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The purpose of this program was to provide flood control over the Tennessee River. FDR wanted to help improve the quality of life in this region. It makes power in hope to boost the economy during the Great Depression. That energy was to help those who didn't have it during the Great Depression in that region.

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The CCC gave employment to millions of Americans who didn't have a job during the Great Depression. They completed environmental jobs for the government. They built many parks that we still have today. This was one of FDR's solutions to getting Americans jobs, especially ones who didn't want to just be given money.

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CCC and the New Deal

President Franklin D. Roosevelt established the Civilian Conservation Corps, or CCC, with an executive order on April 5, 1933. The CCC was part of his New Deal legislation, combating high unemployment during the Great Depression by putting hundreds of thousands of young men to work on environmental conservation projects.

The CCC combined FDR's interests in conservation and universal service for youth. As governor of New York, he had run a similar program on a smaller scale.

The United States Army helped to solve an early logistical problem - transportation. Most of the unemployed men were in Eastern cities while much of the conservation work was in the West.

The Army organized the transportation of thousands of enrollees to work camps around the country. By July 1, 1933, 1,433 working camps had been established and more than 300,000 men put to work. It was the most rapid peacetime mobilization in American history.

Under the guidance of the U.S. Forest Service, the National Park Service and the Departments of the Interior and Agriculture, CCC employees fought forest fires, planted trees, cleared and maintained access roads, re-seeded grazing lands and implemented soil-erosion controls.

Additionally, they built wildlife refuges, fish-rearing facilities, water storage basins and animal shelters. To encourage citizens to get out and enjoy America's natural resources, FDR authorized the CCC to build bridges and campground facilities.

CCC Camps

The CCC enrolled mostly young, unskilled and unemployed men between the ages of 18 and 25. The men came primarily from families on government assistance. Men enlisted for a minimum of six months.

Each worker received $30 in payment per month for his services in addition to room and board at a work camp. The men were required to send $22 to 25 of their monthly earnings home to support their families.

Some corpsmen received supplemental basic and vocational education while they served. In fact, it's estimated that some 57,000 illiterate men learned to read and write in CCC camps.

Minorities in the CCC

In addition to younger men, the CCC enrolled World War I Army veterans, skilled foresters and craftsmen, and roughly 88,000 Native Americans living on Indian reservations.

Despite an amendment outlawing racial discrimination in the CCC, young African American enrollees lived and worked in separate camps. In the 1930s, the U.S. Supreme Court didn't think of segregation as racial discrimination.

Enrollment in the CCC peaked in August 1935. At the time, more than 500,000 corpsmen were spread across 2,900 camps. It's estimated that nearly three million men - about five percent of the total United States male population - took part in the CCC over the course of the agency's nine-year history.

Women were prohibited from joining the CCC.

Notable CCC Alumni

Several celebrities served in the CCC before they were famous.

Actors Walter Matthau and Raymond Burr labored in Montana and California, respectively. American league baseball hall-of-famer Stan Musial also worked for the CCC, as did test pilot Chuck Yeager, the first man to fly faster than the speed of sound.

Veteran conservationist and author Aldo Leopold supervised CCC erosion control and forestry projects in Arizona and New Mexico.

Criticisms of the CCC

Though the CCC enjoyed overwhelming public support throughout its tenure, the agency's programs initially drew criticism from organized labor.

Trade unions opposed the training of unskilled workers when so many union members were out of work. They also opposed Army involvement in the CCC, which they feared could lead to state control and regimentation of labor.

In order to quell union opposition, FDR appointed American labor union leader and vice president of the International Association of Machinists as the first director of the CCC.

CCC Achievements

By the time the CCC program ended at the start of World War II, Roosevelt's "Tree Army" had planted more than 3.5 billion trees on land made barren from fires, natural erosion, intensive agriculture or lumbering. In fact, the CCC was responsible for over half the reforestation, public and private, done in the nation's history.

CCC companies contributed to an impressive number of state and national park structures that visitors can still enjoy today. More than 700 new state parks were established through the CCC program.

Civilian Conservation Corps Legacy

In 1942, Congress discontinued funding for the CCC, diverting desperately needed resources to the effort to win World War II.

Monuments and statues dedicated to the CCC and its alumni dot parks across the country. The extensive development and expansion of park facilities and services by the CCC made possible the modern state and national park systems Americans enjoy today.

The CCC became a model for future conservation programs. More than 100 present-day corps programs operate at local, state, and national levels engaging young adults in community service and conservation activities.

The National Civilian Community Corps, part of AmeriCorps - a national service program - enrolls 18- to 24-year-old men and women for 10-month stints working for non-profit and governmental organizations, often with an environmental purpose.

Sources

The Civilian Conservation Corps and the National Park Service, 1933-1942: An Administrative History. National Park Service.
Into the Woods: The First Year of the Civilian Conservation Corps. National Archives.
CCC Brief History. Civilian Conservation Corps Legacy.

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President Franklin D. Roosevelt established the Civilian Conservation Corps, or CCC, with an executive order on April 5, 1933. The CCC was part of his New Deal legislation, combating high unemployment during the Great Depression by putting hundreds of thousands of young men to work on environmental conservation projects.

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A law that would enforce fair wages and prices for products. It also stopped companies from creating alliances. This was kind of a reorganization and rules of business. So the economy recover and regulation problems wouldn't happen again.

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Transcript

AN ACT
To encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I-INDUSTRIAL RECOVERY

DECLARATION OF POLICY

SECTION 1. A national emergency productive of widespread unemployment and disorganization of industry, which burdens interstate and foreign commerce, affects the public welfare, and undermines the standards of living of the American people, is hereby declared to exist. It is hereby declared to be the policy of Congress to remove obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof; and to provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among trade groups, to induce and maintain united action of labor and management under adequate governmental sanctions and supervision, to eliminate unfair competitive practices, to promote the fullest possible utilization of the present productive capacity of industries, to avoid undue restriction of production (except as may be temporarily required), to increase the consumption of Industrial and agricultural products by increasing purchasing power, to reduce and relieve unemployment, to improve standards of labor, and otherwise to rehabilitate industry and to conserve natural resources.

ADMINISTRATIVE AGENCIES

SEC. 2. ( a) To effectuate the policy of this title, the President is hereby authorized to establish such agencies, to accept and utilize such voluntary and uncompensated services to appoint without
regard to the provisions of the civil service laws, such officers and employees, an to utilize such Federal officers and employees, and, with the consent of the State, such State and local officers and employees, as he may find necessary, to prescribe their authorities, duties, responsibilities, and tenure, and, without regard to the Classification Act of 1923, as amended, to fix the compensation of any officers and employees so appointed.

(b) The President may delegate any of his functions and powers under this title to such officers, agents, and employees as lie may designate or appoint, and may establish an industrial planning and research agency to aid in carrying out his functions under this title.

(c) This title shall cease to be in effect and any agencies established hereunder shall cease to exist at the expiration of two years after the date of enactment of this Act, or sooner if the President shall by proclamation or the Congress shall by joint resolution declare that the emergency recognized by section 1 has ended.

CODES OF FAIR COMPETITION

SEC.3. (a) Upon the application to the President by one or more trade or industrial associations or groups the President may approve a code or codes of fair competition for the trade or industry or sub- division thereof, represented by the applicant or applicants, if the President finds (1) that such associations or groups impose no inequitable restrictions on admission to membership therein and are truly representative of such trades or industries or subdivisions thereof, and (2) that such code or codes are not designed to pro- mote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate against them, and will tend to effectuate the policy of this title: Provided, That such code or codes shall not permit monopolies or monopolistic practices : Provided further, That where such code or codes affect the services and welfare of persons engaged in other steps of the economic process, nothing in this section shall deprive such persons of the right to be heard prior to approval by the President of such code or codes. The President may, as a condition of his approval of any such code, impose such conditions (including requirements for the making of reports and the keeping of accounts) for the protection of consumers competitors, employees, and others, and in furtherance of the public interest, and may provide such exceptions to and exemptions from the provisions of such code, as the President in his discretion deems necessary to effectuate the policy herein declared.

