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Agricultural Adjustment Act: Difference between revisions
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{{About|the Agricultural Adjustment Act of 1933|the act by the same name in 1938|Agricultural Adjustment Act of 1938}} | {{About|the Agricultural Adjustment Act of 1933|the act by the same name in 1938|Agricultural Adjustment Act of 1938}} | ||
{{Infobox U.S. legislation | {{Infobox U.S. legislation | ||
| shorttitle | | shorttitle = Agricultural Adjustment Act (AAA) | ||
| othershorttitles | | othershorttitles = {{unbulleted list|Agricultural Adjustment Act of 1933|The Farm Relief Bill}} | ||
| longtitle | | longtitle = An Act to relieve the existing national economic emergency by increasing agricultural purchasing power, to raise revenue for extraordinary expenses incurred by reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and for other purposes. | ||
| enacted by | | enacted by = 73rd | ||
| effective date | | effective date = May 13, 1933 | ||
| cite public law | | cite public law = {{USPL|73|10}} | ||
| cite statutes at large = {{USStat|48|31}} | | cite statutes at large = {{USStat|48|31}} | ||
| public law url | | public law url = | ||
| leghisturl | | leghisturl = | ||
| introducedin | | introducedin = House | ||
| introducedbill | | introducedbill = {{USbill|73|H.R.|3835}} | ||
| introducedby | | introducedby = <!--sponsor(s)--> | ||
| introduceddate | | introduceddate = | ||
| committees | | committees = | ||
| passedbody1 | | passedbody1 = House | ||
| passeddate1 | | passeddate1 = March 22, 1933 | ||
| passedvote1 | | passedvote1 = [http://www.govtrack.us/congress/votes/73-1/h7 315-98] | ||
| passedbody2 | | passedbody2 = Senate | ||
| passedas2 | | passedas2 = <!-- used if the second body changes the name of the legislation --> | ||
| passeddate2 | | passeddate2 = April 28, 1933 | ||
| passedvote2 | | passedvote2 = [http://www.govtrack.us/congress/votes/73-1/s43 64-20] | ||
| agreedbody3 | | agreedbody3 = <!-- used when the other body agrees without going into committee --> | ||
| passedbody3 | | passedbody3 = House | ||
| conferencedate | | conferencedate = May 10, 1933 | ||
| passeddate3 | | passeddate3 = May 10, 1933 | ||
| passedvote3 | | passedvote3 = passed | ||
| passedbody4 | | passedbody4 = Senate | ||
| passeddate4 | | passeddate4 = May 10, 1933 | ||
| passedvote4 | | passedvote4 = [http://www.govtrack.us/congress/votes/73-1/s47 53-28] | ||
| agreeddate3 | | agreeddate3 = <!-- used when the other body agrees without going into committee --> | ||
| agreedvote3 | | agreedvote3 = <!-- used when the other body agrees without going into committee --> | ||
| agreedbody4 | | agreedbody4 = <!-- used if agreedbody3 further amends legislation --> | ||
| agreeddate4 | | agreeddate4 = <!-- used if agreedbody3 further amends legislation --> | ||
| agreedvote4 | | agreedvote4 = <!-- used if agreedbody3 further amends legislation --> | ||
| signedpresident = [[Franklin D. Roosevelt]] | | signedpresident = [[Franklin D. Roosevelt]] | ||
| signeddate | | signeddate = May 12, 1933<ref name="Rasmussen, p2">{{cite journal |last1=Rasmussen |first1=Wayne D. |last2=Baker |first2=Gladys L. |last3=Ward |first3=James S. |title=A Short History of Agricultural Adjustment, 1933-75 |journal=Agriculture Information Bulletin, No. 391 |date=March 1976 |page=2 |url=https://naldc.nal.usda.gov/download/CAT87210025/PDF |access-date=15 May 2023 |publisher=Economic Research Service, United States Department of Agriculture}}</ref> | ||
| unsignedpresident = <!-- used when passed without presidential signing --> | | unsignedpresident = <!-- used when passed without presidential signing --> | ||
| unsigneddate | | unsigneddate = <!-- used when passed without presidential signing --> | ||
