Elected as President in November 1932, Franklin D. Roosevelt (FDR) took the oath of office on 4 March 1933.  His inaugural address mixed optimism with slashing attacks on those whom he blamed for the country’s problems.  He would seek “broad Executive powers to wage war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe.” 

            Good for his word, FDR launched an astonishingly fast transformation of the government and its policies.  This first sprint became known as “the Hundred Days.”  He ordered banks closed to halt panics; called Congress into a special session beginning on 8 March 1933; sent Congress new banking laws that were passed and returned to FDR for his signature in less than a day; sent Congress a bill to reduce government spending, including cuts to the pensions of military veterans; and sent Congress a bill to begin repealing Prohibition. 

            FDR began the regulation of the markets for stocks and bonds with the Securities Act of [May] 1933.  In 1935, it was followed up in the Creation of the Securities and Exchange Commission (SEC) to make sure banks complied.  The Banking Act of 1933 (commonly called the Glass-Steagall Act) required the separation of commercial and investment banking. 

            Early on, FDR adopted a policy of promoting inflation, chiefly with the aim of reducing the burden of debt on borrowers.  On 18 April, he issued an Executive Oder regulating the outflow of gold from the United States; shortly thereafter Congress passed a resolution abolishing the anti-inflationary “gold clauses” in public and private contracts.  In July, he told the American representatives to an international economic conference to refuse to “peg” the dollar to any fixed exchange rate.  In November, FDR would order government purchases of gold to pump paper currency into the economy.  By January 1934, the currency had been devalued by 40 percent.  Thereafter, the Gold Act of 1934 empowered the Treasury to manage both domestic credit and the international value of the dollar. 

            He then turned to revolutionizing basic government policies on the economy.  He had been persuaded of the merits of central planning of the economy.  On 16 March 1933, FDR sent Congress a bill to create an Agricultural Adjustment Administration (AAA) that would restrict the massive production that had created a glut on the market.  The AAA would limit farm production in order to raise the price of key staple crops—and therefore the income of farmers.  The markets were drowning in corn, wheat, cotton, and hogs.  Production would be cut back.  The Agricultural Adjustment Act passed Congress on 12 May. 

            At the same time, FDR pushed for a National Industrial Recovery Act (NIRA).  As in agricultural policy, the bill broke with the traditional reverence for the “free market” and “laissez-faire.”  The Act encouraged business sectors to organize markets, production, and prices to stop over-production and stabilize prices.  To these measures was added a Public Works Administration to put the unemployed back to work until business revived.  Mixed in with the NIRA’s planning element were other long-sought reform goals: shorter working hours, higher pay, the right to unionize, an end to child labor.  The NIRA passed on 16 June. 

            There was much else.  TVA; CCC; FDIC; “relief,” later with a work requirement added.    The point is that FDR moved fast and broke with all sorts of precedent.  People saw him acting with energy and confidence, even if no one knew if it would work.  It was worth a shot.