Franklin Roosevelt’s Foreign Policy during His Second Term

From 1936-1939, Franklin D. Roosevelt took what seemed to be a constitutional approach to foreign policy. As fascists took over Germany, Italy, and Spain and Japan invaded China; the United States looked on from the sidelines, not wanting to get involved in another world war. According to Article 1, Section 8 of the United States Constitution, only Congress has the power to declare war and call up an army to fight that war. The US Navy is the only branch of the military that can be maintained during peacetime according to the Constitution.

After the rise of fascism in Europe, Congress passed the Neutrality Act of 1937 which prohibited the US government from selling arms to nations involved in war. US citizens were also forbidden from traveling on vessels of nations involved in war as well. In 1939 that law was amended to allow the government to sell war materials to European democracies on a “cash and carry” basis. This meant that if a nation like France or Britain paid cash up front for weapons and took them back to Europe using their own transportation an arms sale would be legal.

Once Germany, led by the fascist dictator Adolph Hitler, invaded France; Congress passed a $37 billion appropriations bill to modernize air power and to build up a two ocean navy.

Early in September 1940, the US agreed to trade 50 surplus destroyers from World War I to Britain in exchange for eight valuable naval bases from as far north as Newfoundland to as far south as British Guiana. This deal was unconstitutional because Roosevelt did not consult the Congress for authorization to do this deal. According to Article 2, Section 2 of the US Constitution, the president must get advice and consent from the Senate on foreign policy matters.

That same week in September 1940, the government instituted a peacetime draft – the first in US history. Also Roosevelt reinterpreted the Monroe Doctrine to mean that even though nations in Europe like France, Holland, and Denmark had been invaded by Germany; Germany could not seize the colonies that these nations have in the Western Hemisphere.

Another way that FDR did an end around Congress is that he would allow the government to sell military surplus to private citizens who would then in turn sell the items to Great Britain.

The final straw that broke the neutral stance of the United States in dealing with the conflict in Europe was to pass An Act Further to Promote the Defense of the United States or what is more commonly known as the Lend-Lease Law of 1940. This law would permit the US government to lend or lease arms to democracies in Europe; and after the fighting ended, these countries would then return the tanks, planes, etc. to the US. The motive behind this law was to send arms to Europe rather than troops to fight Germany and Italy. This law was not passed until March of 1941 after FDRs election to an unprecedented third term.

Many may look at this foreign policy and wonder where the Progressives were in this. Typically a nation would go to war after being attacked or war had been declared against it. Advisers that FDR had in his administration were members of the Council on Foreign Relations, a progressive organization that has been pushing for a one world government since the 1920s. Members of the CFR own the large banks throughout the nation as well as the Federal Reserve Bank. One thing that war creates is debt. Banks lend money and earn interest on the money that is lent. Build up for a war can be very lucrative for these banks. The CFR advisors in FDRs administration wanted the United States to enter into a war in Europe so they could make money off the interest that would be incurred from the increase in the national debt.

Book sources:

Bailey, Thomas A. and David M. Kennedy. The American Pageant. Seventh Ed. D.C. Heath and Company, Lexington, Mass. 1983

Perloff, James. The Shadows of Power: The Council on Foreign Relations and the American Decline. Western Islands, Appleton, Wisc. 1988.

Domestic policy during Franklin Roosevelt’s second term

The first two years of Roosevelt’s second term, which he won by a landslide, were more of the same with New Deal legislation. The legislature was in lock-step with the executive branch and passed whatever socialist policies that he asked them to. Socialist in this context means an economic and political theory which advocates collective or governmental ownership and/or administration of the means of production and distribution of goods.

Early in 1937 Roosevelt attempted to bring the Supreme Court in line by asking Congress to allow him to appoint one justice for every justice on the court who was older than 70 years old. This would have added six liberal justices to the court who would have rubber stamped as constitutional any New Deal legislation that came before the court. Congress refused to comply because they knew the importance of checks and balances in the federal republican system.

For some reason, beginning in March of 1937, Justice Owen J. Roberts who was appointed by Herbert Hoover as a conservative justice began to rule in favor of New Deal legislation. He upheld a law that established a minimum wage for women, the Wagner Act, and the Social Security Act. Another end-around for Roosevelt was that Congress passed a law that ensured that retired justices would receive a full pension. Once this law was passed, a conservative justice resigned from the court, and FDR appointed Justice Hugo L. Black to the court. He was a former member of the Birmingham, Ala. Ku Klux Klan and an advocate of the New Deal.

In September of 1937 Congress passed legislation which established the U.S. Housing Authority. This agency was designed to lend money to the states or communities for low cost construction. This agency backed up the Federal Housing Authority. It is one of the few New Deal agencies that are still in existence.

