Great Depression

and
New Deal
Review Assignment

By
Benton Anderson
Seve De Respino
Emma Harmen
Collin Klees
Great Depression and New Deal Chapter Outline

Although the 1920’s seemed to be a time of prosperity, it laid the groundwork for
the depression that followed. Officially, the Great Depression began on Black Friday in
1929 when the stock market crashed. However, the factors that actually had caused this
crash in the economy had been a long time in the making. These factors included the
maldistribution of wealth which resulted in unequal purchasing power and left the
American consumer base unable to maintain the demand and thus the growth the
economy had been experiencing. In addition, the American people had accumulated large
amounts of debt during the 1920’s and had been living in excess of their means. When the
debt caught up to the consumers the economic crisis began. Also, buying on margin was a
major factor that led to the collapse of the stock market. Paying a fraction of the actual
price and then borrowing the rest hoping that the stock will go up led to artificially
increased stock prices that eventually returned to realistic levels. This left many people
“holding the bag” that could not afford to pay off the loan they used to buy the stock.
Finally, the Dawes Plan, which supported the rest of the world’s economy by basing it on
the American economy through a series of loans, turned America’s economic problems
into a global crisis.
The effects of this economic weakness were apparent immediately. In the first
three years of the Great Depression 9,000 banks failed and unemployment rose to 25%.
The president at the time, Herbert Hoover adopted a relatively Laissez-Faire policy to the
problems of the Great Depression. He attempted to marginally increase government
spending but that did little more than create a federal deficit. Toward the end of his term
he created the Reconstruction Finance Corporation which provided loans to banks to try
to help the suffering economy. However, this was too little too late. In 1932, FDR became
president and immediately began to increase government involvement in the economy’s
recovery. Although FDR attempted to bring an end to the depression by pumping
government money into the economy, his agencies were largely ineffective and it wasn’t
until the industrial production and spending caused by WWII that the economy
recovered. His first act as president was to declare a bank holiday to attempt to rekindle
the people’s faith in the banking industry. He then passed a flurry of legislation called the
New Deal during his 100 days of taking office. This legislation marginally eased the
public’s suffering but still was unable to end it. Then, in 1935, FDR started the Second
New Deal which continued to create government involvement in the economy to
stimulate growth. The main examples of the Second New Deal are the NLRB, the WPA,
and the Social Security Act. However, the biggest setback FDR encountered was the
Supreme Court. It was constantly defeating his legislation and dismantling both New
Deals. His solution to this problem was a “court packing plan” where he would add up to
six new justices due to the “overbearing workload” the courts had. The public response
was outcry and FDR abandoned the plan. However, the court stopped invalidating his
legislation due to a change in the justice’s voting patterns. Overall, FDR’s recovery plan
failed to achieve economic recovery; however it did create the precedent of the
government providing welfare programs such as social security and other relief programs.
In addition, it created new expectations of government involvement in the lives of the
people and the direction of the economy.
 In addition, there were important domestic events as well. During Herbert
Hoover’s administration, Hoover believed in Voluntarism which meant he wanted
America to make sacrifices and tighten the belt to get through the Great Depression. In
addition, veterans marched on Washington to demand their bonuses early; this group was
called the Bonus Army. After reaching Washington, Hoover sent the army to remove
them led by General Douglas MacArthur and Dwight D. Eisenhower. In addition, the
Dust Bowl had displaced many Americans sending them west to California. Once there
they were met with hostility and did not receive the help they needed. Overall, Hoover
failed both in his economic policy and his domestic policy. During FDR’s administration
the only domestic issue was a result of the Great Depression. Therefore, the major
domestic event that concerns him is his opposition. The opposition to the New Deal came
from two major directions, those who did not think that it went far enough and those who
thought it went too far. Huey Long, the Louisiana populist demagogue, called for a
redistribution of wealth and said that the New Deal did not go far enough. On the other
hand, Father Charles E. Coughlin, a Catholic priest, preached to his radio audience that
the New Deal went too far. Overall, the opposition had little effect due to Huey Long
being assassinated and Father Charles E. Coughlin losing popularity due to his anti-
Semitism. Overall, the domestic issues of the time were dominated by the Great
Depression and therefore were dependent on the political and economic issues.
Glossary Terms and Definitions