(b) After the President shall have approved any such code, the provisions of such code shall be the standards of fair competition for such trade or industry or subdivision thereof. Any violation of such standards in any transaction in or affecting interstate or foreign commerce shall be deemed an unfair method of competition in commerce within the meaning of the Federal Trade Commission Act, as amended; but nothing in this title shall be construed to impair the powers of the Federal Trade Commission under such Act, as amended.

(c) The several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of any code of fair competition approved under this title; and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction of the Attorney General, to institute proceedings in equity to prevent and restrain such violations.

(d) Upon his own motion, or if complaint is made to the President that abuses inimical to the public interest and contrary to the policy herein declared are prevalent in any trade or industry or subdivision thereof, and if no code of fair competition therefor has theretofore been approved by the President, the President, after such public notice and hearing as he shall specify, may prescribe and approve a code of fair competition for such trade or industry or subdivision thereof, which shall have the same effect as a code of fair competition approved by the President under subsection (a) of this section.

(e) On his own motion, or if any labor organization, or any trade or industrial organization, association, or group, which has complied with the provisions of this title, shall make complaint to the President that any article or articles are being imported into the United States in substantial quantities or increasing ratio to domestic production of any competitive article or articles and on such terms or under such conditions as to render ineffective or seriously to endanger the maintenance of any code or agreement under this title, the President may cause an immediate investigation to be made by the United States Tariff Commission, which shall give precedence to investigations under this subsection, and if, after such investigation and such public notice and hearing as he shall specify, the President shall find the existence of such facts, he shall, in order to effectuate the policy of this title, direct that the article or articles concerned shall be permitted entry into the United States only upon such terms and conditions and subject to the payment of such fees and to such limitations in the total quantity which may be imported (in the course of any specified period or periods) as he shall find it necessary to prescribe in order that the entry thereof shall not render or tend to render ineffective any code or agreement made under this title. In order to enforce any limitations imposed on the total quantity of imports, in any specified period or periods, of any article or articles under this subsection, the President may forbid the importation of such article or articles unless the importer shall have first obtained from the Secretary of the Treasury a license pursuant to such regulations as the President may prescribe. Upon information of any action by the President under this subsection the Secretary of the Treasury shall, through the proper officers, permit entry of the article or articles specified only upon such terms and conditions and subject to such fees, to such limitations in the quantity which may be imported, and to such requirements of license, as the President shall have directed. The decision of the President as to facts shall be conclusive. Any condition or limitation of entry under this subsection shall continue in effect until the President shall find and inform the Secretary of the Treasury that the conditions which led to the imposition of such condition or limitation upon entry no longer exists.

(f) When a code of fair competition has been approved or prescribed by the President under this title, any violation of any provision thereof in any transaction in or affecting interstate, or foreign commerce shall be a misdemeanor and upon conviction thereof an offender shall be fined not more than $500 for each offense and each day such violation continues shall be deemed a separate offense.

AGREEMENTS AND LICENSES
SEC. 4. (a) The President is authorized to enter into agreement with, and to approve voluntary agreements between and among, per- sons engaged in a trade or industry, labor organizations, and trade or industrial organizations, associations, or groups, relating to any trade or industry, if in his judgment such agreements will aid in effectuating the policy of this title with respect to transactions in or affecting interstate or foreign commerce, and will be consistent with the requirements of clause (2) of subsection (a) of section 3 for a code of fair competition.

(b) Whenever the President shall find that destructive wage or price cutting or other activities contrary to the policy of this title are being practiced in any trade or industry or any subdivision thereof, and, after such public notice and hearing as he shall specify, shall find it essential to license business enterprises in order to make effective a code of fair competition or an agreement under this title or otherwise to effectuate the policy of this title, and shall publicly so announce, no person shall, after a date fixed in such announcement, engage in or carryon any business, in or affecting interstate or foreign commerce, specified in such announcement, unless he shall have first obtained a license issued pursuant to such relations as the President shall prescribe. The President may suspend or revoke any such license, after due notice and opportunity for hearing, for violations of the terms or conditions thereof. Any order of the President suspending or revoking any such license shall be final if in accordance with law. Any person who, without such a license or in violation of any condition thereof, carries on any such business for which a license is so required, shall, upon conviction thereof, be fined not more than $500, or imprisoned not more than six months, or both, and each day such violation continues shall be deemed a separate offense. Notwithstanding the provisions of section 2 (c) , this subsection shall cease to be in effect at the expiration of one year after the date of enactment of this Act or sooner if the President shall by proclamation or the Congress shall by joint resolution declare that the emergency recognized by section 1 has ended.

SEC. 5. While this title is in effect (or in the case of a license, while section 4 (a) is in effect) and for sixty days thereafter, any code, agreement, or license approved, prescribed, or issued and in effect under this title, and any action complying with the provisions thereof taken during such period, shall be exempt from the provisions of the antitrust laws of the United States.

Nothing in this Act, and no regulation thereunder, shall prevent an individual from pursuing the vocation of manual labor and selling or trading the products thereof; nor shall anything in this Act, or regulation thereunder, prevent anyone from marketing or trading the produce of his farm.

LIMITATIONS UPON APPLICATION OF TITLE

SEC. 6. (a) No trade or industrial association or group shall be eligible to receive the benefit of the provisions of this title until it files with the President a statement containing such information relating to the activities of the association or group as the President shall by regulation prescribe.

(b) The President is authorized to prescribe rules and regulations designed to insure that any organization availing itself of the benefits of this title shall be truly representative of the trade or industry or subdivision thereof represented by such organization. Any organization violating any such rule or regulation shall cease to be entitled "to the benefits of this title.

(c) Upon the request of the President, the Federal Trade Com- mission shall make such investigations as may be necessary to enable the President to carry out the provisions of this title, and for such purposes the Commission shall have all the powers vested in it with respect of investigations under the Federal Trade Commission Act, as amended.

SEC. 7. (a) Every code of fair competition, agreement, and license approved, prescribed, or issued under this title shall contain the following conditions: (1) That employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and (3) that employers shall comply with the maximum hours of labor, minimum rates of pay, and. other conditions of employment, approved or. prescribed by the President.

(b) The President shall, so far as practicable, afford every opportunity to employers and employees in any trade or industry or subdivision thereof with respect to which the conditions referred to in clauses (1) and (2) of subsection (a) prevail, to establish by mutual agreement, the standards as to the maximum hours of labor, minimum rates of pay, and such other conditions of employment as may be necessary in such trade or industry or subdivision thereof to effectuate the policy of this title; and the standards established in such agreements, when approved by the President, shall have the same effect as a code of fair competition, approved by the President under subsection (a) of section 3.

(c) Where no such mutual agreement has been approved by the President he may investigate the labor practices, policies, wages, hours of labor, and conditions of employment in such trade or industry or subdivision thereof; and upon the basis of such investigations, and after such hearings as the President finds advisable, he is authorized to prescribe a limited code of fair competition fixing such maximum hours of labor, minimum rates of pay, and other conditions of employment in the trade or industry or subdivision thereof investigated as he finds to be necessary to effectuate the policy of this title, which shall have the same effect as a code of fair competition approved by the President under subsection (a) of section 3. The President may differentiate according to experience and skill of the employees affected and according to the locality of employment; but no attempt shall be made to introduce any classification according to the nature of the work involved which might tend to set a maximum as well as a minimum wage.

(d) As used in this title, the term "person" includes any individual, partnership, association, trust, or corporation; and the terms "interstate and foreign commerce" and "interstate or foreign commerce" include, except where otherwise indicated, trade or commerce among the several States and with foreign nations, or between the District of Columbia or any Territory of the United States and any State, Territory or foreign nation, or between any insular possessions or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Columbia or any Territory or any insular possession or other place under the jurisdiction of the United States.

APPLICATION OF AGRICULTURAL ADJUSTMENT ACT

SEC. 8. (a) This title shall not be construed to repeal or modify any of the provisions of title I of the Act entitled "An Act to relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for extraordinary expenses incurred by reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and for other purposes, approved May 12, 1933; and such title I of said Act approved May 12, 1933, may for all purposes be hereafter referred to as the "Agricultural Adjustment Act."

