Timeline of
the Great Depression
c.1235 A.D. |
An evil genius gold-smith, whose name we know not, realized that the
customers who left their gold on deposit in his vault did not come back
to cash in their receipts and redeem their gold all at the same
time. His receipts were used locally as money ("good as
gold"), and it occurred to him that he could issue receipts for
more than the amount of gold he regularly kept on hand. What the
alchemist could not do with the philosopher's stone, the smith had
achieved with the stroke of a pen, making gold out of thin air.
Fractional Reserve Banking was born. |
|
Date/U.S. President |
NOTES:
The dates in the left hand column correspond to US
presidential terms, although the presidential inauguration took place on
March 4th until the second inauguration of Franklin Roosevelt on January
20th 1937 (changed by the 20th amendment)..
The statistics in the right hand column are for the year
at the beginning of the period. Economic purists will want to
consider that the ratio of debt as a percentage of GNP is a sort of
"negative double-dipping" in that GNP treats government
expenditures as part of the product when they are, more
accurately, the consumption of resources produced in the private
sector. We are working on obtaining Gross Personal Product figures
to re-compute the ratios.
I've quoted at greater length than might be normal in a
time-line. Of particular note are the writings of John T. Flynn,
who wrote in 1948 after having been an eye-witness to the Depression and
War era. One can read this time-line without reading Flynn and the
others quoted, but not without losing the unique "flavor" of
the period. |
National
Debt
(in $ Billions)
GNP
(in $ Billions)
Debt as % GNP
Unemp-
loyed
Top
Marginal Tax
Rate/
Over |
|
The
Progressive Era ~ 1890-1920? |
|
1889 |
2 July 1890 Sherman Antitrust Law - "Every contract,
combination in the form of trust or otherwise, or conspiracy, in
restraint of trade or commerce among the several States, or with foreign
nations, is declared to be illegal."
8 November 1892 Grover Cleveland elected President. [Statistics]
|
1.619
49.1
3..3%
|
1893 |
3 November 1896 William McKinley elected President. [Statistics]
|
1.546
57.5
2.7% |
1897
McKinley |
6 November 1900 William McKinley re-elected
President. [Statistics]
|
1.818
67.1
2.7%
|
1901
McKinley
T. Roosevelt |
6 September 1901 McKinley assassinated
by Leon Czolgosz.
14 September 1901 Theodore Roosevelt succeeds the assassinated
President McKinley.
{Roosevelt]
was a Progressive reformer who sought to move the dominant Republican
Party into the Progressive camp. He distrusted wealthy businessmen and
dissolved forty monopolistic corporations as a "trust
buster". He was clear, however, to show he did not disagree with
trusts and capitalism in principle but was only against corrupt,
illegal practices. His "Square Deal" promised a fair shake
for both the average citizen (through regulation of railroad rates and
pure food and drugs) and the businessmen. He was the first U.S.
president to call for universal health care and national health
insurance. As an outdoorsman, he promoted the conservation movement,
emphasizing efficient use of natural resources. After 1906 he attacked
big business and suggested the courts were biased against labor
unions. In 1910, he broke with his friend and anointed successor
William Howard Taft, but lost the Republican nomination to Taft and
ran in the 1912 election on his own one-time Bull Moose ticket. He
beat Taft in the popular vote and pulled so many Progressives out of
the Republican Party that Democrat Woodrow Wilson won in 1912, and the
conservative faction took control of the Republican Party for the next
two decades. (Wikipedia
s.v. "Theodore Roosevelt."
See
also: Thomas Woods, “Theodore Roosevelt and the Modern Presidency”
1902 US government sues Northern Security Company for
anti-trust violations, the first major "trust-busting" case.
8 November 1904 Theodore Roosevelt wins re-election as
President. [Statistics]
|
2.143
85.7
2.5%
|
1905
T. Roosevelt |
27 June 1905 - Industrial Workers of the World (IWW),
a.k.a "the wooblies" founded with intent to "take
possession of the means of production, abolish the wage system, and live
in harmony with the Earth."
29 June 1906 Hepburn Act - Interstate Commerce Commission (ICC)
to establish maximum rail rates Gave ICC jurisdiction over
non-railroad entities involved in interstate transportation of goods and
information. Established uniform accounting carriers. Shifted
"burden of proof" in legal cases from the government to the
carrier.
30 June 1906 - Pure Food and Drug Act, and Meat Inspection Act -
Government inspection of meat, prohibition of dangerous patent
medicines, accurate labeling of contents
October 1907 Panic of 1907. Economic
recession and contraction after Treasury efforts to inflate during
1905-1907. New York and Chicago banks allowed by government to suspend
payments in gold or cash.
1908 Noncontributory pensions were instituted in Great Britain
by the Old-Age Pensions Act. [SOURCE]
3 November 1908 William H. Taft elected President. [Statistics]
|
2.275
96.3
2.4%
|
1909
Taft |
1909 The first Federal old-age pension bill was introduced in
Congress. [SOURCE]
November 1910 Meeting on Jekyll
Island, Georgia to lay plans for a
U.S. banking cartel and central bank
1911 The National Insurance Act was passed in Great Britain. It
provided for: 1) An unemployment fund from compulsory contributions by
employees and employers, with the government contributing one-third; 2)
A national health insurance system the cost of which was also shared by
the workers, the employers and the government. [SOURCE]
5 November 1912 Woodrow Wilson elected President. [Statistics]
|
2.640
116.8
2.3%
|
1913
Wilson |
1912 The Progressive Party platform called for the
protection of home life against the hazards of sickness, irregular
employment and old-age through the adoption of a system of social
insurance adapted to American use. [SOURCE]
25 February 1913 - Secretary of State Philander Knox
proclaimed the 16th
Amendment ratified, enabling the US government to levy an income
tax, which it did in the form of the Revenue
Act of 1913. The act lowered the import tariff rate and
imposed a tax on income that varied "progressively" between 0
and 7 percent.
8 April 1913 - the 17th
Amendment was declared ratified, replacing Article I, Section 3 of
the Constitution allowing the direct election of Senators by the people
instead appointment by the state legislature; and in the event of a
vacancy to call an election or for the governor to appoint a replacement
for the remainder of the vacant term.
23 December 1913 - Congress established Federal Reserve (FED).
Understanding the Federal Reserve, its ability to create
"money" without backing, and its mechanisms for controlling
the economy is essential to understanding the Great Depression.
Many economics books describe the FED accurately enough but miss the
ways in which its great powers can be misused. A brief description
"What
is the Federal Reserve Bank (FED) and why do we have it?" is
well worth the time to read it. Those with more time will benefit
from G.
Edward Griffin, The Creature From Jekyll Island
28 June 1914 - Assassination of Franz Ferdinand ignites conflict
that had been economic, with industrialized Germany building up a navy
to protect trade with countries claimed by British Empire.
July 1914 - New York's J.P. Morgan made Britain and France's buyer of war
supplies (est. $3 billion worth) and negotiator of contracts
with American industrial firms. To pay for these supplies Britain
and France issued bonds, which were sold in the US. Thus US
exporters and investors had great interest in Britain and France not
loosing to Germany (Rothbard, History
of Money and Banking, pp.370-371).
October 1914 - President Wilson allowed a $500 Million dollar
U.S. loan to the Allies of the Triple Entente (Britain, France, and
Russia). In spite of American neutrality, the U.S.
eventually loaned the Entente $2.3 Billion. U.S. loans to the
Triple Alliance (Germany, Austro-Hungary, Turkey, and (sometimes) Italy)
were about 1 percent of that at $27 Million. (Ira
Krakow, "World War I: The most unpopular war in our history)
The loan policy was hotly debated, as seen in an exchange
of letters between President Wilson, Secretaries of State Bryan and
Lansing, the Bankers. Ultimately it came down to
economics--exports to Europe were too valuable to curtail. June
1915, Bryan
resigned his position as Secretary of State in protest of Wilson's bellicosity.
22 September 1915 New
York Times article discusses the loans to the Entente and what they
were used to purchase from a supposedly neutral U.S.
15 October 1914 - Clayton Antitrust Act - prohibited price
discrimination, sales on condition of not dealing with competitor,
interlocking directorates, and controlled mergers or acquisitions that
might restrain trade.
7 May 1915 British Liner RMS Lusitania sunk carrying
American passengers (and, most likely, military supplies) and acting as a Naval
Auxiliary vessel) after warning
by German Embassy that blockade running ships might be sunk.
February 1916 Benjamin Strong (US Federal Reserve), Walter Lord
Cunliffe (Bank of England), and the Bank of France agree to coordinated
inflation to finance war (Rothbard, History,
pp. 371-373)
7 November 1916 Wilson wins re-election with slogan "He kept us
out of war." [Statistics]
|
2.916
131.4
2.2%
7% / $500K
|
1917
Wilson |
January 1917 Wilson claims British have
decrypted "Zimmermann telegram" proposing Mexican alliance
with Germany if US entered war. Americans conditioned to accept US
involvement in war.
6 April 1917 U.S. Enters World War I
28 July 1917 - The War Industries Board
The War Industries Board (WIB) was a
United States government agency established on July 28, 1917, during
World War I, to coordinate the purchase of war supplies.[1] The
organization encouraged companies to use mass-production techniques to
increase efficiency and urged them to eliminate waste by standardizing
products. The board set production quotas and allocated raw materials.
It also conducted psychological testing to help people find the right
jobs.
The WIB dealt with labor-management
disputes resulting from increased demand for products during World War
I. The government could not negotiate prices and could not handle
worker strikes, so the War Industries Board regulated the two to
decrease tensions by stopping strikes with wage increases to prevent a
shortage of supplies going to the war in Europe. (Wikipedia, s.v.
"War
Industries Board")
August 1917 Food Administration created by the Lever Food and Fuel Act,
headed
by Herbert Hoover, had the authority to control prices, license
distributors, negotiate prices, oversee exports, and control
agricultural output. Cut US domestic consumption of food by
15%. Fixed domestic farm prices and coordinated exports. Remained
in operation after the War, through the summer of 1921, feeding people
in Europe and Middle East. Hoover
Museum
7 November 1917 V.I. Lenin begins the "October
Revolution" (25 October using the Julian calendar).
8 January 1918 Wilson addressed Congress with his "Fourteen
Points" intended to build a peaceful and prosperous Europe when
WWI ended. This was intended to be the basis for German surrender, but would
be undercut by the treaty of Versailles, demanding German-Austrian
ruination.