| vetoedpresident = <!-- used when passed by overriding presidential veto --> | | vetoedpresident = <!-- used when passed by overriding presidential veto --> | ||
| vetoeddate | | vetoeddate = <!-- used when passed by overriding presidential veto --> | ||
| overriddenbody1 = <!-- used when passed by overriding presidential veto --> | | overriddenbody1 = <!-- used when passed by overriding presidential veto --> | ||
| overriddendate1 = <!-- used when passed by overriding presidential veto --> | | overriddendate1 = <!-- used when passed by overriding presidential veto --> | ||
| Line 48: | Line 48: | ||
| overriddendate2 = <!-- used when passed by overriding presidential veto --> | | overriddendate2 = <!-- used when passed by overriding presidential veto --> | ||
| overriddenvote2 = <!-- used when passed by overriding presidential veto --> | | overriddenvote2 = <!-- used when passed by overriding presidential veto --> | ||
| amendments | | amendments = | ||
| SCOTUS cases | | SCOTUS cases = {{Ubl | ||
| colloquialacronym = | |''[[United States v. Butler]]'', {{ussc|297|1|1936}} | ||
| nickname | }} | ||
| acts amended | | colloquialacronym = | ||
| acts repealed | | nickname = | ||
| title amended | | acts amended = | ||
| acts repealed = | |||
| title amended = [[Title 7 of the United States Code|7 U.S.C.: Agriculture]] | |||
| sections created = {{Usc-title-chap|7|26}} § 601 et seq. | | sections created = {{Usc-title-chap|7|26}} § 601 et seq. | ||
| sections amended = | | sections amended = | ||
}} | }} | ||
The '''Agricultural Adjustment Act''' ('''AAA''') was a [[United States federal law]] of the [[New Deal]] era designed to boost agricultural prices by reducing surpluses. The government bought [[livestock]] for slaughter and paid farmers [[Subsidy|subsidies]] not to plant on part of their land. The money for these subsidies was generated through an exclusive tax on companies that processed farm products. The Act created a new [[Government agency|agency]], the Agricultural Adjustment Administration, also called "AAA" (1933–1942), an agency of the [[U.S. Department of Agriculture]], to oversee the distribution of the subsidies.<ref>Agricultural Adjustment Act, {{USPL|73|10}}, {{USStat|48|31}}, enacted May 12, 1933.</ref><ref>{{cite web |url=https://www.presidency.ucsb.edu/node/208139 |title=Franklin D. Roosevelt: "Statement on Signing the Farm Relief Bill" May 12, 1933 |author1=Peters, Gerhard |author2=Woolley, John T |work=The American Presidency Project |publisher=University of California – Santa Barbara |access-date=July 4, 2013}}</ref><ref name="Hurt2002, p69">Hurt, R. Douglas, ''Problems of Plenty: The American Farmer in the Twentieth Century'', (Chicago: Ivan R. Dee, 2002), 69.</ref> The [[Agriculture Marketing Act]], which established the Federal Farm Board in 1929, was seen as an important precursor to this act.<ref>Harris Gaylord Warren, Herbert Hoover and the Great Depression (New York: Oxford University Press, 1969), p. 175.</ref><ref>{{cite web |url=http://mises.org/rothbard/agd/chapter8.asp#new_deal_farm_program |title=The New Deal Farm Program |work=The Depression Begins: President Hoover Takes Command |publisher=Ludwig von Mises Institute}}</ref> The AAA, along with other New Deal programs, represented the federal government's first substantial effort to address economic welfare in the United States.<ref>Gates, Staci L. 2006. "[http://encyclopedia.federalism.org/index.php/Agricultural_Adjustment_Act_of_1933 Agricultural Adjustment Act of 1933]." ''Federalism in American: An Encyclopedia.''