(b) The President may, in his discretion, in order to avoid conflicts in the administration of the Agricultural Adjustment Act and this title, delegate any of his functions and powers under this title with respect to trades, industries, or subdivisions thereof which are engaged in the handling of any agricultural commodity or product thereof, or of any competing commodity or product thereof, to the Secretary of Agriculture.

OIL REGULATION

SEC. 9. (a) The President is further authorized to initiate before the Interstate Commerce Commission proceedings necessary to prescribe regulations to control the operations of oil pipe lines and to fix reasonable, compensatory rates for the transportation of petroleum and its products by pipe lines, and the Interstate Commerce Commission shall grant preference to the hearings and determination of such cases.

(b) The President is authorized to institute proceedings to divorce from any holding company any pipe-line company controlled by such holding company which pipe-line company by unfair practices or by exorbitant rates in the transportation of petroleum or its products tends to create a monopoly.

(c) The President is authorized to prohibit the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any State law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly authorized agency of a State. Any violation of any order of the President issued under the provisions of this subsection shall be punishable by fine of not to exceed $1,000, or imprisonment for not to exceed six months, or both.

RULES AND REGULATIONS

SEC. 10. (a) The President is authorized to prescribe such rules and regulations as may be necessary to carry out the purposes of this title, and fees for licenses and for filing codes of fair competition and agreements, and any violation of any such rule or regulation shall be punishable by fine of not to exceed $500, or imprisonment for not to exceed six months, or both.

(b) The President may from time to time cancel or modify any order, approval, license, rule, or regulation issued under this title; and each agreement, code of fair competition, or license approved, prescribed, or issued under this title shall contain an express pro- vision to that effect.

TITLE II-PUBLIC WORKS AND CONSTRUCTION PROJECTS

FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS

SECTION 201. (a) To effectuate the purposes of this title, the President is hereby authorized to create a Federal Emergency Administration of Public Works, all the powers of which; shall be exercised by a Federal Emergency Administrator of Public Works (hereafter referred to as the " Administrator "), and to establish such agencies, to accept and utilize such voluntary and uncompensated services, to appoint, without regard to the civil service laws, such officers and employees, and to utilize such Federal officers and employees, and, with the consent of the State, such State and local officers and employees as he may find necessary, to prescribe their authorities, duties, responsibilities, and tenure, and, without regard to the Classification Act of 1923, as amended, to fix the compensation of any officers and employees so appointed. The President may delegate any of his functions and powers under this title to such officers, agents, and employees as he may designate or appoint.

(b) The Administrator may, without regard to the civil service laws or the Classification Act of 1923, as amended, appoint and fix the compensation of such experts and such other officers and employees as are necessary to carry out the provisions of this title; and ma-y make such expenditures (including expenditures for personal services and rent at the seat of government and elsewhere, for law books and books of reference, and for paper, printing and binding) as are necessary to carry out the provisions of this title.

(c) All such compensation, expenses, and allowances shall be paid out of funds made available by this Act.

(d) After the expiration of two years after the date of the enactment of this Act, or sooner if the President shall by proclamation or the Congress shall by joint resolution declare that the emergency recognized by section 1 has ended, the President shall not make any further loans or grants or enter upon any new construction under this title, and any agencies established hereunder shall cease to exist and any of their remaining functions shall be transferred to such departments of the Government as the President shall designate: Provided, That he may issue funds to a borrower under this title prior to January 23, 1939, under the terms of any agreement, or any commitment to bid upon or purchase bonds, entered into with such borrower prior to the date o termination, under this section, of the power of the President to make loans.

SEC. 202. The Administrator, under the direction of the President, shall prepare a comprehensive program of public works, which shall include among other things the following: (a) Construction, repair, and improvement of public highways and park ways, public buildings, and any publicly owned instrumentalities and facilities; (b) conservation and development of natural resources, including control, utilization, and purification of waters, prevention of soil or coastal erosion, development of water power, transmission of electrical energy , and construction of river and harbor improvements and flood control and also the construction of any river or drainage improvement required to perform or satisfy any obligation incurred by the United States through a treaty with a foreign Government heretofore ratified and to restore or develop for the use of any State or its citizens water taken from or denied to them by performance on the part of the United States of treaty obligations heretofore assumed: Provided, That no river or harbor improvements shall be carried out unless they shall have heretofore or hereafter been adopted by the Congress or are recommended by the Chief of Engineers of the United States Army; (c) any projects of the character heretofore constructed or carried on either directly by public authority or with public aid to serve the interests of the general public; (d) construction, reconstruction, alteration, or repair under public regulation or control of low-cost housing and slum-clearance projects; (e) any project (other than those included in the foregoing classes) of any character heretofore eligible for loans under sub- section (a) of section 201 of the Emergency Relief and Construction Act of 1932, as amended, and paragraph (3) of such subsection (a) shall for such purposes be held to include loans for the construction or completion of hospitals the operation of which is partly financed from public funds, and of reservoirs and pumping plants and for the construction of dry docks; and if in the opinion of the President it seems desirable, the construction of naval vessels within the terms and/or limits established by the London Naval Treaty of 1930 and of aircraft required therefor and construction of heavier-than-air aircraft and technical construction for the Army Air Corps and such Army housing projects as the President may approve, and provision of original equipment for the mechanization or motorization of such Army tactical units as he may designate: Provided, however, that in the event of an international agreement for the further limitation of armament to which the United States is signatory, the President is hereby authorized and empowered to suspend, in whole or in part, any such naval or military construction or mechanization and motorization of Army units: Provided further, That this title shall not be applicable to public works under the jurisdiction or control of the Architect of the Capitol or of any commission or committee for which such Architect is the contracting and/or executive officer .

SEC. 203. (a) With a view to increasing employment quickly (while reasonably securing any loans made by the United States) the president is authorized and empowered, through the Administrator or through such other agencies as he may designate or create, (1) to construct, finance, or aid in the construction or financing of any public works project included in the program prepared pursuant to section 202; (2) upon such terms as the President shall prescribe, to make grants to States, municipalities, or other public bodies for the construction, repair, or improvement of any such project, but no such grant shall be in excess of 30 per centum of the cost of the labor and materials employed upon such project; (3) to acquire by purchase, or by exercise of the power of eminent domain, any real or personal property in connection with the construction of any such project, and to sell any security acquired or any property so constructed or acquired or to lease any such property with or without the privilege of purchase: Provided, That all moneys received from any such sale or lease or the repayment of any loan shall be used to retire obligations issued pursuant to section 209 of this Act, in addition to any other moneys required to be used for such purpose; (4) to aid in the financing of such railroad maintenance and equipment as may be approved by the Interstate Commerce Commission as desirable for the improvement of transportation facilities; and (5) to advance, upon request of the Commission having jurisdiction of the project, the unappropriated balance of the sum authorized for carrying out the provisions of the Act entitled "An Act to provide for the construction and equipment of an annex to the Library of Congress", approved June 13, 1930 (46 Stat. 583); such advance to be expended under the direction of such Commission and in accordance with such Act: Provided, That in deciding to extend any aid or grant hereunder to any State, county, or municipality the President may consider whether action is in process or in good faith assured therein reasonably designed to bring the ordinary current expenditures thereof within the prudently estimated revenues thereof. The provisions of this section and section 202 shall extend to public works in the several States, Hawaii, Alaska, the District of Columbia, Puerto Rico, the Canal Zone, and the Virgin Islands.

(b) All expenditures for authorized travel by officers and employees, including subsistence, required on account of any Federal public-works projects, shall be charged to the amounts allocated to such projects, notwithstanding any other provisions of law; and there is authorized to be employed such personal services in the District of Columbia and elsewhere as may be required to be engaged upon such work and to be in addition to employees otherwise provided for, the compensation of such additional personal services to be a charge against the funds made available for such construction work.