January 1918 Cunliffe Committee determined that post-war
Britain would return to gold standard, (and did so by 1925) but the pound sterling must
exchange at £1.00 = $4.86, when in reality it had dropped to lower than
$3.50. Low production and high unemployment, fueled by
unrealistically high wage rates, government funded unemployment
compensation, and social benefits, would keep the pound low until the US
Federal Reserve agreed to domestic
inflation and consequent devaluation of the US $ (Rothbard,
History, pp.
356-367).
Did Britain return to "gold
standard," "gold bullion standard' or "gold exchange
standard"? See Rothbard, Great Depression, p.148ff.
16 May 1918 Sedition
Act made criticism of the government illegal under many
conditions. A few thousand were prosecuted before the law was
repealed in 1921.
SECTION 3. Whoever, when the United
States is at war, shall willfully make or convey false reports or false
statements with intent to interfere with the operation or success of the
military or naval forces of the United States, or to promote the success
of its enemies, or shall willfully make or convey false reports, or
false statements, ...or incite insubordination, disloyalty, mutiny, or
refusal of duty, in the military or naval forces of the United States,
or shall willfully obstruct ...the recruiting or enlistment service of
the United States, or ...shall willfully utter, print, write, or publish
any disloyal, profane, scurrilous, or abusive language about the form of
government of the United States, or the Constitution of the United
States, or the military or naval forces of the United States ...or shall
willfully display the flag of any foreign enemy, or shall willfully
...urge, incite, or advocate any curtailment of production ...or
advocate, teach, defend, or suggest the doing of any of the acts or
things in this section enumerated and whoever shall by word or act
support or favor the cause of any country with which the United States
is at war or by word or act oppose the cause of the United States
therein, shall be punished by a fine of not more than $10,000 or
imprisonment for not more than 20 years, or both....
1918 the Webb-Pomerene Act gave immunity to antitrust laws for companies
that combined to operate the export trade that was essential to the war
effort. Minimum prices were also placed on products.
11 November 1918 WWI ceasefire.
Of the roughly $33 Billion cost of war, $7.3 Billions were
raised through taxes, $24 Billions were borrowed through bond
issues, $1.6 Billion was created by the FED purchase of
bonds. The $1.6 Billion created by the FED (sometimes called
"high powered money") was multiplied by the fractional reserve
banking system to approximately $11.4 Billions. The M2 money
supply rose about 70 percent, from $20.7 Billion in 1916 to
$35.1 Billion in 1920. (Rockoff, Hugh. "US Economy in
World War I". EH.Net Encyclopedia, edited by Robert Whaples.
February 10, 2008. URL http://eh.net/encyclopedia/article/Rockoff.WWI)
If we think of inflations as "too few goods chasing too many
dollars," we can see how the 70 percent increase in the money
supply would induce investors to fund enterprises to boost
productivity. But the growth in the money supply had been
artificial, not being supported by a proportional increase in demand for
consumer goods. This already bloated money supply would be further
enlarged (as we will see) in the 1920s, with additional inflation and lowered
interest rates, in an attempt to boost the British Pound relative to the
dollar. Both served as false signals for investors to buy the
shares of producing companies on the stock exchange, driving the stocks
of producer goods far out of proportion to the real demand of consumers.
Before the cease-fire, agricultural production in the US grew at phenomenal
rates in order to provide food for war-torn Europe. American
farmers cultivated more acreage using modern machinery. With the
end of the war and the resumption of farming in Europe, large US
agricultural surpluses severely depressed prices paid to farmers at the
market. The problem of farm price supports would last all through
the Depression, would return in the post-WWII era, and remains today.
8 January 1918: President Woodrow Wilson's
Fourteen Points delivered to joint session of US Congress outlining
a peaceful, honorable, and non-vindictive basis for an armistice ending
World War I.
28 June 1919 After the March resignation of the democratically
elected chancellor, a German coalition government signed treaty of
Versailles, and ratified it on 9 July. [Complete
Treaty] [Treaty
Highlights] Quite at variance with Wilson's Fourteen
Points, the treaty called for German-Austrian admission
of war guilt, and responsibility to assume ruinous reparations payments.
Hundreds of thousands of non-combatants were starved to death by blockades
to force treaty ratification. Germany lost 80% of her pre-war
fleet, 48% of all iron production, 16% of all coal production, 13% of
her 1914 territory, 12% of her population, 100% of her colonies, and the
private property of German citizens in the colonies was confiscated
(Patrick Buchanan, Churchill, Hitler, and the Unnecessary War,
pp. 81-81).
October 28 1919 Volstead Act
"To prohibit intoxicating beverages, and to regulate the
manufacture, production, use, and sale of high-proof spirits for other
than beverage purposes...." passes over presidential veto.
29 January 1920 Prohibition begins.
2 November 1920 Warren Harding elected President. [Statistics]
|
5.718
135.2
4.2%
67% /
$2000K
|
1921
Harding
Coolidge |
1921-1929 Both Harding and Coolidge urged the Fed
to keep interest rates low to encourage post-war business
expansion. Agriculture clamors for low interest easy credit.
Easy credit and inflation also benefit Great Britain with its high
social welfare costs.
March 1921 Harding appointed Herbert Hoover as Secretary of Commerce.
[Hoover] worked to gain the cooperation
of people and businesses by offering guidance, information and service
that they could use. He developed foreign markets for American
products. He also worked to eliminate industrial waste (by this he
meant time-wasting strikes, the waste of manpower and money in
unemployment; the waste of effort and money in careless planning, to
name a few).
(Hoover
Museum)
In reality, Hoover meddled. Although Harding and Coolidge are
remembered as laissez-faire Presidents, Hoover was able to expand
and thoroughly bureaucratize the Commerce Department. Hoover was at
least partly responsible for the Fed's easy credit policy, inflating the
money supply and misleading businessmen to make imprudent investments.
He championed labor over business, artificially increasing wage rates
above productivity levels, which led to unemployment. He sought to
cartelize free enterprise, reducing competitive efficiencies and lower
prices. Hoover urged high tariff rates to "protect" domestic
industry from foreign imports.
May 1921 Britain demanded that German war reparations be paid
in gold at the annual rate of Two Billion gold marks, plus 26% of the
value of exports, beginning hyperinflation of the mark
6 February 1922 Washington
Naval Treaty signed by US, UK, Japan, France, and Italy, restricting
each nations naval Naval tonnage to a ratio of approximately 5, 5, 3,
1.75, and 1.75 respectively. Fostered bad US, UK-Japan
relations among previous allies.
1921-1929 Federal Reserve further loosens credit by discounting
acceptances,
and particularly foreign acceptances at low rates. The Fed was
advised by Paul Warburg of Kuhn, Loeb, and Company in his capacity as
chairman of the Federal Advisory Council. Warburg was one of
the originators of the Fed, served on its board from 1914-1918, and was
the founding Chairman of the International Acceptance Bank of New
York (Months before the Crash in '29 Warburg
came out in favor of tighter money.)
1922, 1924, and 1927 The Fed engaged in large open market
purchases of U.S. government securities, pouring money into the economy
and inflating the currency.
4 November 1924 Calvin Coolidge elected President. [Statistics]
|
23.977
127.8
18.8%
73% /
$1000K
|
1925
Coolidge |
1925 Old age pension benefits and compulsory insurance
for widows and orphans were introduced in Great Britain with the
enactment of the Contributory Pensions Act of 1925. [SOURCE]
1 July 1927 Benjamin Strong (US Federal Reserve), Montagu
Norman (Bank of England), Charles Rist (Banque de France), and
Hjalmar Schact (Reichsbank), meeting
on Long Island, agreed that the US Fed would lower interest rates
relative to the other three, so that gold would remain in England and
British exports would remain competitive.
Spring 1927 Mississippi River overflowed.
Over a million people were driven from
their homes, two million acres of crops, thousands of cattle and
millions of dollars in buildings and property were destroyed. The
governors of the six states along the Mississippi asked for Herbert
Hoover in this emergency. President Coolidge sent him to mobilize
state and local authorities, militia, army engineers, Coast Guard,
weather bureaus, and the Red Cross. His work in the flood brought
Herbert Hoover to the front page of papers everywhere. He also
discovered while working on the flood problems that he might improve
the general health of the people in the southern states. He set up
health units, with a grant from the Rockefeller Foundation, to work in
the flooded regions for a year. These workers had stamped out malaria,
pellagra and typhoid from many countries. Herbert Hoover also headed a
drive which collected $15 million dollars for the Red Cross.
(Hoover
Museum)
6 November 1928 Herbert Hoover elected President. [Statistics]
1928-1929 Fed tried to keep easy credit for industry, while
urging banks not to loan for market speculation. This "moral
suasion" was largely unsuccessful, for money is money and tends to
get used where its possessors see fit. |
20.516
179.4
11.4%
|
1929
Hoover |
August 1929 The Fed belatedly
raised the re-discount rate, tightening credit
24-29 October 1929 Black Thursday-Black
Tuesday stock market crash.
Immediately after the crash, the FED took a wait and see attitude,
resigned to let failed businesses liquidate. But at the beginning
of 1930 the government requested the FED to cut the re-discount rate
from 4.5 percent to 2 percent in February. Acceptance rates and
call loan rates dropped accordingly. (Rothbard, America's Great
Depression, p. 239-240)
1929-1932 Stalin deports Kulaks (farmers with minimal property)
to Siberian prison camps and forces collectivization of farms.
17 June 1930 Smoot-Hawley
tariff enacted to keep foreign goods out of US markets in order to find
domestic purchasers for the high capacity of production of which US
industry and agriculture had become capable with modern methods.
Foreign retaliation damaged US export industry. Relations with
foreign governments damaged. Hoover refused the request of Henry
Ford and over 1000
economists to veto the tariff.
"U.S. imports from Europe declined from a 1929 high of $1,334
million to just $390 million in 1932, while U.S. exports to Europe fell
from $2,341 million in 1929 to $784 million in 1932. Overall, world
trade declined by some 66% between 1929 and 1934" (US
Department of State).
20 June 1931 Hoover proposes a year long moratorium on WWI
reparations to stave off economic collapse in Germany and Austria.
Britain willing, but France delayed. Fear of return to
hyperinflation precipitated run on German banks.
27 February 1932 First Glass-Steagall Act liberalized Federal Reserve
rules for rediscounting commercial paper; $750 million gold
reserve for loans to business and industry.
