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Encyclopedia > National Recovery Administration
NRA Blue Eagle poster. This would be displayed in store windows, on packages, and in ads. When printed in color the eagle was blue, hence the name.
NRA Blue Eagle poster. This would be displayed in store windows, on packages, and in ads. When printed in color the eagle was blue, hence the name.

The National Recovery Administration (NRA), created in the United States of America under the 1933 National Industrial Recovery Act, was one of the New Deal programs of President Franklin D. Roosevelt and his administration. The NRA allowed industries to create "codes of fair competition," which were intended to reduce "destructive competition" and to help workers by setting minimum wages and maximum weekly hours. It also allowed industry heads to collectively set minimum prices. In 1935, the United States Supreme Court unanimously declared the NRA as unconstitutional in the court case of Schechter Poultry Corp. v. US, on the grounds that it violated the Constitution's separation of powers.[1] The NRA quickly stopped operations, but many of its labor provisions reappeared in the Wagner Act of 1935. Image File history File links From US Government Archives website, http://www. ... Image File history File links From US Government Archives website, http://www. ... NRA Blue Eagle The Blue Eagle, a blue-colored representation of the American thunderbird, with outspread wings, was a symbol used in the United States by companies to show compliance with the National Industrial Recovery Act. ... Motto: (traditional) In God We Trust (official, 1956–present) Anthem: The Star-Spangled Banner Capital Washington, D.C. Largest city New York City Official language(s) None at the federal level; English de facto Government Federal Republic  - President George W. Bush (R)  - Vice President Dick Cheney (R) Independence - Declared - Recognized... The National Industrial Recovery Act (NIRA) or National Recovery Act (NRA) of June 16, 1933, was part of President Franklin Delano Roosevelts New Deal. ... This article is about the policy program of US President Franklin D Roosevelt. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      For other uses, see President of the United States (disambiguation). ... FDR redirects here. ... The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States... The Politics series Politics Portal This box:      Separation of powers is a term coined by French political Enlightenment thinker Baron de Montesquieu[1][2], is a model for the governance of democratic states. ... National Labor Relations Act - Wikipedia /**/ @import /skins/monobook/IE50Fixes. ...


The NRA, symbolized by the blue eagle, was popular with workers. Businesses that supported the NRA put the symbol in their shop windows and on their packages. Though membership to the NRA was voluntary, businesses that did not display the eagle were urged to be boycotted - making it seem mandatory for survival.

Contents

Background

President and Mrs. Roosevelt on Inauguration Day, 1933. The NRA, as part of the NIRA, would be enacted in the First Hundred Days.
President and Mrs. Roosevelt on Inauguration Day, 1933. The NRA, as part of the NIRA, would be enacted in the First Hundred Days.

As part of the "First New Deal", the NRA was based on the idea that the Great Depression was caused by market instability and that government intervention was necessary to balance the interests of farmers, business and labor. The NIRA, which created the NRA, declared that codes of fair competition should be developed through public hearings, and gave the Administration the power to develop voluntary agreements with industries regarding work hours, pay rates, and price fixing.[2] Image File history File links Roosevelt_inauguration_1932. ... Image File history File links Roosevelt_inauguration_1932. ... For other uses, see The Great Depression (disambiguation). ...


The NRA was put into operation by an executive order after the passage of the NIRA. An executive order is an edict issued by a member of the executive branch of a government, usually the head of that branch. ...


New Dealers whose government service dated back to the Woodrow Wilson Administration may have been influenced by their past efforts to mobilize the economy for World War I. They brought ideas and experience from the government controls and spending of 1917-18. Indeed, part of their beliefs was to duplicate the war-time collectivist drive during peace-time. Thomas Woodrow Wilson (December 28, 1856—February 3, 1924), was the twenty-eighth President of the United States. ... “The Great War ” redirects here. ...


