The Second New Deal, 1935-38

When was the Soil Erosion Act passed?

April 1935

When did the Supreme Court declare the NIRA unconstitutional?

May 1935

When was the Sick Chickens case?

May 1935

When was the Works Progress Administration established?

May 1935

When was the Rural Electrification Act passed?

May 1935

When was the Social Security Act passed?

July 1935

When was the National Labour Relations Act (Wagner Act) passed?

July 1935

When was the Wealth Tax Act passed?

August 1935

When was Huey Long assassinated?

September 1935

When did the Supreme Court judgment undermined the legitimacy of the AAA?

January 1936

When was the Soil Conservation and Domestic Allotment Act passed?

February 1936

When did the Supreme Court undermine the legality of the Guffey Bituminous Coal Conservation Act?

March 1936

When did the Supreme Court invalidate minimum wage legislation in NY state?

April 1936

When did Roosevelt win his second term with a landslide?

November 1936

When did Roosevelt announce his Supreme Court alternation scheme?

February 1937

When did massive opposition in congress develop due to FDR’s reform scheme of the SC?

February 1937

When did the Supreme Court uphold the minimum wage in Washington State?

March 1937

When did the Supreme Court uphold the Wagner Act?

April 1937

When did the Wagner-Steagall Act establish the US Housing Authority?

April 1937

When did FDR drop his reform of the Supreme Court?

July 1937

When was the Agricultural Adjustment Act passed?

February 1938

When was FDR’s anti-lynching law defeated?

February 1938

When was the Fair Labour Standards Act (the last of ND legislation) passed?

June 1938

When did Roosevelt begin his campaign against conservative Democrats?

June 1938

When was the Federal National Mortgage Association (Fannie Mae) set up?

November 1938

When was the original Federal Reserve created?

1914

How many presidentially appointed members were on the revamped Federal Reserve Board?

Seven members.

What powers did the new Federal Reserve Board gain?

Control of reserve requirements, discount rates, open market operations, and veto power over officer appointments.

How much was authorised under the Emergency Relief Appropriation Act?

$4.8 billion — the largest expenditure in US history at that time.

How much of t$4.8 billion from ERAA was allocated to the Works Progress Administration (WPA)?

$1.4 billion.

How much did the WPA spend overall?

Over $11 billion.

How many Americans were employed by the WPA?

8 million — about one-fifth of the national workforce.

What infrastructure did the WPA build?

2,500 hospitals, 5,900 schools, 350 airports, 570,000 miles of rural roads, and 8,000 parks.

How many artists participated in “Federal Project One”?

About 40,000.

How many college students were helped to stay in school by the National Youth Administration (NYA)?

Over 500,000.

What corporate structure did this Act aim to eliminate?

Pyramid structures — companies more than twice removed from the operating utility.

What body was given power to decide the fate of holding companies?

The Securities Exchange Commission (SEC).

What else was the SEC given control over?

All financial transactions and stock issues of utility companies.

What percentage of farms had electricity in 1935?

12.6%.

What percentage of farms had electricity by 1941?

35%.

How many members made up the new National Labor Relations Board?

Three members.

Prior to the Act, which state was the only one to provide unemployment benefit?

Wisconsin.

What incentive was offered to employers to contribute to state unemployment schemes?

90% exemption from the payroll tax.

How many families was the RA originally intended to relocate?

500,000.

How many tenant farmers became landowners under the RA and FSA?

Over 4,000.

How many greenbelt towns were actually constructed?

Three — in Maryland, Ohio, and Wisconsin.

What was the funding disparity between poor farmers and prosperous landowners?

For every $1 spent on poor farmers, $10 went to prosperous landowners via AAA and the Commodity Credit Corporation.

Before the Act, what average tax did those earning over $16,000 pay?

Less than $1,000.

What was the new maximum tax rate on incomes over $50,000?

Increased from 59% to 75%.

How much revenue did the Act raise?

Around $250 million.

What percentage of Americans earned more than $10,000?

Only 1%.

What were the four problems during Roosevelt’s second term?

The Supreme Court; Roosevelt Recession; Agriculture; Labour unrest

In what year did Roosevelt, influenced by Henry Morgenthau, cut federal spending to balance the budget?

1937

What was the increase in unemployment during the 1937 Roosevelt Recession?

Unemployment rose by 2 million.

By what percentage did manufacturing employment fall during the 1937 Roosevelt Recession?

23%

By how much did national income and farm prices decline during the 1937 Roosevelt Recession?

National income declined by 13%; farm prices fell by 20%.

What percentage of industrial gains made during the New Deal were lost during the recession, according to the Federal Reserve Board?

66% of industrial gains were lost.

What was the fall in the Federal Reserve Board’s index of industrial production from August 1937 to May 1938?

It fell from 117 to 76.