Programs, Policies and Alphabet Soup of the New Deal

Relief, Recovery and Reform - the term used to describe the policies and programs of the
First New Deal. All of the programs used to combat the Depression would fall into one of
these three categories.
First 100 days - The first 100 days of the FDR administration in 1932, where he used
government to pass numerous, sweeping reforms to the banking and economic system, and
also provided for radical change in the reach of the government.
First New Deal - Roosevelt’s response to the Great Depression in which he tried everything
and anything to stimulate the economy. This included several public works programs as well
as “priming the pump”.
Second New Deal - the term used to describe the New Deal programs after 1935, shortly
before FDR's second term. Characterized by the attempt to provide for long term recovery
with a prominent example being Social Security.
Works Progress Administration - utilized the unemployed to create numerous public
facilities such as parks, roads, bridges, libraries and funded social improvement projects.
Bank Holiday - one of the first acts of FDR's first 100 days wherein all banks were ordered
to close for several days in order to stop the bank run and allow time to reorganize and
prevent the failure of more banks and bank accounts.
Court Packing Plan - Roosevelt's plan to increase the size of the Supreme Court and fill the
new spots with liberal-minded justices so that some of his New Deal programs would no
longer be shot down in court. The idea backfired and received widespread negativity from
congress and the American people.
Schechter v. United States (1935) - Landmark Supreme Court case that limited the power of
Congress and the President concerning regulation of commerce. The act invalidated the
National Industrial Recovery Act (NIRA), and served as one of the limitations set in place
upon the immensely powerful Roosevelt Administration.
FDIC - (Federal Deposit Insurance Corporation) created to prevent the massive consumer
financial losses during the Bank Runs of the early depression. The FDIC insures a sum of
money deposited in banks should the bank close.
Glass-Stegall Act - the Act that created the FDIC.
Civilian Conservation Corps - hired the unemployed young men of the depression era to
conserve natural resources and place many new trees and roads for future usage.
Fair Labor Standards Act - A late New Deal program that established a mandatory
minimum wage, overtime pay and prohibited employment of minors in many jobs.
Emergency Banking Act - Designed during the hiatus of the Banking Holiday during
Roosevelt's first 100 days to reorganize the structure of the banks and allow the federal
government to regulate and close down poorly performing banks while allowing stronger
banks to survive.
National Labor Relations Act - Introduced by Robert E. Wagner, also known as the Wagner
Act. Provided workers the right to compel employers to recognize and bargain with
legitimate unions.
Social Security Act - Guaranteed retirement payments for enrolled workers beginning at the
age of 65; set up federal-state system for unemployment insurance and care for dependent
mothers and children.
Tennessee Valley Authority - One of the more successful programs of the New Deal, the
program was designed to provide more modern amenities like electricity to areas of
Tennessee that were hit particularly hard by the Depression.
Wagner Act- Introduced by Robert E. Wagner, also known as the National Labor Relations
Act. Provided workers the right to compel employers to recognize and bargain with
legitimate unions.
Agricultural Adjustment Act- Attempted to regulate agricultural production through farm
subsidies. It was ruled unconstitutional and disbanded after WWII.
Public Works Administration - Financed more the 34,000 federal and non-federal
construction projects. Through this act, the federal government funded numerous large
building projects like dams and bridges, and focused on conserving natural resources in the
process.
21st Amendment - Ended prohibition in the interest of reducing the crime rate that increased
due to bootlegging, among other illegal activities.