In his June 16, 1933 "Statement on the National Industrial Recovery Act," President Roosevelt described aspects of the NRA's socialist spirit: "On this idea, the first part of the [NIRA] proposes to our industry a great spontaneous cooperation to put millions of men back in their regular jobs this summer."[3] He further stated, "But if all employers in each trade now band themselves faithfully in these modern guilds--without exception-and agree to act together and at once, none will be hurt and millions of workers, so long deprived of the right to earn their bread in the sweat of their labor, can raise their heads again. The challenge of this law is whether we can sink selfish interest and present a solid front against a common peril."[4] Socialism is a social and economic system (or the political philosophy advocating such a system) in which the economic means of production are owned and controlled collectively by the people. ...


Inception

Director Hugh S. Johnson on the cover of Time Magazine in 1933.
Director Hugh S. Johnson on the cover of Time Magazine in 1933.
The film industry supported the NRA.
The film industry supported the NRA.

The first director of the NRA was Hugh S. Johnson, a retired Brigadier General of the United States Army and a successful businessman. He was named Time Magazine's Man of the Year in 1933. Johnson saw the NRA as a national crusade designed to restore employment and regenerate industry. A Picture of Hugh S. Johnson on Time Magazine as Man of the Year, from Times website File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... A Picture of Hugh S. Johnson on Time Magazine as Man of the Year, from Times website File history Legend: (cur) = this is the current file, (del) = delete this old version, (rev) = revert to this old version. ... (Clockwise from upper left) Time magazine covers from May 7, 1945; July 25, 1969; December 31, 1999; September 14, 2001; and April 21, 2003. ... Hugh Johnson (* 1939) is a famous British wine specialist Hugh S. Johnson on the cover of Time Hugh Samuel Johnson (1882 - 1942) was an American soldier and public administrator. ... A Brigadier General, or one-star general, is the lowest rank of general officer in the United States and some other countries, ranking just above Colonel and just below Major General. ... The United States Army is the largest and oldest branch of the armed forces of the United States. ... (Clockwise from upper left) Time magazine covers from May 7, 1945; July 25, 1969; December 31, 1999; September 14, 2001; and April 21, 2003. ... Person of the Year is an annual issue of U.S. newsmagazine TIME that features a profile ostensibly on the man, woman, couple, group, idea, place, or machine that for better or worse, has most influenced events in the preceding year. ...


Johnson called on every business establishment in the nation to accept a stopgap "blanket code": a minimum wage of between 20 and 45 cents per hour, a maximum workweek of 35 to 45 hours, and the abolition of child labor. Johnson and Roosevelt contended that the "blanket code" would raise consumer purchasing power and increase employment. A twelve year old American uneducated child laborer, Furman Owens, who stated Yes I want to learn but cant when I work all the time. ...


To mobilize political support for the NRA, Johnson launched the "NRA Blue Eagle" publicity campaign to boost his bargaining strength to negotiate the codes with business and labor. NRA Blue Eagle The Blue Eagle, a blue-colored representation of the American thunderbird, with outspread wings, was a symbol used in the United States by companies to show compliance with the National Industrial Recovery Act. ...


Historian Clarence B. Carson noted:

At this remove in time from the early days of the New Deal, it is difficult to recapture, even in imagination, the heady enthusiasm among a goodly number of intellectuals for a government planned economy. So far as can now be told, they believed that a bright new day was dawning, that national planning would result in an organically integrated economy in which everyone would joyfully work for the common good, and that American society would be freed at last from those antagonisms arising, as General Hugh Johnson put it, from “the murderous doctrine of savage and wolfish individualism, looking to dog-eat-dog and devil take the hindmost."[5] This article refers to an economy controlled by the state. ...

Johnson was faltering badly by 1934, which some historians have ascribed to the profound contradictions in NRA policies, compounded by heavy drinking on the job.[citation needed] Johnson was criticized by Labor Secretary Frances Perkins for having Fascist inclinations.[citation needed] Johnson has been said to have looked on Italian Fascist corporativism as a kind of model.[6] This involved organizing thousands of businesses under codes drawn up by trade associations and industries. Year 1934 (MCMXXXIV) was a common year starting on Monday (link will display full 1934 calendar) of the Gregorian calendar. ... Frances Coralie Perkins (born Fanny Coralie Perkins, lived April 10, 1882 – May 14, 1965) was the U.S. Secretary of Labor from 1933 to 1945, and the first woman ever appointed to the US Cabinet. ... Fascism (in Italian, fascismo), capitalized, was the authoritarian political movement which ruled Italy from 1922 to 1943 under the leadership of Benito Mussolini. ...


