VI & VII

The Bonus Army

  • Event Overview:

    • In the summer of 1932, over 15,000 unemployed veterans and their families converged on Washington, D.C.

    • They petitioned for a bill to authorize immediate payment of cash bonuses to World War I veterans, originally set for 1945.

    • The economic hardships made these bonuses symbolize much-needed government relief.

  • Location:

    • Veterans set up a tent city in Anacostia Flats, also known as a "Hooverville", reflecting the camps of the homeless and unemployed.

  • Actions:

    • Founded the Bonus Expeditionary Force (Bonus Army), they organized marches and demonstrations.

    • Their slogan criticized government prioritization: "While there were billions for bankers, there was nothing for the poor."

  • Government Response:

    • President Herbert Hoover opposed the bill citing concerns over the federal budget.

    • The Senate voted against the payment.

    • Though many veterans left in defeat, some remained to press their case.

  • Confrontation:

    • Hoover labeled the remaining veterans as “insurrectionists” and ordered their eviction.

    • General Douglas MacArthur led the military to disperse the Bonus Army, employing local police and military forces (infantry, cavalry, tanks, and machine guns).

    • The military actions resulted in violence:

    • Troops chased away protesters.

    • Tear gas used indiscriminately, endangering children.

    • Casualties: two veterans were killed and a baby died from tear gas exposure.

  • Public Impact:

    • National media covered the raid extensively, showcasing footage of the brutal handling of veterans.

    • Public outcry resulted in widespread condemnation of Hoover's insensitivity and undermined his presidency.

    • Hoover was criticized for his ineffectiveness regarding the economic crisis, although he was not personally responsible for the Great Depression.

    • His conservative ideology failed to grasp the severity of the crisis.

Franklin Delano Roosevelt and the “First” New Deal

  • Context of the Great Depression:

    • The early years of the Depression were marked by deepening crisis and despair.

    • Unemployment reached 25% in 1932, indicating a national level of economic despair that prompted Americans to seek governmental intervention.

    • The 1932 presidential election was pivotal.

  • Franklin Delano Roosevelt’s Election:

    • Democrats won a landslide victory, electing Franklin Delano Roosevelt, the former governor of New York.

    • Roosevelt came from a privileged background, related to former president Theodore Roosevelt.

    • Historical political journey:

    • Appointed assistant secretary of the Navy in 1913.

    • Diagnosed with polio in 1921, left him a paraplegic but he continued his political career.

    • Elected governor of New York in 1928; expanded social programs during the Depression.

  • Governor's Programs:

    • Established the Temporary Emergency Relief Administration (TERA) to provide jobs and aid to struggling families.

    • TERA provided assistance to 10% of the state's families during the crisis.

    • Frances Perkins joined as his labor commissioner, promoting legislation on workplace safety and child labor.

  • Campaigning for Change:

    • Roosevelt's acceptance speech in 1932 included the phrase "new deal for the American people," which became synonymous with his policy initiatives.

    • Proposed programs included:

    • Jobs programs

    • Public works projects

    • Higher wages

    • Shorter work hours

    • Old-age pensions

    • Unemployment insurance

    • Farm subsidies

    • Banking regulations

    • Lower tariffs

    • Hoover opposed these measures, claiming they undermined American principles and hinted at communism.

  • Election Results:

    • Roosevelt won a historic victory in November 1932, acquiring the most counties ever won by a presidential candidate.

    • Pre-inauguration, he organized his advisory team, famously known as the Brain Trust.

  • Inaugural Address:

    • On March 4, 1933, Roosevelt delivered a memorable inaugural address emphasizing confidence: "The only thing we have to fear is fear itself.”

    • Immediate action was promised to address the economic crisis.

  • First Actions as President:

    • Implemented a national bank holiday to stabilize the banking system, following widespread bank failures.

    • Introduced the Emergency Banking Act to create operational guidelines for banks.

    • First Fireside Chat aired on March 12, 1933, explaining banking safeguards and urging public confidence in banks.

    • The success is reflected in the resurgence of deposits exceeding withdrawals.

  • Legislative Successes:

    • The Glass-Steagall Banking Act established the FDIC and separated commercial from investment banking.

Early New Deal Programs

  • Relief Programs:

    • Roosevelt's administration and Congress facilitated significant relief measures during the First Hundred Days:

    • Civilian Conservation Corps (CCC): Employed young men on environmental projects.

    • Federal Emergency Relief Administration (FERA): Provided direct assistance to state relief programs.

    • Tennessee Valley Authority (TVA): Developed infrastructure and environmental management in the Tennessee Valley.

  • Key Recovery Programs:

    • Agricultural Adjustment Administration (AAA):

    • Aimed to raise agricultural prices by reducing production to stabilize farmers' income.

    • Farmers were compensated to limit crop production.

    • National Recovery Administration (NRA):

    • Implemented through the National Industrial Recovery Act (NIRA), allowed businesses to form industry codes to stabilize prices and working conditions.

    • Exempted participating businesses from antitrust laws in exchange for fair practices.

  • Impact on Economy:

    • The New Deal programs aimed to stabilize the economy and initiated recovery.

    • Despite initial successes, unemployment remained high, with many still out of work.

  • Further Employment Initiatives:

    • Civil Works Administration (CWA) and Works Progress Administration (WPA):

    • Provided employment for various public projects, ensuring millions returned to work.

    • Public Works Administration (PWA) funded large infrastructure projects, creating public goods and jobs.