Another landmark New Deal law was passed in June of 1938. The Fair Labor Standards Act laid the groundwork for current federal labor policy which governs businesses on minimum wages, maximum hours, and child labor. The original law was only applied to companies who participated in interstate commerce to pay a minimum wage and have maximum hours (a 40 hour work week). Child labor was forbidden for children under the age of 16, and children under the age of 18 were forbidden to work in dangerous occupations.

Businesses saw how these socialist policies were damaging the economy, and the economy did not turn around despite New Deal policies and huge amounts of government spending. In the 1938 mid-term elections, Roosevelt actively campaigned against three incumbent, conservative senators. His efforts were not successful.

The Reorganization Act which became law in April of 1939 attempted to centralize more power in the Executive Branch of government under the guises of promoting government efficiency and cutting spending. Congress did not want Roosevelt to have too much power that could be seen as dictatorial.

As a result of the 1938 mid-term elections, Roosevelt encouraged Congress to pass the Hatch Act in August of 1939. This law prohibits federal administration officials from active political campaigning. This is a violation of the First Amendment. It also forbids using federal money for political purposes and collecting campaign contributions from welfare recipients. In 1940 the law was amended to limit the amount of money an individual can donate to a political campaign and to limit the amount of money political campaigns could spend. This amendment is also a violation of the First Amendment.

Under the New Deal, the federal government became the largest “business” in the United States. The national debt grew from $19.4 billion to $40.4 billion, a dramatic increase of 108 percent. However, world events were working to draw Roosevelt’s focus from domestic to foreign policy.

Changing the world with Jesus

This blog is going to take a detour for a while. I will get back to the progressive movement at some point in the future, but I have some thoughts to get off of my chest. Since the blog is called "Thoughts...", I decided to put some of them here.

In the recent mini-series The Bible that was broadcast on the History Channel, Jesus spoke with Peter. Peter asked him what they were going to do. Jesus replied that they would change the world. One may ask if Christ did change the world and if He is still changing the world today through is disciples.

As a disciple of Christ I sometimes wonder if I have changed the world with my witness of Jesus Christ in my life. I wonder, sometimes, if I am really experiencing God when I worship on Sunday. I wonder what God expects from me as His follower. I wonder if I am really close to God or am I going through the motions of what I think a Christian should be.

The world and society today is trying to eliminate God (the God worshiped by Christians and Jews) while atheism and Islam are becoming accepted modes of belief. It is a great temptation for Christians to compromise what they have been taught about God in the scriptures to be tolerant of the new morality. A new philosophy that is being touted is moral relativism which teaches that there is no absolute Truth and each individual’s truth is just as valid as anyone else’s.

People have forgotten that we are created in God’s image. We were created on purpose. Humanity is not an accident that “evolved” out of a pool of goo. We are transformed to be more like God as we mature in our faith. The more we know God, the more we know His grace and forgiveness, and the more we become like Him.

There is no way that we can see the world the way God sees it. Since He is God and the ruler of the universe, there is no way we can comprehend our world in the context in which He sees it. However, as we grow in His grace, we can change our perspective and see the world more in the context of God.

So, how do I fit into this picture? When I was a student in high school, I often walked to school through an empty lot full of trees. One morning was looking down at the ground and thought of the worms and insects that were scurrying busily under the dead leaves at my feet. I thought how large I must seem to those animals as they toiled on the earth. Then I looked up at the trees. They were very tall. I seemed insignificant next to them. Then I looked at the sky and saw how truly small I was in relation to the entire world and the universe.

This experience could have been very discouraging. I was beginning a long journey in my walk with Christ. My life has not been easy; but even though I may be insignificant and small in the eyes of the world, God loves me. I know this for a fact because I know that I would be dead today if it was not for the grace and forgiveness of God.

So, how have I changed the world? I do not know. I do know that I have a wonderful husband who I share in my walk with Jesus. We make each other stronger in our relationship with Him. I have two children who know Jesus and set an example of how respectful children should behave in society. Maybe I have changed the world in this small way.

Do I experience Christ in worship? Yes. When I go into worship with the right mindset looking for Christ, He meets me there through the Holy Spirit. What is expected of me? I believe Christ expects me to be as much like Him as I can possibly be. He doesn’t expect me to be perfect. He expects me to strive for perfection. Am I close to God? I believe that I am. I try to read my scriptures every day. I look at the world and can see where God is working. I can see where He is being ignored and attacked. One thing that God taught us in the scriptures is that we as Christians are now the physical body of Christ. It is up to me to show the world who Christ is. We must not be discouraged by the world. We are here to change it along side Jesus Christ.