Roosevelt replaced Johnson in September 1934, reassigning him to a Works Progress Administration position. WPA Graphic The Works Progress Administration (later Work Projects Administration, abbreviated WPA), was created on May 6, 1935 by Presidential order (Congress funded it annually but did not set it up). ...


New Chairman

In early 1935 the new chairman, Samuel Williams announced that the NRA would stop setting prices, but businessmen complained. Chairman Williams told them plainly that, unless they could prove it would damage business, NRA was going to put an end to price control. Williams said, "Greater productivity and employment would result if greater price flexibility were attained."[citation needed] Of the 2,000 businessmen on hand probably 90% opposed Mr. Williams' aim, reported Time magazine: "To them a guaranteed price for their products looks like a royal road to profits. A fixed price above cost has proved a lifesaver to more than one inefficient producer."[citation needed]


The business position was summarized by George A. Sloan, head of the Cotton Textile Code Authority:

"Maximum hours and minimum wage provisions, useful and necessary as they are in themselves, do not prevent price demoralization. While putting the units of an industry on a fair competitive level insofar as labor costs are concerned, they do not prevent destructive price cutting in the sale of commodities produced, any more than a fixed price of material or other element of cost would prevent it. Destructive competition at the expense of employees is lessened, but it is left in full swing against the employer himself and the economic soundness of his enterprise....But if the partnership of industry with Government which was invoked by the President were terminated (as we believe it will not be), then the spirit of cooperation, which is one of the best fruits of the NRA equipment, could not survive.[7]

The NRA in practice

Chart 3: Manufacturing employment in the United States from 1920 to 1940
Chart 3: Manufacturing employment in the United States from 1920 to 1940

The NRA negotiated specific sets of codes with leaders of the nation's major industries; the most important provisions were anti-deflationary floors below which no company would lower prices or wages, and agreements on maintaining employment and production. In a remarkably short time, the NRA won agreements from almost every major industry in the nation. Six months after the NRA went into effect, industrial production dropped twenty-five percent. According to some economists, the NRA increased the cost of doing business by forty percent.[8] Donald Richberg, who soon replaced Johnson as the head of the NRA said:

There is no choice presented to American business between intelligently planned and uncontrolled industrial operations and a return to the gold-plated anarchy that masqueraded as "rugged individualism."...Unless industry is sufficiently socialized by its private owners and managers so that great essential industries are operated under public obligation appropriate to the public interest in them, the advance of political control over private industry is inevitable.[9]

By the time it ended in May 1935, industrial production was 22% higher than in May 1933. On May 27, 1935, the NRA was found to be unconstitutional by a unanimous decision of the U.S. Supreme Court in the case of Schechter v. United States. On that same day, the Court unanimously struck down the Frazier-Lemke Act portion of the New Deal as unconstitutional. Some libertarians such as Richard Ebeling see these and other rulings striking down portions of the New Deal as preventing the U.S. economic system from becoming a planned economy corporate state.[10] Governor Huey Long of Louisiana said, "I raise my hand in reverence to the Surpreme Court that saved this nation from fascism."[11] is the 147th day of the year (148th in leap years) in the Gregorian calendar. ... 1935 (MCMXXXV) was a common year starting on Tuesday (link will display full calendar). ... Holding Section 3 of the National Industrial Recovery Act was an unconstitutional delegation of legislative power to the Executive. ... Dr. Richard M. Ebeling (born 1950) is an American libertarian author and president of the Foundation for Economic Education (FEE) based in Irvington-on-Husdon, NY. He has written and edited numerous books, including the three-volume Selected Writings of Ludwig von Mises. ... This article refers to an economy controlled by the state. ... Huey Pierce Long, Jr. ... This article is about the U.S. State. ... Fascism is a term used to describe authoritarian nationalist political ideologies or mass movements that are concerned with notions of cultural decline or decadence and seek to achieve a millenarian national rebirth by placing the interests of the individual as subordinate to that of the nation or race and promoting...


