Franklin Delano Roosevelt (often referred by the Anglo-Saxons simply as to FDR) was the American Julius Caesar, someone who practically abolished political democracy, preserving its external forms, and successfully defended the rights of ordinary people to have a full-time job and steady income as well. Just as Caesar he laid the foundation for something like socialism but he also became a tough, even ruthless advocate of imperialism.
If you judge FDR by the anti-communist standards used towards Joe Stalin …
You would probably condemn him — as well as the man chosen by him: the successor Truman — as a war criminal and author of genocide, who invented totalitarian democracy, and now his soul has to whip in hell for those terrible sins. He sent his fellow citizens into concentration camps, didn't he? However, he was not a tyrant blundering his political opponents into eternity. Maybe it's simply because he was making his revolution wearing velvet gloves, and no one had the idea to shoot at him.
He was just a man, like all of us, but at the same time someone truly extraordinary, a brilliant leader of a great country. Such people appear very rarely, only every few hundred years. It is therefore not surprising that, like Stalin and Churchill, FDR continues to amaze novelists and filmmakers. This character is also the subject of fierce debate between historians who praise and condemn his policies.
The Great Depression struck the entire Western world with all its fury and destroying power, and United States were about to be thrust forth into a bloody revolution
A social unrest on a large and really dangerous scale, caused by grave economic problems, happened there, in addition, for the third time. In the years 1894 as well as 1914 they already were Armies of Unemployed (called in short: Coxey's Army) who marched on Washington. Divided after states (i. e.: Army of Unemployed of the State of California) were lead by generals assisted by lieutenants. The men marching on the federal capital city weren’t robbers or rappists. The marchers consisted mainly from middle-aged idle men with no benefits who don’t count on the help from their families for the time-being. They called themselves the Army of the Commonwealth in Christ and prayed often in the fields, begging God for help and protection. They were supported by the local inhabitants because of their Christian faith and compassion.
At the same time, strikes broke out in many places, suppressed by force on behalf of factory owners. In many cases, there was fire exchange with rifles and revolvers in use between workers and the police, and in two of them the mass murder of the strikers and their families by called for help soldiers foollowed. During Ludlow Massacre many miners from Slavic countries died. In 1932, unemployed and homeless war veterans set up a permanent camp outside Washington.
President Roosevelt wasn’t eager to await an American Mussolini who would came to remove him from the White House. Backed loudly by revolutionary crowds on the streets he introduced many radical mesaures at once, following indeed the example of Vladimir Lenin
During his first thirty days in power FDR imposed his personal rule on the big country. He issued statutory decrees — executive orders that laid the foundation for the New Deal. Private ownership was retained, but its use became limited, and a part of big property was confiscated, providing funds for systematic aid to the poorest. The American Caesar did not disdain copying the methods of the (in)famous German chancellor as well. He established mass organizations, modeled on, for example, the Reich Labor Service like the Civilian Conservation Corps (civil engineering corps). He attracted professional servicemen to his side, promising them to seriously strengthen the armed forces. He ordered the construction of new airports, dams, hydroelectric power plants and highways.
He practically marked down for oblivion the traditional bipartisan democracy, building two another social movements intstead: the party of scare and the circles of scared
The new President proved to be a demon of work. He could sit in his office for 12 or even 16 hours a day. He ate his meals on his desk, asking to report him on various issues. He led such a lifestyle for many weeks until he completed the next stage of his state and society reform. He spoke very clear and distinct English, in a way that everyone could understand him as well, explaining the absolute necessity of his measures and decisions in his radio speeches.
FDR governed the country being greatly aided by his female private secretaries. Especially the born in a workers’ family Marguerite Alice "Missy" LeHand helped him for more than 20 years and lived in the White House, being at the same time the Roosevelt’s children and First Lady’s best friend. She never married and died, like her boss at the end, because of overwork. All members of the FDR staff were like medieval chivalric order — a group of dedicated men and women and as such they achieved wonders and, in some cases, became martyrs.
