On June 16, 1933, President Franklin Roosevelt signed legislation passing the National Industrial Recovery Act. It was a bold and ambitious attempt to fix a broken economy during one of the hardest times in American history.
In the presidential election of 1932, Democratic nominee Franklin D. Roosevelt promised a “new deal” for the “forgotten man.” Reacting to the ineffectiveness of the Hoover administration in meeting people’s needs during the Great Depression, Americans overwhelmingly voted in favor of this promise.
One of Roosevelt’s first moves after taking office was convincing Congress to pass his National Recovery Act. The act was a direct result of the general business decline during the Great Depression. Roosevelt and his advisors blamed part of the cause of the Depression on unrestrained competition. Leading businessmen and trade associations were called upon to draft the specifics of the plan, which focused on fair trade and labor practices. It was first introduced to the House on May 17. After passing the House and Senate on June 10 and June 13, it was signed into law by President Roosevelt on June 16, 1933.
The National Industrial Recovery Act authorized Roosevelt to regulate industry in order to raise prices after severe deflation and stimulate the economy. A second title in the National Recovery Act established the Public Works Administration, outlining the public works the bill would fund. This part of the law focused on creating jobs. The PWA gave the government money to hire workers to build public projects like roads, bridges, schools, dams, and hospitals. These projects not only gave people jobs but also improved the nation’s infrastructure.
The act also created the National Recovery Administration (NRA) to enforce the new law. The NRA worked with businesses to create codes of fair competition. These codes set rules for things like prices, production levels, wages, and working hours. The idea was that if all businesses followed the same rules, no one would be forced to cut wages or lay off workers just to stay competitive. For example, businesses that signed up with the NRA had to agree to pay their workers a minimum wage and limit how many hours they could work per week.
Businesses that joined the NRA could display a blue eagle logo in their windows and advertisements. The slogan “We Do Our Part” became a symbol of patriotism and support for the recovery effort. Consumers were encouraged to shop at stores with the blue eagle, believing they were helping the country by doing so.
To gain support for the NRA, Roosevelt requested the creation of a new stamp, which he emphasized must be “issued at once to be most effective.” After Roosevelt suggested the stamp, it was produced and placed on sale in just 13 working days.
Roosevelt was pleased with the stamp, which he called “grand.” However, the public was divided. Some remarked on the way the farmer carried his scythe on his left shoulder, which is rarely done by real farmers. Others noticed the characters were walking in step except the businessman, which they interpreted as meaning he wasn’t looking ahead to recovery as the others were. And some pointed out that while four people were portrayed, they only shared 7 legs between them.
At first, many Americans supported the NIRA. Workers liked the fact that it gave them better wages and shorter hours. Business owners liked that it helped reduce unfair competition and many people saw the law as a hopeful sign that the economy was starting to turn around.
However, the NIRA also had problems. Not all businesses followed the codes, and enforcement was often weak. Small businesses sometimes felt the rules helped big companies more than them. Some business owners said the government was interfering too much in private business. Others argued that the law didn’t go far enough to protect workers or create real change. Some of the codes were also very complicated and hard to understand. With so many rules, it became difficult to manage everything, and confusion often slowed down progress.
In 1935, just two years after it was passed, the US Supreme Court ruled that the NIRA was unconstitutional in the case of Schechter Poultry Corp. v. United States. The Court said the law gave too much power to the president and the federal government over businesses. As a result, the NIRA came to an end.
Even though the law was struck down, some of its ideas lived on. For example, the Wagner Act (also known as the National Labor Relations Act), passed later in 1935, gave workers the right to form unions and bargain for better wages—something the NIRA had supported. Other programs from Roosevelt’s New Deal also continued to help Americans through the Depression.
Click here to read the full text of the act.
| FREE printable This Day in History album pages Download a PDF of today’s article. Get a binder or other supplies to create your This Day in History album. |
Discover what else happened on This Day in History.
In the midst of the most difficult economic times in the history of the country FDR’s NRA is declared unconstitutional. Quite the inauspicious start for one of most successful administrations ever.
A little short on info, especially given the importance of The New Deal and the richness of subject matter regarding the Labour movement, WPA, and the country trying to recover from The Depression.
It wasn’t “Unrestrained competition” that caused the depression it was that Business
was expanding BUT the money supply, tied to the gold standard, could not expand
and there was little capital for increased economic activity. The other cause was the low
amount an investor had to put down on stock purchases, which were at about 5%. If
the stock went up he made a good profit on a little down. Problem was if the stock
decreased went down people could not cover the deficit. This led to a general
collapse of the stock market in Oct., 1929 and this led, and along with tight money
supplies, led to a serious economic slow down. The Republican led Congress. alarmed
by the decreasing tax funds coming in raised taxes, about the WORST thing you can
due during a recession. This action by Congress reduced the amount available
for investment and by 1932 the economy was in total collapse. There was actually
nothing Hoover could do because Congress blocked ANY policy he put forward.
FDR was fortunate that he got a friendly Democrat controlled Congress that rubber
stamped his efforts. Of course FDR was boiling mad when the Supreme Court struck
down the NRA as unconstitutional and he tried to get the court expanded to 15 members
from its current 9 so that he could have a loaded court. It was struck down but since he
served for 13 years he got to appoint enough Judges to have the Majority he wanted.
Some people are just too picky. It’s a stamp not a social commentary.
An interesting article that I’ll add to my FDR material for the presentation (still in the pondering stage) of FDR on Stamps for my local club. So is that really FDR striding along? And I guess they made up for the missing leg with the extra finger on the Monaco stamp several years later. I think most of us collectors love history and this era is one of my favorites, no doubt in part because I didn’t live through it. Thanks!
It’s what the stamp represtants
Actually, it’s these commentaries along with the stamps that make this site interesting. A big contributing factor in causing the Great Depression is that the Republican Congress and administrations in the 1920’s cut taxes on the wealthy, thereby giving them plenty of extra money to “play” the stock market, speculate in Florida real estate, etc. Stock prices were inflated far beyond their actual value paving the way for a crash which occurred in late 1929. It’s the old “trickle down” theory…cut taxes on the wealthy and the big corporations, and the money will “trickle” down to the middle class and the poor. I t didn’t work then and it has never worked since although Republicans continue to push it.
The event occurred on this date. The stamp commemorates the event. The text gives a brief but sufficient explanation and there is an option marked click here to read the full text of the act if you’ve got an hour or two to read the decree. Thank you Mystic for the clear, concise condensation version as well as the option to occupy time productively in the event of insomnia.
I know of the article concerning the “seven legs” on he stamp. And to know that farmers do not carry the scythe on their left shoulder. Thank you Mr Kenneth Snyder and Conrad Gaunt for your mention of the various moves that lead to the “Collapse of ’29”.
Hey Mr. Cid. This is a great start to a very interesting topic. I find your comment typical these days, and suggest you take the time to enlighten those of us that truly enjoy these snippets of history. Rather than express your disappointment relating to the content, take the time to discover the facts you seem to want and express them to the rest of us. Don and his team always find creative ways to validate these great times in history, and I for one, appreciate their efforts. Take the time to investigate the subject and add the stamp to your collection. Let us all know how that brightens your life.