</ref> | The '''Agricultural Adjustment Act''' ('''AAA''') was a [[United States federal law]] of the [[New Deal]] era designed to boost agricultural prices by reducing surpluses. The government bought [[livestock]] for slaughter and paid farmers [[Subsidy|subsidies]] not to plant on part of their land. The money for these subsidies was generated through an exclusive tax on companies that processed farm products. The Act created a new [[Government agency|agency]], the Agricultural Adjustment Administration, also called "AAA" (1933–1942), an agency of the [[U.S. Department of Agriculture]], to oversee the distribution of the subsidies.<ref>Agricultural Adjustment Act, {{USPL|73|10}}, {{USStat|48|31}}, enacted May 12, 1933.</ref><ref>{{cite web |url=https://www.presidency.ucsb.edu/node/208139 |title=Franklin D. Roosevelt: "Statement on Signing the Farm Relief Bill" May 12, 1933 |author1=Peters, Gerhard |author2=Woolley, John T |work=The American Presidency Project |publisher=University of California – Santa Barbara |access-date=July 4, 2013}}</ref><ref name="Hurt2002, p69">Hurt, R. Douglas, ''Problems of Plenty: The American Farmer in the Twentieth Century'', (Chicago: Ivan R. Dee, 2002), 69.</ref> The [[Agriculture Marketing Act]], which established the Federal Farm Board in 1929, was seen as an important precursor to this act.<ref>Harris Gaylord Warren, Herbert Hoover and the Great Depression (New York: Oxford University Press, 1969), p. 175.</ref><ref>{{cite web |url=http://mises.org/rothbard/agd/chapter8.asp#new_deal_farm_program |title=The New Deal Farm Program |work=The Depression Begins: President Hoover Takes Command |publisher=Ludwig von Mises Institute}}</ref> The AAA, along with other New Deal programs, represented the federal government's first substantial effort to address economic welfare in the United States.<ref>Gates, Staci L. 2006. "[http://encyclopedia.federalism.org/index.php/Agricultural_Adjustment_Act_of_1933 Agricultural Adjustment Act of 1933]." ''Federalism in American: An Encyclopedia.''</ref> | ||
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Attached as Title III to the Act, the Thomas Amendment became the 'third horse' in the New Deal's farm relief bill. Drafted by Senator [[Elmer Thomas]] of [[Oklahoma]], the amendment blended [[populism|populist]] easy-money views with the theories of the New Economics. Thomas wanted a stabilized "honest dollar," one that would be fair to debtor and creditor alike.<ref name="Webb, RuralOklahoma">David Webb, "The Thomas Amendment: A Rural Oklahoma Response to the Great Depression," in ''Rural Oklahoma'', ed. Donald E. Green (Oklahoma City: [http://digital.library.okstate.edu/encyclopedia/entries/T/TH007.html Oklahoma Historical Society] {{webarchive |url=https://web.archive.org/web/20121119144217/http://digital.library.okstate.edu/encyclopedia/entries/T/TH007.html |date=November 19, 2012 }}, 1977).</ref> | Attached as Title III to the Act, the Thomas Amendment became the 'third horse' in the New Deal's farm relief bill. Drafted by Senator [[Elmer Thomas]] of [[Oklahoma]], the amendment blended [[populism|populist]] easy-money views with the theories of the New Economics. Thomas wanted a stabilized "honest dollar," one that would be fair to debtor and creditor alike.<ref name="Webb, RuralOklahoma">David Webb, "The Thomas Amendment: A Rural Oklahoma Response to the Great Depression," in ''Rural Oklahoma'', ed. Donald E. Green (Oklahoma City: [http://digital.library.okstate.edu/encyclopedia/entries/T/TH007.html Oklahoma Historical Society] {{webarchive |url=https://web.archive.org/web/20121119144217/http://digital.library.okstate.edu/encyclopedia/entries/T/TH007.html |date=November 19, 2012 }}, 1977).</ref> | ||
