This Day In History: 03/12/1933- FDR Gives 1st Fireside Chat

This Day In History: 03/12/1933- FDR Gives 1st Fireside Chat

The first of thirty of Franklin D. Roosevelt's Fireside Chats was given on March 12th, 1933. The Girl Guides are better known under the name Girl Scouts of America as it was renamed later. Chief of Homeland Security Tom Ridge introduced the color coded warning system for terrorist attacks on this day as well.


Analysis of roosevelt's "first fireside chat"

FDR gives first fireside chat - Mar 12, 1933 - HISTORY com On this day in 1933, eight days after his inauguration, President Franklin D Roosevelt gives his first national radio address or “fireside chat,” broadcast directly FDR Fireside Chats: US History for Kids *** - American Historama Find a summary, definition and facts about the FDR Fireside Chats for kids Franklin D Roosevelt was the 32nd American President who served in office from March 4, In his first fireside chat FDR explained to the American people why he Lesson 1: FDR s Fireside Chats: The Power of Words | EDSITEment Franklin D Roosevelt having a fireside chat in Washington, D C, April 28, 1935 and make an overall analysis of why the Fireside Chats were so successful Remembering Roosevelt s First Fireside Chat : NPR Мар 2008 г - Rhetorical Analysis of Fdr s First Fireside Chat – Homework Help Янв 2017 г -

FDR gives first fireside chat - Mar 12, 1933 - HISTORY com On this day in 1933, eight days after his inauguration, President Franklin D Roosevelt gives his first national radio address or “fireside chat,” broadcast directly First Fireside Chat by Cooper Parker on Prezi Февр 2013 г - First Fireside Chat: Analysis - Shmoop Get in-depth analysis of First Fireside Chat, with this section on Analysis First Fireside Chat (1933) by Franklin Delano Roosevelt Home / Historical Text

The Fireside Chats - Facts & Summary - HISTORY com President Franklin D Roosevelt, who took office in early 1933, would become the only president in American history to be elected to four consecutive terms Fireside chats - Wikipedia Fireside chats is the term used to describe a series of 30 evening radio conversations (chats) President Franklin D Roosevelt delivered his first fireside chat, on the banking crisis, eight days after taking office (March 12, 1933) Duration Rhetorical Analysis: Persuasive Elements of First Fireside Chat Сент 2013 г - First Fireside Chat: Analysis - Shmoop Get in-depth analysis of First Fireside Chat, with this section on Analysis First Fireside Chat (1933) by Franklin Delano Roosevelt Home / Historical Text First Fireside Chat by Cooper Parker on Prezi Февр 2013 г - Lesson 1: FDR s Fireside Chats: The Power of Words | EDSITEment Franklin D Roosevelt having a fireside chat in Washington, D C, April 28, 1935 and make an overall analysis of why the Fireside Chats were so successful

First Fireside Chat by Cooper Parker on Prezi Февр 2013 г - FDR Fireside Chats: US History for Kids *** - American Historama Find a summary, definition and facts about the FDR Fireside Chats for kids Franklin D Roosevelt was the 32nd American President who served in office from March 4, In his first fireside chat FDR explained to the American people why he Lesson 1: FDR s Fireside Chats: The Power of Words | EDSITEment Franklin D Roosevelt having a fireside chat in Washington, D C, April 28, 1935 and make an overall analysis of why the Fireside Chats were so successful Remembering Roosevelt s First Fireside Chat : NPR Мар 2008 г -

First Fireside Chat: Analysis - Shmoop Get in-depth analysis of First Fireside Chat, with this section on Analysis First Fireside Chat (1933) by Franklin Delano Roosevelt Home / Historical Text Remembering Roosevelt s First Fireside Chat : NPR Мар 2008 г - FDR Fireside Chats: US History for Kids *** - American Historama Find a summary, definition and facts about the FDR Fireside Chats for kids Franklin D Roosevelt was the 32nd American President who served in office from March 4, In his first fireside chat FDR explained to the American people why he

Rhetorical Analysis: Persuasive Elements of First Fireside Chat Сент 2013 г - The Fireside Chats - Facts & Summary - HISTORY com President Franklin D Roosevelt, who took office in early 1933, would become the only president in American history to be elected to four consecutive terms FDR Fireside Chats: US History for Kids *** - American Historama Find a summary, definition and facts about the FDR Fireside Chats for kids Franklin D Roosevelt was the 32nd American President who served in office from March 4, In his first fireside chat FDR explained to the American people why he

