Changes

===Crash of 1937===

===Crash of 1937===

When FDR was inaugurated for his second term national income, payrolls, industrial production were still 20 per cent under the 1929 figure and building was only about one third what it had been in 1929. By June, 1937 the Treasury boasted relief payments were less than in the same period the preceding year. But this was not so. The Treasury made a practice of cooking the books and producing phony results. It merely shifted relief payments to other accounts. They were, in fact, larger than the year before. Stock prices declined and by September the reality could be no longer hidden. By the end of October the market crashed. The budget was running a [[deficit]] at the time $300,000,000 a month.  

When FDR was inaugurated for his second term [[national income]], [[payroll]]s, and [[industrial production]] were still 20 per cent under the 1929 figure and construction was still only about one third what it had been in 1929. By June, 1937 the Treasury boasted relief payments were less than in the same period the preceding year. But this was not so. The Treasury made a practice of cooking the books and producing phony results. It merely shifted relief payments to other accounts. They were, in fact, larger than the year before. Stock prices declined and by September the reality could be no longer hidden. By the end of October the market crashed. The budget was running a [[deficit]] at the time $300,000,000 a month.  

Assistant Attorney General [[Robert H. Jackson]] and Secretary of the Interior [[Harold Ickes]] in December made speeches inspired by the President on the [[conspiratorial]] ''America's 60 Families.'' <ref>''New Deal Chorus'', Time magazine, [http://www.time.com/time/magazine/article/0,9171,758849-1,00.html pg. 1][http://www.time.com/time/magazine/article/0,9171,758849-2,00.html pg. 2], Jan. 17, 1938.</ref> In January, John D. Biggers staggered the administration with a report Roosevelt had commissioned that stated there were 10,870,000 people out of work. <ref>[http://www.time.com/time/magazine/article/0,9171,758790,00.html ''Two Schemes''], Time magazine, Jan. 10, 1938.</ref> Roosevelt realized that all the “pump priming” and spending $17 billion had failed. Despite the billions added to the debt, the Depression was back. He was now at the center of a tug-of-war with advocates of spending like [[Harry Hopkins]], [[Leon Henderson]] and [[Rex Tugwell]] on one side, and opponents like [[Henry Morgenthau]] on the other. DNC Chairman [[Jim Farley]] reports he had a talk on the subject with Roosevelt on March 28, 1938.  

Assistant Attorney General [[Robert H. Jackson]] and Secretary of the Interior [[Harold Ickes]] in December made speeches inspired by the President on the [[conspiratorial]] ''America's 60 Families.'' <ref>''New Deal Chorus'', Time magazine, [http://www.time.com/time/magazine/article/0,9171,758849-1,00.html pg. 1][http://www.time.com/time/magazine/article/0,9171,758849-2,00.html pg. 2], Jan. 17, 1938.</ref> In January, John D. Biggers staggered the administration with a report Roosevelt had commissioned that stated there were 10,870,000 people out of work. <ref>[http://www.time.com/time/magazine/article/0,9171,758790,00.html ''Two Schemes''], Time magazine, Jan. 10, 1938.</ref> Roosevelt realized that all the “pump priming” and spending $17 billion had failed. Despite the billions added to the debt, the Depression was back. He was now at the center of a tug-of-war with advocates of spending like [[Harry Hopkins]], [[Leon Henderson]] and [[Rex Tugwell]] on one side, and opponents like [[Henry Morgenthau]] on the other. DNC Chairman [[Jim Farley]] reports he had a talk on the subject with Roosevelt on March 28, 1938.