The Amendment said that whenever the President desired currency expansion, he must first authorize the [[Federal Open Market Committee]] of the [[Federal Reserve]] to purchase up to $3 billion of federal obligations. Should [[open market operation]]s prove insufficient, the President had several options. He could have the [[United States Department of the Treasury|U.S. Treasury]] issue up to $3 billion in [[United States Note|greenbacks]], reduce the gold content of the dollar by as much as 50 percent, or accept 100 million dollars in silver at a price not to exceed fifty cents per ounce in payment of | The Amendment said that whenever the President desired currency expansion, he must first authorize the [[Federal Open Market Committee]] of the [[Federal Reserve]] to purchase up to $3 billion of federal obligations. Should [[open market operation]]s prove insufficient, the President had several options. He could have the [[United States Department of the Treasury|U.S. Treasury]] issue up to $3 billion in [[United States Note|greenbacks]], reduce the gold content of the dollar by as much as 50 percent, or accept 100 million dollars in silver at a price not to exceed fifty cents per ounce in payment of World War I debts owed by European nations.<ref name="Webb, RuralOklahoma"/> | ||
The Thomas Amendment was used sparingly. The treasury received limited amounts of silver in payment for war debts from World War I.<ref name="Webb, RuralOklahoma"/> On 21 December 1933, Roosevelt ratified the London Agreement on Silver (adopted at the [[London Economic Conference|World Economic and Monetary Conference]] in [[London]] on 20 July 1933).<ref>{{cite web |url=https://archive.org/details/4925381.1933.001.umich.edu/page/534 |title=Statement and Proclamation Ratifying the England Agreement on Silver - December 21, 1933 |last=Roosevelt |first=Franklin D. |date=December 21, 1933 |website=Internet Archive |publisher=National Archives and Records Administration |pages=534–535}}</ref> At the same time, Roosevelt issued Proclamation 2067, ordering the United States mints to buy the entire domestic production of newly mined silver at 64.5[[¢]] per ounce.<ref>{{cite web |url=https://archive.org/details/4925381.1933.001.umich.edu/page/535 |title=Proclamation No. 2067: Accompanying the Preceding Statement - December 21, 1933 |last=Roosevelt |first=Franklin D. |date=December 21, 1933 |website=Internet Archive |publisher=National Archives and Records Administration |pages=535–539}}</ref> "Roosevelt's most dramatic use of the Thomas amendment"<ref name="Webb, RuralOklahoma"/> came on 31 January 1934, when he decreased the gold content of the dollar to 15 5/21 grains (0.98741 grams) .900 fine gold, or 59.06 per cent of the previous fixed content (25 8/10 grains, or 1.6718 grams).<ref>{{cite web |url=https://archive.org/details/4925383.1934.001.umich.edu/page/64 |title=White House Statement on Presidential Proclamation No. 2072: Fixing the Weight of the Gold Dollar - January 31, 1934 |last=Roosevelt |first=Franklin D. |date=January 31, 1934 |website=Internet Archive |publisher=National Archives and Records Administration |pages=64–66}}</ref><ref>{{cite web |url=https://archive.org/details/4925383.1934.001.umich.edu/page/67 |title=Presidential Proclamation No. 2072: Fixing the Weight of the Gold Dollar - January 31, 1934 |last=Roosevelt |first=Franklin D. |date=January 31, 1934 |website=Internet Archive |publisher=National Archives and Records Administration |pages=67–76}}</ref> "However, wholesale prices still continued to climb. Possibly the most significant expansion brought on by the Thomas Amendment may have been the growth of governmental power over [[Monetary policy of the United States|monetary policy]].<ref name="Webb, RuralOklahoma"/> | The Thomas Amendment was used sparingly. The treasury received limited amounts of silver in payment for war debts from World War I.<ref name="Webb, RuralOklahoma"/> On 21 December 1933, Roosevelt ratified the London Agreement on Silver (adopted at the [[London Economic Conference|World Economic and Monetary Conference]] in [[London]] on 20 July 1933).