Roosevelt’s First Term as President

Once Roosevelt ousted Hoover from the White House in a landslide election based on promises of debt reduction and a New Deal for America, he went to work. He called for a bank holiday and a special session of Congress. He signed numerous pieces of legislation and numerous executive orders in an attempt to get America’s economy out of the Great Depression.

F.D.R. was inaugurated on March 4, 1933. Roosevelt’s first act was signing an executive order which closed the banks for five days, March 6-10. This was to keep citizens from accessing their money which shut down the nation for that period of time. His second act was to call a special session of Congress, the “Hundred Days Congress,” which legislated unprecedented powers to the President.

The Emergency Banking Relief Act of 1933 gave the President the power to regulate banking transactions and foreign exchange, and reopened solvent banks after the bank holiday.

The Beer and Wine Revenue Act was passed on March 9, 1933. This law did not repeal Prohibition. However, it legalized low point wine and beer and levied a tax of $5 per barrel.

The Unemployment Relief Act was passed on March 31, 1933. This law created the Civilian Conservation Corps (CCC), the first of Roosevelt “Alphabet Agencies.” This corps provided employment for 3 million men. They worked at reforestation, fire fighting, flood control, and swamp drainage. Workers were required to send most of their earnings to their parents.

On April 19, 1933 Roosevelt signed an executive order requiring all citizens to sell their gold coins and bullion to the government for $20.67 per troy ounce. The government paid them in paper money. On the same date he took U.S. currency off of the gold standard. 

The Federal Emergency Relief Act was passed on May 12, 1933. This law created the Federal Emergency Relief Administration (FERA). This law granted $3 billion to the states to make direct welfare payments to unemployed workers.

The Agricultural Adjustment Act (AAA) was passed on May 12, 1933. This law set prices for food commodities. It paid farmers to reduce the amount of food produced. The purpose of this reduction was to cause artificial scarcity to drive up food prices and increase farmers’ incomes. Food processing plants were taxed to pay for these subsidies. The law was passed after the spring crops had been planted, so farmers had to plow under acres of plants to be in compliance with the law. Thousands of livestock were slaughtered. Some of the meat from these animals was given to the poor. The remainder of these animals was turned into fertilizer. This act led to higher unemployment. The Supreme Court ruled it unconstitutional in 1936.

The Tennessee Valley Authority Act (TVA) was passed on May 18, 1933. This law developed hydroelectric power from the Tennessee River. It put thousands of people to work on a long-term public works project. The TVA analyzed the actual cost for producing electricity and regulated the final price which was charged to the customer. Controlling the river had the benefits of bringing low-cost housing, restoring eroded soil, reforestation, and flood control to the state of Tennessee.

The Federal Securities Act passed on May 27, 1933. This law required stock brokers to give sworn information to investors regarding the soundness of the stocks and bonds that were being sold.

On June 5, 1933 Congress passed a joint resolution which made fiat money legal in the United States. Until this point coins and paper money had to have the equivalent value of gold, silver, nickel, and copper in its value. This resolution made it legal to have less precious metal content in coinage. It also made it to where people could no longer demand gold as payment for goods and services. (This joint resolution only rated a small bullet point in my American history book.)

The Home Owner’s Refinancing Act was passed on June 13, 1933. This law created the Home Owner’s Loan Corporation (HOLC) which refinanced mortgages on non-farm homes. This legislation assisted about 1 million households and bailed out mortgage holding banks.

The National Industrial Recover Act was passed on June 16, 1933. This law created the National Recovery Administration (NRA) and Public Works Administration (PWA). The NRA required industries to “compete fairly,” put maximum work hours on labor, and established a minimum wage. Unions became legitimate and could now bargain collectively with management. This agency prohibited non-union contracts and included child labor laws. Businesses participating in the program displayed the NRA eagle sign in their windows. The NRA was declared unconstitutional by the Supreme Court  because congress could not delegate legislative powers to the President and the commerce clause does not apply to local businesses. The PWA spent $4 billion on 34,000 public works projects including the Grand Coulee Dam.

The Glass-Steagall Banking Reform Act was passed on June 16, 1933. This law created the Federal Deposit Insurance Corporation which now insures bank deposits up to $100,000, the amount was $5,000 in 1933. This was the last piece of legislation passed by the Hundred Days Congress.

On November 9, 1933 Roosevelt established the Civil Works Administration (CWA). This organization was a branch of FERA. It provided temporary “busy work” jobs for unemployed people during the winter. These jobs included leaf raking and other “boondoggles”.