(c) In the acquisition of any land or site for the purposes of Federal public buildings and in the construction of such buildings provided for in this title, the provisions contained in sections 305 and 306 of the Emergency Relief and Construction Act of 1932, as amended shall apply.

(d) The President, in his discretion, and under such terms as he may prescribe, may extend any of the benefits of this title to any State, county, or municipality notwithstanding any constitutional or legal restriction or limitation on the right or power of such State, county, or municipality to borrow money or incur indebtedness.

SEC. 204. (a) For the purpose of providing for emergency construction of public highways and related projects, the President is authorized to make grants to the highway departments of the several States in an amount not less than $400,000,000, to be expended by such departments in accordance with the provisions of the Federal Highway Act, approved November 9, 1921, as amended and supplemented, except as provided in this title, as follows:

(1) For expenditure in emergency construction on the Federal aid highway system and extensions thereof into and through municipalities. The amount apportioned to any State under this paragraph may be used to pay all or any part of the cost of surveys, plans, and of highway and bridge construction including the elimination of hazards to highway traffic, such as the separation of grades at crossing, the reconstruction of existing railroad grade crossing structures, the relocation of highways to eliminate railroad crossings the widening of narrow bridges and roadways, the building of footpaths, the replacement of unsafe bridges, the construction of routes to avoid congested areas, the construction of facilities to improve accessibility and the free flow of traffic, and the cost of any other construction that will provide safer traffic facilities or definitely eliminate existing hazards .to pedestrian or vehicular traffic. No funds made available by this title shall be used for the acquisition of any land, right of way, or easement in connection with any rail- road grade elimination project.

(2) For expenditure in emergency construction on secondary or feeder roads to be agreed upon by the State highway departments and the Secretary of Agriculture: Provided, That the State or responsible political subdivision shall provide for the proper maintenance of said roads. Such grants shall be available for payment of the full cost of surveys, plans, improvement, and construction of secondary or feeder roads, on which projects shall be submitted by the State highway department and approved by the Secretary of Agriculture.

(b) Any amount allocated by the President for grants under subsection (a) of this section shall be apportioned among the several States seven-eighths in accordance with the provisions of section 21 of the Federal Highway Act, approved November 9, 1921, as amended and supplemented (which Act is hereby further amended for the purposes of this title to include the District of Columbia), and one-eighth in the ratio which the population of each State bears to the total population of the United States, according to the latest decennial census and shall be available on July 1, 1933% and shall remain available until expended; but no part of the funds apportioned to any State need be matched by the State, and such funds may also be used in lieu of State funds to match unobligated balances of previous apportionments of regular Federal-aid appropriations.

(c) All contracts involving the expenditure 0f such grants shall contain provisions establishing minimum rates of wages, to be predetermined by the State highway department, which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals for bids for the work.

(d) In the expenditure of such amounts, the limitations in the Federal Highway Act, approved November 9, 1921, as amended and supplemented, upon highway construction, reconstruction, and bridges within municipalities and upon payments per mile which may be made from Federal funds, shall not apply.

(e) As used in this section the term " State includes the Territory of Hawaii and the District of Columbia. The term "highway" as defined in the Federal Highway Act approved November 9, 1921 "as amended and supplemented, for the purposes of this section, shall be deemed to include such main parkways as may be designated by the State and approved by the Secretary of Agriculture as part of the Federal-aid highway system.

(f) Whenever, in connection with the construction of any highway project under this section or section 202 of this Act, it is necessary to acquire rights of way over or through any property or tracts of land owned and controlled by the Government of the United States, it shall be the duty of the proper official of the Government of the United States having control of such property or tracts of land with the approval of the President and the Attorney General of the United States, and without any expense whatsoever to the United States, to perform any acts and to execute any agreements necessary to grant the rights of way so required, but if at any time the land or the property the subject of the agreement shall cease to be used for the purposes of the highway, the title in and the jurisdiction over the land or property shall automatically revert to the Government of the United States and the agreement shall so provide.

(g) Hereafter in the administration of the Federal Highway Act, and Acts amendatory thereof or supplementary thereto, the first paragraph of section 9 of said Act shall not apply to publicly owned toll bridges or approaches thereto, operated by the highway department of any State, subject, however, to the condition that all tolls received from the operation of any such bridge, less the actual cost of operation and maintenance, shall be applied to the repayment of the cost of its construction or acquisition, and when the cost of its construction or acquisition shall have been repaid in full, such bridge thereafter shall be maintained and operated as a free bridge.

SEC. 205. (a) Not less than $50,000,000 of the amount made avail.; able by this Act shall be allotted for (A) national forest highways, (B) national forest roads, trails, bridges, and related projects, ( C ) national park roads and trails in national parks owned or authorized, (D) roads on Indian reservations, and (E) roads through public lands, to be expended in the same manner as provided in paragraph (2) of section 301 of the Emergency Relief and Construction Act of 1932, in the case of appropriations allocated for such purposes, respectively, in such section 301, to remain available until expended.

(b) The President may also allot funds made available by this Act for the construction, repair and improvement of public high- Ways in Alaska, the Canal Zone, Puerto Rico, and the Virgin Islands.

SEC. 206. All contracts let for construction projects and all loans and grants pursuant to this title shall contain such provisions as are necessary to insure (1) that no convict labor shall be employed on any such project; (2) that (except in executive, administrative, and supervisory positions), so far as practicable and feasible., no individual directly employed on any such project shall be permitted to work more than thirty hours in anyone week; (3) that all employees shall be paid just and reasonable wages which shall be compensation sufficient to provide, for the hours of labor as limited, a standard of living in decency and comfort; (4) that in the employment of labor in connection with any such project, preference shall be given, where they are qualified, to ex-service men with dependents, and then in the following order: (A) To citizens of the United States and aliens who have declared their intention of becoming citizens, who are bona fide residents of the political subdivision and/or county in which the work is to be performed, and (B) to citizens of the United States and aliens who have declared their intention of becoming citizens, who are bona fide residents of the State Territory, or district in which the work is to be performed: Provided, That these preferences shall apply only where such labor is available and qualified to perform the work to which the employment relates; and ( 5) that the maximum of human labor shall be used in lieu of machinery wherever practicable and consistent with sound economy and public advantage.

SEC. 207. (a) For the purpose of expediting the actual construction of public works contemplated by this title and to provide a means of financial assistance to persons under contract with the United States to perform such construction, the President is authorized and empowered through the Administrator or through such other agencies as he may designate or create to approve any assignment executed by any such contractor, with the written consent of the surety or sureties upon the penal bond executed in connection with his contract, to any national or State bank, or his claim against the United States, or any part of such claim, under such contract ; and any assignment so approved shall be valid for all purposes, not- withstanding the provisions of sections 3737 and 3477 of the Revised Statutes as amended.

(b) The funds received by a contractor under any advances made in consideration of any such assignment are hereby declared to be trust funds in the hands of such contractor to be first applied to the payment of claims of subcontractors, architects, engineers, surveyors, laborers, and material men in connection with the project, to the payment of premiums on the penal bond or bonds, and premiums accruing during the construction of such project on insurance policies taken in connection therewith. Any contractor and any officer, director or agent of any such contractor, who applies, or consents to the application of, such funds for any other purpose and fails to pay any claim or premium hereinbefore mentioned, shall be deemed guilty of a misdemeanor and shall be punished by a fine of not more than $1,000 or by imprisonment for not more than one year, or by both such fine and imprisonment.

(c) Nothing in this section shall be considered as imposing upon the assignee any obligation to see to the proper application of the funds advanced by the assignee in consideration of such assignment.

SUBSISTENCE HOMESTEADS

SEC. 208. To provide for aiding the redistribution of the overbalance of population in industrial centers $25,000,000 is hereby made available to the President, to be used by him through such agencies as he may establish and under such regulations as he may make, for making loans for and otherwise aiding in the purchase of subsistence homesteads. The moneys collected as repayment of said loans shall constitute a revolving fund to be administered as directed by the President for the purposes of this section.

RULES AND REGULATIONS

SEC. 209. The President is authorized to prescribe such rules and regulations as may be necessary to carry out the purposes of this title, and any violation of any such rule or regulation shall be punishable by fine of not to exceed $500 or imprisonment not to exceed six months, or both.