Remembering Roosevelt s First Fireside Chat : NPR Мар 2008 г - FDR Fireside Chats: US History for Kids *** - American Historama Find a summary, definition and facts about the FDR Fireside Chats for kids Franklin D Roosevelt was the 32nd American President who served in office from March 4, In his first fireside chat FDR explained to the American people why he First Fireside Chat: Analysis - Shmoop Get in-depth analysis of First Fireside Chat, with this section on Analysis First Fireside Chat (1933) by Franklin Delano Roosevelt Home / Historical Text Rhetorical Analysis of Fdr s First Fireside Chat – Homework Help Янв 2017 г - Lesson 1: FDR s Fireside Chats: The Power of Words | EDSITEment Franklin D Roosevelt having a fireside chat in Washington, D C, April 28, 1935 and make an overall analysis of why the Fireside Chats were so successful The Fireside Chats - Facts & Summary - HISTORY com President Franklin D Roosevelt, who took office in early 1933, would become the only president in American history to be elected to four consecutive terms Rhetorical Analysis: Persuasive Elements of First Fireside Chat Сент 2013 г -

First Fireside Chat by Cooper Parker on Prezi Февр 2013 г - FDR gives first fireside chat - Mar 12, 1933 - HISTORY com On this day in 1933, eight days after his inauguration, President Franklin D Roosevelt gives his first national radio address or “fireside chat,” broadcast directly The Fireside Chats - Facts & Summary - HISTORY com President Franklin D Roosevelt, who took office in early 1933, would become the only president in American history to be elected to four consecutive terms

Lesson 1: FDR s Fireside Chats: The Power of Words | EDSITEment Franklin D Roosevelt having a fireside chat in Washington, D C, April 28, 1935 and make an overall analysis of why the Fireside Chats were so successful FDR gives first fireside chat - Mar 12, 1933 - HISTORY com On this day in 1933, eight days after his inauguration, President Franklin D Roosevelt gives his first national radio address or “fireside chat,” broadcast directly Remembering Roosevelt s First Fireside Chat : NPR Мар 2008 г - Rhetorical Analysis: Persuasive Elements of First Fireside Chat Сент 2013 г -

FDR Fireside Chats: US History for Kids *** - American Historama Find a summary, definition and facts about the FDR Fireside Chats for kids Franklin D Roosevelt was the 32nd American President who served in office from March 4, In his first fireside chat FDR explained to the American people why he Remembering Roosevelt s First Fireside Chat : NPR Мар 2008 г - The Fireside Chats - Facts & Summary - HISTORY com President Franklin D Roosevelt, who took office in early 1933, would become the only president in American history to be elected to four consecutive terms Fireside chats - Wikipedia Fireside chats is the term used to describe a series of 30 evening radio conversations (chats) President Franklin D Roosevelt delivered his first fireside chat, on the banking crisis, eight days after taking office (March 12, 1933) Duration


11 Things That Happened This Day In History – 12th March

1. 1930 – Ghandi begins his 200-mile march to the sea that symbolized his defiance of British rule over India.

2. 1933 – President Roosevelt gives his first ‘fireside chat’ radio broadcast, just 8 days after his inauguration

3. 1938 – Anschluss took place when Hitler incorporates his homeland of Austria into the Third Reich

4. 1946 – Singer Liza Minnelli is born

5. 1947 – President Truman established the Truman Doctrine to aid in the containment of Communism.

6. 1969 – Paul McCartney weds Linda Eastman in a civil ceremony in London

7. 1986 – Following it’s success in London’s West End, Les Misérables opens at the Broadway Theatre

8. 1993 – Several bombs are set of in Bombay, India. About 300 are killed and hundreds more injured

9. 1994 – The Church of England ordained women priests for the first time in 460 years

10. 1999 – One of the 20th century’s finest Violinis, Yehudi Menuhin dies, aged 82

11. 2003 – The Prime Minister of the Serbian state, Zoran Djindjic, is assassinated


This Day In History: 03/12/1933- FDR Gives 1st Fireside Chat - HISTORY

Fireside Chat 3 (July 24, 1933 )
On the First Hundred Days

After the adjournment of the historical special session of the Congress five weeks ago I purposely refrained from addressing you for two very good reasons.

First, I think that we all wanted the opportunity of a little quiet thought to examine and assimilate in a mental picture the crowding events of the hundred days which had been devoted to the starting of the wheels of the New Deal.

Secondly, I wanted a few weeks in which to set up the new administrative organization and to see the first fruits of our careful planning.

I think it will interest you if I set forth the fundamentals of this planning for national recovery and this I am very certain will make it abundantly clear to you that all of the proposals and all of the legislation since the fourth day of March have not been just a collection of haphazard schemes but rather the orderly component parts of a connected and logical whole.

Long before Inauguration Day I became convinced that individual effort and local effort and even disjointed Federal effort had failed and of necessity would fail and, therefore, that a rounded leadership by the Federal Government had become a necessity both of theory and of fact. Such leadership, however, had its beginning in preserving and strengthening the credit of the United States Government, because without that no leadership was a possibility. For years the Government had not lived within its income. The immediate task was to bring our regular expenses within our revenues. That has been done.

