FDIC's reduction in bank failures vs. trickle-down economic's INCREASE in bank failures

(During the roaring twenties and the early years of the Great Depression bank failures were routine occurrences. After FDIC was created in late 1933, not so much. Image courtesy of FDIC.)

Before FDIC was created Americans routinely lost their bank deposits when banks failed. For example, between 1930 and 1933, 9,000 banks failed and depositors lost $1.3 billion (about $23 billion in today's dollars). See The FDIC: A History of Confidence and Stability.  

FDIC provides a stable banking system by requiring banks to be insured. This not only protects depositors but also prevents "bank runs" (mass withdraws of money due to panic). FDIC is one of the most successful New Deal creations: "Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure" (see here).

Bank failures by time period:

1921-1929 ("The Roaring Twenties"): 5,711 (hundreds every year, not just 1929)

1930-1933 (The Great Depression): 9,096

1934-1943 (New Deal Years): 355

1944-1949 (FDIC and other regulations firmly in place): 16

1950-1959: 26

1960-1969: 44

1970-1979: 72

1980-1989 (Trickle-down economics & de-regulation): 2,005

1990-1999 (After shaky start, some stability returns): 923

2000-2009: 210

2010-2014 (Great Recession): 339

(Source: FDIC at https://www2.fdic.gov/hsob/SelectRpt.asp?EntryTyp=30&Header=1)

(In the video above, U.S. Senator Elizabeth Warren explains to a skeptical group how financial regulations created during the New Deal era facilitated many decades of stable banking in the U.S. Included is excellent commentary by Cenk Uygur of the Young Turks. It is clear from this video that many commentators, like those Warren is speaking to, have very little understanding of our banking history - yet, they have the public's ear and trust. Amazing. Original YouTube link: https://www.youtube.com/watch?v=nTWfa-iO9Nc.)

FDIC has provided stability for our banking system, even when our economy has suffered from fraud (the recent recession) and trickle-down economics (i.e., massive tax cuts for the rich, financial de-regulation, and austerity that primarily preys upon the finances of the middle-class & poor).

It will only be a matter of time before Republican and Libertarian politicians try to eliminate FDIC in their quest for an economy with absolutely no regulations (their Ayn Rand utopia), as well as to satisfy their desire to eliminate every government program that assists the non-wealthy. When that day comes, next year or 50 years from now, Americans will once again lose their money when fraudulent & incompetent banks fail. And, unaware of their New Deal history, they will throw up their hands and say, "What happened?", just as Alan Greenspan (a major Ayn Rand devotee) said of the massive mortgage & securities fraud that occurred after years of weakened regulatory oversight, "A critical pillar to market competition and free markets did break down. I still do not fully understand why it happened."

No Mr. Greenspan, you certainly don't.

Index of American Design

(Men and women in the WPA, working on the Index of American Design in Coral Gables, Florida, 1940. Photo courtesy of the National Archives and the New Deal Network.)

A New Deal for Hawaii

(The state seal of Hawaii, image courtesy of Wikipedia.)

Some New Deal facts & figures for the Aloha State...

Public Works Administration (PWA):

By 1939, the PWA had contributed $4.8 million in funding towards 57 infrastructure projects in Hawaii. In today's dollars, that's about $81 million. Three of the these were large waterworks projects at Honolulu, Kauai, and Hilo.

(Sources: "America Builds: The Record of PWA," 1939, p. 285; Work Progress Administration, "Report on Progress of Works Program," October 15, 1936 edition)

Civilian Conservation Corps (CCC):

Yearly CCC enrollment in Hawaii seems to have averaged around 1,000 to 1,500 men.  Between March 1934 and December 1941, CCC enrollees planted 11.7 million trees in Hawaii; built or maintained 50 miles of firebreaks; created 516 miles of truck, horse, and foot trails; and more.

In recalling the food while in the CCC, one enrollee stated "We had good food. No complaints…We had poi once in a while. We had all kind of food. And we had a Chinese cook. Once in while he used to make Chinese food, but the food was really good, for me...I guess at times, we have rice and maybe stew, or other kind of good meals" (see page 23 of second source below).    

