Financial History of the United States: Fiscal, Monetary, Banking, and Tariff, Including Financial Administration and State and Local Finance

By Paul Studenski; Herman E. Krooss | Go to book overview

CHAPTER 29: THE NEW DEAL: FISCAL POLICIES

As monetary controls failed to prove an open sesame to prosperity, the Roosevelt administration, gradually and apparently after much soul searching, shifted more and more to the use of fiscal policy, particularly to spending policy.

The New Deal's spending, taxing, and borrowing policies, like its monetary and banking policies, were characterized by a spirit of experimentation. But whereas the monetary and banking programs were heavily weighted from the outset with the objective of business recovery, fiscal policy was at first designed merely to relieve distress and achieve social reform, and only later was invested with the purpose of achieving recovery. The New Deal's spending program benefited the low-income groups primarily, the tax program became increasingly progressive, and the borrowing program, which initially relied on bank loans, increasingly emphasized the absorption of idle savings in the hands of individuals.1 Thus debt management provided the banks with income which they otherwise would not have been able to earn, and Federal credit, which was strong, was substituted for state, municipal, and private credit, which was weak.

The New Deal's Early "Economy" Approach . In the beginning the Roosevelt administration was pledged to economy and fiscal orthodoxy. Indeed, during the campaign Roosevelt was more outspoken than Hoover in his promises to cut expenditures. Like Hoover, he thought that a balanced budget was indispensable to the preservation of public credit and the achievement of recovery.

Less than a week after his inauguration, on March 10, Roosevelt asked Congress for "authority to effect drastic economies in government." "For three long years," he said, "the Federal Government has been on the road toward bankruptcy." In language reminiscent of some of Gladstone's speeches of the mid-nineteenth century he asserted, "Too often in recent history liberal governments have been wrecked on rocks of loose fiscal policy." He promised that, if the necessary authority were given to him, "there is reasonable prospect that within a year the in-

____________________
1
Between 1933 and 1935 the banks absorbed 92 per cent of the gross debt increase but only 26 per cent of the 1935 to 1937 increase and 30 per cent of the 1937 to 1940 increase.

-403-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Financial History of the United States: Fiscal, Monetary, Banking, and Tariff, Including Financial Administration and State and Local Finance
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 530

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.