22 January 1932 Hoover established the Reconstruction Finance
Corporation (RFC), providing about $2 billion in aid to states
and municipalities, and short term loans to banks, railroads, farm
mortgage associations, and other businesses.
Hoover therefore urged a reform in the
banking structure and, when the situation grew worse, established the
Reconstruction Finance Corporation to aid banks threatened with runs and
disaster. He provoked that investigation of the speculative markets
which functioned until Roosevelt came into office and which most
uninformed people imagine was set in motion by Roosevelt.
Hoover stood fast upon a group of
propositions. For one, he insisted that the government expenses should
be cut and he never faltered in this demand. Second, he demanded that
Congress should balance the budget, and not expose the nation's credit
to the hazards of the depression. Third, he insisted that aid to the
distressed was primarily the function of the states and local
communities as well as private organizations. The state and local
governments should provide the funds. But he urged that the
Reconstruction Finance Corporation should aid in this by lending
federal money to the states upon the security of state bonds. Fourth,
he believed that the federal government should stimulate the recovery
of the economic system by expenditures on public works, but that these
must be essential public works roads, dams, necessary public
buildings, etc. For that purpose, almost as soon as the depression
assumed threatening proportions, he urged Congress to plan a program
of public works amounting to $600,000,000, road construction of
$75,000,000, the Colorado Dam at $65,000,000, river and harbors at
$150,000,000. Actually he was a pioneer in proposing government
intervention in the correction of cyclical economic disturbances. He
proposed that the governments should accumulate public works and
improvements during periods of prosperity in order not to accentuate
its boom proportions and that these improvements should be launched at
the appearance of a depression.
But Hoover had against him, in addition
to those natural, international and social disturbances, an additional
force, namely a Democratic House of Representatives which set itself
with relentless purpose against everything he attempted to do from
1930 on. It had a vested interest in the depression. The depression
seemed to come to it as a gift from heaven. And as the campaign for
the presidency got under way in its early stages in 1931, there was
nothing that could have delivered a more staggering blow to its hopes
than the success of Hoover's plans for stemming the tide. (John
T. Flynn, The
Roosevelt Myth, Book
II, Chapter 3, "The Forgotten Depression," pages
125-126)
1932 the Revenue Act was one of the largest tax increases in
American History:
The range of tax increases was enormous. Many wartime excise taxes
were revived, sales taxes were imposed on gasoline, tires, autos,
electric energy, malt, toiletries, furs, jewelry, and other articles;
admission and stock transfer taxes were increased; new taxes were
levied on bank checks, bond transfers, telephone, telegraph, and radio
messages; and the personal income tax was raised drastically as
follows: the normal rate was increased from a range of 1½ percent-5
percent, to 4 percent-8 percent; personal exemptions were sharply
reduced, and an earned credit of 25 percent eliminated; and surtaxes
were raised enormously, from a maximum of 25 percent to 63 percent on
the highest incomes. Furthermore, the corporate income tax was
increased from 12 percent to 13¾ percent, and an exemption for small
corporations eliminated; the estate tax was doubled, and the exemption
floor halved; and the gift tax, which had been eliminated, was
restored, and graduated up to 33⅓ percent.
(Rothbard, America's Great
Depression,
p. 287)
1932 President Hoover recommended that the concentration of health
education and recreational activities be incorporated into a single
executive department. [SOURCE]
In the Campaign for the 1932 election, Roosevelt introduced what he
called his "New Deal." John T. Flynn describes the
campaign promises in some detail, which description is worth reading at
length:
It would relieve the
needy but no doles. The government would prepare a program of
useful public works, such as flood control, soil and forest protection
and necessary public buildings. But it would immediately put a million
men to work in the forests. This alone would provide the necessary
employment. Where public works were selfliquidating that is where
they would pay for themselves they could be financed by bond
issues. But where they were not they must be paid for by taxes. Beyond
that, the New Deal would seek to shorten the work week and reduce
hours of labor to spread employment.
For the farmer the
New Deal would encourage cooperatives and enlarge government lending
agencies. But the greatest enemy of the farmer was his habit of
producing too much. His surplus ruined his prices. The New Deal would
contrive means of controlling the surplus and ensuring a profitable
price. But it denounced any proposals to have the federal government
go into the market to purchase and speculate in farm products in a
futile attempt to increase prices or reduce farm surpluses.
As for business the
New Deal proposed strict enforcement of the antitrust laws, full
publicity about security offerings, regulation of holding companies
which sell securities in interstate commerce, regulation of rates of
utility companies operating across state lines and the regulation of
the stock and commodity exchanges.
But greatest of all
the New Deal promised economy. The extravagance of the Hoover
administration, its yearly deficits these were at the bottom of all
our ills. The New Deal would abolish useless bureaus, reduce salaries,
cut federal expenditures 25 per cent. The New Deal would put an end to
government borrowing it would end the deficits. The New Deal would
assure a sound currency at all hazards and finally a competitive
tariff with a tariff commission free from presidential interference.
There was nothing
revolutionary in all this. It was a platform that Woodrow Wilson might
have endorsed. It was actually an oldtime Democratic platform based
upon fairly wellaccepted principles of the traditional Democratic
party. That party had always denounced the tendency to strong central
government, the creation of new bureaus. It had always denounced
deficit financing. Its central principle of action was a minimum of
government in business. The government might intervene, as in the
antitrust laws, not to manage business or tell business what it
should do, but to prevent business from engaging in practices which
interfered with the free action of others. It made war upon those who
attempted to impose restraints upon commerce. It was always for a
competitive tariff, save for the products of the Southern states which
needed protection. And it always proclaimed loudly its solicitude for
labor and for the "common man." It always attacked Wall
Street, the Stock Exchange, the big bankers.
Mr. Roosevelt in his
pre-election speeches had stressed all these points observing the
rights of the states so far as to urge that relief, oldage pensions
and unemployment insurance should be administered by them, that the
federal government would merely aid the states with relief funds and
serve as collection agent for social insurance. And above all he rang
the changes upon the shocking spendings of the Republicans and the
mounting public debt. He called Herbert Hoover "the greatest
spender in history." He cried out against the Republican party:
"It has piled bureau on bureau, commission on commission ... at
the expense of the taxpayer." He told the people: "For three
long years I have been going up and down this country preaching that
government federal, state and local costs too much. I shall not
stop that preaching." The statement is a curious one, since I can
find among his published addresses while he was governor up until the
time of his nomination, not one reference to government deficits. And
for a good reason, of course, since as governor he took New York State
from the hands of Al Smith with a surplus of $15,000,000 and left it
with a deficit of $90,000,000. He was against Big Government. "We
must eliminate the functions of government ... we must merge, we must
consolidate subdivisions of government and, like private citizens,
give up luxuries which we can no longer afford."
He repeated this over
and over: "I propose to you that government, big and little, be
made solvent and that the example be set by the President of the
United States and his cabinet." Toward the end of the campaign he
cried: "Stop the deficits! Stop the deficits!" Then to
impress his listeners with his inflexible purpose to deal with this
prodigal monster, he said: "Before any man enters my cabinet he
must give me a twofold pledge: Absolute loyalty to the Democratic
platform and especially to its economy plank. And complete cooperation
with me in looking to economy and reorganization in his
department."
This was the New Deal
as it was described to the people in the fall of 1932. Practically any
Democrat could subscribe to it. The only slightly radical feature was
his declaration about government development of water power. But he
was merely following the lead of Al Smith and he assured the people
that he believed in private ownership and development of water power
with the exception of Muscle Shoals and perhaps three others merely to
be yardsticks as a means of checking the rates of private companies.
This New Deal was a
program for action strictly within the framework of the traditional
American system of government, with emphasis on states' rights,
opposition to too powerful central government, opposition to BIG
government which should be cut down to its proper size, opposition to
high taxes, unbalanced budgets, government debts. Where the name New
Deal came from I do not know. Stuart Chase had written a book called
"A New Deal" some time before in which he outlined a
completely different program. Perhaps the name was swiped from this
book. But in any case, the Roosevelt New Deal was as I have described
it. This was what the people voted for in 1932. Now Mr. Roosevelt, in
March, 1933, was in the White House. And there he proceeded to set up
what he continued to call the New Deal. How much did it resemble the
one voted on in November, 1932?
In the first hundred
days of his administration, Mr. Roosevelt put into effect a program of
very large dimensions. But it was a program built on a wholly
different principle from that which was described as the New Deal.
First of all, his
central principle his party's traditional principle of war upon BIG
government was reversed. And he set out to build a government that
in size dwarfed the government of Hoover which he denounced. The idea
of a government that was geared to assist the economic system to
function freely by policing and preventive interference in its freedom
was abandoned for a government which upon an amazing scale undertook
to organize every profession, every trade, every craft under its
supervision and to deal directly with such details as the volume of
production, the prices, the means and methods of distribution of every
conceivable product. This was the NRA. It may be that this was a wise
experiment but it was certainly the very reverse of the kind of
government which Mr. Roosevelt proposed in his New Deal.
John T. Flynn, The
Roosevelt Myth, Book
I, Chapter 4.
8 November 1932 Roosevelt elected for first term. [Statistics]
November 1932-February 1933 Rumors of Roosevelt's true monetary
intentions, including his plan to go off the gold standard led to large
gold purchases by foreigners and US citizens alike, reflecting a loss of
confidence in the dollar. Dollars flooded the market but bank
deposits dropped, leaving many banks with inadequate reserves.
Failures of commercial banks went from 1,453 in 1932 to 4,000 in
1933--many before Roosevelt took office. Attempting to protect the
banks, state governments authorized "bank holidays," allowing
banks to close for a period of time to keep depositors from withdrawing
their money. Such closures further reduced confidence, so that
even more solvent banks were subject to withdrawal. The bank
holidays represented an innovation in American business, allowing
businesses to remain in operation while refusing to honor their
financial obligations-- a sort of "bankruptcy without going
bankrupt."