(Sources: Perry H. Merrill, "Roosevelt's Forest Army: A History of the Civilian Conservation Corps, 1933-1942," 1981, p. 32; Kathryn Ladoulis Urban and Stanley Solamillo, "Civilian Conservation Corps In Hawai`i: Oral Histories of the Haleakalā Camp, Maui," 2011, pp. 23 & 44; Works Progress Administration, "Report on Progress of Works Program," June 30, 1937 edition, pp. 97-99)  

(A lava tube at Hawaii Volcanoes National Park. To read about the activities of the CCC at the park, see "Civilian Conservation Corps at HAVO." Photo courtesy of Wikipedia.)

(CCC workers on a water & soil conservation project in Hawaii. Photo courtesy of the Hawaii State Archives.)

(A CCC camp in Hawaii. Photo courtesy of the Hawaii State Archives.)

(CCC workers at Haleakala National Park on the island of Maui. To read fascinating oral histories of the workers, and learn more information about the CCC in Hawaii, e.g., camp locations, click here. Photo courtesy of the National Park Service.) 

(The CCC camp at Haleakala National Park. The National Park service states, "Here at Haleakalā National Park the CCC was engaged in a variety of projects. CCC enrollees removed invasive plants and feral animals such as pigs and goats, constructed the White Hill, Sliding Sands and Halemau'u trails, and built some of the frontcountry structures still used by park employees today." Photo courtesy of the National Park Service.)

Federal Emergency Relief Administration (FERA):

In February of 1935, 134 college students at the University of Hawaii were employed in FERA's College Student Aid Program. This was a program "undertaken in order to enable young persons who would not otherwise have been able to do so to continue their education, and thereby reduce the influx of young workers into the labor market" (recall that during the Great Depression there was a large drop in the demand for labor).

Between 1933 and 1935, FERA granted $7.4 million to Hawaii for relief efforts (about $126 million in today's dollars). These efforts likely included direct cash relief, rural relief projects, and a wide variety of work programs.

(Source: "Final Statistical Report of the Federal Emergency Relief Administration," 1942, pp. 64, 103, and 232)

National Youth Administration (NYA):

During academic year 1939-1940, 31 schools and the University of Hawaii were participating in the NYA program, employing 821 students.

During any given month of fiscal year 1942, there were about 296 young men and women working in the NYA's out-of-school work program in Hawaii.

A high school student on the island of Maui described the importance of the NYA program: "A girl of 16 summers, I am of Oriental ancestry. I come from a large family and have six sturdy brothers. We live on a two acre taro farm in a little village called Waihee...Due to the fact that all seven are attending school there was some doubt whether or not I would be able to continue high school and go on to college as I have always wanted to do. The NYA has changed the situation. It has enabled me to see a bright future."

(Sources: Federal Security Agency - War Manpower Commission, "Final Report of the National Youth Administration, Fiscal Years 1936-1943," 1944, pp. 246-247, 254; "National Youth Administration in Hawaii," booklet created by the NYA and published by the Printing Department of McKinley High School, Honolulu, 1938, pp. 19-20)

(Hawaii schools participating in the NYA program. Image from the booklet "National Youth Administration in Hawaii.") 

("NYA students at work at Farrington High School," Honolulu. Photo from the booklet "National Youth Administration in Hawaii.")

 ("University of Hawaii NYA student working in chemistry laboratory," Honolulu.
Photo from the booklet "National Youth Administration in Hawaii.")

 ("Agriculture Building built by the Maui High School Shop and NYA boys."
Photo from the booklet "National Youth Administration in Hawaii.")

Post Offices:

During the New Deal era, the U.S Treasury built or expanded Post Office buildings in Hawaii and commissioned artists to decorate them. See the Living New Deal's Hawaii pages for examples.

Works Progress Administration (WPA):

Interesting facts and figures about the WPA in Hawaii...