It may seem inconsistent for a government to cut down its regular expenses and at the same time to borrow and to spend billions for an emergency. But it is not inconsistent because a large portion of the emergency money has been paid out in the form of sound loans which will be repaid to the Treasury over a period of years and to cover the rest of the emergency money we have imposed taxes to pay the interest and the installments on that part of the debt.

So you will see that we have kept our credit good. We have built a granite foundation in a period of confusion. That foundation of the Federal credit stands there broad and sure. It is the base of the whole recovery plan.

Then came the part of the problem that concerned the credit of the individual citizens themselves. You and I know of the banking crisis and of the great danger to the savings of our people. On March sixth every national bank was closed. One month later 90 per cent of the deposits in the national banks had been made available to the depositors. Today only about 5 per cent of the deposits in national banks are still tied up. The condition relating to state banks, while not quite so good on a percentage basis, is shoving a steady reduction in the total of frozen deposits -- a result much better than we had expected three months ago.

The problem of the credit of the individual was made more difficult because of another fact. The dollar was a different dollar from the one with which the average debt had been incurred. For this reason large numbers of people were actually losing possession of and title to their farms and homes. All of you know the financial steps which have been taken to correct this inequality. In addition the Home Loan Act, the Farm Loan Act and the Bankruptcy Act were passed.

It was a vital necessity to restore purchasing power by reducing the debt and interest charges upon our people, but while we were helping people to save their credit it was at the same time absolutely essential to do something about the physical needs of hundreds of thousands who were in dire straits at that very moment. Municipal and State aid were being stretched to the limit. We appropriated half a billion dollars to supplement their efforts and in addition, as you know, we have put 300,000 young men into practical and useful work in our forests and to prevent flood and soil erosion. The wages they earn are going in greater part to the support of the nearly one million people who constitute their families.

In this same classification we can properly place the great public works program running to a total of over Three Billion Dollars -- to be used for highways and ships and flood prevention and inland navigation and thousands of self-sustaining state and municipal improvements. Two points should be made clear in the allotting and administration of these projects -- first, we are using the utmost care to choose labor creating quick-acting, useful projects, avoiding the smell of the pork barrel and secondly, we are hoping that at least half of the money will come back to the government from projects which will pay for themselves over a period of years.

Thus far I have spoken primarily of the foundation stones -- the measures that were necessary to re-establish credit and to head people in the opposite direction by preventing distress and providing as much work as possible through governmental agencies. Now I come to the links which will build us a more lasting prosperity. I have said that we cannot attain that in a nation half boom and half broke. If all of our people have work and fair wages and fair profits, they can buy the products of their neighbors and business is good. But if you take away the wages and the profits of half of them, business is only half as good. It doesn't help much if the fortunate half is very prosperous -- the best way is for everybody to be reasonably prosperous.

For many years the two great barriers to a normal prosperity have been low farm prices and the creeping paralysis of unemployment. These factors have cut the purchasing power of the country in half. I promised action. Congress did its part when it passed the farm and the industrial recovery acts. Today we are putting these two acts to work and they will work if people understand their plain objectives.

First, the Farm Act: It is based on the fact that the purchasing power of nearly half our population depends on adequate prices for farm products. We have been producing more of some crops than we consume or can sell in a depressed world market. The cure is not to produce so much. Without our help the farmers cannot get together and cut production, and the Farm Bill gives them a method of bringing their production down to a reasonable level and of obtaining reasonable prices for their crops. I have clearly stated that this method is in a sense experimental, but so far as we have gone we have reason to believe that it will produce good results.

It is obvious that if we can greatly increase the purchasing power of the tens of millions of our people who make a living from farming and the distribution of farm crops, we will greatly increase the consumption of those goods which are turned out by industry.

That brings me to the final step -- bringing back industry along sound lines.

Last Autumn , on several occasions, I expressed my faith that we can make possible by democratic self-discipline in industry general increases in wages and shortening of hours sufficient to enable industry to pay its own workers enough to let those workers buy and use the things that their labor produces. This can be done only if we permit and encourage cooperative action in industry because it is obvious that without united action a few selfish men in each competitive group will pay starvation wages and insist on long hours of work. Others in that group must either follow suit or close up shop. We have seen the result of action of that kind in the continuing descent into the economic Hell of the past four years.

There is a clear way to reverse that process: If all employers in each competitive group agree to pay their workers the same wages -- reasonable wages -- and require the same hours -- reasonable hours -- then higher wages and shorter hours will hurt no employer. Moreover, such action is better for the employer than unemployment and low wages, because it makes more buyers for his product. That is the simple idea which is the very heart of the Industrial Recovery Act.

