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- May 12, 1933
- it limited crop production of farmers, and offered farmers subsidies in exchange for limiting their production of certain crops

- effect:
It helped the farmers to live in better conditions and to pay their debts

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- March 9, 1933
- gave the Secretary of the Treasury power to investigate all banks, and open them as he saw fit
- effect:

Examination of banks showed 4/5 of them were in better condition

3/4 of national banks started business again

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- June 16, 1933
- created “Federal Deposit Insurance Corporation”: protects depositors in insured banks up to $5000
- separated commercial banking from investment banking
- effect:
The risk that government had to take took less because of the insurance

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The emergency legislation that was passed within days of President Franklin Roosevelt taking office in March 1933 was just the start of the process to restore confidence in the banking system. Congress saw the need for substantial reform of the banking system, which eventually came in the Banking Act of 1933, or the Glass-Steagall Act. The bill was designed "to provide for the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes." The measure was sponsored by Sen. Carter Glass (D-VA) and Rep. Henry Steagall (D-AL). Glass, a former Treasury secretary, was the primary force behind the act. Steagall, then chairman of the House Banking and Currency Committee, agreed to support the act with Glass after an amendment was added to permit bank deposit insurance. On June 16, 1933, President Roosevelt signed the bill into law. Glass originally introduced his banking reform bill in January 1932. It received extensive critiques and comments from bankers, economists, and the Federal Reserve Board. It passed the Senate in February 1932, but the House adjourned before coming to a decision. It was one of the most widely discussed and debated legislative initiatives in 1932.

Some background: In the wake of the 1929 stock market crash and the subsequent Great Depression, Congress was concerned that commercial banking operations and the payments system were incurring losses from volatile equity markets. An important motivation for the act was the desire to restrict the use of bank credit for speculation and to direct bank credit into what Glass and others thought to be more productive uses, such as industry, commerce, and agriculture.

In response to these concerns, the main provisions of the Banking Act of 1933 effectively separated commercial banking from investment banking. Senator Glass was the driving force behind this provision. Basically, commercial banks, which took in deposits and made loans, were no longer allowed to underwrite or deal in securities, while investment banks, which underwrote and dealt in securities, were no longer allowed to have close connections to commercial banks, such as overlapping directorships or common ownership. Following the passage of the act, institutions were given a year to decide whether they would specialize in commercial or investment banking. Only 10 percent of commercial banks' total income could stem from securities; however, an exception allowed commercial banks to underwrite government-issued bonds. The separation of commercial and investment banking was not controversial in 1933. There was a broad belief that separation would lead to a healthier financial system. It became more controversial over the years and in 1999 the Gramm-Leach-Bliley Act repealed the provisions of the Banking Act of 1933 that restricted affiliations between banks and securities firms.

The act also gave tighter regulation of national banks to the Federal Reserve System, requiring holding companies and other affiliates of state member banks to make three reports annually to their Federal Reserve Bank and to the Federal Reserve Board. Furthermore, bank holding companies that owned a majority of shares of any Federal Reserve member bank had to register with the Fed and obtain its permit to vote their shares in the selection of directors of any such member-bank subsidiary.

Another important provision of the act created the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits with a pool of money collected from banks. This provision was the most controversial at the time and drew veto threats from President Roosevelt. It was included at the insistence of Steagall, who had the interests of small rural banks in mind. Small rural banks and their representatives were the main proponents of deposit insurance. Opposition came from large banks that believed they would end up subsidizing small banks. Past attempts by states to instate deposit insurance had been unsuccessful because of moral hazard and also because local banks were not diversified. After the bank holiday, the public showed vast support for insurance, partly in the hope of recovering some of the losses and partly because many blamed Wall Street and big bankers for the Depression. Although Glass had opposed deposit insurance for years, he changed his mind and urged Roosevelt to accept it. A temporary fund became effective in January 1934, insuring deposits up to $2,500. The fund became permanent in July 1934 and the limit was raised to $5,000. This limit was raised numerous times over the years until reaching the current $250,000. All Federal Reserve member banks on or before July 1, 1934, were required to become stockholders of the FDIC by such date. No state bank was eligible for membership in the Federal Reserve System until it became a stockholder of the FDIC, and thereby became an insured institution, with required membership by national banks and voluntary membership by state banks. Deposit insurance is still viewed as a great success, although the problem of moral hazard and adverse selection came up again during banking failures of the 1980s. In response, Congress passed legislation that strengthened capital requirements and required banks with less capital to close.

