‘Roosevelt’s efforts to stabilise the banking system were the most significant achievement of the First New Deal.
Level
AS LEVEL
Year Examined
2021
Topic
The Great Crash, the Great Depression and the New Deal policies, 1920–41
👑Complete Model Essay
‘Roosevelt’s efforts to stabilise the banking system were the most significant achievement of the First New Deal.
Deconstructing the Essay Question: Roosevelt’s First New Deal
This essay question focuses on the significance of Roosevelt's efforts to stabilize the banking system during the First New Deal. To effectively address it, you must not only demonstrate a thorough understanding of these policies but also compare their impact to other key initiatives undertaken during this period.
Building Your Argument: A Structured Approach
1. Introduction: Setting the Stage
Begin by providing brief context on the situation facing the United States at the onset of the Great Depression. Emphasize the severity of the banking crisis, highlighting statistics like the number of bank failures and its impact on ordinary Americans. Conclude your introduction with a clear thesis statement outlining your stance on the essay question. For instance:
Example Thesis Statement: While Roosevelt's banking reforms were undeniably crucial in restoring confidence and preventing a complete financial collapse, arguing that they were the most significant achievement of the First New Deal overlooks the broader impact of programs like the AAA and CCC, which addressed critical issues in agriculture and unemployment, thereby laying the foundation for economic recovery.
2. Body Paragraphs: Analyzing & Comparing Significance
Devote separate paragraphs to analyze the impact of different aspects of the First New Deal. Remember to focus on significance, constantly comparing and contrasting:
Banking Reform:
Discuss the Emergency Banking Relief Act, its key provisions, and how it aimed to restore faith in the banking system.
Analyze the short-term and long-term impact of these reforms. Did they succeed in stabilizing the banking sector? How did they contribute to the overall goals of the New Deal?
Use evidence to support your claims, such as statistics on bank reopenings, public reaction, and economic indicators.
Other Key Policies:
Dedicate paragraphs to analyze the significance of other First New Deal initiatives, such as:
The Agricultural Adjustment Act (AAA) and its impact on the agricultural sector.
The Civilian Conservation Corps (CCC) and its role in addressing unemployment.
The Tennessee Valley Authority (TVA) and its contribution to economic development.
Compare the impact of these programs to the banking reforms. Did they address equally pressing issues? Did they have a broader or more lasting impact on American society?
3. Addressing the 'Fireside Chats'
While not a policy in itself, Roosevelt's use of 'fireside chats' was instrumental in garnering public support for his New Deal programs.
Briefly discuss how these chats contributed to the success of the banking reforms and other initiatives.
Analyze whether this communication strategy played a significant role in achieving the overall goals of the First New Deal.
4. Conclusion: Reiterate and Synthesize
Summarize your main arguments, reiterating your stance on the essay question. Avoid introducing new information in the conclusion. Instead, synthesize your analysis by explaining how the different aspects of the First New Deal worked together to address the Great Depression. Conclude by offering a nuanced perspective on the relative significance of Roosevelt's banking reforms within the broader context of his New Deal program.
Important Tips to Remember:
Focus on the question: Don't just describe the New Deal; constantly analyze the *significanceof different policies and compare their impact.
Provide evidence: Support your claims with specific historical facts, statistics, and examples from your studies.
Balance and nuance: Acknowledge the achievements of the banking reforms while also considering the importance of other New Deal initiatives.
Clear and concise writing: Structure your essay logically, use precise language, and proofread carefully before submitting.
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Introduction
Briefly state your stance on the significance of Roosevelt's banking policies in the context of the First New Deal. Acknowledge the existence of other significant policies but emphasize your focus on the banking system's stabilization.
Stabilizing the Banking System
Describe the crisis: Provide statistics on bank failures, farm foreclosures, and the impact on public confidence.
Explain the Emergency Banking Relief Act: Detail its provisions, including the bank holiday, government supervision, RFC involvement, and expanded presidential powers.
Analyze the impact: Discuss how this act restored confidence in the banking system, prevented further collapses, and laid the groundwork for economic recovery. Highlight the significance of the fireside chats in rebuilding trust.
Other Significant Achievements of the First New Deal
Acknowledge the broader context: Briefly explain the goals of the First New Deal and the desperate economic situation it aimed to address.
Discuss key programs and policies: Provide concise explanations of the AAA, CCC, TVA, and PWA, highlighting their specific aims and contributions to relief, recovery, and reform.
Analyze their impact: Evaluate the effectiveness of these programs in providing relief to different sectors (farmers, unemployed workers, etc.) and stimulating economic activity.
Evaluation and Conclusion
Weigh the significance: Compare the impact of the banking reforms with the other First New Deal programs. Acknowledge the positive contributions of other policies but argue why stabilizing the banking system was paramount.
Explain your reasoning: Support your argument by highlighting the foundational role of a stable banking system for economic recovery and the potential for complete economic collapse had the banking crisis not been addressed.
Reiterate your stance: Conclude by restating your agreement or disagreement with the essay question, emphasizing the lasting significance of Roosevelt's banking reforms in the context of the First New Deal.
Extracts from Mark Schemes
Roosevelt’s efforts to stabilise the banking system were the most significant achievement of the First New Deal.’
How far do you agree?
Impact of banking policies:
- By 1933, about 9000 banks, holding the savings of 27 million families, had failed. Of those bank failings, 1456 folded in 1932 alone. Farm foreclosures were averaging 20,000 a month.
- Roosevelt immediately declared a national bank holiday, which closed all banks. In just four days, his aides drafted the Emergency Banking Relief Act, which permitted solvent banks to reopen under government supervision and allowed the RFC to buy the stock of troubled banks and keep them open until they could be reorganized. The law also gave the president broad powers over the Federal Reserve System. The law radically reshaped the nation's banking system, and Congress passed the law in just eight hours.
- The Act was designed to give people confidence and re-float the economy – in a fireside chat, Roosevelt said: “I can assure you that it is safer to keep your money in a reopened bank than under the mattress”.
Other policies in the first 100 days:
- Roosevelt used his ‘fireside chats’ to appeal directly to Americans to trust him and his policies – he started these in his first 100 days.
- Other acts passed in the first 100 days – Prices had fallen so low that it no longer paid for many farmers to plant crops. To prevent the crop surpluses that led to low prices, the Agricultural Adjustment Act (AAA) called, for the first time, for the government to pay farmers not to plant.
- Other Alphabet Acts were also passed, including the Civilian Conservation Corps (CCC), which gave work to 250,000 men, the Tennessee Valley Authority (TVA), which assisted in economic development in the Tennessee valley, and the Public Works Administration (PWA), which supervised the construction of public works.
- These policies and their impact can also be discussed as part of the wider First New Deal. Accept any other valid responses.