On the basis of this simple principle of everybody doing things together, we are starting out on this nationwide attack on unemployment. It will succeed if our people understand it -- in the big industries, in the little shops, in the great cities and in the small villages. There is nothing complicated about it and there is nothing particularly new in the principle. It goes back to the basic idea of society and of the nation itself that people acting in a group can accomplish things which no individual acting alone could even hope to bring about.

Here is an example. In the Cotton Textile Code and in other agreements already signed, child labor has been abolished. That makes me personally happier than any other one thing with which I have been connected since I came to Washington . In the textile industry -- an industry which came to me spontaneously and with a splendid cooperation as soon as the recovery act was signed, -- child labor was an old evil. But no employer acting alone was able to wipe it out. If one employer tried it, or if one state tried it, the costs of operation rose so high that it was impossible to compete with the employers or states which had failed to act. The moment the Recovery Act was passed, this monstrous thing which neither opinion nor law could reach through years of effort went out in a flash. As a British editorial put it, we did more under a Code in one day than they in England had been able to do under the common law in eighty-five years of effort. I use this incident, my friends, not to boast of what has already been done but to point the way to you for even greater cooperative efforts this Summer and Autumn.

We are not going through another Winter like the last. I doubt if ever any people so bravely and cheerfully endured a season half so bitter. We cannot ask America to continue to face such needless hardships. It is time for courageous action, and the Recovery Bill gives us the means to conquer unemployment with exactly the same weapon that we have used to strike down Child Labor.

The proposition is simply this:

If all employers will act together to shorten hours and raise wages we can put people back to work. No employer will suffer, because the relative level of competitive cost will advance by the same amount for all. But if any considerable group should lag or shirk, this great opportunity will pass us by and we will go into another desperate Winter . This must not happen.

We have sent out to all employers an agreement which is the result of weeks of consultation. This agreement checks against the voluntary codes of nearly all the large industries which have already been submitted. This blanket agreement carries the unanimous approval of the three boards which I have appointed to advise in this, boards representing the great leaders in labor, in industry and in social service. The agreement has already brought a flood of approval from every State, and from so wide a cross-section of the common calling of industry that I know it is fair for all. It is a plan --deliberate, reasonable and just -- intended to put into effect at once the most important of the broad principles which are being established, industry by industry, through codes. Naturally, it takes a good deal of organizing and a great many hearings and many months, to get these codes perfected and signed, and we cannot wait for all of them to go through. The blanket agreements, however, which I am sending to every employer will start the wheels turning now, and not six months from now.

There are, of course, men, a few of them who might thwart this great common purpose by seeking selfish advantage. There are adequate penalties in the law, but I am now asking the cooperation that comes from opinion and from conscience. These are the only instruments we shall use in this great summer offensive against unemployment. But we shall use them to the limit to protect the willing from the laggard and to make the plan succeed.

In war, in the gloom of night attack, soldiers wear a bright badge on their shoulders to be sure that comrades do not fire on comrades. On that principle, those who cooperate in this program must know each other at a glance. That is why we have provided a badge of honor for this purpose, a simple design with a legend. "We do our part," and I ask that all those who join with me shall display that badge prominently. It is essential to our purpose.

Already all the great, basic industries have come forward willingly with proposed codes, and in these codes they accept the principles leading to mass reemployment. But, important as is this heartening demonstration, the richest field for results is among the small employers, those whose contribution will give new work for from one to ten people. These smaller employers are indeed a vital part of the backbone of the country, and the success of our plans lies largely in their hands.

Already the telegrams and letters are pouring into the White House --messages from employers who ask that their names be placed on this special Roll of Honor. They represent great corporations and companies, and partnerships and individuals. I ask that even before the dates set in the agreements which we have sent out, the employers of the country who have not already done so -- the big fellows and the little fellows -- shall at once write or telegraph to me personally at the White House, expressing their intention of going through with the plan. And it is my purpose to keep posted in the post office of every town, a Roll of Honor of all those who join with me.

I want to take this occasion to say to the twenty-four governors who are now in conference in San Francisco , that nothing thus far has helped in strengthening this great movement more than their resolutions adopted at the very outset of their meeting, giving this plan their instant and unanimous approval, and pledging to support it in their states.

To the men and women whose lives have been darkened by the fact or the fear of unemployment, I am justified in saying a word of encouragement because the codes and the agreements already approved, or about to be passed upon, prove that the plan does raise wages, and that it does put people back to work. You can look on every employer who adopts the plan as one who is doing his part, and those employers deserve well of everyone who works for a living. It will be clear to you, as it is to me, that while the shirking employer may undersell his competitor, the saving he thus makes is made at the expense of his country's welfare.

