unit 9 the 1930s u.s. history ii his-112. bread lines during the great depression
TRANSCRIPT
UNIT 9THE 1930S
U.S. History IIHIS-112
Bread lines during the Great Depression
Worsening Economic Situation
Overall, the Crash of ‘29 represented loss of over $26 billion on paper This is equivalent of $332 billion in 2008 currency
The Crash was made even worse because of economic policies put in place by the government
Many members of Congress wanted Hoover to veto the Smoot-Hawley Tariff They believed it would hurt foreign trade and the
economy in the long run However, with the Crash, many wanted to protect
Americans interests and Hoover approved it
Worsening Economic Situation
The Federal Reserve made matters worse In 1931, it raised interest rates which led to a
tightening of creditAs consumer spending went down and loans
were more difficult to get, businesses began cutting production and jobs
The U.S. was also hit negatively by the collapse of the European credit system Many countries tried to get off the gold standard This led many investors to trade in equity in U.S.
companies for gold In turn, this hurt our financial system
Worsening Economic Situation
In 1930, the market collapsed further Over 1,300 banks failed Many factories cut back on production and others closed U.S .Steel announced a 10% wage cut in 1931 The auto industry laid off workers leading to over 40%
unemployment in Detroit
Hoover worked hard to keep the U.S. from falling into a worsening depression He promoted keeping the U.S. on the gold standard He also worked with Congress to balance the budget He even sponsored a tax cut hoping to stimulate the
economy
Worsening Economic Situation
Hoover also called for conferences with businessmen and labor leaders In 1931, he tried to organize a pool of private money
to rescue banks and businesses He also met with mayors and governors and
encouraged them to speed up public works projectsIn Europe, the situation grew worse
By June 1931 the German financial system was in chaos
In September, Britain abandoned the gold standard, which led to a decline in lending and trade
Soon most of the industrialized world was caught in the Depression
Desperate times call for desperate measures
The Great Depression
By 1932, the economic recession became known as the Great Depression Investments had dropped by 32% Exports dropped by 1/3 Farm incomes dropped by 60% Gross national product dropped by almost 50% Average wages dropped by more than 40% Some cities had unemployment rates as high as 80% 12 million Americans were unemployed 1/3 of America fell below the poverty level Over 1 million Americans were homeless
Political cartoon about Hoover’s response to the Depression
Government Response
The election of 1930 brought Democrats into the majority in both Houses Hoover was willing to work with them to find new ways
to end the DepressionMore public works projects were built during
his administration than in the past 30 years Congress had approved a $2.25 billion for public works This included a dam on the Colorado River that later
gets named after himThe Federal Home Loan Bank Act of 1932
It was designed to help mortgage lenders who were struggling and to make mortgages more affordable
Government Response
The Reconstruction Finance Corporation was set up in 1932 It was given $500 million to make loans to banks,
insurance companies, farm mortgage companies, and railroads
The Norris-La Guardia Act of 1932 outlawed court injunctions against strikes, boycotts, and picketing This was done to please the Democrats, industrial
workers, and unionsGlass-Steagall Banking Act of 1932 –
It expanded credit to make more loans available to businesses and individuals
Government Response
However, Hoover was not willing to go along with all of the Democrats’ plans He vetoed a bill to build government power facilities
along the Tennessee River He also rejected a proposal by GE President Gerard
Swope (the Swope Plan) that called for industrial cooperation and regulation of businesses by the federal government
Hoover’s biggest failure was that he did not truly understand how bad the Depression was He was willing to use the federal government to
support business, but he would not accept a plan to use federal aid to help the unemployed
Seattle “Hooverville”
Economic Hardship
Many Americans were affected by the Depression Unemployment in 1932 reached 23.6% For those who lost their jobs and homes, many moved
into “Hoovervilles” These were shantytowns on the outskirts of the cities
sardonically named after President Hoover Bread and soup kitchen lines became commonplace in
the cities
Those groups already struggling before the Depression was hit the hardest This included immigrants, Native Americans, and blacks
Economic Hardship
One of the hardest hit groups was the Mexican American population Most Americans assumed that many Mexican-Americans
were here illegally Many left the U.S. voluntarily as the job opportunities
dwindled
Starting in 1929, the Department of Labor began deporting Mexican-Americans out of the U.S. Between 1929 and 1940, approximately 500,000 were
deported as “illegals” Half of them where American citizens
Economic Hardship
Native Americans were already suffering from poverty, high illiteracy rates, and high infant mortality rates prior to the Great Depression In 1928, 84% of Native Americans earned less than $200
a year This conditions were only exacerbated by the Depression
During the Depression, the Bureau of Indian Affairs and other federal agencies continued to exploit the tribes In 1930, the Federal Power Commission allowed the
building of the Flathead Irrigation Project on tribal lands without giving any compensation to the tribes involved
Economic Hardship
African-Americans were also hit hardThe unemployment rates for African-Americans
were double, and even sometimes triple, to those of whites In 1933, unemployment ran approximately 25% for
whites while it was as high as 50% for blacks In areas where they did work, they received 30% less
income than whites
Many lived in the south where conditions were worse Many tenant and sharecroppers lived “below any level of
decency”
“Scottsboro Boys” (1937)
Scottsboro Boys
Socially, conditions were still deplorable in the south for African Americans
