DATE=3-21-2002

NUMBER=7-22748

TITLE=THE MAKING OF A NATION #185-END OF THE NEW DEAL

TYPE=SPECIAL ENGLISH FEATURE

BYLINE=DAVID JARMUL

DATELINE=WASHINGTON

CONTENT=

(THEME)

VOICE ONE:

THE MAKING OF A NATION -- A PROGRAM IN SPECIAL ENGLISH BY THE

VOICE OF AMERICA.

(THEME)

BY THE MIDDLE NINETEEN-THIRTIES, AMERICA SEEMED TO BE MOVING OUT

OF THE WORST ECONOMIC DEPRESSION IN ITS HISTORY. MOST PEOPLE

SUPPORTED THE "NEW DEAL" POLICIES OF PRESIDENT FRANKLIN

ROOSEVELT.

THE DARK VIEW THAT MANY AMERICANS HELD DURING THE FINAL DAYS OF

PRESIDENT HERBERT HOOVER'S ADMINISTRATION SEEMED TO BE CHANGING.

PEOPLE BEGAN TO BELIEVE THAT THE UNITED STATES WAS FACING ITS

PROBLEMS WITH ENERGY AND HOPE.

VOICE TWO:

THE CHANGE COULD BE SEEN IN THE WAY THAT AMERICANS WERE MOVING

AWAY FROM EXTREME POLITICAL MOVEMENTS OF BOTH THE RIGHT AND THE

LEFT. MANY DECIDED THAT THE BEST SOLUTION WAS TO WORK THROUGH

THE EXISTING POLITICAL SYSTEM.

MOST IMPORTANTLY, ROOSEVELT'S CONTINUED EXPERIMENTS WITH

DIFFERENT PROGRAMS SHOWED AMERICANS THAT THEY DID NOT HAVE TO

BLINDLY FOLLOW POLITICAL OR ECONOMIC TRADITIONS.

FOR YEARS, MOST AMERICANS HAD ACCEPTED THE BASIC IDEAS OF

TRADITIONAL FREE MARKET CAPITALISM. BUT AS THE DEPRESSION BEGAN,

A SMALL NUMBER OF AMERICANS BECAME INTERESTED IN THE ECONOMIC

IDEAS OF KARL MARX.

ROOSEVELT BELIEVED IT WAS BEST TO TRAVEL A PATH BETWEEN THESE TWO

OPPOSITE IDEAS. HE BASICALLY SUPPORTED THE FREE MARKET SYSTEM.

BUT HE BELIEVED GOVERNMENT ALSO HAD A RIGHT AND RESPONSIBILITY TO

ACT WHEN NEEDED. AND HE SUPPORTED NEW GOVERNMENT CONTROLS IN

SUCH IMPORTANT AREAS AS BANKING, TRANSPORTATION, AGRICULTURE, AND

OIL PRODUCTION.

VOICE ONE:

SOME AMERICANS DID NOT THINK IT WAS WISE, OR EVEN POSSIBLE, TO

MIX TRADITIONAL FREE MARKET CAPITALISM WITH GOVERNMENT

INTERVENTION OR SOCIALISM. FORMER REPUBLICAN TREASURY SECRETARY

OGDEN MILLS PUT IT THIS WAY:

"WE CAN HAVE A FREE COUNTRY OR A SOCIALIST ONE. WE CANNOT HAVE

BOTH. OUR ECONOMIC SYSTEM CANNOT BE HALF FREE AND HALF

SOCIALISTIC. THERE IS NO MIDDLE GROUND BETWEEN GOVERNING AND

BEING GOVERNED, BETWEEN ABSOLUTE RULE AND FREEDOM."

MANY LEFTISTS AND SOCIALISTS AGREED WITH CONSERVATIVES THAT IT

WAS IMPOSSIBLE TO MIX CAPITALISM AND SOCIALISM. ONE LEFTIST

PUBLICATION WROTE:

"EITHER THE NATION MUST LIVE WITH THE SADNESS OF CAPITALISM OR IT

MUST PREPARE TO REPLACE CAPITALISM WITH SOCIALISM. THERE IS NO

LONGER A PRACTICAL MIDDLE PATH."

HOWEVER, ROOSEVELT AND HIS NEW DEALERS HAPPILY REJECTED THESE

ARGUMENTS. THEY AIMED THE COUNTRY BETWEEN RIGHTIST AND LEFTIST

EXTREMES AND CREATED A WHOLE NEW SET OF RULES FOR GOVERNMENT, THE

ECONOMY, AND DEMOCRACY.

VOICE TWO:

MOST AMERICANS SUPPORTED ROOSEVELT AND THE DEMOCRATS AS THEY

EXPERIMENTED WITH NEW SOLUTIONS TO THE PROBLEMS OF THE

DEPRESSION. THEY ELECTED DEMOCRATS TO A LARGE MAJORITY IN

CONGRESS IN NINETEEN-THIRTY-FOUR. TWO YEARS LATER, THEY

RE-ELECTED FRANKLIN ROOSEVELT TO A SECOND TERM IN THE WHITE HOUSE

BY ONE OF THE LARGEST VICTORIES IN AMERICAN HISTORY.