--> During the first four fiscal years (1936 - 1939) WPA laborers in Hawaii worked on 40 projects to build, repair, or improve schools; 139 projects to build, repair, or improve other public buildings; created or improved 77 miles of roadway; constructed or repaired 21 bridges; installed or repaired 100 culverts; made or improved 7 miles of sidewalks; participated in 13 projects to create or improve parks, playgrounds, and athletic fields; installed or improved 49 miles of water lines; renovated about 67,500 books; and more.

--> WPA employment in Hawaii peaked in December of 1936, with about 4,400 men and women on the payrolls.

--> Between September of 1936 and June of 1941 the average number of Hawaii residents working in the WPA was about 2,500. After June 1941, employment dropped off sharply. In fact, between December of 1941 and March of 1943 there were only about 5 people working in the Hawaii WPA, probably performing administrative functions. However, even though there were less WPA workers (i.e, the formerly jobless) on the WPA payroll, WPA funds were still being utilized on a variety of projects, especially national defense-related projects. As Dr. Jason Scott Smith points out, "As it turned to wartime public works, the WPA increasingly discarded its primary method of construction--the "force account," whereby people were put to work directly in order to reduce unemployment--in favor of cost-plus contracting, which emphasized timely production and increasingly turned to private contractors in order to get the job done" (see source list below). This explains why the WPA payroll dropped so sharply even as WPA money continued to fund projects in Hawaii (e.g., air field & military base improvements).

--> The WPA made substantial improvements to a number of airfields, including Hilo Airport, John Rodgers Airport (present-day Honolulu International Airport), Suiter Field (present-day Upolu Airport, near Kona on the Big Island), and Port Allen Airport (on the island of Kauai). The WPA also provided substantial funding for the creation of the Puunene Airport on the island of Maui (now part of the Maui Raceway Park).

(The description for this photograph reads, "Inter-Island Sikorsky being fueled by a Standard Oil truck at John Rodgers Airport, 1937." John Rodgers Airport is now Honolulu International Airport. Between 1935 and 1937, the WPA extended the runways at the airport. Photo courtesy of the State of Hawaii Department of Transportation, Airports Division.)    

--> Total funds expended on WPA projects in Hawaii (i.e., WPA funds + sponsor funds) was $13.9 million. That's about $234 million in today's dollars.

--> Out of the total WPA funding (again, WPA + sponsor), about 46% went towards roadwork, 24% towards work on public buildings, 12% towards airport work, and the remaining 18% towards a variety of other projects.

--> Funding for a landing field on Howland Island--1,700 nautical miles southwest of Hawaii--most likely came from the Hawaii WPA office in Honolulu. The landing field was to be used as a possible trans-Pacific refueling station and also for Amelia Earhart's 1937 attempt to fly around the world (Earhart and her navigator disappeared before reaching Howland Island).

--> In the June 30, 1941 edition of the Federal Works Agency's Report on Progress of the WPA Program (p. 81), we are told that among the WPA's publications are "guides for most of the states and for Alaska, Hawaii, and Puerto Rico under the American Guide series..." However, while there are indeed guides to Alaska and Puerto Rico, there doesn't appear to be one for Hawaii. This could have been a mistake by the authors of the report, or it could indicate that a guide was intended for Hawaii but was never completed. If the latter, the materials for the guide could be stored away in a dusty corner of an archives. Interestingly, in 2009 author Pat Willard published America Eats! by using materials collected by the WPA writer's program - materials that were intended for a book. The book was never completed and the materials were stored away in various archives across the nation (see "'America Eats': A Hidden Archives from the 1930s," NPR, November 19, 2004). This raises the interesting question: Could there be materials for a Guide to the Aloha State (or, "Aloha Territory" for history sticklers) buried somewhere in the National Archives, Hawaii State Archives, a warehouse, or even someone's attic? Perhaps we'll never know...        