Employment in private sector factories recovered to the level of the late 1920s by 1937 but did not grow much bigger until the war came and manufacturing employment leaped from 11 million in 1940 to 18 million in 1943.


About 23,000,000 people worked under the NRA fair code. However, violations of codes became common and attempts were made to use the courts to enforce the NRA. The NRA included a multitude of regulations imposing the pricing and production standards for all sorts of goods and services. Individuals were arrested for not complying with these codes. For example, a man named Jack Magid was jailed for violating the "Tailor's Code" by pressing a suit for 35 rather than NRA required 40 cents. Roosevelt supporter-turned-critic John T. Flynn, in The Roosevelt Myth (1944), wrote: John T. Flynn John Thomas Flynn (October 25, 1882-1964) was a U.S. journalist. ...

The NRA was discovering it could not enforce its rules. Black markets grew up. Only the most violent police methods could procure enforcement. In Sidney Hillman’s garment industry the code authority employed enforcement police. They roamed through the garment district like storm troopers. They could enter a man’s factory, send him out, line up his employees, subject them to minute interrogation, take over his books on the instant. Night work was forbidden. Flying squadrons of these private coat-and-suit police went through the district at night, battering down doors with axes looking for men who were committing the crime of sewing together a pair of pants at night. But without these harsh methods many code authorities said there could be no compliance because the public was not back of it.

The NRA was famous for its bureaucracy. Journalist Raymond Clapper reported that between 4,000 and 5,000 business practices were prohibited by NRA orders that carried the force of law, which were contained in some 3,000 administrative orders running to over 10,000 pages, and supplemented by what Clapper said were "innumerable opinions and directions from national, regional and code boards interpreting and enforcing provisions of the act." There were also "the rules of the code authorities, themselves, each having the force of law and affecting the lives and conduct of millions of persons." Clapper concluded: "It requires no imagination to appreciate the difficulty the business man has in keeping informed of these codes, supplemental codes, code amendments, executive orders, administrative orders, office orders, interpretations, rules, regulations and obiter dicta."[12]


Judicial review

In 1935, in the court case of Schecter Poultry Corp. v. US 295 U.S. 495 (1935), the Supreme Court declared the NRA as unconstitutional because it gave the President too much power. Also in the 1930's, the Agricultural Adjustment Act (AAA) suffered a similar fate, as it too was declared unconstitutional.[13] Chief Justice Charles Evans Hughes wrote for a unanimous Court in invalidating the industrial "codes of fair competition" which the NIRA enabled the President to issue. The Court held that the codes violated the United States Constitution's separation of powers as an impermissible delegation of legislative power to the executive branch. The Court also held that the NIRA provisions were in excess of congressional power under the Commerce Clause. Holding Section 3 of the National Industrial Recovery Act was an unconstitutional delegation of legislative power to the Executive, and was not a valid exercise of congressional Commerce Clause power. ... // The United States Reports, the official reporter of the Supreme Court of the United States Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a neutral form which will... Charles Evans Hughes, Sr. ... Wikisource has original text related to this article: The United States Constitution The United States Constitution is the supreme law of the United States of America. ... The Politics series Politics Portal This box:      Separation of powers is a term coined by French political Enlightenment thinker Baron de Montesquieu[1][2], is a model for the governance of democratic states. ... Article I, Section 8, Clause 3 of the United States Constitution, known as the Commerce Clause, states that Congress has the exclusive authority to manage trade activities between the states and with foreign nations and Indian tribes. ...


The Court distinguished between direct effects on interstate commerce, which Congress could lawfully regulate, and indirect, which were purely matters of state law. Though the raising and sale of poultry was an interstate industry, the Court found that the "stream of interstate commerce" had stopped in this case--Schechter's slaughterhouses bought chickens only from intrastate wholesalers and sold to intrastate buyers. Any interstate effect of Schechter was indirect, and therefore beyond federal reach.