ROOSEVELT'S BIG VICTORY MADE HIM STRONGER THAN EVER. SO HE

DECIDED TO FIGHT THE PART OF THE GOVERNMENT THAT HAD BEEN

BLOCKING MANY OF HIS PROGRAMS -- THE SUPREME COURT.

VOICE ONE:

MOST OF THE NINE JUDGES ON THE SUPREME COURT IN

NINETEEN-THIRTY-SIX WERE CONSERVATIVE. THEY HAD RULED THAT MANY

OF ROOSEVELT'S MOST IMPORTANT NEW DEAL PROGRAMS WERE ILLEGAL.

NOW THE JUDGES WERE PREPARING TO DECIDE THE FUTURE OF PROGRAMS TO

HELP OLD PEOPLE, LABOR UNIONS, AND OTHERS. AND THERE WAS NOTHING

THE PRESIDENT COULD DO UNDER THE AMERICAN SYSTEM OF GOVERNMENT.

SO ROOSEVELT CALLED FOR CHANGES IN THE SYSTEM. HE ASKED CONGRESS

TO REORGANIZE THE FEDERAL JUDICIAL SYSTEM. AND HE ASKED FOR THE

POWER TO ADD SEVERAL NEW MEMBERS TO THE SUPREME COURT. IN THIS

WAY, ROOSEVELT HOPED TO GAIN A NEW MAJORITY ON THE COURT THAT

WOULD SUPPORT HIS VIEWS.

VOICE TWO:

MOST AMERICANS LIKED ROOSEVELT. BUT PEOPLE OF ALL OPINIONS

FEARED THAT THE PRESIDENT WAS TRYING TO DESTROY THE CAREFUL

SYSTEM OF CHECKS AND BALANCES IN THE FEDERAL GOVERNMENT. THEY

AGREED WITH HIM IN OPPOSING THE COURT'S DECISIONS. BUT THEY

ACCEPTED THE RIGHT OF SUPREME COURT JUDGES TO RULE AS THEY

THOUGHT CORRECT. FOR THIS REASON, THE NATION REJECTED

ROOSEVELT'S PLAN TO ADD NEW MEMBERS TO THE COURT.

VOICE ONE:

ROOSEVELT'S UNSUCCESSFUL EFFORT TO CHANGE THE SUPREME COURT CAME

AT THE SAME TIME AS THE ECONOMY BEGAN TO GET WORSE.

MANY AMERICANS THOUGHT THEY HAD DEFEATED THE DEPRESSION IN

NINETEEN-THIRTY-FIVE AND THIRTY-SIX. THERE WAS STEADY ECONOMIC

IMPROVEMENT. SOME BANKERS HAD EVEN BEGUN TO FEAR THAT THE

ECONOMY WAS GROWING TOO FAST.

THESE BANKERS CALLED ON THE NATION'S CENTRAL BANK -- THE FEDERAL

RESERVE BOARD -- TO CONTROL THE EXPANDING MONEY SUPPLY. AND THE

FEDERAL RESERVE ACTED TO LIMIT THE AMOUNT OF MONEY IN USE.

AT THE SAME TIME, THE FEDERAL GOVERNMENT BEGAN REDUCING THE

AMOUNT OF MONEY THAT IT WAS SPENDING. AND IT LAUNCHED THE NEW

SOCIAL SECURITY TAX ON WORKERS' INCOMES.

THE EFFECT OF ALL THESE GOVERNMENT ACTIONS WAS TO LIMIT THE

AMOUNT OF MONEY BEING SPENT BY THE GOVERNMENT, COMPANIES, AND

PRIVATE CITIZENS. AS A RESULT, THE ECONOMY BEGAN TO FALL ONCE

AGAIN INTO DEPRESSION.

VOICE TWO:

IN AUGUST, NINETEEN-THIRTY-SEVEN, STOCK MARKET PRICES BEGAN TO

FALL SHARPLY.

IN SEVEN MONTHS, THE PRICE OF STOCK FOR THE GENERAL MOTORS

CORPORATION FELL FROM SIXTY DOLLARS TO TWENTY-FIVE. THE UNITED

STATES STEEL COMPANY STOCK FELL ALL THE WAY FROM ONE- HUNDRED

TWENTY-ONE DOLLARS TO THIRTY-EIGHT. IN FACT, THE STOCK MARKETS

LOST IN NINE MONTHS ABOUT TWO-THIRDS OF ALL THE GAINS THAT THEY

HAD MADE SO SLOWLY AND PAINFULLY SINCE ROOSEVELT TOOK OFFICE.