The act had a large impact on the Federal Reserve. Notable provisions included the creation of the Federal Open Market Committee (FOMC) under Section 8. However, the 1933 FOMC did not include voting rights for the Federal Reserve Board, which was revised by the Banking Act of 1935 and amended again in 1942 to closely resemble the modern FOMC.

Prior to the passage of the act, there were no restrictions on the right of a bank officer of a member bank to borrow from that bank. Excessive loans to bank officers and directors became a concern to bank regulators. In response, the act prohibited Federal Reserve member bank loans to their executive officers and required the repayment of outstanding loans.

In addition, the act introduced what later became known as Regulation Q, which mandated that interest could not be paid on checking accounts and gave the Federal Reserve authority to establish ceilings on the interest that could be paid on other kinds of deposits. The view was that payment of interest on deposits led to "excessive" competition among banks, causing them to engage in unduly risky investment and lending policies so that they could earn enough income to pay the interest. The prohibition of interest-bearing demand accounts has been effectively repealed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Beginning July 21, 2011, financial institutions became allowed, but not required, to offer interest-bearing demand accounts.

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The Glass-Steagall Act effectively separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation, among other things. It was one of the most widely debated legislative initiatives before being signed into law by President Franklin D. Roosevelt in June 1933.

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- January 30, 1934
- President have power to reduce gold backing of the dollar by as much as 50%

He fixed gold value of the dollar at 59.06 cents: to provide more dollars for people to spend, to raise goods’ prices at home, to boost exports, and to decrease debt

- effect:
It gave debtors to pay back their debts with cheaper dollar

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- provided grants from the federal government to state governments for a variety of projects in fields such as agriculture and education.
- 3 goals:

to be effective

to provide work for employable people on the relief rolls

to have a diverse variety of relief programs

- effect:
It benefited the whole country by providing different types of jobs and salaries which were similar to previous jobs

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When President Franklin Roosevelt needed someone to come and make an effective plan for relief through the Federal Emergency Relief Act, he knew just whom to call. During Roosevelt's time as governor of New York, he had become good friends with Harry Hopkins. Hopkins had over 20 years of experience with social work and welfare issues.

Roosevelt realized that most of the federal government's relief efforts had never been successful because they often got stuck in political wrangling. To prevent these problems, Roosevelt told Hopkins to focus on action rather than the complications of politics.

The three goals of the Federal Emergency Relief Act (FERA) were (1) to be effective, (2) provide work for employable people on the relief rolls, and (3) to have a diverse variety of relief programs. FERA provided grants from the federal government to state governments for a variety of projects in fields such as agriculture, the arts, construction and education. Many people who were receiving relief aid were highly trained, skilled workers. The hope was that by providing many different types of jobs and salaries that were similar to workers' previous jobs the whole country would benefit.

"Essay: The Federal Emergency Relief Administration (FERA)," University of Washington Digital Collections. http://content.lib.washington.edu/feraweb/essay.html

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When President Franklin Roosevelt needed someone to come and make an effective plan for relief through the Federal Emergency Relief Act, he knew just whom to call. During Roosevelt's time as governor of New York, he had become good friends with Harry Hopkins. Hopkins had over 20 years of experience with social work and welfare issues.

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- July 5, 1935
- guaranteed the right of workers to join unions and to bargain collectively
- set up National Labor Relations Board (NLRB)

to supervise elections by which workers will decide its union

to stop unfair practices from employers to unions

- effect:
A lot of employers and business leaders thought the act was unfair and they stayed against the President

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- June 27, 1934
- also known as Wagner-Steagall Housing Act
-  created two federal agencies: the Federal Housing Administration (FHA), and the Federal Savings and Loan Insurance Corporation (FSLIC)
- insured loans by banks, building and loan associations, and private groups to homeowners for repair and to finance mortgages for new houses
- effect:
It improve the quality of the housing stock of country, protect Americans from losing their homes, allow to purchase their first home

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GHI/Universal Images Group via Getty Images

The National Housing Act (NHA) was a piece of legislation that formed a key part of the New Deal, the series of federal programs to restore the U.S. economy in the 1930s. Intended to promote homeownership, the Act improved housing conditions, made mortgages more accessible and affordable, and reduced the foreclosure rate on homes during the Great Depression.

