The First New Deal

I)                   Poor People’s Campaigns

A)    Communist Party and Unemployed Council – led the agitation for rent relief and anti-eviction actions, as well as for direct relief, in many large cities.  The Communist Party was not the only left-wing political party active in this type of activity, however; the Socialist Party was active, as well as the American Workers’ Party, led by A.J. Muste (a former minister)

1)      Sharecroppers’ Union – active in Alabama, helping croppers fight for their rights; one such organizer, named Angelo Herndon, was charged and convicted of inciting insurrection in the States

2)      Scottsboro – role of Communist Party in publicizing this miscarriage of justice, as well as paying for the defense of the Scottsboro Seven (or the Scottsboro Boys, as they were popularly known at the time), increased the popularity of the party in the African American community.

3)      Ford Hunger March – from Detroit to River Rouge plant in Dearborn; Ford shutdown had forced more than 60,000 people onto relief rolls in Detroit.  A crowd of about 3,000 people marched, and were met with tear gas, fire hoses (in sub-zero weather), and bullets from the Dearborn police and the Ford Service Bureau thugs.  Four people were killed and more then 60 were injured; the funeral procession attracted 20,000 marchers while thousands more observed.

B)     Bonus Marchers – Congress had promised each veteran of WWI a bonus to be paid in 1945; 20,000 were soon camped out on the Mall to urge an immediate payment, which the House passed by the Senate did not.  In July, the Hoover administration decided to evict the protestors, which McArthur did with tanks, tear gas, and bullets.  Most American people were repelled by this action when they saw it on newsreels, and even more so when Hoover defended this action.

II)                 1932 Presidential Election

A)    Hoover’s popularity – Hoover, of course, was hugely unpopular; most of the blame and frustration with the economic woes most people were facing were placed upon him.

B)     Franklin Delano Roosevelt – promised to balance the federal budget (Hoover was running the largest peace-time budget deficit in the country’s history at this time) and trim the federal payroll; his stand on religion and drink were completely unexamined during the campaign (much to his benefit).  Roosevelt campaigned on the slogan “A New Deal for the American People.”

1)      Background – patrician (meaning he came from old money, as did his cousin TR).  In many ways, he tried to model his political career with that of his cousin’s—he served as New York assemblyman, secretary of the Navy, and he was the Democratic Party’s choice to run as Vice-President in 1920.  In 1921 he was stricken with polio, and was never able to walk without some kind of assistance after that.  That he was able to make a political comeback from this disease was due in large part to the assistance of his wife, his second cousin Eleanor.

2)      FDR won 57% of the popular vote (against an immensely unpopular Republican candidate); the only state that he lost outside of New England was Pennsylvania.

III)              First 100 Days – this has often been treated by historians as the implementation of the Roosevelt “plan;” however, Roosevelt operated during this time period without any plan, and often under conflicting advice from his advisers.  Most of the actions taken during these 100 days were forced upon the administration by events.

A)    March 1933 Bank Holiday – the first action that Roosevelt took during his administration was to order all banks closed to prevent a “run.”  Banks were allowed to reopen when they were able to prove that they were solvent.  While this sounds like a very drastic measure, it should be pointed out that 36 states had already closed the banks they chartered (and at this time there were only 48 states). This caused some temporary hardships, but as banks reopened they did so with the assurance that they were solvent—and thanks to the insistence of Michigan Republican Arthur H. Vandenberg, the federal government now protected bank deposits up to $2,500 through the predecessor of the Federal Deposit Insurance Corporation (FDIC).

B)     Fireside Chats – FDR became the first president to regularly use the radio to communicate with the American people.  FDR used a friendly, conversational tone on the radio, and many people came to look upon the president as a personal friend, someone who was interested in their welfare.  Because he also came to embody the government, many people came to see the government as directly interested in their welfare, as well.

C)     “Alphabet Agencies” – these agencies were populated with young Jewish and Catholic intellectuals, who were largely unwelcome in the Protestant-dominated business world.

1)      Federal Emergency Relief Administration (FERA) – the agency charged with providing funds for the unemployed.  Although the agency did hand out direct relief, much of the relief that people received they had to work for.

2)      Civilian Conservation Corps (CCC) – largely served young adult males; moved city boys into the country (away from those corrupting influences) to work on conservation projects.

3)      Civil Works Administration (CWA) – small scale public works projects, mainly road-building.

4)      Agricultural Adjustment Administration (AAA) – implemented a whole series of laws and policies to assist farmers; restored “parity”; government made payments to farmers for NOT planting crops, which acted to decrease the supply and force prices upward.  The timing of the implementation of this piece of legislation meant that many farmers had to destroy crops that were already planted as well as livestock.

(a)    Who benefited? – most of the benefit of these policies went to larger and corporate farmers, who could take more land out of cultivation

(i)      Southern Tenant Farmer’s Union – formed to protest this development; it was a bi-racial group, which of course was threatening to those in power in the South, and therefore was swiftly and violently put down (evictions, and attacks on road side camps)

5)      Public Works Administration (PWA) – funded larger building projects, like University Hall and the Glass Bowl, as well as much of the expansion of the Toledo Zoo, and eventually a new public library.

6)      Tennessee Valley Authority (TVA) – provided flood control for the Tennessee Valley (the Tennessee River flows northward from Alabama, through Tennessee and Kentucky to the Ohio River); the dams for this flood control also brought cheap electricity, which attracted industrial development in the area as well.

7)      National Recovery Agency (NRA) – perhaps the most famous of the alphabet agencies was the NRA. What the NRA proposed to do was to foment the development of cartels in the US economy—that is, to encourage the formation of monopolies. It was thought at the time that this would help stifle cut-throat competition, because companies would be allowed to collude together to fix prices and divide the market between themselves.

(a)    Section 7a – in return for being allowed to form cartels, businesses were to allow employees to join unions “of their own choosing.” This section was ambiguous on the point of whether these had to be independent unions, or whether they could be company unions. United Mine Workers president, however, sent organizers into the field with the message that “The President wants you to join the union.”

(b)    The NRA was overturned by the Supreme Court, and was the impetus for Roosevelt’s attempt to “pack” the Supreme Court (which had to this point blocked much of the New Deal legislation).

(c)    The NRA, headed by the mercurial (and possibly unstable) Gen. Hugh Johnson, had largely failed before it was killed by the Supreme Court. Compliance to the NRA codes was largely voluntary, and therefore businesses often failed to comply. Additionally, the union provision proved unsatisfactory to both businesses (who were, for the most part, extremely reluctant to work with labor unions) and labor (who were disappointed that Section 7a allowed the creation of company unions to compete with them).