1932-1933 Stalin starves 5 million to death in Ukraine "terror
famine." In Harvest of Shame, Robert Conquest
reports deaths of 14.5 million peasants 1930-1937 as a result of sending
the kulaks to Siberia and forced famines in Ukraine, North Caucasus and
elsewhere within the Soviet Union (page 306).
|
16.931
203.6
8.3%
3.2%
25% /
$100K
|
1933
F.D. Roosevelt |
February 1933. Hoover was President until
Roosevelt's inauguration on 4 March 1933. On 17 February, the
"lame duck" Hoover wrote to Roosevelt outlining a plan which
would require congressional approval, and implementation by the incoming
President:
At the beginning of February, Hoover
proposed to the Federal Reserve Board that every bank in the country
should be closed for just one day. Each bank would then submit a
statement of its assets and liabilities. It would list its live assets
and its dying or dead assets separately. The Federal Reserve would
accept the banks' own statement. The next day all solvent banks would
be opened and the government would declare them to be solvent and
would guarantee that solvency during the crisis. That would stop the
runs. As to the banks with the large amounts of inactive assets, the
live assets would be separated from the inactive ones. The banks would
be reopened, each depositor getting a deposit account in proportion to
his share of the active assets. The inactive assets would then be
taken over to be liquidated in the interest of the depositors. This
was an obviously sound and fair solution. Had it been done countless
millions in deposits would have been saved and the banking crisis at
least would have been removed from the picture. However, the Attorney
General ruled that the President did not possess the power to issue
such an order unless he could have the assurance of Congress that it
would confirm his action by an appropriate resolution, and that this,
as a matter of political necessity, would have to be approved by the
new President who would take office in a month. It was some such plan
as this which Hoover had in mind when he wrote Roosevelt on February
17. It had one defect from Roosevelt's point of view. It would not do
to allow Hoover to be the instrument of stemming the banking crisis
before Roosevelt could do it.
However, Hoover took the view that, as
the ultimate responsibility would fall upon Roosevelt, although
Roosevelt was without power to act being still a private citizen, he,
Hoover, would issue any orders Roosevelt would approve, provided he
could do so in conscience and Roosevelt could assure approval by
Congress.
But Roosevelt did not answer that
letter of February 17.... (John
T. Flynn, The
Roosevelt Myth, Book
I, Chapter 3 "The banking Crisis" page 22.
See also Larry LaBorde,"The
1933 Banking Crisis."
6-10 March 1933 Roosevelt orders banks closed - "Bank
Holiday"
The Great Gold Robbery
9 March 1933 Congress passed the Emergency
Banking Relief Act without the opportunity for members to read or
debate its provisions Granted ex post facto authority
for Roosevelt's closure of the banks (Title I, Section 1),
amended the Trading With the Enemy Act of 1917 to say:
During time of war or
during any other period of national emergency declared by the
President, the President may ... investigate, regulate, or
prohibit ... any transactions in foreign exchange, transfers of credit
between or payments by banking institutions as defined by the
President, and export, hoarding, melting, or earmarking of gold or
silver coin or bullion or currency, by any person within the
United States....
Whoever willfully violates any of the provisions of
this subdivision or of any license, order, rule or regulation issued
thereunder, shall, upon conviction, be fined not more than $10,000,
or, if a natural person, may be imprisoned for not more than ten
years, or both; and any officer, director, or agent of any
corporation who knowingly participates in such violation may be
punished by a like fine, imprisonment, or both. As used in this
subdivision the term 'person' means an individual, partnership,
association, or corporation. (Title I, Section 2.)
and amended the Federal Reserve Act to say:
... the Secretary of the Treasury, in
his discretion, may require any or all individuals, partnerships,
associations and corporations to pay and deliver to the Treasurer
of the United States any or all gold coin, gold bullion, and gold
certificates owned by such individuals, partnerships, associations and
corporations.... Any individual, partnership, association, or
corporation failing to comply with any requirement of the Secretary of
the Treasury made under this subsection shall be subject to a penalty
equal to twice the value of the gold or gold certificates in
respect of which such failure occurred, and such penalty may be
collected by the Secretary of the Treasury by suit or otherwise.
(Title I, Section 3.)
5 April 1933 Roosevelt issued Executive
Order 6102 requiring US citizens to turn over their gold to the
government at the artificially set price of $20.67 per ounce.
12 May 1933 Agricultural Adjustment Act (Thomas
Amendment) "(named for its sponsor, Senator Elmer Thomas),
which had two pertinent provisions. First, all U.S. coins and currencies
were made full legal tender (money for payment of an obligation in any
amount). This meant in particular that silver coins had the same status
as gold. Second, the president was given authority to fix the weight of
the gold dollar to stabilize domestic prices or protect foreign
commerce. This was an unprecedented transfer of congressional power
over coinage and currency to the president. However, the present
weight of the dollar could not be reduced by more than 50 percent. This
meant that the price of gold could be set no higher than $41.34 per
ounce." (Answers.com)
5 June 1933 A joint resolution of Congress HJR-192:
which voided all private and public contractual obligations requiring
payment in gold Contracts entered into with the security of
gold would now be repaid with paper at a value determined by the
government and the Federal Reserve.
... Every
obligation, heretofore or hereafter incurred, whether or not any such
provisions is contained therein or made with respect thereto, shall be
discharged upon payment, dollar for dollar, in any such coin or
currency which at the time is legal tender for public and private
debts. Any such provision contained in any law authorizing obligations
to be issued by or under authority of the United States, is hereby
repealed.... (Section 1a)
At least as radical was the departure from the Gold Standard by
making paper government, Fed, and bank currencies legal tender for all
debts public and private. One could not refuse to accept payment
in paper notes, no matter how worthless the government and the Fed
allowed them to become:
... the term "coin
or currency" means coin or currency of the United States,
including Federal Reserve notes and circulating notes of Federal
Reserve banks and national banking associations. (Section 1b)
All
coins and currencies of the United States (including Federal reserve
notes and circulating notes of Federal Reserve banks and national
banking associations) hereunto and hereafter coined or issued, shall
be legal tender for all debts, for public and private, public
charges, taxes, duties, and dues, except gold coins, when below the
standard weight and limit of tolerance provided by law for the single
piece, shall be legal tender only at valuation in proportion to their
actual weight. (Section 2)
30 January 1934 The Gold Reserve Act ended the manufacture of
gold coins, and authorized conversion of existing coins into bars.
Dollars could no longer be exchanged for gold, this completely
terminating the gold standard. The weight of a (theoretical) gold
dollar was reduced to 60 percent or less of the current weight or $34.45 per ounce.
31 January 1934 Roosevelt set price of gold at $35 to the ounce,
roughly a 40 percent devaluation of the US dollar..
The series of acts and proclamations over
1933 to 1934 had several effects. First, there was a large inflow
of gold into the United States, in part because of the fixed, high
price of gold. Second, the Treasury made a huge profit—almost $3
billion—by acquiring gold at $20.67 prior to its revaluation
to $35.00. Third, the United States readopted the gold standard, but
of a limited kind. From January 31, 1934, to August 15, 1971, the
Treasury purchased gold from all sellers at $34.9125, but sold gold only
to foreign monetary authorities and licensed industrial users at
$36.0875. However, from 1973 onward, the official gold price has
significance only for valuation of the U.S. official gold stock.
Fourth, with holdings of gold forbidden to U.S. residents, Americans
could not readily invest in the metal or speculate on the gold price.
Removal of all restrictions on private ownership of gold did not occur
until December 31, 1974. (Answers.com)
Historical
Gold Prices
Alphabet Soup Agencies
The literature of the Great Depression abounds
with with agencies created ad hoc to deal with this or that
problem, usually abbreviated to three or four letters. Without an
overall plan, the agencies sometimes duplicated each others' efforts or
worked at cross purpose. Roosevelt used the agencies and their
employees like a "ward boss" only at the federal level.
In the first WPA
district of Kentucky, one WPA official went to work on Governor
Chandler. He took his orders from the administration political
headquarters in Kentucky. He put nine WPA supervisors and 340 WPA
timekeepers on government time to work preparing elaborate forms for
checking on all the reliefers in the district. Having done this they
then proceeded to check up on the 17,000 poor devils who were drawing
relief money to see how they stood on the election. The Senate
committee got possession of these forms.
In the second WPA
district, another WPA official who was the area engineer, managed a
thorough canvass of the workers in Pulaski and Russell counties. The
WPA foremen were given sheets upon which they had to report on the
standing of the reliefers in the political campaign. It became a part
of Mr. Hopkins' WPA organization in Kentucky to learn how many of the
downandout had enough devotion to Franklin D. Roosevelt to be
entitled to eat. It was not sufficient for an indigent Kentuckian to
be just down and out and hungry. He had to believe that the President
of the United States was his redeemer and had to be ready to register
that belief at the polls. The reliefers were asked to sign papers
pledging themselves to the election of the senior senator from
Kentucky. They were given campaign buttons and told to wear them and
there were instances where, if they refused, they were thrown off the
WPA rolls.
All this, of
course, was in a Democratic primary where only Democrats could vote.
But there were a lot of poor Republicans in Kentucky who couldn't vote
in the Democratic primary so long as they were Republicans. So they
were told to change their registration and become Democrats, or no WPA
jobs for them. (Flynn, The
Roosevelt Myth, Book
2, Chapter IV, p. 134)
Revelations that
relief and public works money was often being used to serve the
interests of FDR and state politicians led Congress to pass the
Political Activity Act (1939), better known as the Hatch act after New
Mexico Senator Carl Atwood Hatch. It prohibited Federal
employees, employees of the District of Columbia government, and state
and local employees who administer federal programs from trying to
influence the outome of a political campaign, offer jobs to political
campaign workers, or manage a political campaign (FDR's Folly p.
99)
New Dealers did not necessarily feel constrained to use agency
resources for things that the agency was supposed to do, but felt free
to divert them to what they felt were more worthwhile social programs:
...The First Lady lobbied vigorously to
make her friend, Fiorello La Guardia, the pint-sized effervescent
mayor of New York head of the Office of Civilian Defense.... The
First Lady immediately began bombarding La Guardia with ideas on
how to run the agency.... La Guardia suggested Mrs.
Roosevelt become his assistant director.... Eleanor Roosevelt
was, to put it mildly, not a clear thinker. She found fault with
the OCD because it concentrated on things like producing gas masks and
training air-raid wardens and volunteer firemen.
Mrs. Roosevelt thought its goals should be broader. She
wanted civilian volunteers to be trained to work in nursery schools,
housing projects, and other "meaningful jobs."
(Fleming, The New Dealers' War, p. 105.)
One agency might fund another, perhaps requiring political
connection, and perhaps without direct Congressional oversight:
Where did PWA [Public
Works Administration] money come from? As previously noted
Congress appropriated some. Hundreds of millions more came from
the Reconstruction Finance Corporation, which bought bonds issued by
the PWA The FRC turned out to be the behind-the-scenes banker of
the New Deal. Soon after its powers were expanded by the
Emergency Banking Act of 1933, it became clear to many in Congress
"that here was a device that would enable them to provide for
activities that they favored for which government funds would be
required, but without any apparent increase in appropriations,"
reported Chester Morrill, secretary to the Federal Reserve.