Influential Figures
Father Coughlin - once a supporter of the New Deal, later turned to radical conservatism
and anti-Semitism. Notable for being one of the famous opponents of FDR to the far right.
Dr. Francis Townsend - the initiator of the concept of Social Security, eventually passed in
1935.
John Lewis - leader of the United Mine Workers of America union, and the main force
behind the CIO.
Calvin Coolidge - One of the three Laissez-Faire presidents preceding FDR during the
1920s. Notable for not doing much at all to help stop the oncoming depression.
Herbert Hoover - The president before Roosevelt. Known for being the scapegoat of many
of the problems of the Depression. Notable for doing "too little, too late" in order to combat
the economic downturn during his administration.
"Rugged individualism" - Phrase coined by Hoover that epitomizes the strength and
moral worth of the individual through his or her work ethic. Hoover used this policy to
justify his inaction toward the impoverished during the early years of the depression.
Hoovervilles - Shantytowns built by homeless people stricken by the financial crisis
during the Great Depression. They were named after the President Hoover due to the
commonly held belief that he let the nation fall into the Depression.
Huey Long - Roosevelt's opposition from the far left who supported more widespread
distribution of wealth to the point of socialism in order to combat the problems of the
depression.
Douglas MacArthur - Army Chief of staff. Ordered by President Hoover to disperse the
Bonus Army protesters in Washington.
Franklin Delano Roosevelt - President of the U.S. after a decade-long string of three
ineffective, Laissez-Faire presidents whose lack of government involvement arguably helped
to cause the Depression. Prominently known for greatly expanding the role of government
and implementing his New Deal policies and numerous public works programs (CCC, TCA,
NRA, etc.) in hopes of restoring the U.S. economy, with mixed results.
Andrew Mellon - financial advisor and Secretary of the Treasury during the 1920s whose
policies of reducing taxes and otherwise laid the foundation for some of the depression era
economic problems.
John Maynard Keynes - the British economist who wrote the ideas on Keynesian
Economics, where the government is the source of the reform to a struggling economy.
 Priming the Pump - one of the methods of Keynesian Economics where the
government infuses large amounts of money into a struggling economy in order to
stabilize the economy and increase consumer confidence.

Events that Brought About the Depression

Dust Bowl - a common occurrence during the depression in the Midwest. Years of
overfarming and depletion of the natural anti-erosion mechanisms of the soil caused giant
clouds of dust to wreak havoc on the farming areas. Notable for compounding the farmers'
issues during the time.
Black Thursday - The first day of major stock collapses that marked the beginning of the
Depression with Black Tuesday following the next week. The two days served as the initiator
of the downward spiral after a decade's worth of prosperity in the 1920s.
Black Tuesday - The second day of major stock collapses that marked the beginning of the
Depression following the Black Thursday crash the previous week.
Bonus Army - a protest by WWI veterans seeking an early payment of their bonuses due
many years later in order to aid themselves during the depression. It was eventually shut
down forcefully by the Hoover administration.
Hawley-Smoot Tariff - a large tariff employed to aid American business interests and
improve trade with other nations. The tariff eventually plunged the world into further
economic hardships by reducing all trade in and out for all nations.
Dawes Plan - Plan created by American banker and diplomat, Charles G. Dawes. It created
the policy of providing Germany with private funds from American banks in order to aid in
their repayment of the war debts, in return for Britain and France agreeing to reduce the debt
they claimed. This, along with the Young Plan, effectively made the European economy
intertwined with the U.S. economy, and as a result of the loan recalls during the beginning of
the Depression, the European economies all faltered alongside America's.
Young Plan - Created by American Owen D. Young in 1929 as the extension of the Dawes
Plan, it limited Germany's reparations after they could not fulfill the requirements of the
Dawes Plan. It reduced further payments to a lower amount over a period of 59 years. It
should be noted that the Dawes Plan and Young Plan were actually two separate entities.
Buying on the Margin - A process of buying stocks for a minimal initial payment and
paying back the remainder of the loan after the stock had grown in value. This process helped
to accelerate the inflation of imaginary credit capital during the 1920s and brought about the
downfall of the economy.

Other
Sit Down Strike - a method of striking used prominently by the UAW where the protesting
workers sit down at their posts to prevent working until their demands are met and immediate
replacement by ownership.
Bread Lines - People affected by the Depression would receive a ration of food at these soup
kitchens.
The Grapes of Wrath - a novel by John Steinbeck, famous for chronicling the hardships of
the depression.
Essay 1

How successful were the programs of the New Deal in solving the problems of the Great
Depression? Assess with respect to TWO of the following:
-Relief
-Recovery
-Reform