ISSUE OF SECURITIES AND SINKING FUND

SEC. 210. (a) The Secretary of the Treasury is authorized to borrow, from time to time, under the Second Liberty Bond Act, as amended, such amounts as may be necessary to meet the expenditures authorized by this Act, or to refund any obligations previously issued under this section, and to issue therefor bonds, notes, certificates of indebtedness, or Treasury bills of the United States.

(b) For each fiscal year beginning with the fiscal year 1934 there is hereby appropriated, in addition to and as part of, the cumulative sinking fund provided by section 6 of the Victory Liberty Loan Act, as amended, out of any money in the Treasury not otherwise appropriated, for the purpose of such fund, an amount equal to 2 l/2 per centum of the aggregate amount of the expenditures made out of appropriations made or authorized under this Act as determined by the Secretary of the Treasury.

REEMPLOYMENT AND RELIEF TAXES

SEC. 211. (a) Effective as of the day following the date of the enactment of this Act, section 617 (a) of the Revenue Act of 1932 is amended by striking out "1 cent" and inserting in lieu thereof " 1 1/2 cents".

(b) Effective as of the day following the date of the enactment of this Act, section 617 (c) (2) of such: Act is amended by adding at the end thereof a new sentence to read as follows: " As used in this paragraph the term 'benzol' does not include benzol sold for use otherwise than as a fuel for the propulsion of motor vehicles, motor boats, or airplanes, and otherwise than in the manufacture or production of such fuel."

SEC. 212. Titles IV and V of the Revenue Act of 1932 are amended by striking out "1934 " wherever appearing therein and by inserting in lieu thereof " 1935 ". Section 761 of the Revenue Act of 1932 is further amended by striking out "and on July 1 1933 " and inserting in lieu thereof "and on July 1, 1933, and on July 1, 1934,".

SEC. 213. (a) There is hereby imposed upon the receipt of dividends (required to be included in the gross income of the recipient under the provisions of the Revenue Act of 1932) by any person other than a domestic corporation, an excise tax equal to 5 per centum of the amount thereof, such tax to be deducted and withheld from such dividends by the payor corporation. The tax imposed by this section shall not apply to dividends declared before the date of the enactment of this Act.

(b) Every corporation required to deduct and withhold any tax under this section shall, on or before the last day of the month following the payment of the dividend, make return thereof and pay the tax to the collector of the district in which its principal place of business is located, or, if it has no principal place of business in the United States, to the collector at Baltimore, Maryland.

(c) Every such corporation is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payment made in accordance with the provisions of this section.

( d ) The provisions of sections 115, 771 to 774, inclusive, and 1111 of the Revenue Act of 1932 shall be applicable with respect to the tax imposed by this section.

(e) The taxes imposed by this section shall not apply to the dividends of any corporation enumerated in section 103 of the Revenue Act of 1932.

SEC. 214. Section 104 of the Revenue Act of 1932 is amended by striking out the words " the surtax " wherever occurring in such section and inserting in lieu thereof "any internal-revenue tax." The heading of such section is amended by striking out "surtaxes" and inserting in lieu thereof "internal-revenue taxes." Section 13 (c) of such Act is amended by striking out "surtax" and inserting in lieu thereof "internal-revenue tax."

SEC. 215. (a) For each year ending June 30 there is hereby imposed upon every domestic corporation with respect to carrying on or doing business for any part of such year an excise tax of $1 for each $1,000 of the adjusted declared value of its capital stock.

(b) For each year ending June 30 there is hereby imposed upon every foreign corporation with respect to carrying on or doing business in the United States for any part of such year an excise tax equivalent to $1 for each $1,000 of the adjusted declared value of capital employed in the transaction of its business in the United States.

(c) The taxes imposed by this section shall not apply--
(1) to any corporation enumerated in section 103 of the Revenue Act of 1932 ;
(2) to any insurance company subject to the tax imposed by section 201 or 204 of such Act ;
(3) to any domestic corporation in respect of the year ending June 30, 1933, if it did not carry on or do business during a part of the period from the date of the enactment of this Act to June 30, 1933, both dates inclusive; or
(4) to any foreign corporation in respect of the year ending June 30, 1933, if it did not carry on or do business in the United States during apart of the period from the day of the enactment of this Act to June 30, 1933, both dates inclusive.

(d) Every corporation liable for tax under this section shall make a return under oath within one month after the close of the year with respect to which such tax is imposed to the collector for the district in which is located its principal place of business or, if it has no principal place of business in the United States, then to the collector at Baltimore, Maryland. Such return shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulations prescribe. The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector before the expiration of the period for filing the return. If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 1 per centum a month from the time when the tax became due until paid. All provisions of law (including penalties) applicable in respect of the taxes imposed by section 600 of the Revenue Act of 1926 shall, in so far as not inconsistent with this section, be applicable in respect of the taxes imposed by this section. The Commissioner may extend the time for making the returns and paying the taxes imposed by this section, under such rules and regulations as he may prescribe with the approval of the Secretary, but no such extension shall be for more than sixty days.

(e) Returns required to be filed for the purpose of the tax imposed by this section shall be open to inspection in the same manner, to the same extent, and subject to the same provisions of law, including penalties, as returns made under title II of the Revenue Act of 1926.

(f) For the first year ending June 30 in respect of which a tax is imposed by this section upon any corporation, the adjusted declared value shall be the value, as declared by the corporation in its first return under this section (which declaration of value cannot be amended), as of the clos6Jof its last income-tax taxable year ending at or prior to the close of the year for which the tax is imposed by this section (or as of the date of organization in the case of a corporation having no income-tax taxable year ending at or prior to the close of the year for which the tax is imposed by this section). For any subsequent year ending June 30, the adjusted declared value in the case of a domestic corporation shall be the original declared value plus (1) the cash and fair market value of property paid in for stock or shares, (2) paid-in surplus and contributions to capital, and (3) earnings and profits, and minus (A) the value of property distributed in liquidation to shareholders, (B) distributions of earnings and profits, and (C) deficits, whether operating or nonoperating; each adjustment being made for the period from the date as of which the original declared value was declared to the close of its last income-tax taxable year ending at or prior to the close of the year for which the tax is imposed by this section. For any subsequent year ending June 30, the adjusted declared value in the case of a foreign corporation shall be the original declared value adjusted, in accordance with regulations prescribed by the Commissioner with the approval of the Secretary, to reflect increases or decreases (for the period specified in the preceding sentence) in the capital employed in the transaction of its business in the United States.

(g) The terms used in this section shall have the same meaning as when used in the Revenue Act of 1932.

SEC. 216. (a) There is hereby imposed upon the net income of every corporation, for each income-tax taxable year ending after the close of the first year in respect of which it is taxable under section 215, an excess-profits tax equivalent to 5 per centum of such portion of its net income for such income-tax taxable year as is in excess of 12 1\2 per centum of the adjusted declared value of its capital stock (or in the case of a foreign corporation the adjusted declared value of capital employed in the transaction of its business in the United States) as of the close of the preceding income-tax taxable year ( or as of the date of organization if it had no preceding income-tax taxable year) determined as provided in section 215. The terms used in this section shall have the same meaning as when used in the Revenue Act of 1932.

(b) The tax imposed by this section shall be assessed, collected, and paid in the same manner, and shall be subject to the same provisions of law (including penalties), as the taxes imposed by title I of the Revenue Act of 1932.

SEC. 217. (a) The President shall proclaim the date of--
( 1) the close of the first fiscal year ending June 30 of any year after the year 1933, during which the total receipts of the United States (excluding public-debt receipts) exceed its total expenditures ( excluding public-debt expenditures other than those chargeable against such receipts ) , or
(2) the repeal of the eighteenth amendment to the Constitution,
whichever is the earlier.

(b) Effective as of the 1st day of the calendar year following the date so proclaimed section 617 (a) of the Revenue Act of 1932, as amended, is amended by striking out "1 1/2 cents " and inserting in lieu thereof "1 cent ".