"After they had done that, there need be no more appropriations
and its activities could be enlarged indefinitely, as they were almost
to fantastic proportions." Historian James S. Olson noted
that "the Reconstruction Finance Corporation financed a host of
other New Deal agencies, because its huge reserves and fiscal
independence gave Roosevelt the power to act without specific
congressional authorization.
The RFC provided $40 million to the Farm Credit
Administration, $44 million to the Regional Agricultural Credit
Corporation, $55 million to the Federal Farm Mortgage
Corporation, $83 million to the Federal Housing
Administration,$125 million to Federal Home Loan banks,
$145 million to the federal Farm Loan Commissioner,
$175 million to the Resettlement Administration,
$200 million to the Homeowner's Loan Corporation, and
$246 million to the Rural Electrification Administration.
The RFC supplied $1 billion dollars to the Works Progress
Administration, so that it could begin work soon after it was set up
in 1933. (Flynn, FDR's Folly, p. 92-93.)
Sometimes the division of responsibility between agencies was
obscure:
...Senator Harry S. Truman, Chairman of
the Special Committee to Investigate the War Program ... told his
readers that the Committee's investigation of the rubber shortage forced
them to visit seven separate agencies, the War Production Board, the
Reconstruction Finance Corporation, the Office of Petroleum Coordinator,
the Office of Defense Transportation, the Price Administrator, the Board
of Economic Warfare, and the Department of Agriculture. All had a
finger in the mess. Again and again, Truman said the blame lay not
with the fumbling quarreling bureaucrats. The problem was
"lack of courageous unified leadership and centralized direction at
the top." All Americans wanted or needed to win the war is
"that we be inteligently and resolutely led."
(Fleming, The New Dealers' War, p. 155-156.)
Sometimes the agencies were run by bureaucrats with no knowledge of
what they were handling:
.... Harold Ickes, present as the
petroleum czar, chimed in with a declaration that the [rubber]
shortage could easily be solved by collecting a million tons of scrap
rubber from junkyard owners and other patriotic Americans.
The director of the WPB's rubber program, Arthur
Newhall, was a former rubber manufacturer. He goggled at Ickes's
figure and told him that it was "fantastically high."
He was the only rubber expert in the room but that did not matter to
FDR, who was thinking politically, not realistically. Roosevelt
knew that Ickes required careful handling. If Honest Harold did
not get his way, Drew Pearson and other columnists would soon be
hearing about ineptitude in the Oval Office. A beaming president
announced the rubber problem was solved and told Ickes to launch a
nationwide scrap rubber collection immediately.
The drive was a fiasco, At the end of five
frantic weeks, in which the President made a statement and Ickes ran
around like an out-of-control windup toy, the nation had collected
only 335,000 tons of scrap rubber. Ickes was reduced to trying
to confiscate the rubber mats on the floors of the Interior Department
buildings. The Public Buildings Administration blocked him,
saying that it would lead to an epidemic of broken hips when people
started falling on the slippery marble floors. In the last gasp,
Ickes was caught stealing a rubber mat from the White House.
Compounding the petroleum czar's folly was the fact that rubber mats
were made from recycled rubber and were useless in the production of
tires. (Fleming, The New Dealers' War, p. 141-142.)
A fundamental flaw in the creation of most "alphabet soup
agencies"--a flaw which plagues many government agencies today--was
the lack of legislative direction as to how the agency was to
function. In the Constitution, the people delegate all legislative
power to the Congress. But since the 1930s most agencies were
created with a broad mission, and told to write their own rules, which
then acquired the force of law. Congress abdicated its law making
responsibility to the agencies, which were run by the executive
department, and which has no constitutional authority to make laws.
(US Constitution, Article
I, Section 1.)
12 May 1933 The Federal Emergency Relief
Administration was created with an appropriation of $500,000,000. It was
authorized to match the sums allotted for the relief of unemployed by
State and local governments with Federal funds. The measure providing
for the first direct grants to States for unemployment relief was
expanded to provide medical attention and medical supplies to recipients
of unemployment relief programs. [SOURCE]
[TEXT
of the EMERGENCY RELIEF ACT]
12 May 1933 The Agriculture Adjustment Act
created the Agricultural Adjustment Administration. In an effort
to raise farm prices, the AAA created artificial shortages by purchasing
and destroying vast quantities of food--at a time when many Americans
were doing without, or living on higher priced imports.
Curiously enough,
while Wallace [named FDR's Secretary of Agriculture in 1933] was
paying out hundreds of millions to kill millions of hogs, burn oats,
plow under cotton, the Department of Agriculture issued a bulletin
telling the nation that the great problem of our time was our failure
to produce enough food to provide the people with a mere subsistence
diet. The Department made up four sample diets. There was a liberal
diet, a moderate diet, a minimum diet and finally an emergency diet
below the minimum. And the figures showed that we did not produce
enough food for our population for a minimum diet, a mere subsistence.
The AAA [Agricultural
Adjustment Administration] produced all sorts of dislocations in our
economic system. For instance, we had men burning oats when we were
importing oats from abroad on a huge scale, killing pigs while
increasing our imports of lard, cutting corn production and importing
30 million bushels of corn from abroad.
Wallace himself said:
"It is a shocking commentary on our civilization." That was
not so. That kind of thing was no part of our civilization. It was,
rather, a shocking commentary on the man who engineered it. It was a
crime against our civilization to pay farmers in two years
$700,000,000 to destroy crops and limit production. It was a shocking
thing to see the government pay one big sugar corporation over
$1,000,000 not to produce sugar.
John T. Flynn, The
Roosevelt Myth (Book
I, Chapter 5)
16 June 1933 Second Glass-Steagall Act (Banking Act of 1933),
separated commercial from investment banking, founded the Federal
Deposit Insurance Company--occasioned by Morgan-Rockefeller
rivalry. The act was intended to protect depositors from the
uncertainty of investment markets, and to protect them from unscrupulous
sales attempts. The act did nothing to eliminate unit banks or
allow nationwide banking. The small banks, with smaller, less
diversified assets were more prone to failure in bad times.
16 June 1933 National Industrial Recovery Act
(NIRA) set up the
National Recovery Administration (NRA). NIRA
gave the President the power to set up industrial cartels and fix
minimum prices, minimum wages, and maximum working hours within an
industry group (code). Overturned by unanimous vote of the US Supreme
Court on May 27, 1935.
May 1933 The TVA President Roosevelt's Message to Congress on the Tennessee Valley Authority, 1933
Tennessee Valley Authority Act,
18 May 1933
16 June 1933 The Public Works Administration (WPA) was established. [SOURCE]
Included in the WPA were work making programs for artists, musicians,
actors, writers and historians. This Roosevelt
friendly link will give an idea of the enormous scope of these
programs, and help to explain why Roosevelt and his programs received
such favorable media and coverage and textbook presentation.
November 1933 The Civilian Works Agency (CWA) was set up. [SOURCE]
5 December 1933 Prohibition repealed.
31 January 1934 Gold
Reserve Act demanded that remaining gold and US gold certificates be
surrendered to the Treasury, and nullified any private or government
contract clause agreeing to payment in gold. Roosevelt devalued
dollar from $20.67 to $35.00 per gold ounce.
February 1934 A bill was introduced in Congress which provided for a
Federal excise tax on employer payrolls, to be offset by employer
contributions to State unemployment insurance funds. [SOURCE]
6 June 1934 Congress established the U.S. Employment Service which,
jointly with the States, established and maintained employment agencies.
[SOURCE]
8 June 1934 Federal legislation to promote economic security was
recommended in the President's Message to Congress which stated:
"Among our objectives I place the security of men, women and
children of the nation first." [SOURCE]
26 June 1934 The Federal Credit Union Act of 1934 was approved,
making it possible to establish federally-chartered credit unions in all
of the United States. The Federal Credit Union Section was established
in the Farm Credit Administration. [SOURCE]
27 June 1934 The Railroad Retirement Act of 1934 was approved by the
president. The Act, to be administered by the Railroad Retirement Board,
provided for retirement and disability annuities and lump-sum payments
to survivors. [SOURCE]
The Taxman Commeth
Some of these will be out of
chronological order, but it is necessary to see the great burden of
taxation that was laid upon the depressed economy, in addition to the
burden of debt. Most of these (in quotes) are taken from Jim
Powell's FDR's
Folly, pages 77-87.
22 March 1933 - The Beer-Wine Revenue Act
12 May 1933 - The Agricultural Adjustment Act. 25% of the cotton
crop, 6,000,000 baby pigs, and 220,000 pregnant cows destroyed to raise
agricultural prices. Punitive taxes were levied on
"overproduction." The Thomas amendment provided for debasement
of the currency through Federal Reserve open market operations, printing
greenbacks, and the minting of coins with low weight of gold or silver.
Excess profit taxes were also levied, but were coupled to the expected
repeal of Prohibition.
16 June 1933 National
Industrial Recovery Act "imposed a 5 percent tax on
corporate dividends and reduced deductions for business and capital
losses."
11 January 1934 - Liquor Taxing Act $1.10 per gallon becomes $2.00
per gallon
1 June 1934 Revenue
Act of 1934 revision of the 1932 Act taxed toothpaste, soap, furs,
refrigerators, matches, candy, chewing gum, fountain syrups, CO2,
electricity....
The Revenue Act of 1934 also rearranged income tax rates, "a
decrease of taxes for those with incomes between $5,000 and $9,000, and
an increase for those with incomes above $9,000 ... there wasn't any
provision for carrying forward net losses to future years ... an
additional surtax was levied on undistributed net income of personal
holding companies ... 30 percent of the first $100,00 ... 40 percent of
the amount in excess of $100,000. The federal estate tax ... to 60
percent ... tariffs on coconut and other oils imported from the
Philippines."
January 1935 FDR: "No new taxes!"
19 July 1935 FDR called for a "wider distribution of
wealth" via graduated taxes on individuals and corporations.
He denounced "the transmission from generation to generation of
vast fortunes." Accordingly he proposed that death taxes should
take as much as 86.88 percent of estates ... confiscatory taxes had
already been paid on incomes before any proceeds could go into an
estate. On income above $100,000 the top rate went up to 75
percent.
