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.

Franklin D. Roosevelt: Governor or New York

F.D.R. was elected governor of New York in 1928. The same year that he was invited to speak at the Democratic National Convention in support of Alfred Smith, the democrat nominee that year. Roosevelt showed marked recovery from the crippling effects of polio by wearing braces and “walking” to the podium to speak. Roosevelt won the gubernatorial election by 0.5% of the vote.

The main challenge of Roosevelt’s administration was the Great Depression. This economic catastrophe was caused by many of the same factors that caused the recession of 2008: overpriced stocks, overpriced housing, too much foreign and domestic debt, and manipulated banking.

Initially FDR governed the state with the hope that the poor economy would recover on its own. It did not recover fast enough for his taste, so he decided that the government should step in. He lowered taxes on farmers and began to develop public power utilities. The legislature even passed a public works program to ease increasing unemployment in the state.

Along with these public works projects, he also increased regulations on businesses. He increased funding for rural education. To raise the price of food commodities, he instituted the first government program in the nation that paid farmers to not grow crops (farm subsidies). Other progressive legislation that was passed was The New York State Unemployment Relief Act and the New York State Temporary Relief Administration (TERA). These programs provided funding to 10% of families living in New York.

The motivation behind Roosevelt’s inclusion of government in the solution for economic problems of the late 20s and early 30s was his adherence to the Social Gospel movement. This movement began as a reaction to labor and living conditions that came along with the Industrial Age. It also grew out of the Second Great Awakening which focused on eradicating social issues like drinking, prostitution, and slavery more than focusing on redeeming the souls of individual sinners.

The goal of the Social Gospel was to focus on societal sins of poverty and racial inequality. Followers of this philosophy believed that people could gain salvation through building the “kingdom of God on this earth.” This is a heretical belief because Christianity is based on the salvation of the individual and his choice to follow Christ.

Adherents to Social Gospel were also influenced by the Higher Criticism and the teachings of Charles Darwin. The Higher Criticism taught that the Bible is not literally true. Biblical stories can give insight into the nature of God, but not nature itself. This belief opened the door to Darwin and the eventual exclusion of God in the teaching of science in schools.

The Great Depression of the early 30s continued to worsen. Herbert Hoover’s policies were not working as quickly as the American people had hoped. The Social Gospel was spreading. This left the door open for Franklin D. Roosevelt to make a run for the White House.

Franklin D. Roosevelt: How polio changed him

Franklin D. Roosevelt had a meteoric rise on the political scene during the teens of the 20^th century. He had stood up to Tammany Hall, served in New York’s state legislature, served as the assistant secretary of the navy in the Wilson administration, and ran for the U.S. Senate and Vice-President of the U.S. However, his political career nearly ended as a result of a vacation he took to Campobello Island, Canada in the summer of 1921.

Franklin went swimming one afternoon, hiked home, and went to bed as he was unusually tired. He woke up with a fever and numbness in his legs. The next day he had partial paralysis from his belly down. He was diagnosed with poliomyelitis which is a viral inflammation of the spinal column which is incurable.

Eleanor and his personal assistant, Louis Howe, were determined that he would make a recovery and return to politics. Franklin was determined to be active in politics and rose above his fear and believed that he could recover. Howe kept Franklin informed of what was going on in the democrat party. Eleanor also became active in New York politics so she could be a presence while Franklin was absent. She also began to work in progressive causes of her own. The Miller Center

In 1922 Franklin helped Alfred Smith make a successful run for governor in the state of New York. Two years later, Franklin campaigned for Smith in a run for the democrat nomination for the presidency. So he was never out of politics for very long.

Other friends were concerned for Franklin’s physical well-being. George Peabody sent Franklin a letter which told him about a place in Warm Springs, Georgia where a young man with polio had made some progress toward recovery. Franklin, who was never discouraged by his affliction, immediately left for Georgia in the fall of 1924.

The resort was called Meriwether Inn. Over a course of 41 trips to the mineral springs of this resort, Roosevelt was able to recover strength in his leg and hips. He was able to stand again. News of his recovery spread like wildfire across the nation, and polio victims began to descend upon Warm Springs. The resort had to turn people away because they were interfering with their paying customers. In response, Franklin purchased the resort and turned it into the Georgia Warm Springs Foundation. The Roosevelt Warm Springs Institute survives to this day and provides a number of services to people who need physical rehabilitation.

On the surface this makes for a wonderful story. However, as Franklin’s eyes were opened to the plight of the disabled without financial means, he began to think what government could do to help these people rather than private individuals and charities. He became a subscriber to the Social Gospel movement where it was a Christian’s responsibility to solve the ills and injustice in society. He began to believe that the entire nation was responsible for these people rather than their immediate families and communities.