The First 100 Days: Franklin Delano Roosevelt
Franklin Delano Roosevelt was elected in a landslide in the election of 1932, defeating incumbent Herbert Hoover. Roosevelt won 57% of the popular vote and all but 6 states. Hoover was defeated because of a terrible economy that caused rampant poverty, unemployment, business failures, and loss of savings across the country. Over a quarter of the American workforce was unemployed, and farmers were suffering as commodity prices fell by as much as 60%, making production unprofitable. Industrial production had fallen by more than half since 1929 and two million people were homeless. The economy became significantly worse between the election and Roosevelt's inauguration on March 4, 1933, with a large number of bank closures and depositors rushing to withdraw their savings, leading to even more bank closures. The economy was a mess. By March 4th, 32 of the 48 states, as well as the District of Columbia, had closed their banks. The New York Federal Reserve Bank was unable to open on the 5th, as huge sums had been withdrawn by panicking customers in previous days.
In his inauguration address, Roosevelt fixed the blame for the economic crisis on bankers and financiers, and on their greedy quest for profit. He told his audience:
"Primarily this is because rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence... The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.
Roosevelt spent the first week of his Presidency dealing the problem of the bank closures. He closed the entire American banking system on March 6, 1933, declaring what was termed a "bank holiday". On March 9th, Congress passed the Emergency Banking Act, which Roosevelt used to create a system of federal deposit insurance for when the banks reopened. At 10 p.m. on Sunday night, March 6th, Roosevelt spoke to a radio audience of more than 60 million people, telling the nation, in his words, "what has been done in the last few days, why it was done, and what the next steps are going to be". This would be the first of 30 evening radio addresses that came to be known as FDR's "Fireside Chats".
These tactics seemed to work to quell the panic and to restore the public's confidence. Roosevelt convinced his listeners that the reopened banks would be safe. Within two weeks people returned more than half of the cash they had withdrawn. On the first stock-trading day after the bank holiday, the market enjoyed the largest-ever one-day percentage price increase.
Next Roosevelt embarked on the famous program he called "The New Deal" in which he created a number of acronym-labelled federal government agencies designed to confront the issues created by the depression. These included the Federal Emergency Relief Administration (FERA). Roosevelt's main goal was to increase employment, but he also recognized the need for a support system for the poor. FERA began operating in 1933, spending $500 million on soup kitchens, blankets, employment schemes and nursery schools. FERA was later closed in 1935 with its work taken over by two completely new federal agencies, the Works Progress Administration (WPA) and the Social Security Administration. FERA was also involved with a broad range of projects, including construction, projects for professionals, and production of consumer goods. The agency providing nearly 500,000 jobs for women alone.
On March 9, 1933, Roosevelt directed select members of his senior staff to put unemployed men to work on conservation projects to start by summertime. On March 21, he submitted a proposal to Congress, calling for the employment of 250,000 men by June. This was passed into law on March 31, giving the President authority to establish the Emergency Conservation Work (ECW) program. (The program's name was changed to the Civilian Conservation Corps or CCC in 1937). Roosevelt called this program his favorite or his pet creation. It allowed unemployed men to work for six months on conservation projects like planting trees, preventing soil erosion, and combatting forest fires. Workers lived in military-like camps across the country and were paid $30 per month.
The Agricultural Adjustment Administration (or AAA) was another New Deal program that was created in May 1933, in order to raise crop prices in response to the farming economic crisis. The administration helped to control falling prices by setting quotas to reduce farm production. The act also helped farmers to modernize and implement innovative and cost-efficient farming methods. Sometimes the AAA would even help farmers with their mortgages and provided direct payment for farmers who would agree to sign acreage reduction contracts.
The National Industry Recovery Act (NIRA) was created on June 16, 1933, at the end of FDR's first 100 days. This legislation consists of two sections. The first part promoted industrial recovery and the second established the Public Works Administration (PWA). The The PWA used government money to build infrastructure, such as roads and bridges. This demand for construction created new jobs, which was Roosevelt's main priority, with the added bonus of building infrastructure. It also improved working conditions and outlawed child labor. Wages increased, so that workers could earn and spend more. The act resulted in a significant loss of support for Roosevelt in the business community.
Roosevelt also established the Tennessee Valley Authority (TVA) which was created to build dams on the Tennessee River. These dams were designed to stimulate farming in the area, create jobs as well as hydroelectricity, and to prevent flooding and deforestation. The hydroelectric power was used to provide electricity for nearby houses. The TVA marked the first time the federal government competed against private companies in the business of selling electricity
Many Republicans, especially those from the "laissez-faire" school of economics and those in corporate America did not support the New Deal. The main complaints were that it cost too much and overstepped the government's rights. Many subsequent critics argue that it has had a lasting legacy that has created a climate of massive government spending and a sense of entitlement in many segments of the population. The TVA was attacked for its competition with private businesses. It was compared to communism, as a government-run enterprise that prevented competition in the private sector.
Others, like Louisiana's governor, Huey Long, said that the government should be doing more for its citizens, such as limiting personal wealth to $3 million, provide pensions for people over 60, and provide free washing machines and radios for all.