By the 1930’s the U.S. started to feel the effects of their “on margin” buying, as
factors such as the misdistribution of wealth and installment buying led to the Stock
Market crash in 1929. This pushed most Americans into depression as many people lost
their jobs and homes as they entered into a life of poverty. President Hoover assured the
country to stay calm and that this would pass over. Americans, hostile of Hoover’s
approach, elected Franklin Roosevelt to the White House in 1932 in hope that his “will
do” attitude and optimism would get the country out of the Great Depression. As
Roosevelt entered office, he provided a “New Deal” to the people. This New Deal had the
concept of try anything and everything that could possibly help get the U.S. out of the
depression. Roosevelt hoped this New Deal would provide relief and recovery to the
nation. Although World War I ultimately brought the U.S. out of depression, Roosevelt’s
New Deal did show great success in providing relief and recovery to the nation during the
Great Depression.
In order to provide relief to the people, FDR had to restore Americans faith in the
government and economy. During FDR’s first hundred days, he made several actions
such as the, Bank Holiday. This closed the banks down for four days so congress could
meet and discuss banking-reform legislation. This helped stabilize the banks and it gave
Americans the assurance that things would soon get better and change was on its way.
FDR also provided relief to the nation by creating a series of public works programs. For
example, the CCC (Civilian Conservation Corps), the WPA (Works Progress
Administration), and the TVA (Tennessee Valley Authority) all provided work
opportunities for the unemployed as well as helped improve roads, bridges, and local
cities. Also, many artists, actors, and writers, who found their success in the 1920’s but
were now unemployed, received unemployment money as a form of relief. These
programs only helped some Americans however; the public saw FDR and his programs
enormously uplifting; thus providing relief.
Next FDR provided recovery to Americans and the government. Roosevelt
created the NRA (National Recovery Act). This attempted to recover from the Great
Depression by establishing and administering a system of industrial codes to control
production, prices, labor relations, and trade practices in businesses. Even though this
was declared unconstitutional by the Supreme Court during the Schechter Decision, it
provided recovery as it led to the to the creation of the (PWA) Public Works
Administration and the (NIRA). These two programs put money into the economy and
used the theory of “priming the pump” to stimulate the economy.
FDR did face many issues in achieving recovery and relief with his New Deal, such as in
the Schechter Decision. Also, some, such as Huey Long, criticized and opposed
Roosevelt’s New Deal, calling it socialistic. However, FDR’s New Deal did help gain
Americans faith in the government during the tough times of the 30’s. Although the U.S.
economy will not recover until the start of WWII, FDR’s New Deal did help make great
stepping-stones for recovery and relief at the time and for the future (Social Security
Act). Roosevelt’s New Deal did make strides to relieve and recover the American people;
but most importantly, it reassured the American people to believe in the economy, the
government, and the country.
Essay 2
How and for what reasons did United States foreign policy change between 1920 and
1941? Use the documents and you knowledge of the period 1920-1941 to construct your
response.

During the period of 1920-1941, the United States foreign policy changed
dramatically leading up to World War 2 in the mid 1940’s. Although, in the early 1920’s-
1930s’, the Americans labeled themselves as an isolationist country and didn’t want to
partake in any “entangling alliances”; in the 1940’s America emerged as a ‘rising star’
and was seen by many to be a superpower.
In the 1920’s through the mid 1930’s, America labeled itself as an isolationist nation
after being pulled into World War One, and took a strong stand against any ‘entangling
alliances.’ For instance, Congress refused to join the League of Nations proposed by
Woodrow Wilson due to the possibility of being dragged into another European war.
However, the term isolationist doesn’t fully explain the U.S. role in foreign affairs. In
1921, the U.S. took part in the Washington Naval Conference, and then signed the
Kellogg-Briand Pact in 1928 with France, Great Britain, and Japan to try and stop future
wars from breaking out. The pact stated that wars were a last resort and deadly force
should only be used in self/national defense. Similarly, the U.S was economically
involved with other countries with programs such as the Dawes Plans, which helped
Germany set itself back on its feet with U.S. investment to pay war debts. Germany then
paid its war debts to Britain and France which then paid back their loans to the United
States. Not only did America influence European affairs, it also gave heavy investments
in Latin-American countries in the 1920’s through Woodrow Wilson’s “dollar diplomacy”
strategy. A departure from Roosevelt’s policy of “carrying a big stick” Hoover used the
U.S. economy to further U.S. interests in Latin America. However, on the eve of World
War Two, the U.S. had no choice but to enter into foreign affairs when Pearl Harbor was
attacked.
Before entering World War II, the United States passed Neutrality Acts In 1935, 1936,
and 1937. These acts were an attempt to continue isolating the U.S. and maintain the
comfort of two ocean of separation. In 1939, FDR allowed the sale of munitions to
countries with democratic governments based on a “cash and carry” basis. This
stipulation in the Act started the Lend-Lease Act in 1941. This Act allowed the sale of
munitions to countries in war; however, the sales figures greatly favored the Allied
Powers like Great Britain, the Soviet Union, and France. The U.S, after the attack on
Pearl Harbor, became fully involved in the foreign conflict by entering World War 2 in
1941, and officially shed its isolationist tag in favor of joining the Allies.
In conclusion, the U.S. saw a dramatic change in its foreign policy from 1920-1941.
America tried to stay away from foreign problems to avoid involvement in another major
war. However, from 1920 until the mid 1930’s, they were involved in resolution
conferences and positioned itself for world dominancy. At the brink of, and during, World
War 2, the U.S. became increasingly involved in foreign affairs, and continued to do so
after the war. This was the first step toward becoming a superpower.
Essay 3
Analyze the responses of Franklin D. Roosevelt’s administration to the problems of the Great
Depression. How effective were these responses? How did they change the role of the federal
government?

