The National Recovery Administration: An Analysis and Appraisal

By Leverett S. Lyon; Paul T. Homan et al. | Go to book overview

CHAPTER I
THE BACKGROUND OF THE RECOVERY ACT

The spring of 1933 found the United States in the fourth year of the most serious economic depression which the nation had ever experienced. It was in this situation that a new Administration, skeptical of the individualism of the past, expressing confidence in a greater degree of collective action, and heralding a "New Deal" in terms of this belief, came into office. This new Administration quickly spread upon the federal statute books a number of laws designed to restore prosperity and to effect those reforms which the "New Deal" implied.

Of all this legislation the President of the United States appraised the National Recovery Act as of outstanding significance. When affixing his signature to this law on June 16, 1933, he declared:

History probably will record the National Industrial Recovery Act as the most important and far-reaching legislation ever enacted by the American Congress.

It represents a supreme effort to stabilize for all time the many factors which make for the prosperity of the nation and the preservation of American standards.

Its goal is the assurance of a reasonable profit to industry and living wages for labor, with the elimination of the piratical methods and practices which have not only harassed honest business but also contributed to the ills of labor.

He thus indicated his opinion of the predominant importance of the NIRA in the legislation which had been passed under his direct influence, the magnitude of the problems to which the law was directed, and the deviation

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