In March 1931, nine black youths were accused of gang-raping two white girls in Scottsboro, Alabama When brought in front of an all-white jury in April, they
were all found guilty and eight of them sentenced to death The ninth boy was 12 years old and given life imprisonment
He later had his conviction overturned as he should have been tried as a juvenile
The case got the attention of the NAACP and the Communist Party’s International Labor Defense (ILD)
Scottsboro Boys
In November 1932, the boys’ convictions were overturned by the Supreme Court on the basis the boys had not received adequate council
Starting in 1933, the Scottsboro Boys were retried The ILD hired Samuel Leibowitz, a New York defense
attorney, to defend the boys At the retrial of one of the boys, one of the women admitted
that one of them lied for fear of being charged with a Mann Act violation of crossing state lines for immoral purposes
The boys were once again convicted of rape and charged with the death penalty
Scottsboro Boys
The Supreme Court overturned the convictions in Norris v. Alabama (1935) It stated that the boys had not received due process and
equal protection because blacks were excluded from the jury rolls
Four of the boys were found guilty in their third trials Each of them received jail sentences from 75-109 years
The others had the charges dropped Two because they were young and the judges found time
served was enough of a punishment Two were disabled at the time of the crime, one blind and
the other suffering from debilitating syphilis, and were considered not guilty
World War I veteran Frank Tracy and his children in front of their tent shelter outside
Washington D.C. (June 19, 1932)
Bonus Expeditionary Force
In 1930, World War I veterans began demanding immediate payment of their Adjusted Service Certificate This was a bonus guaranteed by the Adjusted Service
Certificate Act of 1924 which gave them a bonus of $1 for each day served in the U.S. (max $500) and $1.25 served abroad (max $625)
It was not scheduled to be paid until 1945Hoover and the Republicans did not support
an immediate payout They were fearful that such a large payout would hurt
the federal government and relief programs
Bonus Expeditionary Force
In 1932, Representative Wright Patman introduced a bill to the House to give the veterans their bonuses
In support of the bill, former Army Sergeant Walter W. Waters and a number of veterans marched to Washington
The marchers grew in number and were known as the Bonus Expeditionary Force (BEF) It contained around 43,000 protesters including the
veterans, their families, and affiliated groups Many of them created a “Hooverville” just outside of
D.C. in Anacostia Flats
Bonus Expeditionary Force
The bill failed to pass the Senate in June Most veterans accepted free railroad tickets and left However, several thousand remained behind in
protestWhen the protesters clashed with police
forces on July 28, 1932, Hoover called this a "Communist conspiracy“ He sent in the U.S. Army under General Douglas
MacArthur to clear the area MacArthur used tear gas, tanks, and machine guns to
clear the protesters and their camps With him were Major Dwight D. Eisenhower and
Major George Patton
Election of 1932
Election of 1932
In the Democratic National Convention, Franklin D. Roosevelt was nominated as the party’s candidate His running mate was Speaker of the House John Nance
Garner of TexasThe Democrats ran on a platform of:
Federal relief for the unemployed Repeal of prohibition, with the liquor income paying for
a reduction in federal spending by 25% Lower tariffs
FDR gave his promise of a New Deal “I pledge you, I pledge myself, to a new deal for the
American people”
Election of 1932
FDR traveled throughout the country promoting his idea of change His campaign song was “Happy Days are Here Again”
Hoover was the Republican candidate He portrayed FDR as a radical who would make
conditions only worse However, with the Great Depression to his name, he
had no chance of winningFDR won the election with 57.4% of the votes
and 472 electoral votes Hoover only received 39.7% of the votes and 59
electoral
Election of 1932
Franklin D. Roosevelt (1933-1945)
Franklin D. Roosevelt
Franklin D. Roosevelt was born on January 30, 1882 in Hyde Park, NY As a young child, he was taught by private tutors and then
attended Groton School, a private academy, when he turned 14
He went on to attend Harvard where he was editor of the Harvard Crimson
He then went to Columbia Law School but never graduated because he dropped out after passing the New York Bar Exam
In 1905, he married Eleanor Roosevelt She was Theodore Roosevelt’s niece She was also his fifth cousin once removed
Franklin D. Roosevelt
In 1910, FDR started his political career as a New York State Senator He was a progressive who was best known for fighting
the Tammany machine in New York
Because he supported Wilson in the 1912 election, FDR was appointed Assistant Secretary of the Navy in 1913 While there, he created the Navy Reserve and
expanded the navy After the war, he was responsible for demobilizing the
navy
Franklin D. Roosevelt
In 1920, James Cox was nominated by the Democratic Party for president with FDR as his running mate After losing the election, FDR returned to private life
and became vice president of Fidelity and Deposit Company of Maryland
In August 1921, FDR was afflicted with an illness believed to be polio He was paralyzed from the waist down Some researchers believe that he had Guillain-Barré
which is an autoimmune disease
Franklin D. Roosevelt
For the next few years, FDR worked to improve his health He did not believe his paralysis was permanent and
spent his time seeking treatments and therapies The most successful was the hydrotherapy treatments
he received in Warm Springs, Georgia He set up the Warm Springs Foundation to help other polio
victims, especially those who could not afford treatment
He returned to public life when he was elected as governor of New York in 1928 There he worked against a Republican state legislature
to push through progressive reform including unemployment insurance, conservation and child labor laws
One of the few photos of FDR in a wheelchair (1941)
FDR’s Inaugural Speech 1933
“This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days.”