When Franklin Delano Roosevelt took office the Great Depression was in full
effect. His predecessor, Herbert Hoover, took a laissez-faire approach to the economic
situation which was ineffective. Even after he did start to take action, such as the creation
of the RFC, it was too little, too late. Therefore, when FDR took office in 1932 he passed
a flurry of legislation called the New Deal, aimed at stimulating an economic recovery.
Although FDR’s New Deal legislation attempted to stimulate the economy and ease
suffering caused by the hard economic times, it was largely ineffective. However, the
New Deal was successful in creating a precedent of government involvement in the
economy and providing relief to those in need.
In the first one hundred days of his presidency, FDR passed legislation aimed at
getting the economy back on track, however, this legislation was ineffective and at times
ruled unconstitutional. For instance, the National Recovery Administration was created to
create codes for businesses to decrease unemployment and stimulate the economy. In
addition, it guaranteed the right of collective bargaining to workers. However, large
corporations often controlled the making of the codes and abused them to further their
own interests instead of helping the economy. Also, the legislation creating the NRA was
ruled unconstitutional in the Supreme Court case Schechter v. United States. In the case,
the Supreme Court ruled that Congress had no right to regulate business that did not cross
state lines. Therefore the codes were unconstitutional because they applied to all industry.
This made the NRA largely ineffective at creating any long term recovery in the
economy. In addition to the creation of the NRA to aid in economic recovery, FDR
created welfare programs such as the CWA and the CCC. Both programs put people to
work on temporary project funded by the government. The goal of these projects was to
decrease unemployment and stimulate the economy by giving many men a source of
income. Although the projects did employ millions of men they did not do enough to
have a major effect on the depression. Finally, the most notable of New Deal legislation
was the Social Security Act which established “insurance” to supplement those who were
too old to work and those who had recently been laid off. Its purpose was to support the
needy and to stimulate the economy by giving people money to spend. Similar to the
other public works projects it achieved neither of its two objectives on a large enough
scale to have an major effect in reviving the economy. Overall, the Great Depression was
such a huge economic catastrophe that the government could not respond on a large
enough scale to dramatically affect the recovery. Only the production demanded by the
start of World War II could create the stimulus needed to revive the economy.
 These programs created to aid the economy were the first major involvement the
government had in the economy. After the government intervened during the Great
Depression the people expected a government intervention each time the economy started
to suffer. This is the same situation that occurred with the relief programs created during
this time. Once the government established its role in Social Security and other relief
programs, it became the norm. Overall, the New Deal attempted to stimulate the economy
which only recovered with the build up to WWII. From this time on the government led a
role in stimulating the economy and providing relief.
Essay 4
Compare and contrast the programs and policies designed by the reformers of the
Progressive era to those designed by reformers of the New Deal period. Confine your
answer to programs and policies that addressed the needs of those living in poverty.