While we are making this great common effort there should be no discord and dispute. This is no time to cavil or to question the standard set by this universal agreement. It is time for patience and understanding and cooperation. The workers of this country have rights under this law which cannot be taken from them, and nobody will be permitted to whittle them away, but, on the other hand, no aggression is now necessary to attain those rights. The whole country will be united to get them for you. The principle that applies to the employers applies to the workers as well, and I ask you workers to cooperate in the same spirit.

When Andrew Jackson, "Old Hickory," died, someone asked, "Will he go to Heaven?" and the answer was, "He will if he wants to." If I am asked whether the American people will pull themselves out of this depression, I answer, " They will if they want to." The essence of the plan is a universal limitation of hours of work per week for any individual by common consent, and a universal payment of wages above a minimum, also by common consent. I cannot guarantee the success of this nationwide plan, but the people of this country can guarantee its success. I have no faith in " cure -alls" but I believe that we can greatly influence economic forces. I have no sympathy with the professional economists who insist that things must run their course and that human agencies can have no influence on economic ills. One reason is that I happen to know that professional economists have changed their definition of economic laws every five or ten years for a very long time, but I do have faith, and retain faith, in the strength of common purpose, and in the strength of unified action taken by the American people.

That is why I am describing to you the simple purposes and the solid foundations upon which our program of recovery is built. That is why I am asking the employers of the Nation to sign this common covenant with me -- to sign it in the name of patriotism and humanity. That is why I am asking the workers to go along with us in a spirit of understanding and of helpfulness.


Today in history: FDR's first fireside chat

March 12, 1933: President Roosevelt held his first "fireside chat" — a radio address to explain his policies to the American people. FDR's fireside chats were electrifying. Most Americans had never heard the voice of a president, and millions tuned in. Roosevelt used simple words and addressed Americans as "my friends." Roosevelt knew radio to be an effective communication tool. It remains so to this day, reaching 93 percent of consumers weekly — more than the internet.

March 12, 1947: The Truman Doctrine: President Truman asked Congress to send aid to Greece and Turkey, which were threatened by communism.

Quote of the day

"The virtues are lost in self-interest as rivers are lost in the sea." — Franklin D. Roosevelt


September 30, 1934 - FDR Gives A Fireside Chat About Jobs.

<strong>FDR - contending with reactionary lawyers and political editors.</strong>

This Chat was about the unemployment situation and what possible role the Government would play in helping jump-start the economy and stimulating jobs.

Then as now, there seemed to be a vocal minority who screamed Socialism, Dictatorship and Government meddling in Private Enterprise. FDR heard it all before.

FDR: “Nearly all Americans are sensible and calm people. We do not get greatly excited nor is our peace of mind disturbed, whether we be businessmen or workers or farmers, by awesome pronouncements concerning the unconstitutionality of some of our measures of recovery and relief and reform. We are not frightened by reactionary lawyers or political editors. All of these cries have been heard before. More than twenty years ago, when Theodore Roosevelt and Woodrow Wilson were attempting to correct abuses in our national life, the great Chief Justice White said:

"There is great danger it seems to me to arise from the constant habit which prevails where anything is opposed or objected to, of referring without rhyme or reason to the Constitution as a means of preventing its accomplishment, thus creating the general impression that the Constitution is but a barrier to progress instead of being the broad highway through which alone true progress may be enjoyed."

In our efforts for recovery we have avoided on the one hand the theory that business should and must be taken over into an all-embracing Government. We have avoided on the other hand the equally untenable theory that it is an interference with liberty to offer reasonable help when private enterprise is in need of help. The course we have followed fits the American practice of Government - a practice of taking action step by step, of regulating only to meet concrete needs - a practice of courageous recognition of change. I believe with Abraham Lincoln, that "The legitimate object of Government is to do for a community of people whatever they need to have done but cannot do at all or cannot do so well for themselves in their separate and individual capacities."


The President and the Radio: FDR’s First Fireside Chat

It had never been done before. Or, it had, but not like this. On March 12, 1933, sixty million Americans listened to Roosevelt’s first radio address. Thus began a tradition that continued throughout Roosevelt’s presidency. The “fireside chats,” as journalist Robert Trout coined them, became a cornerstone of American life, as the country struggled with the Great Depression and toppled towards war.

Roosevelt wasn’t the first president to use radio to communicate with the country. Calvin Coolidge had given the first ever White House radio address, when he eulogized Warren G. Harding. Herbert Hoover had also used radio, both as a campaign tool and to give radio addresses, but he came across as much more formal than Roosevelt.

For example, during a radio address that Hoover gave on the anniversary of Abraham Lincoln’s birthday, February 12, 1931, a little over a year since the markets had crashed, Hoover started like this:

“The Federal Government has assumed many new responsibilities since Lincoln’s time, and will probably assume more in the future when the States and local communities cannot alone cure abuse or bear the entire cost of national programs, but there is an essential principle that should be maintained in these matter.”

