The New Deal
Uploaded by Admin on Mar 25, 2000
The New Deal was a political and social plan that was the presidential campaign platform of Franklin Delano Roosevelt. Although Roosevelt was very vague about what it was and actual measures to be taken while running for president, the New Deal was the shinning hope for many Americans who had lost their jobs or were living in poverty. After the United States had plummeted into the greatest depression to face this country while Herbert Hoover lead the country, many voters were looking for anyone with a promising plan and a bright outlook. As banks closed and unemployment rates soared, Roosevelt promised a balanced budget, and spoke of Hoover’s rash and excessive spending. The election of 1932 was a landslide in Roosevelt’s favor, and he quickly took over as soon as he began his term.
Roosevelt called a special session of Congress lasting from March 9 until June 16 in 1933. Roosevelt began to put his “New Deal” into action. With a democratic majority in Congress on his side, Roosevelt churned out legislation rapidly from the generally sluggish machine of Congress. Banks had been closing all over the country due to frightened citizens withdrawing all of their money. In order to increase trust in them, Congress passed the Emergency Banking Relief Act of 1933, which allowed the government to reopen closed banks, and regulate banking and foreign exchange. The Glass-Steagall Banking Reform Act was later passed in order to form the Federal Deposit Insurance Corporation, insurance to civilians for their banking deposits up to $5,000, which was later raised. These to bills encouraged the public to once again trust their banks, and to deposit money in the banks instead of hiding it “under their mattresses.” Compared to the more than 4,000 bank failures of 1933, there were only 57 in 1934 because of these actions. The Agricultural Adjustment Act and the Home Owners’ Loan Corporation were both formed to help farmers and other households with paying their mortgages, as well as helping the mortgage-holding banks to stay in business. The Frazier-Lemke Farm Bankruptcy Act suspended mortgage foreclosures for three years, and moved farmers with small amounts of poor land to better areas. Trees were planted in the deserted areas in an attempt to prevent soil erosion and block the wind.
Moving on from this, Roosevelt decreed that all privately owned gold be turned in to the Treasury and to be paid back...