FDR as President
When FDR took office on March 4, 1933, the country was in shambles Over 15 million Americans were unemployed with
unemployment at 25% Over 2 million where homeless Thousands of financials institutions were on the verge
of bankruptcy Bank runs caused banks to collapse to such a point
that 29 states passed legislation placing a moratorium on removal of assets
32 of 48 states had closed their banks Industrial production dropped by 50% since 1929 Price of agricultural products dropped by 60%
FDR as President
Roosevelt surrounded himself with intelligent and innovative advisers Harold Ickes, a progressive Republican and once
supporter of Theodore Roosevelt, was appointed as secretary of the interior
Henry Wallace, another progressive Republican, was appointed as secretary of agriculture
Frances Perkins, secretary of labor, was the first woman ever appointed to a cabinet post
FDR also had an informal “brain trust” of Columbia professors who helped him shape the first New Deal
FDR hoped that his New Deal would bring three things: relief, recovery, and regulation
First Hundred Days
FDR hit his first stumbling block the day after his inauguration The New York Federal Reserve Bank was unable to
open because there had been a bank run on it the previous day
FDR responded by calling a four-day national bank “holiday” to put a stop to the bank runs
During his “First Hundred Days” of office, FDR pushed through legislation to help the failing economy of the country He started with calling a special session to deal with
the financial crisis on March 9, 1933
First Hundred Days
On March 9, 1933, Congress passes the Emergency Banking Act of 1933 This gave the president the ability to regulate currency It gave the Treasury the right to inspect banks and
issue federal loans It also legalized FDR’s national bank “holiday”
On March 12, 1933, FDR gives the first of his many “fireside chats” The purpose was not only to calm the populace about
the bank runs but also to convince them that depositing money in the banks was safe
First Hundred Days
On March 30, Congress passes the Reforestation Relief Act This created the Civilian Conservation Corps (CCC) It created 250,000 jobs for young men between the ages of
17 and 25 in reforestation, road construction and developing national parks
The men lived in work camps and earned $30 a month, $25 of which had to be sent home
On April 19, FDR took the U.S. off the gold standard The was done by executive order prohibiting the export of
gold The purpose was to stabilize the country’s gold supply
First Hundred Days
On May 12, Congress passed the Federal Emergency Relief Act It created the Federal Emergency Relief Administration
(FERA) which was authorized to distribute $500 million to state and local governments
Half of the money was to be granted directly on the basis of need with the other half given on a matching basis of one federal dollar for every three state dollars
This money was a grant, not a loan, that was given to states in need
Harry Hopkins was appointed to head FERA and supposedly gave out $5 million in grants in his first two hours on the job
First Hundred Days
Also on May 12, FDR signs the Agricultural Adjustment Act This called for farmers to reduce crop sizes of major
agricultural staples—wheat, cotton, corn, hogs, rice, tobacco and milk—to stabilize prices
The Agricultural Adjustment Administration (AAA) was charged with giving farmers a subsidy for compliance
In 1933 alone, the AAA ordered thousands of acres of cotton plowed up and 6 million young pigs slaughtered
AAA helped large farmers more than small ones It was often disastrous for tenant farmers and
sharecroppers who were simply kicked off the land
First Hundred Days
On May 18, Congress created the Tennessee Valley Authority (TVA) The Tennessee Valley was one of the more
impoverished regions of the country The TVA was established to construct dams and provide
electricity for the region as well as provide fertilizers and education for farmers to improve crop yields
The TVA built nine major dams and many minor ones between 1933 and 1944
For residents it meant cheaper electricity and an improvement in lifestyle
The TVA was successful as a relief and recovery method since it created jobs for thousands
First Hundred Days
On May 27, the Federal Securities Act was passed It required stock brokers to file information regarding
investments It also made company directors responsible for
improper practices
On June 6, the National Employment System Act was passed It set up the United States Employment Service
(USES), a system of public employment offices
First Hundred Days
On June 13, Congress passed the Home Owners Refinancing Act This created the Home Owners Loan Corporation (HOLC)
which designated to issue government bones to refinance mortgages
This rescued 10% of homes from default or foreclosureOn the last of the “first hundred days,” June 16,
Congress passed three more acts to help with the economic crisis
The Farm Credit Act created the Farm Credit Administration This allowed farmers to refinance their loans and
mortgages
First Hundred Days
The Banking Act of 1933 (aka Glass-Steagall Banking Act of 1933) It separated banks into commercial v. investment banks It also created the Federal Deposit Insurance Company
(FDIC) to insure bank depositsNational Industrial Recovery Act
It also created the Public Works Administration (PWA) to supervise public works projects and create new jobs
It created the National Recovery Administration (NRA) which had the power to set fair competition codes in all industries
The law also gave labor the right to organize and be involved in collective bargaining
National Recovery Administration poster
First Hundred Days
The NIRA was considered very radical for the time but ultimately failed The biggest problem behind the NIRA was the NRA
One major problem with the NRA was that it assumed businesses would police themselves All the codes that were created to protect workers and
consumers were drawn up by the biggest companies Therefore, all the policies were beneficial to large
companies, not small businesses or consumers
First Hundred Days
Another key problem is that corporations rarely respected the rights of labor to organize The federal government did not do its part to enforce
labor's right to collective bargaining as per the NIRAThe NRA actually hurt recovery rather than help
it It had tried to stabilize prices by lowering production The money would have been better off going to consumers
to encourage them to buy goods In 1935 in Schecter Poultry Corp. v. U.S., the
NIRA was declared unconstitutional The Supreme Court stated that the industrial “codes of
fair competition” in the NIRA were unconstitutional
Civil Works Administration workers (c. 1934)
First New Deal