Specifically, the Court invalidated regulations of the poultry industry promulgated under the authority of the National Industrial Recovery Act of 1933, including price and wage fixing, as well as requirements regarding a whole shipment of chickens, including unhealthy ones, which has led to the case becoming known as "the sick chicken case." The ruling was one of a series which overturned elements of President Franklin D. Roosevelt's New Deal legislation between January 1935 and January 1936, and which ultimately caused Roosevelt to attempt to pack the Court with judges that were in favor of the New Deal. Price fixing is an agreement between business competitors to sell the same product or service at the same price. ... Franklin Delano Roosevelt (January 30, 1882–April 12, 1945), 32nd President of the United States, the longest-serving holder of the office and the only man to be elected President more than twice, was one of the central figures of 20th century history. ... This article is about the policy program of US President Franklin D Roosevelt. ... The Judiciary Reorganization Bill of 1937, frequently called the Court-packing Bill, was a law proposed by United States President Franklin Roosevelt. ...


Subsequent to the decision, the NRA quickly stopped operations, but many of the labor provisions reappeared in the Wagner Act of 1935. National Labor Relations Act - Wikipedia /**/ @import /skins/monobook/IE50Fixes. ...


Notes

  1. ^ The Supreme Court Historical Society.
  2. ^ National Recovery Administration. The Columbia Encyclopedia, Sixth Edition. 2001-07
  3. ^ Franklin D. Roosevelt Presidential Library and Museum - Our Documents
  4. ^ Franklin D. Roosevelt Presidential Library and Museum - Our Documents
  5. ^ Carson, Clarence B. The Relics of Intervention part 4. New Deal Collective Planning
  6. ^ Stanley Payne. History of Fascism. 1995. p 230.
  7. ^ "Dollar Men & Prices" Time (Jan 21, 1935) online
  8. ^ Reed, Lawrence W. Great Myths of the Great Depression Mackinac Center for Public Policy.
  9. ^ Arthur Meier Schlesinger, Jr. The Coming of the New Deal, Houghton Mifflin Books (2003), p. 115
  10. ^ "When the Supreme Court Stopped Economic Fascism in America". By Richard Ebeling, president of Foundation for Economic Education. Oct. 2005.
  11. ^ Qrthur Meier Schlesinger, Jr. The Politics of Upheaval: 1935-1936, the Age of Roosevelt, Volume III, Houghton Mifflin Books, page 284
  12. ^ Claper in Washington Post, Dec. 4, 1934, quoted in Best, 79-80 (1991).
  13. ^ The Supreme Court Historical Society.

Stanley G. Payne is a historian of modern Spain and European Fascism at the University of Wisconsin--Madison. ... The Foundation for Economic Education (FEE) was the first modern think tank established in the United States specifically to promote, research and promulgate free-market and libertarian ideas. ...

Satire

  • Humorist Richard Armour, who was in his late twenties when the NRA began, stated in his mock American history book, It All Started with Columbus, that the primary goal of the NRA was "to save the rare Blue Eagle."

Richard Armour (1906–1989) was an American poet. ...

External links

Dr. Richard M. Ebeling (born 1950) is an American libertarian author and president of the Foundation for Economic Education (FEE) based in Irvington-on-Husdon, NY. He has written and edited numerous books, including the three-volume Selected Writings of Ludwig von Mises. ... “Inka Dinka Doo” redirects here. ...