(Sources: State of Hawaii Department of Transportation, Airports Division, "Chronology of Aviation in Hawaii, 1930-1939";  Federal Works Agency, "Final Report on the WPA Program, 1935-43," 1946; Federal Works Agency, "Report on Progress of the WPA Program," June 30, 1939, June 30, 1940, and June 30, 1941 editions; “Pacific Remote Island Area (PRIA),” Pacific Island Benthic Habitat Mapping Center, University of Hawaii at Manoa; Ric Gillespie, "Finding Amelia: The True Story of the Earhart Disappearance," Annapolis, MD: U.S. Naval Institute Press, 2006, pp. 8-18; Jason Scott Smith, "Building New Deal Liberalism: The Political Economy of Public Works, 1933-1956, New York: Cambridge University Press, 2006, p. 194)

(The description for this photograph reads, "Archives staff and WPA workers on steps of old Archives building." Across the U.S. and its territories, the WPA assisted museums, libraries, and archives. Photo courtesy of the Hawaii State Archives.)

Amelia Earhart, the WPA, and the colonists of Howland Island

(Amelia Earhart and Eleanor Roosevelt at a National Geographic Society event in Washington, D.C., 1935. Photo courtesy of the Library of Congress Prints and Photographs Division.)

Near the end of Amelia Earhart's 1937 flight around the globe she was supposed to land on Howland Island, a small island about 1,700 nautical miles southwest of Hawaii. However, Earhart and her navigator Fred Noonan disappeared before they reached the island, and their fate has become one of the most interesting "what happened" stories in history.

Two years before Earhart's flight, several students and graduates of the Kamehameha School of Hawaii colonized the island as part of a research job. According to the Pacific Islands Benthic Habitat Mapping Center, of the University of Hawaii at Manoa, "The Kamehameha colonists constructed three runways on Howland using WPA (Works Progress Administration) funds as a possible re-fueling station for trans-Pacific flights and for use as a landing site by Amelia Earhart and Fred Noonan on their round-the-world flight in 1937" (see Pacific Remote Island Area (PRIA)).

According to Earhart researcher Ric Gillespie, Earhart's flight accelerated the construction of the landing field:

"On Thursday, January 7 [1936], the White House received a Western Union telegram from Amelia Earhart in Burbank, California, addressed to ‘Honorable Franklin D. Roosevelt.’...'I hope to land on tiny Howland Island where the government is about to establish an emergency field...Construction party with equipment due to sail from Honolulu next week. Am now informed apparently some question regarding WPA appropriation in amount [of] $3,000 which covers all costs other than those born[e] by me for this mid-Pacific pioneer landing field which [will be] permanently useful and valuable aeronautically and nationally…Under circumstances could you expedite, as immediate action vital…Please forgive this troublesome female flyer for whom this Howland project is key to world flight attempt.'" The project was approved a few days later and the three landing fields were collectively called "Kamakaiwi Field," in honor of one of the colonists. (From Ric Gillespie, Finding Amelia: The True Story of the Earhart Disappearance, Annapolis, MD: U.S. Naval Institute Press, 2006, pp. 8-18)

The landing fields are mostly gone, but a 2008 photo of the remnants can be seen here: https://www.flickr.com/photos/72923065@N00/3380880233/.

Kamakaiwi Field is probably the most remote New Deal funded project. The $3,000 in WPA funding contributed to it equals about $49,000 in today's dollars.

(Ruins of the Howland Island Colony. The colony was called "Itascatown" and more information on it can be found here, here, and here. This 2008 photo was taken by Wikipedia & flickr user Joann94024, and is used here under the CCA-SA 3.0 Unported license.)

WPA Poster: Keep Your Teeth Clean

(WPA poster, courtesy of the Library of Congress Prints and Photographs Division.)

A New Deal for Maine

(Acadia National Park. To learn about the role of the CCC in developing the park, click here. Photo courtesy of the National Park Service.)

In 2012, Maine's Governor Paul LePage told his unemployed constituents, "Get off the couch and get yourself a job." However, Mainers have proven that they're quite willing & able to work when given opportunities instead of pink slips and insinuations of laziness. In fact, many of the infrastructure projects from the New Deal era, often created by formerly unemployed Mainers, still serve the state today. Here are some New Deal facts & figures for the Pine Tree State...

Civil Works Administration (CWA):

In January of 1934, there were over 22,000 formerly-jobless residents of Maine working in the CWA, building or repairing schools, roads, bridges, and more.