All of the legislation passed during his First Hundred Days was part of the first New Deal It was focused mainly on recovery from the
Depression and relief for the poor and unemployed No single ideological position united all legislation It rested on the assumption it was possible to create a
just society by superimposing a welfare state on the capitalist system, leaving the profit motive undisturbed
This lasted from 1933 to early 1935FDR believed that economic planning and
government spending could help the Even still, he remained cautious and conservative
First New Deal
On November 8, 1933, FDR created the Civil Works Administration (CWA) through Executive Order Its purpose was to create over four million jobs for
unemployed workers during the winter months It was disbanded on March 31, 1934 after costing over
$200 million a monthOn December 5, the Twenty First Amendment
took effect This officially ended Prohibition The amendment was first proposed on February 20, 1933 North Carolina rejected the amendment while eight
others never ratified it
First New Deal
On January 4, 1934, at the start of the 73rd Congress, FDR asked for an additional $10.5 billion to help with the recovery programs
FDR’s next focus was to restructure American finance Part of this was the shift from relief to recovery by
fixing what was wrong with the private market This meant restoring prices, stimulating production,
and speeding up the economic recovery of the country
Restructuring Finance
On January 30, 1934, Congress passes the Gold Reserve Act It legalized FDR’s executive order from 1933 ending
the circulation of gold Americans were not allowed to trade gold outside the
U.S. nor were they allowed to own gold coinage The purpose of this was to stabilize the value of gold It also gave the president the authority to revalue the
dollar and set the price of goldIn June, the Silver Purchase Act was passed
This authorized FDR to nationalize the nation’s silver to be turned into coinage
Restructuring Finance
Both of those acts were designed to keep Americans from hoarding precious metals and keep them in circulation
On June 6, 1934, Securities Exchange Act was passed This created the Securities and Exchange Commission
(SEC) to oversee and regulate security (stocks, bonds, and notes) transactions
This includes overseeing the actually security exchanges like the NYSE
The purpose of this act was to prevent the conditions leading up to the Crash of ‘29
Father Charles Coughlin
Critics of the New Deal
During FDR’s First Hundred Days, the country’s outlook improved and stocks went up 11%
However, not all were happy with FDR’s plans There were still 12 million unemployed
Many businessmen were worried that FDR was leading the country toward socialism In the summer of 1934, conservatives and other anti-New
Deal supporters formed the Liberty League to battle during the mid-term elections but failed
Ironically, in the 1934 elections, Democrats actually increased their numbers in both houses of Congress
Critics of the New Deal
On the other side of the spectrum, some critics believed that FDR was not doing enough The Communist party, whose numbers increased
dramatically during this time period, claimed FDR had done too little to help the poor
Minnesota Govern Floyd Olson, member of the Farmer-Labor Party, blamed capitalism for the Depression and threatened martial law if the farm mortgage relief bill failed to pass
Wisconsin Governor Philip La Follette enacted the country’s first unemployment insurance
Upton Sinclair, running for governor in California as a Socialist, promised to pay everyone over 60 a pension of $50 per month financed by higher income and inheritance taxes
Critics of the New Deal
One of the most influential and extreme critics of the New Deal was Father Charles E. Coughlin He was a Roman Catholic priest who had weekly radio
broadcast At first, he was a strong supporter of the New Deal but
that changed late in 1934 He founded the National Union for Social Justice (NUSJ)
and used his radio show to attack capitalism and wall street
He criticized the New Deal as too pro-business and demanded that Congress replace the Federal Reserve with a publicly own national bank
His program reached over 40 million listeners throughout the northeast and midwest
Critics of the New Deal
Another influential critic was Senator Huey “The Kingfish” Long from Louisiana He pushed a “Share Our Wealth” idea which stated that
wealth was not properly distributed to all Americans He wanted a $2,000-3,000 income for all American
families, pensions for the elderly, and college educations for the young
This would be paid for by taxing the rich and liquidating all fortunes greater than $5 million
“Share Our Wealth” clubs sprung up all over the country with membership in the millions
Long planned to run for president in 1936 but was assassinated in September 1935 by a family member of a political rival
FDR signing the Social Security Act of 1935
Second New Deal
In 1935, FDR began implementing this second part of the New Deal This is more commonly referred to as the Second New
Deal During this phase, his programs were geared towards
social reform and social justice This was in response to the discontent of the lower
middle class and to the threat of various utopian schemes During this phase, he also departed from attempts to
cooperate with the business community
The Second New Deal is best known for the creation of a “welfare state”
Works Progress Administration (WPA)
On April 8, 1935, Congress passed the Emergency Relief Appropriation Act which authorized over $5 billion for relief and employment programs
The Works Progress Administration (WPA) was created out of this act It was the first massive attempt to deal with
unemployment and its economic impact Annually, the WPA employed about 3 million people for
on variety of socially useful projects Nearly 85% of WPA funds went directly into salaries and
wages
Works Progress Administration (WPA)
State and local governments were given strict guidelines for hiring workers Only one member of a family could qualify for a WPA job,
and first choice always went to the man A woman could qualify only if she headed the household
Eventually more than 13% of those employed by the WPA were women
One part of the WPA was the Historical Records Survey It employed 3,400 unemployed librarians, archivists,
teachers and others to collect public records of every county and state
Works Progress Administration (WPA)
A minor but important part of the program supported writers, artists, actors, and musicians Over the course of this program, tens of thousands of
artists were employed performing or creating artThe WPA also created the National Youth
Administration (NYA) This offered training, education, and jobs to
unemployed youth between the ages of 16-25Despite criticism, the WPA was constructive