(A scrrenshot from YouTube movie: Eleanor and Franklin: The White House Years, tv 1977)
He gained even greater support by abolishing prohibition (ban on the sale and consumption of alcohol). Congress and the Supreme Court tried to stop him, but each time recoiled under pressure from the public, terrified of the possibility of a full-scale crisis returning if Roosevelt could not apply measures to treat this terrible disease of the whole country. His opponents in the Republican Party were forced to admit; I would have done the same if I had been in the President's shoes, only on a somehow different manner ...
A distinct example for the policy of F. D. Roosevelt - executive orders to take over the most of privately owned gold to increase the stock of the Federal Reserve Board
“Roosevelt's message to Congress proposed the immediate opening of all sound banks with provisions for currency expansion during banking [sector] reorganization. He said «I cannot too strongly urge upon Congress the clear necessity for immediate action.»”
(PRESIDENTS MESSAGE, “The Nome Nugget. Member of Associated Press”, Nome, Alaska, March 11. 1933. p. 1)
„Through an economy bill, senator Robinson disclosed the fact that Roosevelt later on plans a half billion dollar bond issue for emergency relief. [...] Probably the measure will run thru Congress like the bank bill, which was not read by more than a dozen. When and how the new currency will be spread through the country is among the paramount questions for treasury officials which lacks definite answers.
The United States has more gold than any other country and about one third of all gold in the world. This protection alone would have been sufficient normally but the gold was being drawn out of the federal reserve banks [Federal Reserve Board] where our financial banking is supposed to rest, and put where it is no longer useful, save to individuals. This new measure says a person [owning gold coins above a modest amount or golden bullion] will be fined ten thousand dollars or put in jail for ten years for boarding.
Gold began yesterday flowing from the people's hands back to the banks, and is expected to continue, which will relieve the situation. Metal burned fingers and soared consciences stung hoarders into sudden action. Thousands of people all over the country scurried to the banks to purge themselves of the yellow stain, which the government has decreed to be a passport to prison.”
(PLANS RELIEF, ibidem)
There are some words of explanation needed. The dollar was at that time a currency based on the gold standard — convertible into gold. Each banknote (Federal Reserve Note) had to be permanently covered in federal gold reserve stock. All this gold parity meant that banknotes could only be in circulation for a total amount not exceeding the agreed coverage of each of them in gold held by the national bank. The panic on the stock exchange (share prices plumeted) meant that dollars were exchanged for gold in fear of a collapse of the entire economy, including the currency. That mainly concerned large enterprises which tried to maintain their working capital fund in the event of currency depreciation. After an economic recovery, it would be possible for them to exchange gold for depreciated dollars again to deck the cost of all the current expenses needed.
Instead of depreciating (printing dollars with reduced gold coverage) the national currency, the new leader chose to confiscate the vast majority of privately owned gold reserves
The Federal Reserve, to which the confiscated gold was handed over, then printed the appropriate number of additional banknotes. Thus, an additional amount of money was obtained. As a result it was possible to pay a rather modest compensation for all those who voluntarily donated their gold. It was also enough to start the unemployment benefits payment program. The demand for food and haberdashery (items for sewing buttons and patching clothes) increased immediately and a slight economic recovery followed.
FDR was an excellent tactitian – by repeated announcements he could nationalize the industry and must reconsider this option now he scared the big owners and that made possible to handle them quite easy for him
Moreover, the American Caesar took steps to put these announcements into practice. The federal government began major investments in the state of Tennesee, building hydroelectric plants and aluminum smelters there. After limiting the convertibility of the dollar into gold, new state funds could be mobilized. The President also levied systematically levies on the rich in the form of the practically mandatory redemption of new series of treasury bonds. State investments stimulated the demand for machinery and equipment. They also gave jobs to many ordinary people. As a result, the capitalists gained more money and were able to buy the federał treasury bonds.
There was the new political atmosphere in US which FDR had inspired and a group of Polish economists headed by Oskar Lange was invited to London, and then to New York.
His theory of anti-capitalism was to be enriched with the invaluable experiences of the FDR rule. The ailing yet unbelievably strong-in-mind President who denied allegations that he was a socialist, introduced central economic planning through the back door. The bedrock of liberal capitalism was two steps away from becoming a country of full employment and sustained economic growth. Lange and Michał Kalecki admired Roosevelt's cunning and farsightedness. However, more about this in the next part of this series.
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