January 1, 1936 The Federal unemployment tax of one percent became
applicable to employers of eight or more, with a credit offset for
contributions paid to State unemployment funds. [SOURCE]
1936 "a graduated undistributed profits tax that penalized
companies for building up savings essential for investment.
Companies that retained 1 percent of their net income would see 10
percent of it taxed away. Companies that retained 70 percent of
their net income would see 73.91 percent of it go to the
government." Retaining income for investment was vital to
smaller companies that were unable to borrow, sell stocks, or issue
bonds
June 1937 The Revenue Act of 1937 "increased taxation of
personal holding companies, limited deductions for corporate yachts and
country estates, restricted deductions for losses from sales or
exchanges of property, reduced incentives for creation of multiple
trusts, and eliminated favors for nonresident taxpayers ... Moreover the
government began collecting payroll taxes for Social Security in 1937 --
as a withholding tax it set a precedent for the withholding of federal
income taxes in 1943. Fro the very beginning, Social Security
wasn't deductible from the federal income tax."
29 June 1937 The President approved the Carriers Taxing Act of
1937, which repealed the Act of August 1935. The Act provided for income
taxes on railroad employees and employee representatives and for excise
taxes on carriers. [SOURCE]
1 January 1938 The Federal unemployment tax payable by
employers of eight or more employees was increased to three percent of
payroll. Unemployment benefits first became payable in 22 States [SOURCE]
"New Deal taxes came on top of increasing state taxes during the
Great Depression. Sixteen states enacted personal income taxes,
and fifteen enacted corporate income taxes.... In addition, states
introduced or raised excise taxes on gasoline liquor, tobacco, soft
drinks, and oleomargarine (this last, of course, a special benefit for
dairy farmers concerned about losing butter business). Overall,
state taxes doubled during the Great Depression: State tax
revenues soared from $2.1 billion in 1930 to $4.1 billion in
1940."
27 April 1942 Roosevelt asks Congress to tax personal
income at 100% (yup! one-hundred-percent!) above $25,000 per year.
Congress sets top personal tax rate at 91%, and corporate "excess
profits" at 95%.
3 October 1942 Roosevelt issues executive order setting top
personal tax rate at 100% above $250,000.
4 April 1935 The Social Security Bill was
introduced in the House of Representatives with a report. This bill
(H.R. 7260) replaced the Economic Security Bill. [SOURCE]
8 April 1935 The Works Progress
Administration created by the Emergency Relief Appropriation Act,
established a Resettlement Administration and a National Youth
Administration to administer emergency work relief programs for the
unemployed. [SOURCE]
6 May 1935 The Railroad Retirement Act of
1934 was declared unconstitutional by the United States Supreme Court. [SOURCE]
6 May 1935 The President signed an Executive
Order terminating the Federal Emergency Relief Administration and
creating the Works Progress Administration. [SOURCE]
27-29 May 1935 The National Industrial
Recovery Act was invalidated by the Supreme Court.
Opposition to the NRA
grew stronger and stronger by the time the U.S. Supreme Court struck
it down as unconstitutional on May 29, 1935 Economists at
the Brookings Institution declared that "the NRA on the whole
retarded recovery." Raymond Moley was among the framers of
the NRA who later acknowledged the error of his ways: "Planning
an economy in normal times is possible only through the discipline of
a police state.... Economic planning on a national scale in a
politically free society involves contradictions that cannot be
resolved in practice. The bones of the Blue Eagle [symbol
of the NRA] should be a grim reminder of this reality. (FDR's
Folly, p. 127 emphasis added).
19 June 1935 The Social Security Bill was
passed in the Senate by a vote of 77 Yes, 6 No, and 12 Not Voting. [SOURCE]
5 July 1935 The National Labor Relations (Wagner) Act was enacted.
14 August 1935 The Social Security Act (H.R. 7260, Public Law
No. 271, 74th Congress) became law with the President's signature at
approximately 3:30 p.m. on a Wednesday. [SOURCE]
15 August 1935 The President created the Interdepartmental
Committee to Coordinate Health and Welfare Activities. The committee was
composed of the Assistant Secretary of the Treasury, Chairman, Assistant
Secretaries of the Interior and Agriculture, and the Second Assistant
Secretary of Labor (Arthur J. Altmeyer). [SOURCE]
29 August 1935 The Railroad Retirement Act of 1935 was approved by
the President. [SOURCE]
27 September 1936 In his presidential campaign, Governor Alfred M.
Landon denounced the old-age insurance system. He spoke of Social
Security as being a "cruel hoax." [SOURCE]
3 November 1936 Roosevelt elected for second term. [Statistics]
7 December 1936 Judge George C. Sweeney of Massachusetts upheld
the right of Congress to levy a payroll tax on employers--Title IX of
the Social Security Act. [SOURCE]
15 December 1936 A three-judge Federal Court in Alabama granted
a permanent injunction restraining the State from collecting the tax
provided by the State Unemployment Compensation law. [SOURCE]
|
22.539
141.5
15.9%
24.9%
63% /
$100K
|
1937
F.D. Roosevelt |
1 January 1937 Workers began to acquire credits
toward old-age insurance benefits. Employers and employees became
subject to a tax of one percent of wages on up to $3,000 a year.
Lump-sum payments were first made payable to eligible workers, their
survivors or their estates. The Federal unemployment tax payable by
employers of 8 or more was increased to two percent of payroll. [SOURCE]
14 January 1937 Judge David J. Davis of Alabama upheld the
right of Congress to levy a payroll tax on employers--Title IX of the
Social Security Act. [SOURCE]
22 February 1937 The Senate Finance Committee ordered a study of
whether the accumulation of reserves for old-age benefits was necessary
and recommended the establishment of an Advisory Council to study the
problems and report to the Senate Finance Committee and the Social
Security Board. [SOURCE]
They are already asking the question: "Do we really have to keep
a Social Security trust fund, or can we just spend the money as we
collect it, and let someone in the future pay the benefits?"
12 April 1937 The Wagner Labor Act was declared constitutional by the
Supreme Court. [SOURCE]
24 May 1937 In three decisions, the Supreme Court validated the
unemployment insurance provisions of the Social Security Act and ruled
old-age pensions were constitutional, (301 U.S. 495, 548, 619) in Steward
Machine Company v. Davis; Helvering v. Davis; and Carmichael
v. Southern Coal Company. [SOURCE]
9 March 1937 "Court Packing." Roosevelt, in one of his "fire side
chats" announced his plan
to add fifty new federal judges, including seven additional
Supreme Court Justices. He claimed that the judiciary was
overworked. 14 June the Senate Judiciary Committee issued a
scathing report that called FDR's plan "a needless, futile and
utterly dangerous abandonment of constitutional principle … without
precedent or justification." K. Daniel Glover, "FDR's
court-packing fiasco."
24 June 1937 The Railroad Retirement Act of 1937, which amended
portions of the 1935 Act, was approved by the President. [SOURCE]
16 June 1938 Roosevelt established the Temporary National Economic
Committee (TNEC) to deal with the problem of monopolies in
business. Somehow, government sponsored monopolies were good, but
private monopolies bad. For example the Committee indicted Socony-Vacuum
Oil Company for practices that were mandated under the NRA. The
"sin" seems to have been bigness rather than market control
leading to exorbitant prices. Smaller companies clamored for
investigation of larger firms. (Jim Powell, FDR's Folly,
pp.236-240) A little less than three years, and a little more than
a Million dollars later, the Committee closed its activities with a
great deal of data on American business, but without substantial
recommendations. (Time Magazine, "Twilight
of TNEC," 14 April 1941)
25 June 1938 The Fair Labor Standards Act was enacted. It
provided for minimum wages, child labor standards, and time and one-half
for hours over 40 in a workweek, for workers coming under interstate
commerce. [SOURCE]
25 June 1938 The Crosser-Wheeler Act was enacted. It was to
become effective July 1, 1939. State unemployment compensation agencies
were to transfer to the Railroad Retirement Board the benefit rights and
contributions for workers covered by the Railroad Insurance Act. [SOURCE]
28 February 1939 Senator Robert Wagner introduced S.1620 to create
the National Health Act of 1939. A national compulsory health insurance
for almost all employees and their dependents was proposed by this bill.
Benefits were to include physician's services, hospitalization, drugs,
and laboratory diagnostic services. Costs were to be covered through
employer and employee contributions which were to have been deposited in
a health insurance fund. The plan was to be administered through the
States. No final action was taken on the bill--although hearings were
held April 29-July 13. The bill died in committee. [SOURCE]
1 July 1939 The Federal Reorganization Act of 1939 became
effective. Under this act, the Social Security Board was made part of
the newly established Federal Security Agency. The United States
Employment Service was transferred from the Department of Labor to the
Social Security Board, consolidating the Employment Service with the
unemployment compensation functions of the Social Security Board to
become the Bureau of Employment Security. In the Federal Security
Agency, the Social Security Board, the Public Health Service, the
Civilian Conservation Corps, the National Youth Administration, and the
Office of Education were integrated into one administrative unit. [SOURCE]
When in doubt, reorganize! Printing all that stationery
makes jobs!
1 January 1940 Monthly benefits first became payable under old-age
and survivor's insurance to aged retired workers and their dependents
and to survivors of deceased insured workers. The Federal Old-Age and
Survivors Insurance Trust Fund was established as a separate account in
the United States Treasury to hold the amounts accumulated under the
old-age and survivors insurance program. [SOURCE]
So, there is a Social Security trust fund?
31 January 1940 Ida M. Fuller became the first person to receive an
old-age monthly benefit check under the new Social Security law. She
paid in $24.75 between 1937 and 1939 on an income of $2,484. Her first
check, dated January 31, was for $22.54. [SOURCE]
But, finally, Roosevelt ran out of things on which to spend
money. By 1940 the municipalities had more hospitals, schools,
roads, bridges, dams, and so forth than they could maintain. They
could afford no more "free" public works in their jurisdictions
But how would he spend and on what? Bridges, roads,
a few more dams? These would consume a few billions at most. On what,
then, could it be? He already had a definite idea in his mind on what
it would be. He had denounced Hoover, among other things, for spending
so much on the military establishment. He had warned that if the
Republicans were not stopped, they would soon expose the people to the
burden of "a billion dollars a year on the military and naval
establishment." Now, looking up at the world from the hole in
which he found himself, he had to swallow all that too. Half thinking
aloud in a chat with Farley he said "The danger of war with Japan
will naturally cause an increase in our armaments program, which
cannot be avoided." He had only recently warned Americans against
those politicians who would tell them that a military industry would
produce work for the people and profits for business. But it would be
hard, he had said at Chautauqua only two years before "for
Americans to look beyond, to realize the inevitable penalties, the
inevitable day of reckoning that comes from a false prosperity."