But many credit Roosevelt for taking decisive action early on in his presidency. Roosevelt was the steward for fifteen major laws getting through Congress, helping these along by two fireside chats and thirty press conferences. His "alphabet soup" of new agencies (such as the AAA, the CCC, FERA, the TVA and NIRA) helped a significant amount of people who were struggling economically and his national bank holiday, followed by the Emergency Banking Act, immediately put the banking system on a firmer footing. He also took America off the gold standard, provided regulation of stock issues, and made the first attempt toward a minimum wage, as well as a ban on child labor. Roosevelt in his first 100 days left a considerable legacy that remains to this day, leading to the ideological conflict that underscored American politics through the twentieth century to the present day.
In his inauguration address, Roosevelt fixed the blame for the economic crisis on bankers and financiers, and on their greedy quest for profit. He told his audience:
"Primarily this is because rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence... The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.
Roosevelt spent the first week of his Presidency dealing the problem of the bank closures. He closed the entire American banking system on March 6, 1933, declaring what was termed a "bank holiday". On March 9th, Congress passed the Emergency Banking Act, which Roosevelt used to create a system of federal deposit insurance for when the banks reopened. At 10 p.m. on Sunday night, March 6th, Roosevelt spoke to a radio audience of more than 60 million people, telling the nation, in his words, "what has been done in the last few days, why it was done, and what the next steps are going to be". This would be the first of 30 evening radio addresses that came to be known as FDR's "Fireside Chats".
These tactics seemed to work to quell the panic and to restore the public's confidence. Roosevelt convinced his listeners that the reopened banks would be safe. Within two weeks people returned more than half of the cash they had withdrawn. On the first stock-trading day after the bank holiday, the market enjoyed the largest-ever one-day percentage price increase.
Next Roosevelt embarked on the famous program he called "The New Deal" in which he created a number of acronym-labelled federal government agencies designed to confront the issues created by the depression. These included the Federal Emergency Relief Administration (FERA). Roosevelt's main goal was to increase employment, but he also recognized the need for a support system for the poor. FERA began operating in 1933, spending $500 million on soup kitchens, blankets, employment schemes and nursery schools. FERA was later closed in 1935 with its work taken over by two completely new federal agencies, the Works Progress Administration (WPA) and the Social Security Administration. FERA was also involved with a broad range of projects, including construction, projects for professionals, and production of consumer goods. The agency providing nearly 500,000 jobs for women alone.
On March 9, 1933, Roosevelt directed select members of his senior staff to put unemployed men to work on conservation projects to start by summertime. On March 21, he submitted a proposal to Congress, calling for the employment of 250,000 men by June. This was passed into law on March 31, giving the President authority to establish the Emergency Conservation Work (ECW) program. (The program's name was changed to the Civilian Conservation Corps or CCC in 1937). Roosevelt called this program his favorite or his pet creation. It allowed unemployed men to work for six months on conservation projects like planting trees, preventing soil erosion, and combatting forest fires. Workers lived in military-like camps across the country and were paid $30 per month.
The Agricultural Adjustment Administration (or AAA) was another New Deal program that was created in May 1933, in order to raise crop prices in response to the farming economic crisis. The administration helped to control falling prices by setting quotas to reduce farm production. The act also helped farmers to modernize and implement innovative and cost-efficient farming methods. Sometimes the AAA would even help farmers with their mortgages and provided direct payment for farmers who would agree to sign acreage reduction contracts.
The National Industry Recovery Act (NIRA) was created on June 16, 1933, at the end of FDR's first 100 days. This legislation consists of two sections. The first part promoted industrial recovery and the second established the Public Works Administration (PWA). The The PWA used government money to build infrastructure, such as roads and bridges. This demand for construction created new jobs, which was Roosevelt's main priority, with the added bonus of building infrastructure. It also improved working conditions and outlawed child labor. Wages increased, so that workers could earn and spend more. The act resulted in a significant loss of support for Roosevelt in the business community.
Roosevelt also established the Tennessee Valley Authority (TVA) which was created to build dams on the Tennessee River. These dams were designed to stimulate farming in the area, create jobs as well as hydroelectricity, and to prevent flooding and deforestation. The hydroelectric power was used to provide electricity for nearby houses. The TVA marked the first time the federal government competed against private companies in the business of selling electricity
Many Republicans, especially those from the "laissez-faire" school of economics and those in corporate America did not support the New Deal. The main complaints were that it cost too much and overstepped the government's rights. Many subsequent critics argue that it has had a lasting legacy that has created a climate of massive government spending and a sense of entitlement in many segments of the population. The TVA was attacked for its competition with private businesses. It was compared to communism, as a government-run enterprise that prevented competition in the private sector.
Others, like Louisiana's governor, Huey Long, said that the government should be doing more for its citizens, such as limiting personal wealth to $3 million, provide pensions for people over 60, and provide free washing machines and radios for all.
But many credit Roosevelt for taking decisive action early on in his presidency. Roosevelt was the steward for fifteen major laws getting through Congress, helping these along by two fireside chats and thirty press conferences. His "alphabet soup" of new agencies (such as the AAA, the CCC, FERA, the TVA and NIRA) helped a significant amount of people who were struggling economically and his national bank holiday, followed by the Emergency Banking Act, immediately put the banking system on a firmer footing. He also took America off the gold standard, provided regulation of stock issues, and made the first attempt toward a minimum wage, as well as a ban on child labor. Roosevelt in his first 100 days left a considerable legacy that remains to this day, leading to the ideological conflict that underscored American politics through the twentieth century to the present day.