Franklin D Roosevelt

Roosevelt’s First 100 Days in Office

Franklin D. Roosevelt (FDR) persuaded Congress to pass the following legislation as part of his New Deal:

The Emergency Banking Act

Federal Deposit Insurance Corporation

Federal Emergency Relief Administration (FERA)

Set up with $500 million for cash relief for the poor and to aid local authorities’ poor relief schemes
FDR also used Hoover’s Reconstruction Finance Corporation (RFC)

Economy Act

Reduced the pensions and salaries of state employees to take account of fall of prices

Prohibition

Civilian Conservation Corps (CCC)

Agricultural Adjustment Act (AAA)

National Industrial Recovery Act (NIRA)

As an extension of AAA the Act set up the Public Works Administration
Cash provided for public works schemes by government and local authorities
National Recovery Administration (NRA) was set up to establish codes for industrial relations: child labour abolished, shorter working week and fixed minimum wage
Participating employers could display a ‘Blue Eagle’ – people were encouraged to buy from these firms
Workers given right to form unions

Tennessee Valley Authority (TVA)

Set up during the ‘Hundred Days’
Tennessee River runs through seven states
The valley was one of the most backward parts of USA
Its agriculture suffered from: over-cropping causing soil erosion (wind blew top soil away); floods washed away remaining topsoil; little industry in this region to provide alternative employment
Senator Norris asked Hoover in 1930 to set up an authority deal with the problems of the Tennessee Valley
It was to deal with problems too big for individual states, construct dams to prevent floods and provide hydroelectric power for industry and employment and provide fertiliser factories to improve farm soil
Hoover had refused though
FDR’s decision to do it provided thousands of jobs
16 dams were built and 5 more enlarged
The river was also made navigable
This work covered 7 states
1928, 48 ton-miles of traffic on the river; 1941, 161 million ton-miles
The dams ended flood damage and the hydroelectricity helped farms, industries and towns

Second New Deal

The flood of legislation and new agencies showed FDR genuine wish to solve US’s problems:

Works Progress Administration 1935

Set up to replace Civil Works Administration (CWA)
Paid people to do public works, dams, airports, etc
Provided actors, artists and writers with work
Federal Theatre Project sent touring companies to perform plays across the country
Agency gave 4 million people a job – thus increasing number able to buy goods
This in turn created more jobs because of the demand increase
Provided increase in schools and hospitals etc

Wagner Act 1935

Social Security Act 1935

Opposition to FDR

1936 FDR re-elected as President
Opponents accused him of being ‘revolutionary’
For 15 years there had been no reform under Harding Coolidge and Hoover
Hoover attacked the ‘New Deal’ and said it attacked free institutions, forced employers to pay a minimum wage, recognised trade unions and banned the employment of young children
Hoover said NRA favoured big business and harmed the ‘little man’ with price fixing and codes
AAA forced farmers to do as told
TVA and other planning was ‘Marxist’
Spending public money was the idea of British economist JM Keynes – rejected in Britain
Some schemes didn’t work and had to be amended – it was claimed FRD hadn’t thought it through properly
Some critics feared government now had too much power
Unemployment hadn’t fallen much and depression still serious in 1936

The Supreme Court Intervenes

The Supreme Court of the US hears complaints who believe that an Act of Congress is unconstitutional
1932, 7 of the 9 judges had been appointed in 1920s by Republican Presidents
FDR could do nothing about this until a judge died or retired
By 1936 the average age of the judges was 71 years and didn’t want to retire
1935-6 they ruled against FDR in that NRA and CWA were declared invalid – a victory for opponents of the New Deal
FDR said he was trying to get US back to work and avoid a revolution
After his election victory in 1936 FDR asked Congress for laws to give him a favourable Supreme Court
Judges to be encouraged to retire when 70
If a judge wouldn’t retire then FDR wanted to appoint an extra judge up to total of 15
Congress refused
Members were conscious of the ‘separation of powers’ of President, Congress and the Court
But there were no further rulings against FDR’s measures

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