AMERICANS HAD SUPPORTED ROOSEVELT'S NEW DEAL PROGRAM BECAUSE IT

OFFERED A SOLUTION TO THE DEPRESSION. NOW THAT PROGRAM SEEMED TO

BE FAILING.

VOICE ONE:

HISTORIAN FREDERICK LEWIS ALLEN REMEMBERED THOSE DARK DAYS OF

NINETEEN-THIRTY-SEVEN.

"GOODS SOLD SLOWLY," ALLEN WROTE. "BUSINESSMEN BECAME FRIGHTENED

AND REDUCED PRODUCTION. TWO- MILLION MEN WERE THROWN OUT OF WORK

IN THE SPACE OF A FEW MONTHS. THEY BECAME LESS ABLE TO BUY WHAT

WAS FOR SALE. THE TERRIBLE CIRCLE OF THE FALLING VALUE OF THE

DOLLAR MOVED ALL THE MORE RAPIDLY.

VOICE TWO:

THE NEW ECONOMIC CRISIS HURT ROOSEVELT'S POPULARITY. AND IT CAME

AT A TIME WHEN HE FACED GROWING OPPOSITION WITHIN HIS OWN

DEMOCRATIC PARTY.

FOR SEVERAL YEARS, CONSERVATIVE DEMOCRATS FROM THE SOUTHEASTERN

PART OF THE COUNTRY HAD SUPPORTED ROOSEVELT. THEY LIKED HIS

LEADERSHIP AND THE POWER THAT HE BROUGHT TO ALL DEMOCRATS. BUT

THEY OPPOSED MANY OF HIS MORE LIBERAL OR EXPERIMENTAL SOCIAL

POLICIES.

VOICE ONE:

AS THE ECONOMY AND ROOSEVELT'S POPULARITY FELL, MANY OF THESE

SOUTHERN DEMOCRATS BEGAN TO OPENLY OPPOSE HIS LEADERSHIP. THEY

VOTED WITH REPUBLICANS ON IMPORTANT BILLS BEFORE CONGRESS.

ROOSEVELT BECAME VERY ANGRY ABOUT THE NEW OPPOSITION FROM WITHIN

HIS OWN PARTY. HE BEGAN TO INTERVENE PERSONALLY IN DEMOCRATIC

PARTY PRIMARY ELECTIONS IN NINETEEN-THIRTY-EIGHT. HE TOLD PARTY

MEMBERS IN SEVERAL STATES THAT THEY SHOULD ONLY VOTE FOR

CANDIDATES WHO WOULD SUPPORT HIS NEW DEAL POLICIES.

ROOSEVELT'S OPPONENTS ACCUSED HIM OF INTERFERING IN LOCAL

POLITICS. AND DEMOCRATIC VOTERS AGREED WITH THESE CRITICISMS.

IN ALMOST ALL CASES, THEY REJECTED THE CANDIDATES SUPPORTED BY

THE PRESIDENT. A FEW MONTHS LATER, VOTERS IN THE GENERAL

ELECTION GAVE THE REPUBLICANS MAJOR GAINS IN BOTH THE HOUSE OF

REPRESENTATIVES AND SENATE.

VOICE TWO:

IN MOST SITUATIONS, SUCH A CHANGE IN SUPPORT WOULD HAVE SIGNALED

THE END OF A PRESIDENT'S POWER. IF PEOPLE WILL NOT FOLLOW, A

PRESIDENT CANNOT LEAD OR BE ELECTED.

BUT SUCH WAS NOT THE CASE FOR ROOSEVELT AND THE UNITED STATES IN

THE LATE NINETEEN-THIRTIES. IT WAS TRUE THAT ECONOMIC AND

POLITICAL TROUBLES WERE NOT SOLVED. BUT ANOTHER CRISIS WAS

GROWING LARGER EVERY DAY, MAKING THESE OTHER PROBLEMS SEEM LESS

AND LESS IMPORTANT.

THE CRISIS WAS IN FOREIGN POLICY. ADOLF HITLER AND HIS NAZI

PARTY IN GERMANY SEEMED READY TO MAKE WAR ON EUROPE. AND

JAPANESE FORCES APPEARED TO BE PLANNING NEW AGGRESSION IN THE

PACIFIC. AMERICANS COULD NO LONGER JUST WORRY ABOUT THEIR

PROBLEMS AT HOME. A DARK CLOUD WAS FORMING OUTSIDE THEIR DOOR.

THAT WILL BE THE SUBJECT OF OUR NEXT SEVERAL PROGRAMS.

(THEME)

VOICE ONE:

YOU HAVE BEEN LISTENING TO THE MAKING OF A NATION, A PROGRAM IN

SPECIAL ENGLISH BY THE VOICE OF AMERICA. YOUR NARRATORS HAVE

BEEN HARRY MONROE AND JACK WEITZEL. OUR PROGRAM WAS WRITTEN BY DAVID

JARMUL.