It is responsible for building 6,000 schools, 2,500 hospitals, 13,000 playgrounds and restored the morale of millions of people
Social Security Act of 1935
On August 14, 1935, FDR signed the Social Security Act into law This provided a pension for the elderly, death benefits,
and benefits for the blind, disabled, and some aid for dependent children
These benefits were to be paid for by a 1% tax both employers and employees
At the time, this resulted in benefits of from $10 to $85 per month
It also established a cooperative federal-state system of unemployment compensation
The act did not include because of protests from the medical profession
Social Security Act of 1935
Poor women were not included in the Social Security benefits Instead, they were part of the Aid to Dependent
Children (ADC) As part of this, mothers and poor women were treated
as social dependants The ADC would provide matching federal funds to states
who would provide “mother’s pensions” to single women and poor mothers on the conditions they kept “suitable homes”
However, more women qualified for this program than were expected so the ADC put in tough screenings including a moral screening
Tenant farmer in Arkansas (c. 1935)
Helping Farmers
On May 1, 1935, FDR created the Resettlement Administration (RA) Its purpose was to relocate struggling tenant farmers
to federally built communities The RA created over 200 communities including the
Jersey Homesteads in Roosevelt, NJ and Greenbelt, MD
On May 11, the Rural Electrification Administration (REA) set up Its purpose was to lend money to cooperatives to
generate and distribute electricity in isolated rural areas not served by private utilities
Putting Large Corporations in Check
In the summer of 1935, FDR set out to control the large corporations
On August 26, the Public Utility Holding Company Act of 1935 was passed It created the Federal Power Commission which had the
authority to regulate and control the power companies The act included a “death sentence” clause that gave
each company five years to demonstrate that its services were efficient or the government would dissolve the company
FDR put pressure on the wealthy He had Congress increase estate and gift taxes and
raise the top income tax rates
Dust storm near Stratford, TX (c. 1935)
The Dust Bowl
Farmers in the Great Plains suffered through years of drought and dust storms This was due to record heat and below-average
rainfall The area, especially from the Oklahoma panhandle to
western Kansas, turned into a giant dust bowlBetween 1932 and 1939 there was an
average of 50 storms a year Many towns were covered in dust and most cities had
to keep their lights on 24 hours a day Thousands died of “dust pneumonia” Over 10,000 farms were abandoned and nine million
acres of farmland was turned into wasteland
The Dust Bowl
By the end of the 1930s, 3.5 million people migrated out of the Great Plains searching for a better life Some 350,000 left Oklahoma for California However, when they got there, they were not able to find
jobs
The Dust Bowl was created by both nature and human actions One main factor was that the Great Plains west of the 98th
meridian was not suitable for such intensive agriculture This was exacerbated by overgrazing, too much plowing
and indiscriminate planting, all of which exposed the thin soil to the elements
The Dust Bowl
The Roosevelt administration did attempt to help with the problem However, many attempts were too late as the damage
had already been doneThe Taylor Grazing Act of 1934 was designed
to protect federal lands in the west It ended unregulated grazing and required permits
and fees to graze on the land Also, it stated that remaining public lands were to be
held by the federal government and not soldThe Soil Conservation Service promoted
growing of drought-resistant crops use of contour plowing
1936 Landon campaign button
Election of 1936
During the primaries, Roosevelt received 93% of the vote by the Democrats He was easily nominated as the Democratic candidate
Roosevelt’s campaign was based on his New Deal Program This was helped by signs of an improving economy He also had the support of the Democratic South,
organized labor, farmers, and urban votersRepublicans nominated Kansas Governor
Alfred Landon Chicago publisher Frank Knox was chosen as his
running mate
Election of 1936
Landon’s campaign was an attack on the New Deal and FDR’s big government His promises were essentially the same things listed in the
New Deal but were to be done more cheaply and efficientlyLandon also had the backing of 2/3 of the
country’s newspapers The Literary Digest, a conservative magazine, even
predicted a Republican landslide to the electionThe Union Party nominated Senator William
Lemke from North Dakota The party was set up by such left-wing critics as Father
Charles Coughlin and was modeled after “Share Our Wealth” program
Election of 1936
George Gallup, a statistician, put together his first Gallup Poll for this election Using only 5,000 respondents, he predicted a win by FDR
On November 3, 1936 FDR won by a landslide He received 60.8% of the popular vote, the third largest
percentage in U.S. history Monroe had 80.6% in 1820 and LBJ had 61.1% in 1964
He also got 523 electoral votes, the second largest in history Reagan got 525 in 1984
Landon only received 36.5% of the popular vote and 8 electoral votes
Lemke received just under 900,000 votes (2%)
Election of 1936
Completing the New Deal
With the confidence coming out of the 1936 election, FDR focused his attention on an economic plan to help the poor and restore consumer spending
On July 22, 1937, Congress passed the Bankhead-Jones Farm Tenancy Act This created the Farm Security Administration (FSA) to
aid tenant farmers, sharecroppers and farm owners who had lost their farms
It provided $500 million low-interest loans to poor farmers and grain collectives
It also set up camps for migratory workers
Completing the New Deal
In January 1936, the Supreme Court ruled that the Agricultural Adjustment Act was unconstitutional in U.S. v. Butler This act has the federal government invading “the
reserved rights of the states” and violates the 10th Amendment
On February 16, 1938, a new Agricultural Adjustment Act was passed This one focused on solving the problem of farm
surpluses by providing for the marketing of surplus crops Farmers would receive with direct payments from the
federal treasury instead of being taxed It also added a soil conservation program
Completing the New Deal
The National Housing Act of 1937 was also passed to help those living in low-income urban areas Federal funds were to be used for slum clearance
projects and for the construction of low-cost housingIn the long run, New Deal had a greater impact
on middle class The Home Owners Loan Corporation (HOLC) had the
