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The final element of Roosevelt’s efforts to provide relief to those in desperate straits was the Home Owners’ Refinancing Act. Created by the Home Owners’ Loan Corporation (HOLC), the program rescued homeowners from foreclosure by refinancing their mortgages. Not only did this save the homes of countless homeowners, but it also saved many of the small banks who owned the original mortgages by relieving them of that responsibility. Later New Deal legislation created the Federal Housing Authority, which eventually standardized the thirty-year mortgage and promoted the housing boom of the post-World War II era. A similar program, created through the Emergency Farm Mortgage Act and Farm Credit Act, provided the same service for farm mortgages.

In this American Experience interview, Neil Maher, author of Nature’s New Deal: The Civilian Conservation Corps and Roots of the Modern Environmental Movement , provides a comprehensive look into what the CCC offered the country—and the president—on issues as diverse as economics, race, and recreation.

Rescuing farms and factories

While much of the legislation of the first hundred days focused on immediate relief and job creation through federal programs, Roosevelt was committed to addressing the underlying problems inherent in the American economy. In his efforts to do so, he created two of the most significant pieces of New Deal legislation: the Agricultural Adjustment Act (AAA) and the National Industry Recovery Act (NIRA).

Farms around the country were suffering, but from different causes. In the Great Plains, drought conditions meant that little was growing at all, while in the South, bumper crops and low prices meant that farmers could not sell their goods at prices that could sustain them. The AAA offered some direct relief: Farmers received $4.5 million through relief payments. But the larger part of the program paid southern farmers to reduce their production: Wheat, cotton, corn, hogs, tobacco, rice, and milk farmers were all eligible. Passed into law on May 12, 1933, it was designed to boost prices to a level that would alleviate rural poverty and restore profitability to American agriculture. These price increases would be achieved by encouraging farmers to limit production in order to increase demand while receiving cash payments in return. Corn producers would receive thirty cents per bushel for corn they did not grow. Hog farmers would get five dollars per head for hogs not raised. The program would be financed by a tax on processing plants, passed on to consumers in the form of higher prices.

This was a bold attempt to help farmers address the systemic problems of overproduction and lower commodity prices. Despite previous efforts to regulate farming through subsidies, never before had the federal government intervened on this scale; the notion of paying farmers not to produce crops was unheard of. One significant problem, however, was that, in some cases, there was already an excess of crops, in particular, cotton and hogs, which clogged the marketplace. A bumper crop in 1933, combined with the slow implementation of the AAA, led the government to order the plowing under of ten million acres of cotton, and the butchering of six million baby pigs and 200,000 sows. Although it worked to some degree—the price of cotton increased from six to twelve cents per pound—this move was deeply problematic. Critics saw it as the ultimate example of corrupt capitalism: a government destroying food, while its citizens were starving, in order to drive up prices.

Questions & Answers

What does chasquis mean?
mary Reply
i need help
Maria
chasquis (also chaskis) were the messengers of the Inca empire. Agile, highly trained and physically fit, they were in charge of carrying the quipus, messages and gifts, up to 240 km per day through the chasquis relay system.
NAEEM
How did imperialism Effect America
Melinda Reply
when did the most distinguished leaders meet
Osvaldo Reply
what is the main idea of the passage
The Reply
what major industries emerged in the decades after the Civil war
ComicHickory Reply
Does militia men still exist in U.S.A?
Shakeel Reply
To contrast the steamboat of the antebellum to today’s technology?
Nyrah Reply
contrast the steamboats of the antebellum years with technologies today.
Nyrah
I love reading books about history.
David
I reading what happened earlier so much
melanda
I meant I love to read a lot
melanda
omg I never noticed this until now.
sunny
what advantages did people in urban areas have over rural areas?
HAILEY Reply
what factors helped cause the dust bowl
HAILEY
They had easy availability of food water. They had more comfortable life style as compare to people in rural areas. Better education was at there disposal
Shakeel
why did northerners lose thier resolve to pursue reconstruction
bambi Reply
what is taring and feathering?
Dominic Reply
Isnt there any laws in place for gun control?
Ryan Reply
How would you characterize the former president’s reaction? What do you think he means by writing that the Missouri Compromise line “is a reprieve only, not a final sentence”?
Tonda Reply
Compare and contrast the steamboats of the antebellum years with technologies today. In your estimation, what modern technology compares to steamboats in its transformative power?
Tonda Reply
airplanes to jets. Another would be electric trains.
Darren
I would say the Internal Combustion engine was as if not more transformative the the Steam power which it replaced. The ability of the Steamboat to rapidly move large amounts of goods through the water ways that weave there way from town to town increased our fledgling country's economy. I can draw direct coraleris with the National highway system built during the 1950's that were soon clogged with Transport trucks using I.C.E.
Pancho
what are the impact of the missionaries on indigenous knowledge of black communities
Don Reply
What were the initial issues that lead to the introduction of legislation
Benedicta Reply

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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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