Depression Statistics Stocks in 1929 $87 billion

Download 13.52 Kb.
Size13.52 Kb.

Depression Statistics

Stocks in 1929 $87 billion

In 1933 $19 billion

Wholesale prices down 38%

Farm prices 60% below low level of 1929

National income, production halved

According to Fortune magazine (September 1932), there were ten million unemployed, 25 million without a source of income.

(above: Degler, Out of Past)

Bank failures spread.

“By the beginning of 1933, the financial-self confidence of the nation reached a dangerously low level, requiring the new administration of Franklin Roiosevelt, as its first official act, to order the closing of all banks.” (Degler, Past, 413)

It was important for society to have the banks be on sound financial footing. It was indicative of the economy overall.
“mutterings of a revolution” turned out to be the New Deal
“…the massive weight of the Depression was grinding away at the bedrock of American institutions.” (Degler, Past, 416)
“perhaps the most striking alteration in American thought which the Depression fostered concerned the role of the government in the economy.” (417)
Significance of the New Deal417
TVA  “most imaginative and fruitful innovation.” (419)
Roosevelt wanted to say that security was the least we should provide—the government intervention “does not indicate a change in values.” (421)
“Unemployment was the scourge of the Great Depression…widespread unemployment, permeating all ranks and stations in society drove the American people and their government into some of their most determined and deliberate departures from the hallowed policy of “hands off” (422)
**Workless in 1938—10 million. 2/3 as great as under Hoover. Not fully recover until World War II.
Collective defense!! (425)
The Coming of the New Deal, AS
“There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.”


Quote describing his first day (2)

Quote box (page 3, status)

“Even the iron hand of a national dictator is in preference to a paralytic stroke.” (3) Alfred Landon
First priority was the banking system
FDR brought with him to Washington 2 proclamations in rough draft form. Special session and bank holiday
Bank Holidaybuy time until the special session.
Banish fear, restore confidence
Conservative approach, rather than nationalize the banks.

Bank closing gave a sense of the bottom

After four p.m., congress passed unanimously bill (read aloud) that few had seen.

7:30 senate passed it 73-7

from induction to signature, under 8 hours
FDR—fiscal conservative. Balanced budget.

Took momentum from the banking victory and …

After: deposits were more than withdrawals, markets bullish, bonds oversubscribed
Fireside Chat, March 12 to reassure that savings were secure

Roosevelt took it to the people, plain language

Most were pleased. Even conservatives

“An American dictatorship based on the consent of the governed without any violation of individual liberty or human rights.” –Hamilton Fish

“Hearst” – “I guess at your next election we will make it unanimous.”
There was a sense of motion
“Lippman (13)” “In one week, the nation which had lost confidence in everything and everybody, has regained confidence in the government itself.”
A transformation of the capital and the white house

“The combination of power and delight was irresistible to people used to neither in the White House; it gave Americans a new confidence in themselves. (21-22)

New Dealers


Timeline, pg. 20
100 days (22)

Documentary History, George McJimsey

After court packingeconomic downturn due, in part, to FDR’s reduction of federal spending in order to balance the budget.

Fdr never believed in deficit spending

Attempted to defeat democrats in primary elections who opposed him

A few laws after court pack

New deal essentially dead by 1939

The stock Market crash put increased pressure on the banking system…banks not prepared to deal with it.

Mass production economy and not mass consumption
Bank system—3 systems

Fed reserve, large regional banks, small local banks (2/3 banks, 40% of the capital)

As companies collapsed, money lost, people make bank runs

Banks closed (sanctioned by states)

Alarming flow of gold out of banking system
Prob solved: gov issues notes based on the assets of banks

Currency = fed reserve notes

The Nation

P 276 Nation calls for nationalization of banks—off gold

278 more radical ideas
100 Days editorial

editorial on bank law p. 305

farm relief eds, 329
bank ed 330
Costigan 362
Farm 387
100 days 711 (tradition)

Share with your friends:

The database is protected by copyright © 2020
send message

    Main page