(c) The tax on dividends imposed by section 213 shall not apply to any dividends declared on or after the 1st day of the calendar year following the date so proclaimed.

(d) The capital-stock tax imposed by section 215 shall not apply to any taxpayer in respect of any year beginning on or after the 1st day of July following the date so proclaimed.

(e) The excess-profits tax imposed by section 216 shall not apply to any taxpayer in respect of any taxable year after its taxable year during which the date so proclaimed occurs.

SEC. 218. (a) Effective as of January 1, 1933, sections 117, 23(i), 169, 187 and 205 of the Revenue Act of 1932 are repealed.

(b) Effective as of January 1,1933, section 23(r) (2) of the Revenue Act of 1932 is repealed.

(c) Effective as of January 1,1933, section 23(r) (3) of the Revenue Act of 1932 is amended by striking out all after the word " Territory " and inserting a period.

(d) Effective as of January 1,1933, section 182(a) of the Revenue Act of 1932 is amended by inserting at the end thereof a new sentence as follows: " No part of any loss disallowed to a partnership as a deduction by section 23(r) shall be allowed as a deduction to a member of such partnership in computing net income."

(e) Effective as of January 1, 1933, section 141 ( c ) of the Revenue Act of 1932 is amended by striking out "except that for the taxable years 1932 and 1933 there shall be added to the rate of tax prescribed by sections 13(a), 201(b), and 204(a), a rate of three fourths of 1 per centum " and inserting in lieu thereof the following: " except that for the taxable years 1932 and 1933 there shall be added to the rate of tax prescribe by sections 13 ( a) , 201 (b ) , and 204 ( a) , a rate of three fourths of 1 per centum and except that for the taxable years 1934 and 1935 there shall be added to the rate of tax prescribed by sections 13 ( a) , 201 (b ) , and 204 ( a) , a rate of 1 per centum ".

(f) No interest shall be assessed or collected for any period prior to September 15, 1933, upon such portion of any amount determined as a deficiency in income taxes as is attributable solely to the amendments made to the Revenue Act of 1932 by this section.

(g) In cases where the effect of this section is to require for a taxable year ending prior to June 30, 1933, the making of an income- tax return not otherwise required by law, the time for making the return and paying the tax shall be the same as if the return was for a fiscal-year ending June 30, 1933.

(h) Section 55 of the Revenue Act of 1932 is amended by inserting before the period at the end thereof a semicolon and the following : "and all returns made under this Act after the date of enactment of the National Industrial Recovery Act shall constitute public records and shall be open to public examination and inspection to such extent as shall be authorized in rules and regulations promulgated by the President".

SEC 219. Section 500 (a) (1) of the Revenue Act of 1926, as amended, is amended by striking out the period at the end of the second sentence thereof and inserting in lieu thereof a comma and the following: " except that no tax shall be imposed in the case of persons admitted free to any spoken play (not a mechanical reproduction), whether or not set to music or with musical parts or accompaniments, which is a consecutive narrative interpreted by a single set of characters, all necessary to the development of the plot, in two or more acts, the performance consuming more than 1 hour and 45 minutes of time."

APPROPRIATION

SEC. 220. For the purposes of this Act, there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $3,300,000,000. The President is authorized to allocate so much of said sum, not in excess of $100,000,000, as he may determine to be necessary for expenditures in carrying out the Agricultural Adjustment Act and the purposes, powers, and functions heretofore and hereafter conferred upon the Farm Credit Administration.

SEC. 221. Section 7 of the Agricultural Adjustment Act, approved May 12, 1933, is amended by striking out all of its present terms and provisions and substituting therefor the following :
" SEC. 7. The Secretary shall sell the cotton held by him at his discretion, but subject to the foregoing provisions: Provided, That he shall dispose of all cotton held by him by March 1, 1936 : Provided further, That notwithstanding the provisions of section 6, the Secretary shall have authority to enter into option contracts with producers of cotton to sell to the producers such cotton held by him, in such amounts and at such prices and upon such terms and conditions as the Secretary may deem advisable, in combination with rental or benefit payments provided for in part 2 of this title.
"Notwithstanding any provisions of existing law, the Secretary of Agriculture may in the administration of the Agricultural Adjustment Act make public such information as he deems necessary in order to effectuate the purposes of such Act."

TITLE III-AMENDMENTS TO EMERGENCY RELIEF AND CONSTRUCTION ACT AND MISCELLANEOUS PROVISIONS

SECTION 301. After the expiration of ten days after the date upon which the Administrator has qualified and taken office, (1) no application shall be approved by the Reconstruction Finance Corporation under the provisions of subsection ( a) of section 201 of the Emergency Relief and Construction Act of 1932, as amended, and (2) the Administrator shall have access to all applications, files, and records of the Reconstruction Finance Corporation relating to loans and contracts and the administration of funds under such subsection: Provided, That the Reconstruction Finance Corporation may issue funds to a borrower under such subsection ( a) prior to January 23, 1939, under the terms of any agreement or any commitment to bid upon or purchase bonds entered into with such borrower pursuant to an application approved prior to the date of termination, under this section, of the power of the Reconstruction Finance Corporation to approve applications.

DECREASE OF BORROWING POWER OF RECONSTRUCTION FINANCE
CORPORATION

SEC. 302. The amount of notes, debentures, bonds, or other such obligations which the Reconstruction Finance Corporation is authorized and empowered under section 9 of the Reconstruction Finance Corporation Act, as amended, to have outstanding at anyone time is decreased by $400,000,000.

SEPARABILITY CLAUSE

SEC. 303. If any provision 0f this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

SHORT TITLE
SEC. 304. This Act may be cited as the " National Industrial Recovery Act."
Approved, June 16, 1933, 11 :55 a.m.

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EnlargeDownload Link Citation: An Act to encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes, June 16, 1933; Enrolled Acts and Resolutions of Congress, 1789-1996; General Records of the United States Government; Record Group 11, National Archives View All Pages in the National Archives Catalog View Transcript On June 16, 1933, this act established the National Recovery Administration, which supervised fair trade codes and guaranteed laborers a right to collective bargaining.

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This act paid farmers to produce less crops and keep prices higher. This affected Wisconsin because we are a big farming state. The price of crops had dropped a lot since WW1. The government wanted to help farmers come back from struggle, along with the destroyed economy.

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The Agricultural Adjustment Act (AAA) was signed into law by President Franklin Roosevelt on May 12, 1933 [1]. Among the law's goals were limiting crop production, reducing stock numbers, and refinancing mortgages with terms more favorable to struggling farmers [2]. The Agricultural Adjustment Administration was created to implement the act, and it was initially headed by George Peek - a man, ironically, not overly enthusiastic about the New Deal [3].

Large agricultural surpluses during the 1920s had caused prices for farm products to drop steadily from the highs of the First World War, and with the onset of the Great Depression the bottom dropped out of agricultural markets. As a consequence, millions of American farmers, tenants and sharecroppers were left destitute and hundreds of thousands of farms were abandoned. In an effort to increase prices, New Deal policymakers sought to reduce output by destroying surpluses and taking acreage out of production [4].

In the short run, farmers were paid to destroy crops and livestock, which led to depressing scenes of fields plowed under, corn burned as fuel and piglets slaughtered. Nevertheless, many of the farm products removed from economic circulation were utilized in productive ways. For example: "The pork products were distributed to unemployed families...Other food products purchased for surplus removal and distribution in relief channels included butter, cheese, and flour" [5]. Even piglets too small to consume were "converted into inedible by-products such as grease and fertilizer" [6]. More important in the long run, however, were programs to pay farmers not to plant as much cotton, corn, wheat and other staples and to create marketing boards to regulate output in a range of crops.

The AAA benefitted most farmers: "Farm income in 1935 was more than 50 percent higher than farm income during 1932, due in part to the farm programs" [7]. On January 6, 1936, however, the U.S. Supreme Court ruled that key provisions of the law were unconstitutional; in particular, the majority of the Court felt that the control of agriculture was a state function not a federal one [8]. A new AAA was enacted in 1938 which remedied the problems highlighted by the court and allowed agricultural support programs to continue, while adding a provision for crop insurance.