biggest impact since it provided low interest loans and helped people save their homes from foreclosure
It also introduced first long term fixed rate mortgages and a uniform system of real estate appraisal that tended to undervalue urban property (beginning of the practice of “redlining”)
Completing the New Deal
Federal Housing Administration (FHA), created in 1934 by the National Housing Act, expanded and extended many of the HOLC policies While FHA loan system allowed millions to buy homes, it
favored the purchase of suburban homes over the repairing of older urban residences
The Fair Labor Standards Act was passed in 1938 The act included the country’s first minimum wage law,
which at the time was $0.40/hour It put in place 40-hour work weeks with time and a half
pay for overtime in certain jobs It prevented children between the ages of 16 and 18 from
working in “hazardous” occupations
Battle With the Supreme Court
As the first act of his second term, FDR announced a plan to reform the judicial system He was especially frustrated with the Supreme Court for
invalidating several New Deal measures, including the NIRA and the AAA
FDR introduced legislation in 1937 that would allow the president to appoint one justice for every justice over the age of 70 who did not retire At the time there were six justices over the age of 70 His plan also called for modernizing the court system
However, there was a lot of public outcry against this Even the Democrats broke with the president on this one
Battle With the Supreme Court
FDR withdrew the proposal after several months and admitted defeat
Ironically, the Court began passing practically every new initiative after this event When Justice Willis Van Devanter retired, FDR was able to
make his first appointment and ensure a shaky liberal majority
After 1937, a series of cases established the principle that the federal government trumped states’ rights and local control
FDR’s efforts to change the court had two negative consequences: It slowed reform initiative It also hurt his popularity and support
Hugo Black Supreme Court
Justice (1937-1971)
Managing the Liberal State
During his second term, FDR was worried that the large amount of spending the government did would lead to inflation
Fearing the toll this would have on the economy, he cut public spending at the beginning of 1937 From then until August 1937, unemployment had jumped
from 7 to 11 million 50% of those between the ages of 16-20 were out of work The stock market also fell, losing 2/3 of the gains it had
made since 1933 The Home Owners Loan Corporation was forced to
foreclose on 10% of its mortgages
Managing the Liberal State
Starting in 1938, FDR changed his economic policy and embraced deficit spending Based on the Keynesian policy, it was believed that
federal spending could help boost the economy during a recession
Once people had jobs, they would spend money leading to economic growth
Then, once the economy recovers, the government can begin recouping its losses through taxation
With this plan, FDR gave more money to the WPA and other works projects
He also reduced corporate taxes and halted anti-trust lawsuits
Senator Robert A. Taft (R - Ohio)
Anti-New Deal Coalition
With the mid-term election in 1938, Democrats lost a number of seats in Congress In the House, they lost 71 seats to Republicans In the Senate, they lost 6 seats to the Republicans While the Democrats still held the majority, it was no
longer so dominantA new anti-New Deal Coalition developed in
Congress It was made up of those who supported less public
spending, small businesses, and states’ rights They also believed that the New Deal policies only
helped the poor and ethnic minorities
Anti-New Deal Coalition
One of the leaders of this coalition was Senator Robert A. Taft from Ohio He openly spoke out against the New Deal as being
too socialist, criticized deficit spending, and opposed farm subsidies
Another concern of the Congressional Republicans was the influence communists and labor unions had on the White House The House Committee for Un-American Activities
began investigations to see if any communists had infiltrated some of the New Deal agencies
Secretary of State Cordell Hull (1933-1944)
“Good Neighbor” Policy
Since the early 1900’s, relations between the U.S. and Latin America had been strenuous This was due to the U.S. manipulating Latin American
governments and economies under the guise of protecting its “sphere of influence”
In his 1933 inaugural address, FDR said: “In the field of world policy I would dedicate this
nation to the policy of the good neighbor--the neighbor who resolutely respects himself and, because he does so, respects the rights of others…”
This meant that the U.S. was shifting its policy from military intervention to economic and political cooperation as the means to promote stability in the region
“Good Neighbor” Policy
The term “Good Neighbor” Policy was originally coined by Hoover in 1928 but it was FDR who took it to a whole new level
In December 1933, Secretary of State Cordell Hull met with leaders of Latin American states in Uruguay at the Montevideo Conference The goal of this meeting was to change the perception
of the U.S. as an imperialist power whose only concern was conquering the Americas
“Good Neighbor” Policy
On December 26, 1933 a treaty was signed at the Conference which stated that: All states were equal sovereign units able to enter into
agreements with other states The signatories of the treaty would not intervene in
the domestic or foreign affairs of another state, they would not recognize territorial gains made by force, and all disputes should be settled peacefully
It also negative the policy of “dollar diplomacy” that had been used since Taft’s administration
“Good Neighbor” Policy
Hull continued on the “Good Neighbor” policies In 1934, U.S. Marines were removed from Haiti Also that year, Congress signed a treaty with Cuba
which rescinded the Platt Amendment From 1933 to 1937, Hull negotiates numerous
reciprocal trade agreements between the U.S. and Latin America that cut tariffs in half
In 1936, at the Inter-American Conference for the Maintenance of Peace in Buenos Aires, the U.S. and other American countries agreed to not intervene in other countries disputes
In 1938, the U.S. made only mild protests to the Mexican government when it took over oil and farmlands own by American citizens
Rise of Totalitarianism
Rise of Totalitarianism
Totalitarianism This is a system of government in which the ruler(s)
of a state control all activities including social, political, economic, intellectual, cultural, and spiritual for their own purposes
Fascism A political ideology that puts nation and often race
above the individual It stands for a centralized autocratic government