The Progressive Era and the Depression Era administrations of Franklin

Roosevelt were both notable as some of the earlier examples of widespread government
intervention in American history. In both eras, the role of the government expanded from
state of Laissez-Faire into the big government form through necessity and quite rapidly.
In the Progressive Era, the grassroots-turned-national movements sought to remedy
issues related to the people, politics or economics of the era. In the New Deal, the nation
stood still in a state of utter crisis, and the Roosevelt administrations responded by
attempting numerous solutions with varying levels of success. While the Progressive Era
reformers used the government to aid many areas of societal ills, the New Deal programs
were more precise in their targeting of those living in poverty.
The Progressive Era is often known as the extension of the Reform Movements of
the 1840s, and as such, they aimed to remedy many areas of society, however, a great
many of the movements ultimately came back to help the poor and less fortunate in some
way. The most prominent of the examples to help the impoverished is the Hull House of
Chicago, formed by Jane Addams. The Hull House served as a place for recently arrived
European immigrants to develop and learn the skills necessary to survive in America, and
ultimately avoid the miserable, penniless state of affairs that many other immigrants met
during the same time. Another famous example of attempting to aid those in poverty is
Upton Sinclair's The Jungle. Although the book remains famous for changing the
regulation of the meat packing industry, its original intent was to tell the story of the poor
immigrant workers who were often mistreated and left to work in such conditions. This
highlights the diverse nature of the progressive movements, and how the movements
themselves can often be misconstrued. One of the amendments passed during the
Progressive era - the 18th, regarding prohibition - came about as a result of many
conservative minded people, especially women, working to end the alcohol issue entirely,
and reduce the poverty and abuse levels as a result. However, this turned out to be merely
a pipe dream, and even before the amendment was repealed, the ills the prohibitionists
aimed to defeat still existed. While all of these programs and policies helped the
impoverished in some way, not all were intended solely for their benefits - an important
distinction to make when comparing to the New Deal.
In the wake of the massive economic crash of the late 1920s, the New Deal
programs worked to provide relief, recovery and reform to the nation, and could be
divided into two general cateogories: those designed to regulate the economy, and those
designed to aid those affected by the crash. This distinction alone is a significant
departure from the Progressives, with their more general goals. The first program of the
New Deal designed specifically to halt the worsening of the collapse was the bank
closure. Roosevelt adeptly used this brief holiday to pass emergency legislation, the
Emergency Banking and Relief Act, so that the bank accounts of many more Americans
would not fall under bank failures. Later in the first hundred days, F.D.R passed
numerous other programs such as the Civilian Conservation Corps and the Tennessee
Valley Authority that specifically hired the unemployed to work under the programs. The
usage of the unemployed part of the workforce proved to be a wise decision, as these
Americans used these jobs to provide not only for the areas in which they worked, but
also themselves. During the Roosevelt administrations, the government worked under the
theory of Keynesian Economics. The federal government worked to provide injections of
financial aid and regulations in order to halt the issues caused by the private sector. This
is evidenced by nearly every policy and program of the New Deal, wherein the
government utilized great swaths of money to fund the various program, such as social
security, or regulate the industrial sector, like in the NIRA. When compared to the
Progressive Era, the New Deal programs were much more focused in their treatment of
poverty-stricken people, especially since the Depression caused the vast majority of the
problem in the first place.
Another notable point that both eras share lies in the utter failure to accommodate
the needs of the African-American population. Even though the NAACP worked
prominently during the Progressive Era to fight against rampant injustices, it failed to
provide any meaningful social change. The same could be said of the New Deal; many of
the programs afforded little specifically for the blacks, and it often stood that the
minorities were the last hired and the first fired during the time.
While both eras worked to aid the plight of those in poverty, the New Deal worked more
directly on the problem than the Progressive movements, although the effectiveness of
the New Deal in solving the base economic issues remains questionable. Nevertheless, it
can be said that both eras worked to remedy the social ills of the timeframes through
significant government intervention.
 Multiple Choice

1. Huey Long became a prominent rival of Roosevelt’s New Deal through his advocacy of

A. Socialism
B. The nationalization of leading industries
C. A large scale redistribution of wealth
D. Pensions for the elderly
E. A foreign war to end the depression