Yet now he was playing with that very war motif.
John T. Flynn, The
Roosevelt Myth (Book
II, Chapter 3)
April 1940 Naval ships based on the West Coast joined the ships
of the Hawaiian Detachment for their annual training exercise. In
spite of a number of practical difficulties, of which he advised
Roosevelt, Admiral
James O. Richardson was ordered to keep all ships at Pearl
Harbor. On 7 May 1940, Richardson was ordered to tell
the press that keeping the ships at Pearl was his decision. (Robert B.
Stinnett, Day
of Deceit, p. 17 [on-line])
8 July 1940 Adminal Richardson met personally with Roosevelt to
explain that Pearl had inadequate facilities for training, repair,
fueling, munitioning, parts fabrication, and dry docking, as well as
being a morale problem for sailors whose families remained at West Coast
bases. He also cautioned Roosevelt that such a build up of force
would appear aggressive to the military minded Japanese
government. Richardson lost the argument. (Day of Deceit,
p. 18‑19)
Mid-summer 1940 Roosevelt issued licensing plan to control
exports of oil and scrap metal, but ignored violations of his order by
shipments to Japan.
Early September 1940 Roosevelt asked Congress to instate a peace-time
draft, called up the National Guard, traded 50 old destroyers to Britain
in exchange for leases on Atlantic bases, and signed $5 Billion
legislation for a two-ocean Navy. (Day of Deceit, p. 25,
121)
September-October 1940 US Cryptanalysts cracked Japanese
diplomatic codes and some military codes. Oil supplies cut to
Japan. (Day of Deceit, p. 21‑23; 39‑43)
7 October 1940 Lt. Cdr. Arthur McCollum, Fare East
Desk, Office of Naval Intelligence (ONI) issues memo
through Capt. Walter S. Anderson, Chief of ONI to Roosevelt,
detailing the steps necessary to provoke Japan to War. (Day of
Deceit, p. 7‑9; photocopy of memo 272‑277)
8 October 1940 Roosevelt ordered the fleet to remain at Pearl
for the foreseeable future. Richardson burst out, telling
Roosevelt that "senior officers in the Navy do not have the rust
and confidence in the civilian leadership of this country that is
essential for the successful prosecution of a war in the
Pacific." He urged Roosevelt not to leave the fleet at Pearl
as a provocation to the Japanese, and a mortal danger to the
fleet. 26 October 1940 the rumor that Richardson is to be replaced
circulated in the Kiplinger Newsletter. (Day of Deceit,
p. 10‑11)
Roosevelt maintained that basing entire Fleet at Pearl served as a
deterrent against Japanese aggression.
5 November 1940 Roosevelt wins election to third term. [Statistics]
|
36.425
203.2
17.9%
14.3%
79% /
$5000K
|
1941
F.D. Roosevelt |
January 1941 Roosevelt promoted Captain Walter
Stratton Anderson (McCullom's boss at Navy Intelligence) to Rear Admiral
in command of Battleships in the Pacific Fleet. Headquartered at
Pearl Harbor, Anderson nonetheless took off base quarters at Diamond
Head, thereby not not being in the wrong place at the wrong time when
the attack came on Sunday morning, 7 December 1941. (Day
of Deceit, p. 36‑37; 111)
1 February 1941 Admiral Richardson replaced by Admiral
Husband E. Kimmel as commander of Pacific Fleet. (Day of Deceit,
p. 11, 33)
26 February 1941 The Bureau of Public Assistance was
designated a defense agency. [SOURCE]
March-May 1941. Admiral Kimmel and Army Lt. General
Short complain of not receiving intelligence information concerning Japanese
espionage, and troop and ship movements. Complaints are
stonewalled. (Day of Deceit, p. 37‑38; 130)
Official Navy position is that Kimmel and Short received adequate
intelligence.
11 April 1941 The Social Security Board was designated a defense
agency. [SOURCE]
14 August 1941 In the Atlantic
Charter, Roosevelt and Churchill
included among the common principles in national policies of the two
countries the desire "to bring about the fullest collaboration
between all nations in the economic field with the object of securing,
for all, improved labor standards, economic advancement and social
security." [SOURCE]
But Flynn
says of the Atlantic Charter:
In the meantime, the war engrossed the
attention of the people. And very soon after the election, stories
about the conference at Teheran, details of which had been guarded
very carefully, began to appear. It was being said that all the little
liberated countries to which Roosevelt had made such definite promises
and whose nationals in this country had been so solicitously courted
during the campaign had been betrayed at Teheran. The dominant note in
these criticisms was that at Teheran Roosevelt had scrapped the
Atlantic Charter. That bold document had asserted that the high
contracting parties "desire to see no territorial changes that do
not accord with the freely expressed desires of the peoples concerned,
that they respect the right of all peoples to choose the form of
government under which they will live and they wish to see sovereign
rights and selfgovernment restored to those who have been forcibly
deprived of them." The Teheran agreement violated every phrase
and syllable of this pledge.
What had become of the Atlantic
Charter? On December 20, 1944, the President at a press conference was
asked about the Charter which he and Churchill had signed. His reply
literally bowled over the correspondents. There was not and never had
been a complete Atlantic Charter signed by him and Churchill, he
replied. Then where is the Charter now, he was asked. He replied:
"There wasn't any copy of the Atlantic Charter so far as I
know." It was just a press release. It was scribbled on a piece
of paper by him and Churchill and Sumner Welles and Sir Alexander
Cadogan. It was just handed to the radio operator aboard the British
and American warships to put on the air as a news release. Further
inquiry revealed that Stephen Early had handed it out on his own with
the signatures of Churchill and Roosevelt attached. And over on the
wall of the National Museum in Washington, beautifully framed and
illuminated after the manner of an ancient document like Magna
Carta or the Declaration of Independence was the great Atlantic
Charter itself, with the signatures of Roosevelt and Churchill. Daily
visitors stood before it as before some great historic document. John
O'Donnell, of the New York Daily News, asked the curator where
he got it. He answered that it came from the Office of War
Information. They had "loaned" the precious document to the
National Museum. By inquiry at the OWI that prolific fountain of
phony news O'Donnell learned that OWI had gotten it up and affixed
the names of Roosevelt and Churchill. They had printed 240,000 copies
of it. O'Donnell went back to the Museum with this information. And
lo! the great Charter was gone. An attendant told him it had been
ordered off the wall twenty minutes before. Thus ended the story of
this wretched fraud. The fake document which was never signed and was
nothing more than a publicity stunt to conceal the real purposes of
the Atlantic meeting had been slain by its chief sponsor and, of
course, all its highsounding professions, after Teheran, had become
as sounding brass or a tinkling cymbal
3 September 1941 The Office of Defense, Health and Welfare
Services was established by the President to supersede the Office of
Coordinator of Health, Welfare, and Related Defense Activities (November
28, 1940). [SOURCE]
Fall 1941 Army and Navy standing orders in the Pacific were to assume
a defensive posture until the Japanese committed an act of
aggression. Training, rather than reconnaissance, was of first
priority. Patrol planes, spare parts, and anti-aircraft guns had
been promised to Pearl Harbor but were delivered elsewhere or not at
all. (Pearl Harbor Myth, p. 86ff,).
Intercepted Japanese radio messages suggesting an invasion of Pearl
Harbor were not sent to Kimmel or Short. (Pearl Harbor Myth, p. 92-105).
National Parks Service denied permission to establish radar rurvailence
stations on Par properties! (Pearl Harbor Myth, p.111).
Codebooks and instructions for decoding the Japanese
military "5-NUM" code were sent to Hawaii by courier from
Washington. They arrived after the December 7th attack! (Day
of Deceit, p. 76).
4 December 1941 Chicago
Tribune and Washington Time-Herald leak Roosevelt "Rainbow-5"
plan for war against Germany, even though "when he ran for a third
term in 1940, the president had vowed that he would never send American
soldiers to fight beyond America's shores." (Thomas Flemming,
The New Dealer's War, pp. 1-2)
“We will not participate in foreign wars, and we will not send our
army, naval, or air forces to fight in foreign lands outside of the
Americas, except in case of attack. ... The direction and aim of our
foreign policy has been, and will continue to be, the security and
defense of our own land and the maintenance of its peace.”
2 & 6 December 1941 Captain Johan Ranneft, Dutch naval
attaché, visiting Cdr. McCollum and Capt. Theodore Wilkinson at
Office of Naval Intelligence in Washington was shown plots of Japanese
ships approaching Hawaii. He assumed, incorrectly, that
Adm. Kimmel and Gen. Short had been notified. (Day of
Deceit, p. 43-45, 59)
7 December 1941 Japanese attack Pearl Harbor Honolulu
Star-Bulletin account. US Navy
official account (good pictures).. Eye-witness
account.
February 6, 1942 President Roosevelt issued an order to the Federal
Security Agency to create the Civilian War Benefits and Civilian War
Assistance programs and for aid to enemy aliens (principally, to remove
them to internment sites [below, 18 March]). The President's
order allocated $5,000,000 from the President's Emergency Fund for these
purposes. The Social Security Board was delegated this responsibility by
the FSA. [SOURCE]
18 March 1942 Roosevelt creates the War
Relocation Authority (WRA) to remove American citizens of Japanese ancestry
from the Pacific coast states. "The relocation centers,
however, are NOT and ever were intended to be internment camps or places
of confinement." But "Before any
evacuee is permitted to leave a relocation center for the purpose of
taking a job or establishing normal residence, however, certain
requirements must be met:
A careful check is
made of the evacuee's behavior record at the relocation center and of
other information in the hands of the WRA. In all questionable cases,
any information in the possession of the federal investigative
agencies is requested and studied. If there is any evidence from any
source that the evacuee might endanger the security of the Nation,
permission for indefinite leave is denied.
There must be reasonable assurance from responsible
officials or citizens regarding local sentiment in the community where
the evacuee plans to settle. If community sentiment appears so hostile
to all persons of Japanese descent that the presence of the evacuee
seems likely to cause trouble, the evacuee is so advised and
discouraged from relocating in that particular area.
Indefinite leave is granted only to evacuees who
have a definite place to go and some means of support.
Each evacuee going out on indefinite leave must
agree to keep the WRA informed of any change of job or address.
And what of the Italians and the Germans on the Atlantic coast?