The Gold Reserve Act was passed on January 30, 1934. This law authorized the President to devalue the gold content of the dollar. It made it illegal for private citizens to own title to gold, except for jewelry and dentistry. The value of the dollar was changed from $20.67 per troy ounce to $35 per troy ounce.

The Securities and Exchange Commission (SEC) was authorized by Congress on June 6, 1934. The purpose of the SEC is to regulate trading of securities in the stock markets. It was designed to protect the public from fraud, deception, and insider trading. The authority for this commission was given by the Federal Securities Act.

The Reciprocal Trade Agreements Act was passed on June 12, 1934. This law lowered tariffs on imports if the other country lowered its tariffs on our exports as much as 50%. The U.S. signed deals with 21 countries by the end of 1939 and increased foreign trade.

The National Housing Act was passed on June 28, 1934. This law authorized the Federal Housing Administration (FHA). Under authority of this legislation the government began issuing small loans for home improvement and building new houses.

The Frazier-Lemke Farm Bankruptcy Act was also passed on June 28, 1934. This law suspended farm foreclosures for 5 years. This law was ruled unconstitutional by the Supreme Court. The law was amended and the grace period was lowered to 3 years.

Roosevelt created the Resettlement Administration on April 30, 1935. It removed farmers who were going to be foreclosed upon from where they had been farming for years to “better” land.

The Works Progress Administration (WPA) was passed on April 8, 1935. This law created jobs for public works projects by spending $11 billion on buildings, bridges, swimming pools, and roads. These jobs provided part-time work for students and unemployed artists.

The National Labor Relations Act was passed on July 5, 1935. This law authorized the creation of the National Labor Relations Board (NLRB). It enabled unskilled workers to form unions. This law led to the formation of the AFL-CIO union.

The Social Security Act passed on August 14, 1935 and provided for federal and state unemployment insurance. It also specified categories of retired workers to receive monthly payments to be financed by payroll taxes. This program was modeled after a system from European nations.

The Public Utility Holding Company Act passed on August 26, 1935. This law outlawed pyramid schemes in the public utility industry.

The Soil Conservation and Domestic Allotment Act passed on February 29, 1936. This law was passed in response to the Supreme Court’s ruling on the AAA. Farmers were now to be paid a subsidy to plant soil conserving crops like soy beans and peanuts or let their land lie fallow.

Never before in the history of the United States had the Congress or the President taken so much control over private industry, banking, agriculture, and the lives of individual citizens.  Despite the efforts of the Roosevelt administration the Great Depression continued to plague the nation for another nine years.

Book Source: Beiley, Thomas A. and David M. Kennedy. The American Pageant. 7th Edition. D.C. Heath and Company. Lexington, Mass. 1983.

The election of Franklin D. Roosevelt

President Herbert Hoover, elected in 1928, was a conservative capitalist who believed in free markets. Unfortunately, a worldwide depression, manipulated by international bankers, hit during his term in office. His advisors encouraged him to sign legislation that would give direct welfare to the people from the government. He refused because he believed that this type of welfare was humiliating and de-humanizing. However, he did pass legislation that gave relief to railroads, banks, and rural credit corporations. The media, which was controlled by liberal elitists, portrayed his “trickle-down” policies as insensitive because he would give government aid to pigs but not people.

Other policies that Hoover instituted to try to turn the economy around were criticized for not doing enough. The Hoover Dam was a huge public works project that provided thousands of jobs and still provides water to southern Nevada, California, and northern Arizona. He signed legislation to form the Reconstruction Finance Corporation which loaned money to insurance companies, banks, agricultural co-ops, railroads, and state and local governments. He also signed the Norris-La Guardia Anti-Injunction Act which made union membership legal nationwide and prevented federal courts from restraining strikes, boycotts, and picket lines.

The progressive ground had been plowed with the policies of the Hoover administration. The court of public opinion was ripe for more liberal policies and a new deal for the American people. Roosevelt was upheld by the Democrat party as a savior who would bring happy days back to the country.

The Democrat platform of 1932 favored the repeal of prohibition; attacked the depression (the implication that Hoover’s policies caused it); and proposed a balanced budget, social and economic reforms. Roosevelt’s charisma launched him into the spotlight, and he easily won the nomination.

The FDR campaign was buttressed by a “Brain Trust.” This “Brain Trust” wrote most of his speeches and went on to write most of his New Deal legislation. Most of these men were members of the Council on Foreign Relations, who were elitist bankers and businessmen who had much to gain from progressive policies.

The economy had slowed to a halt. Millions of workers were unemployed, especially African-Americans who had moved to the cities for work. The promise of a New Deal (hope and change) catapulted Roosevelt to a landslide electoral victory.