headed by a dictatorial leader, severe economic and social regimentation, and forcible suppression of opposition
Rise of Totalitarianism
During the 1930’s, there was the rise of three strong and very dangerous governments that were potential threats to the U.S.: Japan Germany Italy
It was not until major aggressions from these powers that the U.S. changed its isolationist policies
Japanese Emperor Hirohito (1926-1989)
Imperial Japan
Imperial Japan was founded in 1889 At this time, most of the governmental powers were given
to the emperorDuring the latter half of the 19th century, Japan
went through a period of rapid modernization Because the country is an island, it had limited amounts
of necessary raw materials for manufacturing This forced Japan to import a number of raw materials
(iron, coal, and oil)By the late 1920s, 23% of Japan’s gross domestic
product was in manufacturing and mining
Imperial Japan
By 1930, the Japanese Empire was guided by three principles: expansionism, totalitarianism, and militarism
When the Great Depression hit Japan, the Empire’s main priority was to acquire raw materials Influenced by Western thought, Japan believed that these
materials could be gained by colonization They had already acquired Taiwan (1895) and Korea (1910)
for agricultural resources They looked towards Manchuria (iron and coal), Indonesia
(rubber), and China (agriculture) as future Japanese colonies
Imperial Japan
Since the Constitution of 1889, popularity and support of the Emperor developed into worship Japanese nationalism was a source of intense pride The country turned into a totalitarian regime with its
head being the emperorJapanese history and tradition are saturated
with militarism Prior to industrialization, the samurai were held in
high esteem With modernization, this esteem moved to the
members of the Japanese army and navy
Expansion of the Japanese Empire
The Manchurian Crisis
In 1931, Japan invaded Manchuria Within five months the Empire had set up a puppet
government in the region Many Chinese historians start the Second Sino-
Japanese War with this invasion
Opinions in the U.S. were mixed about what the U.S. should do: do we get involved and possibly get dragged into another war or do we ignore it?
The League of Nations wanted to “investigate” the matter but the U.S. does not participate
The Manchurian Crisis
Hoover, then president, had refused to take the initiative Many encouraged him to put in an economic embargo
against Japan He was afraid that this would ultimately lead to war Also, the U.S. could not afford to intervene because of
the Great Depression
His Secretary of State, Henry Stimson, was actually angered by Hoover’s lack of action
The Manchurian Crisis
On January 7, 1932, Stimson wrote letters to the Chinese and Japanese governments He stating that the U.S. would not recognize any
changes made in China that would curtail America’s “open door policy” in China
It became known as the Stimson Doctrine However, this did nothing to really stop Japanese
expansionism into China
The League of Nations ordered the Japanese to withdraw its troops from Manchuria The Japanese refused and withdrew from the League in
1933
The Manchurian Crisis
Numerous skirmishes occurred between the Japanese and Chinese from 1931 to 1937 The main war did not begin until 1937
On July 7, 1937, Japan invaded northern China, including Shanghai and Nanjing The Chinese were overpowered by the Japanese
military machine At the time, the Chinese government was in the midst
of a civil war with the Communists Many historians regard this as the beginning of the
Pacific War It is also known as the Second Sino-Japanese War
Second Sino-Japanese War (1937–1945)
The Japanese did not want to rule these sections of China directly Instead it set up puppet governments to rule in its place
In the Japanese-controlled areas of China, all oppression was put down by severe means They used chemical and biological weapons against
civilians This turned international opinion against the Japanese
Japan also planed to close off raw materials and trade with Europe This threatened the U.S.’s “open door” policy
Second Sino-Japanese War (1937–1945)
FDR responded to the invasion of northern China with his “Quarantine” speech on October 5, 1937 The speech called for a "quarantine of the aggressor
nations" While public opinion was on the side of China,
FDR was criticized by the isolationists This was out of fear of possible military involvement there Instead, he refused to acknowledge a war there and
extended trade credits to ChinaAlso at this time, FDR began to secretly speed up
a program to build enough long-range submarines to blockade Japan
U.S.S. Panay
The U.S.S. Panay
On December 12, 1937, the U.S. gunboat Panay was sunk on the Yangtze River by Japanese planes The Panay was part of the Yangtze River Patrol
designed to protect American interests in China The Japanese claimed they had not seen the American
flags flying on the ships The Japanese quickly offered a formal apology and
paid reparations in the amount of $2.2 million
The U.S.S. Panay
U.S. Navy cryptographers did discover that the attack was planned It was also discovered that the Japanese government
did know it was a U.S. ship
Even with this clear evidence, it was not enough to bring the U.S. military in The isolationist feelings in the U.S were so strong that
the government was pressured to accept the Japanese explanation that this was an accident
Chinese victims being buried alive by Japanese troops in Nanjing
Nanjing Massacre
Nanjing Massacre – (Winter 1937/38) – After the Japanese army took the city of Nanjing, over a six week period the soldiers committed numerous atrocities It is estimated that between 200,000 to 300,000
people were murdered Some were buried alive Over 20,000 women were raped
While this story made the front page of the New York Times, it still did not lead to U.S. action against Japan
Heads of victim’s of the Nanjing Massacre
Adolph Hitler and the Rise of Germany
Fascism
Fascism is a philosophy of government that believes in: A strong centralized government headed by a dictator Stringent social and economic control Often has a policy of belligerent nationalism Two most powerful fascists of all time were Adolf
Hitler and Benito Mussolini
Germany Prior to World War II
Treaty of Versailles – 1919 – Ended World War I Article 231 – “War Guilt Clause” – This article placed full
blame on Germany for the start of the war and ordered it to pay reparations (totaling to over 132 billion marks) to the Allied countries
Many Germans saw this as an embarrassment since it left the country economically broke and unarmed
In April 1921, the Allies first began demanding payment of war reparations from Germany
This led to rapid devaluation of the German mark In 1921, the exchange rate was 75 marks to $1 U.S. In November 1923, it 4 billion marks to $1 U.S.