The Agricultural Adjustment Administration ended in 1942. Yet, federal farm support programs (marketing boards, acreage retirement, storage of surplus grain, etc.) that evolved from those original New Deal policies continued after the war, serving as pillars of American agricultural prosperity. They still exist, administered by the U.S. Department of Agriculture's Farm Service Agency [9]. They did not, however, reverse the long-term process of competitive elimination of small farms, tenant farms and sharecropping, the migration of the rural population to the cities, and the transformation of the old Cotton South [10].

Sources: (1) "Franklin Roosevelt, Day-by-Day," A project of the Pare Lorentz Center at the FDR Presidential Library, http://www.fdrlibrary.marist.edu/daybyday/event/may-1933/ accessed April 17, 2015. (2) The National Agricultural Law Center has the full text of the law at http://nationalaglawcenter.org/wp-content/uploads/assets/farmbills/1933.pdf (accessed April 17, 2015). (3) Michael Hiltzik, The New Deal: A Modern History, New York: Free Press, 2011, pp. 105-109. (4) Willard Cochrane, The Development of American Agriculture, Minneapolis: University of Minnesota Press, 1979. (5) Wayne D. Rasmussen, Gladys L. Baker, and James S. Ward, "A Short History of Agricultural Adjustment, 1933-75," Economic Research Service, U.S. Department of Agriculture, Agricultural Information Bulletin No. 391, March 25, 1976, http://naldc.nal.usda.gov/download/CAT87210025/PDF, accessed April 17, 2015, p. 3. (6) See note 3 at p. 110. (7) See note 5 at p. 4. (8) United States v. Butler, 297 U.S. 1 (1936), Oyez, http://www.oyez.org/cases/1901-1939/1935/1935_401, accessed April 17, 2015. (9) "Records of the Farm Service Agency," National Archives and Records Administration, http://www.archives.gov/research/guide-fed-records/groups/145.html#145.1, accessed April 17, 2015. (10) Paul Conkin, A Revolution Down on the Farm: The Transformation of American Agriculture Since 1929. Lexington KY: University of Kentucky Press, 2008.

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Agricultural Adjustment Act (1933, Reauthorized 1938) - Living New Deal

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The Agricultural Adjustment Act (AAA) was signed into law by President Franklin Roosevelt on May 12, 1933 [1]. Among the law's goals were limiting crop production, reducing stock numbers, and refinancing mortgages with terms more favorable to struggling farmers [2]. ... read more

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The Agricultural Adjustment Act (AAA) was signed into law by President Franklin Roosevelt on May 12, 1933 [1]. Among the law's goals were limiting crop production, reducing stock numbers, and refinancing mortgages with terms more favorable to struggling farmers [2]. The Agricultural Adjustment Administration was created to implement the act, and it was initially headed by George Peek - a man, ironically, not overly enthusiastic about the New Deal [3].

Large agricultural surpluses during the 1920s had caused prices for farm products to drop steadily from the highs of the First World War, and with the onset of the Great Depression the bottom dropped out of agricultural markets. As a consequence, millions of American farmers, tenants and sharecroppers were left destitute and hundreds of thousands of farms were abandoned. In an effort to increase prices, New Deal policymakers sought to reduce output by destroying surpluses and taking acreage out of production [4].

In the short run, farmers were paid to destroy crops and livestock, which led to depressing scenes of fields plowed under, corn burned as fuel and piglets slaughtered. Nevertheless, many of the farm products removed from economic circulation were utilized in productive ways. For example: "The pork products were distributed to unemployed families...Other food products purchased for surplus removal and distribution in relief channels included butter, cheese, and flour" [5]. Even piglets too small to consume were "converted into inedible by-products such as grease and fertilizer" [6]. More important in the long run, however, were programs to pay farmers not to plant as much cotton, corn, wheat and other staples and to create marketing boards to regulate output in a range of crops.

The AAA benefitted most farmers: "Farm income in 1935 was more than 50 percent higher than farm income during 1932, due in part to the farm programs" [7]. On January 6, 1936, however, the U.S. Supreme Court ruled that key provisions of the law were unconstitutional; in particular, the majority of the Court felt that the control of agriculture was a state function not a federal one [8]. A new AAA was enacted in 1938 which remedied the problems highlighted by the court and allowed agricultural support programs to continue, while adding a provision for crop insurance.

The Agricultural Adjustment Administration ended in 1942. Yet, federal farm support programs (marketing boards, acreage retirement, storage of surplus grain, etc.) that evolved from those original New Deal policies continued after the war, serving as pillars of American agricultural prosperity. They still exist, administered by the U.S. Department of Agriculture's Farm Service Agency [9]. They did not, however, reverse the long-term process of competitive elimination of small farms, tenant farms and sharecropping, the migration of the rural population to the cities, and the transformation of the old Cotton South [10].

Sources: (1) "Franklin Roosevelt, Day-by-Day," A project of the Pare Lorentz Center at the FDR Presidential Library, http://www.fdrlibrary.marist.edu/daybyday/event/may-1933/ accessed April 17, 2015. (2) The National Agricultural Law Center has the full text of the law at http://nationalaglawcenter.org/wp-content/uploads/assets/farmbills/1933.pdf (accessed April 17, 2015). (3) Michael Hiltzik, The New Deal: A Modern History, New York: Free Press, 2011, pp. 105-109. (4) Willard Cochrane, The Development of American Agriculture, Minneapolis: University of Minnesota Press, 1979. (5) Wayne D. Rasmussen, Gladys L. Baker, and James S. Ward, "A Short History of Agricultural Adjustment, 1933-75," Economic Research Service, U.S. Department of Agriculture, Agricultural Information Bulletin No. 391, March 25, 1976, http://naldc.nal.usda.gov/download/CAT87210025/PDF, accessed April 17, 2015, p. 3. (6) See note 3 at p. 110. (7) See note 5 at p. 4. (8) United States v. Butler, 297 U.S. 1 (1936), Oyez, http://www.oyez.org/cases/1901-1939/1935/1935_401, accessed April 17, 2015. (9) "Records of the Farm Service Agency," National Archives and Records Administration, http://www.archives.gov/research/guide-fed-records/groups/145.html#145.1, accessed April 17, 2015. (10) Paul Conkin, A Revolution Down on the Farm: The Transformation of American Agriculture Since 1929. Lexington KY: University of Kentucky Press, 2008.

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Agricultural Adjustment Act (1933, Reauthorized 1938) - Living New Deal

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The Agricultural Adjustment Act (AAA) was signed into law by President Franklin Roosevelt on May 12, 1933 [1]. Among the law's goals were limiting crop production, reducing stock numbers, and refinancing mortgages with terms more favorable to struggling farmers [2]. ... read more

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The goal of Social Security is to help elderly Americans who can't work. This gives them an income and helps them retire. It currently helps widows and disabled people. Social Security will help me when I retire one day.

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This note is the eighth in a series tracing the development of the Security Act in Congress 50 years ago. It was prepared by Thomas E. Price, Office of Research, Statistics, and International Policy, Office of Policy, Social Security Administration.

President Franklin D. Roosevelt signed the Social Security Bill into law on August 14, 1935, only 14 months after sending a special message to Congress on June 8, 1934, that promised a plan for social insurance as a safeguard "against the hazards and vicissitudes of life." The 32-page Act was the culmination of work begun by the Committee on Economic Security (CES), created by the President on June 29, 1934, and became, as he said at the signing ceremony, "a cornerstone in a structure which is being built but is by no means complete. " (For developments in the old-age benefits portion of the Act since 1935, see Martha A. McSteen, "Fifty Years of Social Security.")

The President transmitted the Committee's report to the 74th Congress on January 17, 1935, almost equally dividing the 14 months spanning the work of the Committee and the work of the Congress. Today, 50 years later, Wilbur J. Cohen, who was a 21-year-old research assistant to the Executive Director of the CES and later served as Secretary of Health, Education, and Welfare, writes: "If any piece of social legislation can be called historic or revolutionary, in breaking with the past and in terms of long run impact, it is the Social Security Act. "

Although the Congress modified many details of the Economic Security Bill introduced on behalf of the CES, most of the programs recommended by the Committee were adopted. Earlier installments in this series have discussed the changes as they occurred during the legislative process.