(From the "Analysis of Civil Works Program Statistics," 1939, p. 18)

Civilian Conservation Corps (CCC):

Between 1933 and 1942, 18,300 men from Maine were employed in the CCC. This included about 16,700 junior and veteran enrollees and 1,600 staff. Among their many accomplishments was the protection of 420,000 acres from tree and plant disease.

(From Perry H. Merrill's book, "Roosevelt's Forest Army: A History of the Civilian Conservation Corps, 1933-1942," 1981, p. 133)

(CCC boys working in Acadia National Park. Photo courtesy of the National Park Service.)

Public Works Administration (PWA):

By 1939, the PWA had contributed $4.5 million in funding towards 84 infrastructure projects in Maine. In today's dollars, that's about $76 million.

(From "America Builds: The Record of PWA," 1939, p. 284)

National Youth Administration (NYA):

During academic year 1939-1940, 234 schools, colleges, and universities in Maine participated in the NYA program, employing about 2,000 young men and women.

(From the "Final Report of the National Youth Administration, Fiscal Years 1936-1943," 1944, pp. 246-247)

(Eleanor Roosevelt visits the NYA in Quoddy Village, Maine, 1941. Photo courtesy of the FDR Presidential Library and Museum.)

Public Works of Art Project (PWAP):

Between 1933 and 1934, in Region 1 of the PWAP (Maine and the other New England states), unemployed artists were paid to create 22 sculptures, 51 murals, 150 oil paintings, and 490 poster panels, for use in public buildings and parks.

(From Public Works of Art Project, "Report of the Assistant Secretary of the Treasury to Federal Emergency Relief Administrator, December 8, 1933 - June 30, 1934," 1934, p. 7)

Federal Emergency Relief Administration (FERA):

In February of 1935, 599 college students in Maine were employed in FERA's College Student Aid Program. This was a program "undertaken in order to enable young persons who would not otherwise have been able to do so to continue their education, and thereby reduce the influx of young workers into the labor market" (recall that during the Great Depression there was a large drop in the demand for labor).

Between 1933 and 1935, FERA granted $13.6 million to Maine for relief efforts (about $228 million in today's dollars). These efforts included direct cash relief, rural relief projects, and a wide variety of work programs.

(From the "Final Statistical Report of the Federal Emergency Relief Administration," 1942, pp. 64, 103, and 232)

(The description for this 1934 photograph reads, "FERA Camps for Unemployed Women, Maine." These types of camps offered help (and hope) for many women struggling through the Great Depression. Photo courtesy of the FDR Presidential Library and Museum.) 

Works Progress Administration (WPA):

Between 1935 and 1943, Maine's WPA workers produced 1.9 million articles of clothing; served 2.7 million school lunches; created or improved 1,800 miles of roads; built or improved 232 bridges; installed or improved 4,300 culverts; engaged in 122 projects to build, repair, or improve schools; created or improved 36 parks; installed 53 miles of new water lines; constructed 203,000 linear feet of new airport & airfield runway (the 5th most in the nation); and more.

(From the "Final Report on the WPA Program, 1935-43," 1946, pp. 134-136)

Post Offices:

During the New Deal era, the U.S Treasury built Post Office buildings in Maine and commissioned artists to decorate them. See the Living New Deal's Maine pages for examples.

A New Deal for North Carolina

(In the video above, State Park Ranger Jason Anthony discusses the importance of the Civilian Conservation Corps, both to the nation and to Hanging Rock State Park in Stokes County, North Carolina. Original video is at https://www.youtube.com/watch?v=t6xHyHHNqus.)

Recently, there have been efforts to reform North Carolina's social studies curriculum in ways that disparage government and the New Deal (see, e.g., here, here, and here). However, many residents of North Carolina were greatly assisted by New Deal programs, and many New Deal projects are still being utilized and enjoyed today. Here are some New Deal facts & figures for the Tar Heel State...

Civil Works Administration (CWA):

In January of 1934, there were over 75,000 formerly-jobless North Carolinians working in the CWA, building or repairing schools, roads, bridges, and more.