Germany in the Great Depression
Many lost their life savings due to the devaluation of the mark
During the 1930s, the Germany was hit harder than the U.S. by the Depression Germany had a 33% unemployment rate while the U.S.
only had a 25% one By 1935, Germany literally ran out of money
Before the Crash of 1929, American businesses had invested in the rebuilding of Europe but afterwards stopped
Because of the shortage of jobs and food, many Germans were willing to turn to radical groups
Hitler and the Rise of the Nazi Party
In September 1919, Hitler was working as a police spy for the German Army One of his duties was to infiltrate the German Worker’s
Party (DAP)He liked the ideas of the party and joined it
It promoted the idea of nationalistic “non-Jewish” socialism This became the foundation of the Nazi party
In October 1920, Hitler creates the Sturm Abteilung (SA), which became his own private army Their job was to protect Hitler and disrupt meetings of
political opponents The SA became known as “storm troopers”
Hitler and the Rise of the Nazi Party
In July 1921, Hitler was elected to be Führer of the party He renamed it to the National Socialist German Workers’
Party (NSDAP), or the Nazi partyBy 1923, Germany’s economy was in rough shape
In September 1923, Germany resumed making reparation payments to France
By November, people would be required to carry billions of marks to buy groceries, of which many could not afford
The Nazi party felt this was the perfect opportunity to seize power By November 1923, the Nazi party had over 55,000
members
Munich Beer Hall Putsch
Their plan called for the kidnapping of Bavarian leaders at a Munich beer hall They would then force them at gunpoint to make Hitler
their leader They had a famous WWI general on their side who
would then help them win over the armyOn November 8, 1923 – Hitler and his SA
troops stormed in to the beer hall He managed to convince the leaders to support him However, they were unable to secure the support of the
army This was known as the Munich Beer Hall Putsch Hitler was arrested for conspiracy to commit treason
Leaders of the Beer Hall Putsch
Hitler at Landsberg
Hitler was put on trial in February 1924 The judges at the time were Nazi sympathizers Hitler used the trial to spread Nazi propaganda During the trial he stated "I alone bear the
responsibility. But I am not a criminal because of that. If today I stand here as a revolutionary, it is as a revolutionary against the revolution. There is no such thing as high treason against the traitors of 1918."
He was still found guilty and sentenced to five years in prison with possibility of parole
Hitler was given a large and comfortable cell at Landsberg prison
Hitler at Landsberg
During his time in prison, he dictated his autobiography Mein Kampf It contained a number of his political ideas
Including his belief in lebensraum, “living room,” for Germans It also included the concept of a “superior” race (the Ayrans)
and “inferior” races (Jews and Slavs)
Hitler was released from prison on December 20, 1924 By this time, he realized his mistake with the Beer Hall
Putsch was that he had not gotten the support of the military
This time, he was going to get support of the people and the army by using the democratic process to his advantage
Rebirth of the Nazi Party
Also while he was in prison, the popularity of the Nazi party had declined It had even been banned in Bavaria after the Putsch
Hitler spent the next few years reorganizing the Nazi party and give it a more legitimate appearance He used his oratory skills to win over politicians and
masses He reworked his image to appeal to the middle and upper
classes Hitler was able to enjoy a comfortable lifestyle in Bavaria
The Nazi party did not have any real power until 1929
Rebirth of the Nazi Party
The Great Depression hit Germany hard Many of the foreign businesses that had invested in
post-war Germany pulled their funds German industry came to a grinding halt without the
foreign money and that led to job layoffs At its peak, unemployment reached 33% in Germany Once again, inflation skyrocketed and people lost their
life savingsWith the dramatic downturn of the economy,
the Nazi party began to rise in popularity Prior to 1929, the Nazi party had a membership of
100,000 (<0.2% of Germany’s 60 million population)
Rebirth of the Nazi Party
The government was also very ineffective In 1930, the German chancellor asked President Paul
Von Hindenburg to dissolve the Reichstag and call for new elections
Hitler used these new elections to his party’s advantage He campaigned throughout the country and strongly
appealed to the disgruntled masses He promised jobs, a strong economy, and to bring
back pride to Germany
Rebirth of the Nazi Party
In the September 1930 elections, the Nazi party won 18.3% of the votes This gave them 107 seats in the Reichstag This moved the Nazi party into the second largest
party in Germany However, they were not given a position in
Hindenburg’s cabinetFrom 1930 to 1932, party members did what
they could to disrupt the government and prevent a successful coalition The longer the government was in turmoil, the
stronger the Nazi party would become