The Social Security Act established two types of provisions for old-age security: (1) Federal aid to the States to enable them to provide cash pensions to their needy aged, and (2) a system of Federal old-age benefits for retired workers. The first measure was designed to provide immediate assistance to destitute aged individuals. The second was a preventive measure intended to reduce the extent of future dependency among the aged and to assure workers that their years of employment entitled them to a life income.

For needy persons already aged 65 or older, old-age assistancewas provided, by title I, through Federal grants-in-aid to pay half the costs of the pensions, provided that the Federal share did not exceed $15 a month per person. In Mr. Cohen's judgment, the most significant long-range congressional modification of the original proposal was the deletion of the condition that States should provide a "reasonable subsistence compatible with decency and health. "

For the working population under age 65, the Social Security Act created, in title II, an "Old-Age Reserve Account" and authorized payments of old-age benefitsfrom this account to eligible individuals upon attainment of age 65 or on January 1, 1942, whichever was later. The monthly benefit amount was determined by the total amount of wages earned in covered employment after 1936 and before age 65. The initial benefit formula was designed to give greater weight to the earnings of lower-paid workers and persons already middle-aged or older. The minimum monthly benefit was $10 and the maximum was $85.

Only the first $3,000 of annual salary from any one employer would be considered as counting toward the total of annual wages on which benefits would be computed. Less than 10 percent of the workers in commerce and industry earned more than this amount at that time. Large numbers of individuals were not covered, including the self-employed, agricultural and domestic service workers, casual laborers, employees of nonprofit organizations, and those subject to the Railroad Retirement Act of 1935.

There were no monthly survivors benefits. Rather, if a person had earned less than $2,000 in covered employment by age 65, he or she would receive a lump sum payment of 3.5 percent of total wages. Also, if an individual died after 1936 before reaching age 65, his or her estate would receive a lump sum amount equal to 3.5 percent of total covered wages.

Unemployment compensation, temporary cash payments to the involuntarily unemployed, was conceived by the CES as the "front line of defense" from dependency resulting from loss of earnings and as a means of maintaining purchasing power. The unemployment compensation provisions of the Social Security Act were quite similar to those recommended by the CES. The Act set up a Federal-State cooperative system, to be administered by the States, and provided financial assistance from the Federal Government to those States with laws approved by the Social Security Board. In 1935, only Wisconsin had enacted an unemployment program, but the Federal law provided an incentive for all States to establish such programs.

Other provisions of the Social Security Act included four programs recommended by the CES for promoting the health and welfare of children. These programs provided grants-in-aid to States for (1) financial aid to dependent children (ADC), (2) maternal and child health services (MCH), (3) services for crippled children (CCS), and (4) child welfare services (CWS). Further, the Congress strengthened vocational rehabilitation, amending a law enacted in 1920, by providing permanent rather than year-to-year authorizations. Congress also added a title providing grants to States for aid to needy blind individuals.

Finally, as recommended by the CES, the Act broadened public health services to all localities by authorizing $8 million in grants to States to assist in establishing and maintaining adequate public-health services including the training of personnel and provided an additional $2 million for the expansion of public health investigations by the Public Health Service. The Act thus tripled Federal public health expenditures and established a program for the extension of preventive public health services to the entire Nation.

The Act created a Social Security Board (SSB), not as a component of the Department of Labor, as the CES had proposed, but as an independent agency. This organization was to administer the old-age assistance and old-age benefits programs, unemployment compensation, aid to dependent children, and aid to the blind. The Children's Bureau in the Department of Labor was to administer service programs for maternal and child health, crippled children, and child welfare. The Act did not change the administration of public health and vocational rehabilitation.

After signing the bill the President promptly sent the names of the three nominees for members of the SSB to the Senate: John G. Winant, former Republican Governor of New Hampshire, chairman; Vincent M. Miles, former Democratic National Committeeman from Arkansas; and Arthur J. Altmeyer, an Assistant Secretary of Labor who had served as Chairman of the Technical Advisory Board of the CES. They were all confirmed on August 23.

Congress adjourned, however, before approving a supplemental appropriations bill that included operating funds for the SSB. On the last day of the session, Senator Huey Long (D., La.) had filibustered a matter unrelated to social security until the session closed.

The next morning the President called a conference of key leaders, according to Mr. Altmeyer who was present, to see what could be done. John R. McCarl, the Comptroller General, proposed that, since the CES had been financed as a research project by the Federal Emergency Relief Administration (FERA), the SSB could be financed as a research project by the FERA to develop ways and means of putting the Social Security Act into operation.

Despite this inauspicious start, in 1969, J. Douglas Brown, who had been a consultant to the CES, could still write:
"To one who has participated in the planning of the social security system since its inception, the most remarkable outcome over the years is the degree to which fundamental concepts, hammered out in 1934, have guided the development of one of the largest ventures in social engineering in the world. The system remains, basically, national, compulsory, and contributory. Benefits are a matter of right.... Even if time were then available, I doubt that we could have anticipated what experience has shown to be feasible in building a more adequate social security system." References
Altmeyer, Arthur J., The Formative Years of Social Security. Madison: The University of Wisconsin Press, 1966.

Brown, J. Douglas, The Genesis of Social Security in America. Princeton, N.J.: Industrial Relations Section, Princeton University, 1969.

Cohen, Wilbur J., "The Development of the Social Security Act of 1935: Reflections Some Fifty Years Later," Minnesota Law Review, December 1983.

Committee on Economic Security, The Factual Back ground of the Social Security Act as Summarized From Staff Reports to the Committee on Economic Security. Washington, D.C.: Social Security Board, 1937.

National Conference on Social Welfare, Fiftieth Anniversary Edition: The Report of the Committee on Economic Security of 1935 and Other Basic Documents Relating to the Development of the Social Security Act. Washington, D.C.: Project on the Federal Social Role, 1985.

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This note is the eighth in a series tracing the development of the Security Act in Congress 50 years ago. It was prepared by Thomas E. Price, Office of Research, Statistics, and International Policy, Office of Policy, Social Security Administration. President Franklin D.

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This is a program that gives Americans safety while banking and investing in stocks. SEC was important during the Great Depression by giving Americans safety to use them again and restart the economy. SEC gives me safety and confidence in the banking system so I can invest. SEC was apart of coming out of the Great Depression.

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Carol Highsmith, photographer. WPA mural, Cohen Building, Washington, D.C. 2008. Library of Congress Prints & Photographs Division.

One of the first pieces of legislation that was passed when Franklin Roosevelt became President, was the Economy Act. It was passed on March 15, 1933 and not long after, the National Industrial Recovery Act (NIRA) was passed on June 16, 1933.

Much of the New Deal legislation created actual government programs and federal agencies - some of which are still very much a part of modern America. One of the most well-known is the Securities & Exchange Commission (SEC) which has its genesis with the crash of the stock market in 1929. The crash led to Congress to passing the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC "was designed to restore investor confidence in our capital markets by providing investors and the markets with more reliable information and clear rules of honest dealing."

1933 also saw the passage of two pieces of banking related laws that were in response to the thousands of bank failures that occurred in the 1920s and early 1930s. One was the the legislation that created the Federal Deposit Insurance Corporation (FDIC) and the other was the Glass-Steagall Act of 1933 External .

Other agencies and programs that were created included:

Notes

1. Creation of the SEC, U.S. Securities and Exchange Commission web site. Back to text

2. History at the Department of Labor-Departmental Timeline External , U.S. Department of Labor web site. Back to text

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Research Guides: National Recovery Administration (NRA) and the New Deal: A Resource Guide: The New Deal

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Beginning in 1933, Franklin D. Roosevelt initiated a series of "New Deal" programs with the goal of getting the U.S. out of the Depression. This guide provides print and electronic resources for researching the NRA and other related recovery efforts.