How much was Roosevelt’s relief budget in response to the recession, and which agencies did it focus on?

$3.8 billion; focused on the PWA and WPA.

What was the unemployment level in 1939, after Roosevelt’s deficit spending resumed?

9 million unemployed in 1939.

By what percentage had farm income increased during the 1930s, and how did it compare to pre-1914 levels?

Farm income doubled but only reached 80% of pre-1914 levels.

In what year were 35 million acres of land destroyed by the Dust Bowl, and how much more was rendered useless?

In 1934, 35 million acres destroyed and 125 million acres’ soil exhausted.

How many people did Oklahoma and Kansas lose (to migration) during the 1930s due to the Dust Bowl?

Oklahoma lost 440,000; Kansas lost 227,000.

How many people migrated to California during the Dust Bowl, and what happened to many of them?

220,000 migrated to California; many were sent back by authorities.

When was the Committee of Industrial Organizations (CIO) founded and by whom?

1935 by John L. Lewis.

When was the General Motors sit-in strike and what did it achieve?

1936; secured recognition of the United Automobile Workers (UAW).

By what year did union membership rise to 7 million, from 4 million the previous year?

1937

By what year did unions become the largest contributors to the Democratic Party’s campaign funds?

1940

When was the Bankhead-Jones Farm Tenant Act passed?

July 1937

What agency did the Bankhead-Jones Farm Tenant Act establish and what did it replace?

Established the Farm Security Administration (FSA); replaced the Resettlement Administration (RA).

How many camps did the FSA establish for displaced families?

30 camps.

By what year had 40,000 farmers bought their own farms due to the FSA, and how much had been borrowed?

By 1947, 40,000 farmers bought farms; 900,000 families borrowed $800 million.

What led to most of the FSA loans being repaid?

The return to prosperity due to the Second World War.

When was the Wagner-Steagall National Housing Act passed?

September 1937

What authority did the Wagner-Steagall Act create and what type of loans did it offer?

Created the US Housing Authority (USHA); offered low-interest loans up to 100%.

How many homes were built by 1941 under the USHA, and what were the typical rents?

160,000 homes by 1941; rents of $12–$15 per month.

How much money did Congress allocate to the USHA and what was the cap per state?

$500 million allocated (half the amount requested); funding for each state capped at 10%.

When was the Second Agricultural Adjustment Act passed?

February 1938

How did the Second AAA handle overproduction?

Through loans from the Commodity Credit Corporation to store surplus until prices rose.

What did the Second AAA’s Food Stamp Plan do?

Distributed surplus food to those on relief to combat hunger and surplus.

How was the Second AAA implemented and why was it criticised?

Required two-thirds farmer approval for quotas; criticised for poor communication, complexity, and domination by large-scale farmers.

What reflected farmer disillusionment with the Second AAA?

Republicans and New Deal critics gained in the 1938 congressional elections; sponsors of the bill were defeated.

When was the Fair Labour Standards Act passed?

June 1938

What was the initial minimum wage and maximum work week set by the FLSA?

Minimum wage: 25 cents/hour (rising to 40 cents); maximum hours: 44/week (aim to reduce to 40 in 3 years).

How many people had their wages increased and hours reduced under the FLSA?

Wages increased for 300,000 people; hours reduced for 1.3 million.

What agency was created to enforce the FLSA and what power did it have?

Wages and Hours Division in the Department of Labour; had power to impose hefty fines

Which groups were excluded from the FLSA and why is that significant?

Domestic servants and farm labourers — jobs mainly held by African-Americans — were excluded to gain Southern political support.

How many senators and representatives came from predominantly rural areas in the late 1930s?

54 of 96 senators and 225 of 435 representatives were from rural areas.

When did Roosevelt summon a special session of Congress to revive delayed New Deal measures, and what was the outcome?

November 1937 — none of the proposed measures passed.

How many senators did Roosevelt attempt to purge in the 1938 elections and what were the results?

Roosevelt targeted 5 senators; all were re-elected and Republicans gained 8 Senate seats.

When did Justice Van Devanter announce his retirement?

May 1937

What was the membership size of Dr Francis Townsend’s pension movement?

Between 7 to 8 million Americans aged over 60.

By 1935, how many members and clubs did Huey Long’s movement reportedly have?

Around 8 million members in 2,000 clubs.

What did one poll suggest about Huey Long’s potential impact on the 1936 election?

He could have won 8 or 9 states and 12% of the presidential vote.

In what year did the Republicans select Alfred M. Landon as their presidential candidate?

1936

How many votes did Landon receive compared to Roosevelt in the 1936 election?

Landon received 16 million; Roosevelt received over 27 million.

How many states did Roosevelt carry in the 1936 election?

All except two — Maine and Vermont.

In 1936, how many of the thirty-three gubernatorial contests did Republicans lose?

26 out of 33.