“My friends, I want to talk for a few minutes with the people of the United States about banking—to talk with the comparatively few who understand the mechanics of banking, but more particularly with the overwhelming majority of you who use banks for the making of deposits and the drawing of checks.”

After Roosevelt’s address, letters poured into the White House in support of the president.

Virginia Miller wrote: “I want to thank you from the bottom of my heart for your splendid explanation of the Bank situation on last evening’s broadcast.”

Viola Hazelberger wrote: “I have regained faith in the banks due to your earnest beliefs.”

And James A. Green said: “You have a marvelous radio voice, distinct and clear. It almost seemed the other night, sitting in my easy chair in the library, that you were across the room from me.”

Suddenly the president seemed accessible. Whereas Herbert Hoover had averaged about 5,000 letters a week, the number of people writing to Roosevelt leapt to 50,000.

It’s no wonder, then, that Trout announced to Americans: “the president wants to come into your home and sit at your fireside for a little fireside chat.” The title stuck. It did feel, to many people, as if the president was sitting in their parlor.

Roosevelt came at the right time. The radio age had just begun, and it only grew during his twelve years in office. About forty percent of Americans had a radio at the beginning of FDR’s term—five years in, almost ninety percent of Americans had a radio.

Certainly it was one thing to have a radio and a large audience, but quite another to speak with the eloquence and clarity that FDR used while speaking to the country (just ask Herbert Hoover). Roosevelt succeeded in reaching a great number of Americans, and giving a boost to their confidence.

Other presidents have similarly used new technologies to communicate with a mass audience. An obvious example is President Trump’s use of Twitter. President Obama used Facebook, and even appeared on “Between Two Ferns” to promote his health care legislation. President Kennedy, too, used the new power of television to reach more Americans. Kennedy gave the first live televised press conference.

“After all, there is an element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people. Confidence and courage are the essentials of success in carrying out our plan. You people must have faith you must not be stampeded by rumors or guesses. Let us unite in banishing fear. We have provided the machinery to restore our financial system it is up to you to support and make it work.

It is your problem no less than it is mine. Together we cannot fail.”


FIRESIDE CHAT ON THE BANK CRISIS (12 March 1933)

The months surrounding the October 1929 stock market crash saw that market lose $30 billion dollars in value. By the time Franklin D. Roosevelt (1882–1945) was inaugurated on March 4, 1933, the American banking system had collapsed. The frantic public was withdrawing its savings in record numbers and the banks, already strapped by the stock market crash, were incapable of supplying enough currency to meet the public's needs. On the day after he was inaugurated, President Roosevelt, invoking the 1917 Trading with the Enemy Act, closed all American banks for a "bank holiday." While the banks were closed, Congress developed a program of rehabilitation for the banks and the Federal Reserve released extra currency. On March 12, 1933, the day before the banks were to reopen, President Roosevelt delivered his first "fireside chat" radio address to the American public. In his reassuring address, Roosevelt outlined the steps the government was taking to secure currency and bring equilibrium back to the banks. The chat, which reached an estimated sixty million people, restored public confidence and led to a short-term restabilizing of the American economy.

I want to talk for a few minutes with the people of the United States about banking—with the comparatively few who understand the mechanics of banking but more particularly with the overwhelming majority who use banks for the making of deposits and the drawing of checks. I want to tell you what has been done in the last few days, why it was done, and what the next steps are going to be. I recognize that the many proclamations from State Capitols and from Washington, the legislation, the Treasury regulations, etc., couched for the most part in banking and legal terms should be explained for the benefit of the average citizen. I owe this in particular because of the fortitude and good temper with which everybody has accepted the inconvenience and hardships of the banking holiday. I know that when you understand what we in Washington have been about I shall continue to have your cooperation as fully as I have had your sympathy and help during the past week.

First of all let me state the simple fact that when you deposit money in a bank the bank does not put the money into a safe deposit vault. It invests your money in many different forms of credit-bonds, commercial paper, mortgages and many other kinds of loans. In other words, the bank puts your money to work to keep the wheels of industry and of agriculture turning around. A comparatively small part of the money you put into the bank is kept in currency—an amount which in normal times is wholly sufficient to cover the cash needs of the average citizen. In other words the total amount of all the currency in the country is only a small fraction of the total deposits in all of the banks.

What, then, happened during the last few days of February and the first few days of March? Because of undermined confidence on the part of the public, there was a general rush by a large portion of our population to turn bank deposits into currency or gold.—A rush so great that the soundest banks could not get enough currency to meet the demand. The reason for this was that on the spur of the moment it was, of course, impossible to sell perfectly sound assets of a bank and convert them into cash except at panic prices far below their real value.

By the afternoon of March 3 scarcely a bank in the country was open to do business.