(From the "Analysis of Civil Works Program Statistics," 1939, p. 18)

Civilian Conservation Corps (CCC):

Between 1933 and 1942, 75,800 North Carolina men were employed in the CCC. This included about 68,600 junior and veteran enrollees, 430 Indians, and 6,800 staff. Among their many accomplishments was the planting of 26 million trees.

(From Perry H. Merrill's book, "Roosevelt's Forest Army: A History of the Civilian Conservation Corps, 1933-1942," 1981, p. 157)

(The WPA's Federal Theatre Project helped "The Lost Colony" make it to stage. The play was written by Paul Green and is still performed every year on Roanoke Island. The image above is from a 1939 program for the play - National Archives copy.)

(The CCC helped construct the Waterside Theatre, where "The Lost Colony" is performed. The image above is from a 1939 program for the play - National Archives copy.)

(The somewhat changed Waterside Theatre today. Photo by Brent McKee, 2013.) 

Public Works Administration (PWA):

By 1939, the PWA had contributed $38 million in funding towards 352 infrastructure projects in North Carolina. In today's dollars, that's about $639 million.

(From "America Builds: The Record of PWA," 1939, p. 284)

National Youth Administration (NYA):

During academic year 1939-1940, 1,393 schools, colleges, and universities in North Carolina participated in the NYA program (second only to Texas), employing a little over 10,000 young men and women.

(From the "Final Report of the National Youth Administration, Fiscal Years 1936-1943," 1944, pp. 246-247)

(The Hiwassee Dam in Cherokee County, North Carolina. The Tennessee Valley Authority built this dam (and others) to provide flood control and power to rural areas that had been under-served or completely ignored by private power companies. The dam still produces enormous amounts of power today (see here), and TVA currently serves about nine million people in North Carolina, Alabama, Georgia, Kentucky, Mississippi, Virginia, and, of course, Tennessee. Photo courtesy of Wikipedia.)

Public Works of Art Project (PWAP):

Between 1933 and 1934, in Region 5 of the PWAP (Georgia, North Carolina, South Carolina, Tennessee, and Florida), unemployed artists were paid to create 13 murals, 17 sculptures, 25 water color paintings, and 25 oil paintings, for use in public buildings and parks.

(From Public Works of Art Project, "Report of the Assistant Secretary of the Treasury to Federal Emergency Relief Administrator, December 8, 1933 - June 30, 1934," 1934, p. 7)

Federal Emergency Relief Administration (FERA):

In February of 1935, 2,705 college students in North Carolina were employed in FERA's College Student Aid Program. This was a program "undertaken in order to enable young persons who would not otherwise have been able to do so to continue their education, and thereby reduce the influx of young workers into the labor market" (recall that during the Great Depression there was a large drop in the demand for labor).

Between 1933 and 1935, FERA granted $40 million to North Carolina for relief efforts (about $681 million in today's dollars). These efforts included direct cash relief, rural relief projects, and a wide variety of work programs.

(From the "Final Statistical Report of the Federal Emergency Relief Administration," 1942, pp. 64, 103, and 232)

(Looking like a cross between a cathedral and a military barracks, this sturdy WPA-built gym served the town of Manteo, North Carolina for three-quarters of a century. Photo by a local resident, used with permission.)

Works Progress Administration (WPA):

Between 1935 and 1943, North Carolina's WPA workers produced 9.3 million articles of clothing; served 4.5 million school lunches; created or improved 14,000 miles of roads; built or improved 725 bridges; installed or improved 21,000 culverts; engaged in 1,400 projects to build, repair, or improve schools; created or improved 97 parks; installed 450 miles of new water lines; constructed 130,000 linear feet of new airport & airfield runway; and more.

(From the "Final Report on the WPA Program, 1935-43," 1946, pp. 134-136)

Post Offices:

During the New Deal era, the U.S Treasury built Post Office buildings in North Carolina and commissioned artists to decorate them. See the Living New Deal's North Carolina pages for examples.

(When project paperwork was received by the North Carolina WPA Office, it received this date & time stamp. Photo by Brent McKee, from a National Archives record.)