<ref>{{cite web |url=https://archive.org/details/4925381.1933.001.umich.edu/page/534 |title=Statement and Proclamation Ratifying the England Agreement on Silver - December 21, 1933 |last=Roosevelt |first=Franklin D. |date=December 21, 1933 |website=Internet Archive |publisher=National Archives and Records Administration |pages=534–535}}</ref> At the same time, Roosevelt issued Proclamation 2067, ordering the United States mints to buy the entire domestic production of newly mined silver at 64.5[[¢]] per ounce.<ref>{{cite web |url=https://archive.org/details/4925381.1933.001.umich.edu/page/535 |title=Proclamation No. 2067: Accompanying the Preceding Statement - December 21, 1933 |last=Roosevelt |first=Franklin D. |date=December 21, 1933 |website=Internet Archive |publisher=National Archives and Records Administration |pages=535–539}}</ref> "Roosevelt's most dramatic use of the Thomas amendment"<ref name="Webb, RuralOklahoma"/> came on 31 January 1934, when he decreased the gold content of the dollar to 15 5/21 grains (0.98741 grams) .900 fine gold, or 59.06 per cent of the previous fixed content (25 8/10 grains, or 1.6718 grams).<ref>{{cite web |url=https://archive.org/details/4925383.1934.001.umich.edu/page/64 |title=White House Statement on Presidential Proclamation No. 2072: Fixing the Weight of the Gold Dollar - January 31, 1934 |last=Roosevelt |first=Franklin D. |date=January 31, 1934 |website=Internet Archive |publisher=National Archives and Records Administration |pages=64–66}}</ref><ref>{{cite web |url=https://archive.org/details/4925383.1934.001.umich.edu/page/67 |title=Presidential Proclamation No. 2072: Fixing the Weight of the Gold Dollar - January 31, 1934 |last=Roosevelt |first=Franklin D. |date=January 31, 1934 |website=Internet Archive |publisher=National Archives and Records Administration |pages=67–76}}</ref> "However, wholesale prices still continued to climb. Possibly the most significant expansion brought on by the Thomas Amendment may have been the growth of governmental power over [[Monetary policy of the United States|monetary policy]].<ref name="Webb, RuralOklahoma"/> | ||
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==External links== | ==External links== | ||
{{Commons category|Agricultural Adjustment Administration}} | {{Commons category|Agricultural Adjustment Administration}} | ||
* [https://www.law.cornell.edu/uscode/text/7/chapter-26 As codified in 7 U.S.C. chapter 26] of the [[United States Code]] from | * [https://www.law.cornell.edu/uscode/text/7/chapter-26 As codified in 7 U.S.C. chapter 26] of the [[United States Code]] from Legal Information Institute | ||
* [https://uscode.house.gov/view.xhtml?path=/prelim@title7/chapter26&edition=prelim As codified in 7 U.S.C. chapter 26] of the [[United States Code]] from the [[United States House of Representatives|US House of Representatives]] | * [https://uscode.house.gov/view.xhtml?path=/prelim@title7/chapter26&edition=prelim As codified in 7 U.S.C. chapter 26] of the [[United States Code]] from the [[United States House of Representatives|US House of Representatives]] | ||
* [https://www.govinfo.gov/content/pkg/COMPS-10254/uslm/COMPS-10254.xml Agricultural Adjustment Act] as amended ([https://www.govinfo.gov/content/pkg/COMPS-10254/pdf/COMPS-10254.pdf PDF]/[https://www.govinfo.gov/app/details/COMPS-10254/ details]) in the [[United States Government Publishing Office|GPO]] [https://www.govinfo.gov/help/comps Statute Compilations collection] | * [https://www.govinfo.gov/content/pkg/COMPS-10254/uslm/COMPS-10254.xml Agricultural Adjustment Act] as amended ([https://www.govinfo.gov/content/pkg/COMPS-10254/pdf/COMPS-10254.pdf PDF]/[https://www.govinfo.gov/app/details/COMPS-10254/ details]) in the [[United States Government Publishing Office|GPO]] [https://www.govinfo.gov/help/comps Statute Compilations collection] | ||