Proclamations temporarily closing them in whose or in part had been issued by the Governors in almost all the states.

It was then that I issued the proclamation providing for the nation-wide bank holiday, and this was the first step in the Government's reconstruction of our financial and economic fabric.

The second step was the legislation promptly and patriotically passed by the Congress confirming my proclamation and broadening my powers so that it became possible in view of the requirement of time to entend (sic) the holiday and lift the ban of that holiday gradually. This law also gave authority to develop a program of rehabilitation of our banking facilities. I want to tell our citizens in every part of the Nation that the national Congress—Republicans and Democrats alike—showed by this action a devotion to public welfare and a realization of the emergency and the necessity for speed that it is difficult to match in our history.

The third stage has been the series of regulations permitting the banks to continue their functions to take care of the distribution of food and household necessities and the payment of payrolls.

This bank holiday while resulting in many cases in great inconvenience is affording us the opportunity to supply the currency necessary to meet the situation. No sound bank is a dollar worse off than it was when it closed its doors last Monday. Neither is any bank which may turn out not to be in a position for immediate opening. The new law allows the twelve Federal Reserve banks to issue additional currency on good assets and thus the banks which reopen will be able to meet every legitimate call. The new currency is being sent out by the Bureau of Engraving and Printing in large volume to every part of the country. It is sound currency because it is backed by actual, good assets.

As a result we start tomorrow, Monday, with the opening of banks in the twelve Federal Reserve bank cities—those banks which on first examination by the Treasury have already been found to be all right. This will be followed on Tuesday by the resumption of all their functions by banks already found to be sound in cities where there are recognized clearing houses. That means about 250 cities of the United States.

On Wednesday and succeeding days banks in smaller places all through the country will resume business, subject, of course, to the Government's physical ability to complete its survey. It is necessary that the reopening of banks be extended over a period in order to permit the banks to make applications for necessary loans, to obtain currency needed to meet their requirements and to enable the Government to make common sense checkups. Let me make it clear to you that if your bank does not open the first day you are by no means justified in believing that it will not open. A bank that opens on one of the subsequent days is in exactly the same status as the bank that opens tomorrow.

I know that many people are worrying about State banks not members of the Federal Reserve System. These banks can and will receive assistance from members banks and from the Reconstruction Finance Corporation. These state banks are following the same course as the national banks except that they get their licenses to resume business from the state authorities, and these authorities have been asked by the Secretary of the Treasury to permit their good banks to open up on the same schedule as the national banks. I am confident that the state banking departments will be as careful as the National Government in the policy relating to the opening of banks and will follow the same broad policy. It is possible that when the banks resume a very few people who have not recovered from their fear may again begin withdrawals. Let me make it clear that the banks will take care of all needs—and it is my belief that hoarding during the past week has become an exceedingly unfashionable pastime. It needs no prophet to tell you that when the people find that they can get their money—that they can get it when they want it for all legitimate purposes—the phantom of fear will soon be laid. People will again be glad to have their money where it will be safely taken care of and where they can use it conveniently at any time. I can assure you that it is safer to keep your money in a reopened bank than under the mattress.

The success of our whole great national program depends, of course, upon the cooperation of the public—on its intelligent support and use of a reliable system.

Remember that the essential accomplishment of the new legislation is that it makes it possible for banks more readily to convert their assets into cash than was the case before. More liberal provision has been made for banks to borrow on these assets at the Reserve Banks and more liberal provision has also been made for issuing currency on the security of those good assets. This currency is not fiat currency. It is issued only on adequate security—and every good bank has an abundance of such security.

One more point before I close. There will be, of course, some banks unable to reopen without being reorganized. The new law allows the Government to assist in making these reorganizations quickly and effectively and even allows the Government to subscribe to at least a part of new capital which may be required.

I hope you can see from this elemental recital of what your government is doing that there is nothing complex, or radical in the process.

We had a bad banking situation. Some of our bankers had shown themselves either incompetent or dishonest in their handling of the people's funds. They had used the money entrusted to them in speculations and unwise loans. This was of course not true in the vast majority of our banks but it was true in enough of them to shock the people for a time into a sense of insecurity and to put them into a frame of mind where they did not differentiate, but seemed to assume that the acts of a comparative few had tainted them all. It was the Government's job to straighten out this situation and do it as quickly as possible—and the job is being performed.

I do not promise you that every bank will be reopened or that individual losses will not be suffered, but there will be no losses that possibly could be avoided and there would have been more and greater losses had we continued to drift. I can even promise you salvation for some at least of the sorely pressed banks. We shall be engaged not merely in reopening sound banks but in the creation of sound banks through reorganization. It has been wonderful to me to catch the note of confidence from all over the country. I can never be sufficiently grateful to the people for the loyal support they have given me in their acceptance of the judgment that has dictated our course, even though all of our processes may not have seemed clear to them.