27 April 1942 Roosevelt asks Congress to tax personal
income at 100% (yup! one-hundred-percent!) above $25,000 per year.
Congress sets top personal tax rate at 91%, and corporate "excess
profits" at 95%.
23 June 1942 The Servicemen's Dependents Allowance Act of 1942
was approved. It provided family allowances for dependents of enlisted
men of the Army, Navy, Marine Corps, and the Coast Guard. [SOURCE]
Why not just put enough money in their paychecks and avoid the
bureaucracy?
3 October 1942 Roosevelt issues executive order setting top
personal tax rate at 100% above %25,000.
4 December 1942 President Roosevelt ordered the liquidation of
the W.P.A., and termination of project operations by February 1, 1943,
or as soon thereafter as feasible. [SOURCE]
7 January 1943 A post-war world which would furnish "assurance
against the evils of all major economic hazards - assurance that will
extend from the cradle to the grave" was envisioned by
President Roosevelt in his message on the State of the Union, as one of
two broad aims beyond the winning of the war. [SOURCE]
[Emphasis supplied]
24 January 1943 At Anfa, a resort to the south of Casablanca,
after meeting with Churchill, Roosevelt announced that the U.S. would
demand unconditional surrender of Axis powers. This derailed German attempts to remove
Hitler, and gave Germany adequate time to place troops in Italy while
the Italians pondered surrender. (Fleming, New Dealer's
War, pp. 171-188, 203-212). Even the Versailles treaty had not been unconditional.
The demand for unconditional surrender, and the fear that the Japanese
emperor would be consequently treated as a war criminal prolonged the
war in the Pacific. providing the excuse to use atomic bombs against
civilian populations. One must assume that this demand damaged the
moral of Americans with family or cultural ties to the Axis
powers--particularly those Americans who languished in internment
camps. In all cases, Roosevelt's demand prolonged the war.
An earlier German surrender would have limited the number of those
killed in extermin
3 June 1943 The first "Wagner-Murray-Dingell"
bill was introduced. The bill provided for major changes in the Social
Security Act, including disability benefits, and creation of a
compulsory national health insurance program for all people. The program
was to have been financed through a payroll tax. Congress took no action
on the proposal. [SOURCE]
22 November 1943 Federal agencies were ordered to use Social
Security account numbers for identifying Government workers whenever
they established a new permanent system of numerical identification of
employees. (Executive Order No. 9397.) [SOURCE]
January 11, 1944 President Roosevelt
outlined in his State of the Union Message, an "economic bill of
rights," which included "the right to adequate medical care
and the opportunity to achieve and enjoy good health." However, he
did not make any subsequent proposal for health insurance. [SOURCE]
January 19, 1944 The Social Security Board, in
its Eighth Annual Report to Congress, specifically called for
compulsory national health insurance program to be incorporated into the
Social Security system. [SOURCE]
April 24, 1944 In ruling that newsboys are
employees within the meaning of the National Labor Relations Act, the
United States Supreme Court declared that the meaning of
"employee" as used in the act must, in doubtful situations, be
determined broadly by underlying economic facts rather than technically
and exclusively by previously established legal classifications. If the
Court ruled that the result of applying wholesale the traditional
common-law conceptions as exclusively controlling limitations on the
scope of the statutes effectiveness would hardly be consistent with the
statute's broad terms and purposes. [SOURCE]
What about baby-sitters?
7 November 1944 Roosevelt elected to fourth term. 36
States with 432 electoral votes (81%) to Dewey's 99, but with a
margin of only 3.5 million popular votes (53% of total). [Statistics]
But see below!
Roosevelt was reelected [in 1944]. The results justified, from a
political consideration, the wisdom of his alliance with Hillman and
Browder. During the campaign, Roosevelt had denied vehemently that he
had sought the support of Communists. Actually his name appeared as
the candidate of the American Labor Party dominated by Browder and
Hillman entirely. And he had accepted its nomination. He had also
accepted nomination at the hands of the American Liberal Party, the
pink fringe dangling somewhere between the fascist planned society and
Stalin's proletarian dictatorship. In the election, Thomas E. Dewey
actually got over 500,000 more votes on the Republican ticket than
Roosevelt got on the Democratic ticket in New York State. It was
Roosevelt's 490,000 votes from Browder and Hillman's American Labor
Party and the 339,000 votes from the Pinkos that gave him his
majority. While Dewey carried only 12 states in the North, the
Roosevelt majority in many of those he carried was thin and would have
been wiped out if the Browder Hillman votes had not been given to
Roosevelt. The administration was now the hopeless prisoner of these
demanding and ruthless radical labor leaders, who had shown their
ability to elect or defeat the Democratic party, who had filled all
the departments and bureaus with their agents and who had insinuated
their experts into the CIO labor unions and their propagandists into
the radio, the movies and all the great instruments of communication
and opinion a fact which Mr. Roosevelt's successors would have to
face when the war ended.
Flynn,
The Roosevelt Myth (Book II, Chapter 12):
|
48.961
263.7
18.6%
81% /
$5000K
|
1945
F.D. Roosevelt
H.S. Truman |
February 1945 terror
bombing with incendiaries and high explosives. Euphemistically
called "morale bombing"--an attempt to terrorize German and
Japanese civilians to demand Hitler's and Hirohito's unconditional
surrender. 13-15 February Dresden; 24-25 February Tokyo;
17 March Kobe; 6 August Hiroshima; 9 August Nagasaki.
12 April 1945 Roosevelt died. Truman took
oath of office that evening
September 5, 1945 The Social
Security Board approved a proposal to terminate on June 30, 1946, the
program for aid to enemy aliens and others restricted by governmental
action. [SOURCE]
September 6, 1945 President Truman, in a
special message to Congress, proposed an Economic Bill of Rights
containing certain rights which were to be assured to every American
citizen, including the Nation's health objectives. [SOURCE]
November 19, 1945 In a special message to
Congress, President Truman proposed a comprehensive, prepaid medical
insurance plan for all people through the Social Security system. The
plan would have covered doctors, hospital, nursing, laboratory and
dental services for people covered by the Social Security program; it
would also have provided benefits financed from Federal Revenues for
needy people. A revised Wagner-Murray-Dingell Bill providing for
National Health Insurance was immediately introduced. [SOURCE]
July 3, 1946 The National Mental Health Act
authorized the establishment of a National Institute of Mental Health
and increased Federal grants to States for public health services, with
special emphasis on mental health problems. [SOURCE]
May 19, 1947 President Truman, in a special
health message to Congress, again requested a compulsory national health
program. Senate Bill 1320 was introduced by Senators Wagner and Murray.
Senator Taft's bill was also reintroduced. [SOURCE]
2 November 1948 Truman re-elected President. [Statistics]
|
258.682
355.2
72.8%
94% /
$200K
|
1949
Truman |
January 5, 1949 In his State of the Union
Message, President Truman again called for compulsory national health
insurance for persons of all ages, financed by a Federal payroll tax. [SOURCE]
April 22, 1949 In another special message,
President Truman called for National Health Insurance. [SOURCE]
4 November 1952 Dwight D. Eisenhower elected President. [Statistics] |
252.770
324.1
77.9%
6.05%
82.13% /
$400K
|
1953
Eisenhower |
6 November 1956 Dwight D. Eisenhower re-elected President
[Statistics]
|
266.071
412.8
64%
2.92%
92% /
$400K
|
|
Related Post-Depression and Post-War Events
1979 President Jimmy Carter ordered hundreds of thousands
of Japanese Naval messages decrypted by the US Navy be declassified.
27 April 1995 Hearing
held to review the posthumous restoration of Admiral Kimmel to four star
rank.
A 1995 Pentagon study
concluded there were other high-ranking officers responsible for the
failure at Pearl Harbor, but did not exonerate him. On May 25, 1999, the
United States Senate, by a vote of 52-47, passed a nonbinding resolution
exonerating Kimmel and Short, and asking the President to posthumously
promote Kimmel, and others, to full admiral. Senator Strom Thurmond
(R-SC), one of the sponsors of the resolution, called Kimmel and Short
"the two final victims of Pearl Harbor." However, neither
President Clinton nor his successor, President George W. Bush, have
undertaken to do so. (Wikipedia s.v. "Husband
E. Kimmel)
July 1995 National Security Agency begins to release
messages decrypted from Russian diplomatic traffic by the Venona
Project from February 1943 through 1980, revealing depth of Soviet
espionage activities within the U.S. government
|
|
|
Unemployment and Dow Jones Statistics
(Source: Amity Shlaes, The Forgotten Man: A new History of
the Great Depression)
|
|
|
Period |
Unemployment |
Dow Jones Industrial Average |
|
|
January 1927 |
3.3% |
155 |
|
|
July 1927 |
3.3% |
168 |
|
|
October 1929 |
< 5% |
343 (October 1) |
|
|
September 1931 |
17.4% |
140 |
|
|
October 1933 |
22.9 |
93 |
|
|
November 1933 |
23.2% |
90 |
|
|
January 1934 |
21.2% |
100 |
|
|
November 1934 |
23.2% |
93 |
|
|
July 1935 |
21.3 |
119 |
|
|
Decmber 1936 |
15.3 % |
182 |
|
|
January 1937 |
15% |
179 |
|
|
August 1937 |
13.5% |
187 |
|
|
January 1938 |
17.4% |
121 |
|
|
January 1940 |
14.6% |
151 |
|
Bibliography
Buchanan, Patrick, Churchill,
Hitler, and the Unnecessary War, New York: Crown Publishers: 2008 [Print]
Conquest, Robert, Harvest of
Shame, New York: Oxford University Press 1986 [Print]
Fleming, Thomas, The New
Dealer's War: FDR and the War Within World War II, New York, Basic Books,
2001 [Print]
Flynn, John T. The Roosevelt
Myth, New York: Devin Adair, 1948 [Online]
[Print]
Powell, Jim, FDR's Folly: How
Roosevelt and His New Deal Prolonged the Great Depression,
New York: Three Rivers Press, 2003 [Print]
Rothbard, Murray N.,
A History of Money and Banking in the United States., Auburn: Mises
Institute 2005 [Print]
Stinnett, Robert B. Day
of Deceit: New York, Touchstone Press, 2000 [on-line]
[Print]
Tax History Project:
The Price of Civilization: Document Archive
Victor, George, The Pearl Harbor Myth: Rethinking the Unthinkable,
Washington D.C.: Potomac, 2007 [Print]
|