References

  • Best; Gary Dean. Pride, Prejudice, and Politics: Roosevelt Versus Recovery, 1933-1938. Praeger Publishers. 1991
  • Hawley, Ellis W. The New Deal and the Problem of Monopoly Princeton UP (1968)
  • Johnson; Hugh S. The Blue Eagle, from Egg to Earth 1935, memoir by NRA director
  • Lyon, Leverett S., Paul T. Homan, Lewis L. Lorwin, George Terborgh, Charles L. Dearing, Leon Marshall C.; The National Recovery Administration: An Analysis and Appraisal The Brookings Institution, 1935 .
  • Ohl, John Kennedy. Hugh S. Johnson and the New Deal (1985), academic biography.
  • Schlesinger, Arthur Meier. The Coming of the New Deal (1958) pp 87-176 online version
This article is about the policy program of US President Franklin D Roosevelt. ... For other uses, see The Great Depression (disambiguation). ... The New Deal coalition was the alignment of interest groups and voting blocs that supported the New Deal and voted for Democratic presidential candidates from 1932 until approximately 1966, which made the Democratic Party the majority party during that period, although they had only one Presidential majority after 1944. ... The Brain Trust was the name given to a group of diverse academics who served as advisers to U.S. President Franklin D. Roosevelt during the early period of his tenure. ... The American Liberty League was a U.S. organization formed in 1934 by conservative Democrats such as Al Smith (the 1928 Democratic presidential nominee), Jouett Shouse (former high party official and U.S. Representative), John Davis (the 1924 Democratic presidential nominee), and John Jacob Raskob (former Democratic National Chairman and... During his presidency from 1933 to 1945, Franklin D. Roosevelt established a series of programs which he called the New Deal. ... The Emergency Banking Act (also known as the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. ... Two separate United States laws are known as the Glass-Steagall Act. ... The Economy Act or in full the Economy Act Agreement for Purchasing Good or Services was a United States act, which the U.S. Congress passed on March 15, 1933. ... The Public Works Administration of 1933 (PWA) was a part of the first New Deal agency that made contracts with private firms for construction of public works. ... The Agricultural Adjustment Act (or AAA) (Pub. ... This article or section does not cite any references or sources. ... Photo of a sharecropper by Walker Evans for the U.S. Resettlement Administration Initially created as the Resettlement Administration in 1935 as part of the New Deal, the Farm Security Administration was an effort during the Depression to combat rural poverty. ... The Rural Electrification Administration (REA) was an agency of the United States federal government created on 11 May 1935 through efforts of the administration of President Franklin D. Roosevelt. ... FDR (Center) signs the Rural Electrification Act with Representative John Rankin (Left) and Senator William Norris (right) The Rural Electrification Act of 1936 provided federal funding for installation of electrical distribution systems to serve rural areas of the United States. ... The National Industrial Recovery Act (NIRA) or National Recovery Act (NRA) of June 16, 1933, was part of President Franklin Delano Roosevelts New Deal. ... WPA Graphic The Works Progress Administration (later Work Projects Administration, abbreviated WPA), was created on May 6, 1935 by Presidential order (Congress funded it annually but did not set it up). ... Social Security, in the United States, currently refers to the Federal Old-Age, Survivors, and Disability Insurance (OASDI) program. ... FERA camps for unemployed women in Arcola, Pennsylvania; Second Camp, ca. ... CCC workers on road construction, Camp Euclid, Ohio 1936 Civilian Conservation Corps (CCC) was a work relief program for young men from unemployed families, established on March 19, 1933 by U.S. President Franklin D. Roosevelt. ... 6,000 Men and a Scenic Boulevard; San Francisco, California, ca. ... // Congress enacted the Securities Act of 1933 (the “1933 Act,” the Truth in Securities Act or the Federal Securities Act) 48 Stat. ... This article does not cite any references or sources. ... The Judiciary Reorganization Bill of 1937, frequently called the Court-packing Bill, was a law proposed by United States President Franklin Roosevelt. ... FDR redirects here. ... Harold LeClair Ickes (March 15, 1874–February 3, 1952) was a U.S. administrator and political figure. ... Henry Morgenthau Jr. ... Huey Pierce Long, Jr. ... Herbert Clark Hoover (August 10, 1874 – October 20, 1964), the thirty-first President of the United States (1929–1933), was a world-famous mining engineer and humanitarian administrator. ... Portrait of Robert F. Wagner in the U.S. Senate Reception Room Robert Ferdinand Wagner (8 June 1877–4 May 1953) was a Democratic United States Senator from New York from 1927 until 1949. ...


 

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