After all there is an element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people. Confidence and courage are the essentials of success in carrying out our plan. You people must have faith you must not be stampeded by rumors or guesses. Let us unite in banishing fear. We have provided the machinery to restore our financial system it is up to you to support and make it work.

It is your problem no less than it is mine. Together we cannot fail.

SOURCE: Fireside Chat on the Bank Crisis. Courtesy of Franklin D. Roosevelt Library, Hyde Park, N. Y.


This Day In History: 03/12/1933- FDR Gives 1st Fireside Chat - HISTORY


Franklin Delano Roosevelt

With this edition of Electronic Intelligence Weekly, we return to the period of the 1930s Great Depression, during that crucial turning point of President Franklin D. Roosevelt's first months in office. Roosevelt's leadership in putting forward policies consistent with the American System of Economics, reasserted the Constitutional principle of the General Welfare, and saved our republic from a move into disintegration and fascism. A revival of this institutional reflex is long overdue today.

On May 7, 1933, eight weeks after his inauguration, President Roosevelt gave his second Fireside Chat, a conversation with the American people about the measures which he, and the Congress, had taken so far. In addition to outlining the specific measures which were enacted, or in the process of going through the Congress, the President underscored the fact that they had been taken in the best tradition of American history, and in the interest of literally saving the accomplishments of modern civilization.

"We are working toward a definite goal, which is to prevent the return of conditions which came very close to destroying what we call modern civilization. The actual accomplishment of our purpose cannot be attained in a day. Our policies are wholly within purposes for which our American constitutional government was established 150 years ago."

The summary of what legislation had been put into effect is impressive, although preliminary to the full agenda which President Roosevelt ultimately accomplished, including the legislative commitments to the General Welfare which came in the 1935-36 period. We quote the President's summary here:

"The legislation which has been passed or is in the process of enactment can properly be considered as part of a well-grounded plan.

"First, we are giving opportunity of employment to one-quarter of a million of the unemployed, especially the young men who have dependents, to go into the forestry and flood-prevention work. This is a big task because it means feeding, clothing, and caring for nearly twice as many men as we have in the regular Army itself. In creating this Civilian Conservation Corps we are killing two birds with one stone. We are clearly enhancing the value of our natural resources, and we are relieving an appreciable amount of actual distress. This great group of men has entered upon its work on a purely voluntary basis no military training is involved and we are conserving not only our natural resources, but our human resources. One of the great values to this work is the fact that it is direct and requires the intervention of very little machinery.

"Second, I have requested the Congress and have secured action upon a proposal to put the great properties owned by our government at Muscle Shoals [Alabama] to work after long years of wasteful inaction, and with this a broad plan for the improvement of a vast area in the Tennessee Valley. It will add to the comfort and happiness of hundreds of thousands of people and the incident benefits will reach the entire nation.

"Next, the Congress is about to pass legislation that will greatly ease the mortgage distress among the farmers and the home-owners of the nation, by providing for the easing of the burden of debt now bearing so heavily upon millions of our people. ,

"Our next step in seeking immediate relief is a grant of half a billion dollars to help the states, counties, and municipalities in their duty to care for those who need direct and immediate relief.

"The Congress also passed legislation authorizing the sale of beer in such states as desired it. This has already resulted in considerable reemployment and incidentally has provided much-needed tax revenue.

"We are planning to ask the Congres for legislation to enable the government to undertake public works, thus stimulating directly and indirectly the employment of many others in well-considered projects.

"Further legislation has been taken up which goes much more fundamentally into our economic problems. The Farm Relief Bill seeks by the use of several methods, along or together, to bring about an increased return to farmers for their major farm products.

"Well-considered and conservative measures will likewise be proposed which will attempt to give to the industrial workers of the country a more fair wage return, prevent cutthroat competition and unduly long hours of labor, and at the same time encourage each industry to prevent overproduction.

"Our railroad bill falls into the same class because it seeks to provide and make certain definite planning by the railroads themselves, with the assistance of the government, to eliminate the duplication and waste that is now resulting in railroad receiverships and continuing operating deficits.

"It is wholly wrong to call the measures that we have taken government control of farming, industry, and transportaion. It is rather a partnership between government and farming and industry and transportation, not partnership in profits, for the profits still go to the citizens, but rather a partnership in planning, and a partnership to see that the plans are carried out. "

The original article was published in the EIR Online&rsquos Electronic Intelligence Weekly, as part of an ongoing series on history, with a special emphasis on American history. We are reprinting and updating these articles now to assist our readers in understanding of the American System of Economy.


Watch the video: Franklin D. Roosevelt - Inaugural The Only Thing We Have to Fear is Fear Itself Speech