice Black. Congress responded to Roosevelt’s scheme by turning it down and passing
legislation that would give full pay for justices over 70 who retired. Therefore, one of the oldest
conservative justices (Willis Devanter) went bye-bye and was replaced by Justice Hugo Black, a
liberal New Dealer.
Appointments. During his first term, Roosevelt didn’t appoint any justices. During his second
term, he got to appoint more justices than any other US president but Washington (he appointed
8).
Analysis. No president of any popularity ever tried to alter the Supreme Court without receiving
large resistance. Roosevelt lost the battle but got what he wanted anyway. However, his popularity
went down. Slightly conservative Democrats in Congress turned on him after his scheme and
didn’t allow the passing of much New Deal legislation in 1937.
Later New Deal Legislation
Unemployment. Depression still existed after Roosevelt’s first term. Recovery was gradual and
slow, even though billions of dollars were spent. The unemployment rate stood at 25% in 1933,
and went down to 15% in 1936, which is still high.
Roosevelt recession. The administration cut back on spending for a little while in attempt to
balance the budget. Also, new Social Security taxes took people’s money. These factors caused a
depression-within-the-depression, quickly dubbed the “Roosevelt recession.”
Deficit. The New Deal increased the deficit, although the budget was planned so this wouldn’t
happen. Late in his presidency, Roosevelt adopted the ideas of British economist John Maynard
Keynes, who recommended deliberate spending and increase of the deficit to relieve depression.
Roosevelt did this, although he didn’t spend enough to conquer the huge depression.
Reorganization. In 1937, Roosevelt asked Congress to authorize reorganization of the national
administration. However, after Roosevelt’s Supreme Court scheme, Congress didn’t like him as
much and refused authorization. In 1939, Congress lifted his punishment and passed the
Reorganization Act that gave him limited powers for legislative reforms, including construction of
a new Executive Office in the White House.
Hatch Act. Elected officials often gave relief checks just before an election to increase their
popularity. Congress stopped this practice with the Hatch Act of 1939. Federal administrative
officials (except the highest policy-making ones) couldn’t participate in active political
campaigning or soliciting. Government funds couldn’t be used for campaigning, and politicians
couldn’t collect campaign contributions from people who received relief checks. The act was
broadened in 1940. However, as a whole, it was disappointing since people found clever ways of
avoiding it.
1938 mid-term. By 1938, there wasn’t much more New Deal legislation to enact. In the mid-term
election, Republicans, for the first time in a while, actually increased their presence in Congress,
although not enough to get the majority. The international crisis in 1938-1939 brought attention
off the domestic front and into the foreign one.
Criticism of the New Deal
Some people condemned the New Deal. They condemned it as being Communistic. They
called Roosevelt a Jew (compliment).
Eagerness to try anything. Roosevelt preferred bad action to no action. He would try anything.
People accused him for this. Poet lariat Will Rogers said that if Roosevelt would set the White
House on fire, people would be satisfied that the got a fire started.
Bureaucracy. People accused the New Deal of creating a huge bureaucracy. This was true, since
bureaucracy did blossom and, with hundreds of thousands of employees, the federal government
became the largest single business in the country by far.
Federal debt. In 1932, the national debt was already enormous at $19,487 million. By 1939, it
skyrocketed to $40,440 million. Critics saw the US becoming a handout state.
Businesspeople. Critics accused the government of fomenting class conflict. Some felt they could
pull themselves out of depression of Roosevelt left them alone. The government was competing
with its own citizens.
Roosevelt. Critics accused Roosevelt of being a dictator, wanting to alter the Supreme Court, and
making the Congress his pet. Roosevelt was said to have tried to “purge” 3 political enemies in the
Senate, all who were happily re-elected.
Overall analysis. The New Deal failed to cure the depression, and only applied Band-Aids.
Economists felt there should have been more deficit spending since the $20 billion spent didn’t
close the gap between production and consumption (still a surplus). Farm surpluses were higher
under Roosevelt than Hoover. Millions were still unemployed in 1939, although unemployment
decreased 10%. The Second World War cured much of the unemployment problem like nothing
else could. Although the New Deal brought the national debt to over $40 billion, WWII brought it
to over $258 billion in 1945.
Praise of the New Deal
Concessions. New Dealers admitted there had been some waste, but their goal was relief, not
economy. Their goal was to improve standards of living rather than the economy. They also
admitted that there had been some graft, but that it was minimal when regarding the huge amount
of money the New Deal dealt with.
Government intervention. New Dealers claimed they cured the worst problems of 1933. They
felt the government was supposed to help its people, was needed during the depression, and should
be used. America’s economy was kept from collapsing, a fairer distribution of national income
was achieved, and citizens gained their self-respect.
Capitalism. Roosevelt may have saved America’s system of free enterprise. He removed abuses
from capitalism and saved it from itself.
Overall analysis. Roosevelt prevented violent uprising, an achievement some European countries
didn’t have. Some predicted fascism or communism for America, but it didn’t happen.
Conservatives felt he went too far, liberals felt he didn’t go far enough. The fact that he chose the
middle road makes him a great president, and the greatest conservative since Hamilton. He
supported big government, like Hamilton, and supported the individual, like Jefferson. As
democracies were turning to dictatorships in Europe, Roosevelt kept the US democratic. He
prepared the US for another world war.
Not included: Roosevelt coalition