2. All of the following advocated radical alternatives to the New Deal during the mid-
1930’s EXCEPT

A. Father Charles Coughlin

B. Huey Long
C. Upton Sinclair
D. Dr. Francis Townsend
E. Eugene V. Debs

3. The most important difference between he policies toward relief for the unemployed in
the administrations of Franklin D. Roosevelt and Herbert Hoover was that Roosevelt
supported

A. State and local assistance programs

B. Private and religious assistance programs
C. Federally subsidized public works projects
D. Business sponsored work relief programs
E. Federally sponsored work relief programs

4. The New Deal’s relief programs were significant because they

A. Marked a major expansion in the functions of the federal government

B. Established the principle that the federal government would pay the prevailing wage of
private industry
C. Helped to trigger a widespread economy recovery
D. Gave increased power to organized labor
E. Abolished state and local programs of assistance.

5. All of the following were approved during the first hundred days of the administration of
Franklin D. Roosevelt EXCEPT

A. The proclamation of a national bank holiday

B. The passage of the agricultural adjustment act
C. The establishment of the Tennessee Valley Authority Act
D. The passage of the Glass-Stegall Banking Act
E. The passage of the Social Security Act
6. The National Recovery Administration of 1933

A. Instituted a program of federal subsidies to business

B. Provided for a system of federally authorized business codes
C. Provided jobs for unemployed actor, artists, and writers
D. Provided for emergency loans to banks and mortgage companies
E. Provided for a system of subsidies to farmers

7. Herbert Hoover’s administration anticipated Franklin D. Roosevelt’s New Deal in its

program of

A. Relief for the unemployed

B. Aid for farmers
C. Deficit spending
D. Support for organized labor
E. Federal public works projects

8. Franklin D. Roosevelt’s general strategy toward the economic crisis of the Great
Depression was to

A. Apply a laissez-faire approach

B. React to each emergency without formulation of any consistent philosophy
C. Apply a strict Keynesian approach
D. Apply a socialist philosophy
E. Follow the advice of the leaders of large corporations.

9. An important cause of the Stock Market Crash of 1929 was the

A. Outbreak of war in Europe

B. Restrictions on currency expansion applied by the Federal Reserve Board
C. Easy credit policies of stock brokerage houses
D. Collapse of the Florida real estate boom
E. Pro-business policies of the Coolidge and Hoover Administration

10. All of the following were important causes of the Great Depression EXCEPT

A. maldistribution of income and wealth

B. The bankruptcy of the Federal Deposit Insurance Corporation
C. The Stock Market Crash of 1929
D. Weakness in the nation’s banking system
E. The defaulting by European governments of their debts to the United States

11. Franklin D. Roosevelt’s New Deal program attempted or achieved all of the following
EXCEPT

A. Raised farm prices by paying farmers not to plant

B. Encourage cooperation within industries so as to raise prices generally
C. Supported the creation of the Reconstruction Finance Corporation
D. Invigorated the economy by lowering tariff barriers
E. Restored confidence in the banking system
12. In order to deal with the crisis in banking at the time of his inauguration, Franklin
Roosevelt

A. Drastically curtailed government spending and cut taxes

B. Declared a four-day “banking holiday” and prohibited the export of money
C. Urged Congress to pass legislation banning fractional reserve banking and holding bank
trustees responsible for all deposits
D. Announced a multibillion-dollar federal bailout package
E. Announced the nationalization of all banks with over 100 million in total assets.

13. In his inaugural address, Franklin D. Roosevelt said that if Congress did not pass the laws
he believed it should, he would

A. Accept this decision as the will of the people

B. Allow the nation to suffer the consequences of the congressional stubbornness
C. Seek wartime emergency powers to carry out the measure himself
D. Hold an unprecedented national referendum
E. Call on the American people to place pressure on their representatives in congress.