What is the National Housing Act (NHA)?

Also known as the Wagner-Steagall Housing Act, the NHA was signed into law on June 27, 1934, by President Franklin D. Roosevelt. It created two federal agencies, the Federal Housing Administration (FHA) and the Federal Savings and Loan Insurance Corporation (FSLIC). The FSLIC insured insured savings and loans account holders' deposits and operated from 1934-1989.

The FHA insured mortgage lenders and banks against the threat of borrower default on their loans, in return for a fee. The FHA became part of the U.S. Department of Housing and Urban Development (HUD) in 1965.

Why was the NHA passed?

The stock market crash of 1929 wiped out the assets of professional investors and regular citizens alike. Thousands of U.S. banks failed, as did numerous businesses. Unemployment skyrocketed, as did foreclosures: By 1933, nearly 50 percent of all mortgages were delinquent or in default.

One of the sectors hit hardest during the Great Depression was the construction industry. To revive it, along with the mortgage lending business, the FHA provided federal guarantees for loans made by building and loan associations, banks and other financial institutions. The idea was that the government backing would reassure the institutions and encourage them to lend, on more generous terms. That would in turn encourage individuals to buy homes, which would in turn stimulate developers to build them.

What did the NHA do?

As a result of the NHA, mortgages - and the concept of homeownership - became more available to thousands of middle-class and working class Americans. The government-backed loans did jump-start the real estate market. Along with homes, they stimulated the construction of farm buildings and small commercial properties and restored jobs in construction trades.

The National Housing Act was amended in 1937 to empower the FHA to clean up slum areas. The FHA made low-interest, 60-year loans to local governments so they could build apartment blocks, which were then rented to low-income families.

Among many low-income programs made possible by that law and other New Deal programs were the first public housing projects across the United States. This fell in line with President Roosevelt's beliefs, later solidified in the 1944 Economic Bill of Rights speech, of the "right of every family to a decent home."

What was the lasting impact of the NHA?

In the 1930s, the National Housing Act helped revive the lending and construction industry by guaranteeing loans. In the longer term, the NHA provided the scaffolding for more stable and equitable housing for Americans throughout much of the 20th century. Home mortgage terms became more standardized - in fact, the familiar 30-year fixed-interest mortgage that finances 80 percent of a home purchase, evolved as a result of the program.

The FHA helped finance new housing developments and communities on the outskirts of major cities. While it was not a cure-all for the inequities in American housing across racial groups, the NHA did pave the way for later federal legislation having to do with equal opportunity and fairness of housing in the United States.

And it introduced the concept of federally insured mortgages, which spread to other agencies. In fact, FHA loans are still in existence today, making homeownership possible for those with low-to-moderate incomes or little credit.

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What Is The National Housing Act? | Bankrate

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The National Housing Act (NHA) was a piece of legislation that formed a key part of the New Deal, the series of federal programs to restore the U.S. economy in the 1930s. Intended to promote homeownership, the Act improved housing conditions, made mortgages more accessible and affordable, and reduced the foreclosure rate on homes during the Great Depression.

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National industrial Recovery Act (Textbook)

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National industrial Recovery Act (Textbook)

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- June 16, 1933
- created new National Recovery Administration (NRA): codes of fair dealing for each industry will be made by business and labor leaders

aimed to keep up prices and wages

set maximum hours of work and minimum wages

- effect:
It had been criticized to labor union, small firm owner, and business leaders for reasons of self-protection

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- August 14, 1935
- old age insurance

if worker is too old to work, he/she will receive monthly payment

- public assistance

any state accept the program will get federal funds covering half of costs

money will come from general state and federal revenues

supported people have to prove their need for aid

- unemployment insurance

give laid-off workers income for a number of weeks while they hunt for new job or waiting to be rehired

money comes from payroll tax paid by employers

- effect:
It greatly helped old Americans to live in better conditions and helped Americans to feel more secure by the country. It also prevented people from rushing into bank whenever there is depression or stock market crash.

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- June 30, 1936
- also called as Walsh-Healey Public Contracts Act
- set minimum wages and maximum hours for workers in firms doing business with the federal government
- prohibited to employ boys under 16 and girls under 18
- effect:
It protected the workers from harsh labor conditions and set the safety and health standard for work