14. President Franklin Roosevelt’s “court-packing plan” called for

A. The addition of up to six new justices if present justices over the age of 70 did not retire
B. The immediate and mandatory removal of all Supreme court justices over the age of 70
C. The immediate and mandatory removal of all Supreme Court justices who voted against
New Deal legislation
D. The addition of up to 15 new justices if present justices over the age of 70 did not retire
E. The mandatory retirement of justices over the age of 70 combined with the subsequent
expansion of the court to 15 members

15. The 1932 demonstration known as the “Bonus March” involved

A. Farmers disgruntled about low prices for meat, grain and dairy products
B. Homeless persons building shantytowns near Washington, D.C
C. Japanese-Americans protesting forced relocation from the West Coast
D. World War I veterans demanding financial aid form the federal government
E. Migrant farm workers seeking employment in California

16. In personally taking over the task of setting the dollar amount the government would pay
for gold, Franklin Roosevelt’s announced purpose was to

A. Maintain the value of the dollar at a constant level

B. Prevent inflation
C. Prevent a run on the banks, which would be likely to deplete the nation’s gold supply
dangerously
D. Manipulate the price of gold so as to raise prices
E. Revise the value of the dollar so as to force prices down to affordable levels in America’s
depressed economy
17. What was the OVERALL U.S. unemployment rate during the worst periods of the
depression?

A. 10%
B. 25%
C. 40%
D. 60%
E. 90%

18. “if your neighbor’s house was on fire, and he didn’t have a garden hose, wouldn’t it make
sense to let him use your hose to fight the fire so the fire could be put out before it spread
to your house?” This question was raised by Franklin Roosevelt to justify

A. The Neutrality Acts

B. The Atlantic Charter
C. The Lend-Lease Act
D. The Good Neighbor Policy
E. The Selective Service Act

19. All of the following “New Deal” agencies were created during the great Depression to
provide jobs for the unemployed EXCEPT

A. Farm Security Administration

B. Civil Works Administration
C. Civilian Conservation Corps
D. Works Progress Administration
E. National Youth Administration

20. All of the following contributed to the Great Depression EXCEPT

A. Excessive stocks and securities speculation

B. Protectionist trade measures
C. Huge farm debts resulting from collapsed crop prices
D. Lack of credit to help consumers sustain economic growth
E. An imbalance of distribution of wealth in which the rich controlled far too much of the
available income

21. Fearing the U.S. Supreme Court would find much of his second term New Deal
legislation unconstitutional, as it had done for much of the New Deal legislation passed
during his first term, Franklin Roosevelt responded by

A. Withdrawing the proposed legislation

B. Ignoring the court’s rulings
C. Stripping the court of its power
D. Threatening to increase the number of justices
E. Offering bribes to seven of the nine justices
 Multiple Choice Key

1. C Huey Long was a communist who advocated for a large scale redistribution of
wealth

2. C Upton Sinclair wrote the book The Jungle about the meatpacking industry in
Chicago

3. E While both presidents increased government spending Roosevelt was the only
one who created federal work relief programs such as the CCC

4. A The new deal programs set a precedent for the government to later follow.

5. E Social Security was not passed until the Second New Deal.

6. B The NRA set up codes for businesses to follow to help increase prices and
maintain employment

7. C Herbert Hoover bailed out some banks during the end of his presidency; this
used government money which increased the deficit.

8. B FDR tried anything and everything during his presidency which sometimes
resulted in contradictory policies.

9. C Easy credit policies led to artificially increased stock prices that precipitated the
crash.

10. B The FDIC was not created until the first new deal.

11. C Hoover created the Reconstruction Finance Corporation not Roosevelt.

12. B He declared a bank holiday so he could reinstill the confidence of the people in
the banks.

13. C He wanted to show the people that he was going to do whatever he needed to
do to help them

14. A It was to “lessen the work load” of the older age justices and also turn the voting
pattern in his favor.
15. D The bonus march was a protest of veterans for the early payment of their bonus
against Herbert Hoover.

16. D FDR wanted to raise prices so as to help manufacturers

17. B One out of every four people were unemployed at the worst time of the
depression.

18. C It justifies the loaning of war equipment to Britain on the basis of if they don’t
beat them we will have to later.

19. A Farm security manipulated prices and did not provide jobs.

20. D The opposite is true. There was too much credit which led to the Stock Market
crash.

21. D His plan was the “court packing” plan where he would appoint justices.
 Citation of Multiple Choice

#1-#10
Packet from Mr. Parker

#11-#21
F e l d m e t h , G r e g o r y. A P U n i t e d S t a t e s H i s t o r y . 7 t h . P i s c a t a w a y, N e w J e r s e y :
Research and Education Association, 2006. 379-781. Print.