As the depression worsened Hoover did begin to see that the government was needed in helping the economy speed up in the business cycle. In the 1930s, Hoover's liberal side emerged. He saw that he could not maintain this "hands off" policy and went to help out the people. He first started helping out by merely encouraging voluntary groups in the community to help out the less fortunate. He felt that "government -national, state and local-can join with the community in such programs and do its part." He put people to work in construction and doubled the government expenditure [Doc B]. He supported and signed into law programs and acts that offered assistance to farmers and businesses. One program that helped farmers was the Federal Farm Board. The board was authorized to help farmers stabilize prices by temporarily holding surplus grain and cotton in storage. Another was the Reconstruction Finance Corporation, created in 1932; it was a federally funded institution. It helped railroads, banks, and other financial institutions by giving out loans. The Federal Home Loan Bank Act further helped people avoid foreclosures, by making loans to building and loan associations, banks and companies. .
Franklin D. Roosevelt became the president in 1932, in midst of the Great Depression. This labeled liberal believed that his program, the "New Deal", would solve the problem of the Great Depression and restore the American economy. This plan included programs that would help the unemployed get jobs, social security issues, housing and agricultural recovery, and programs to help the banking system. Roosevelt's New Deal assisted both businesses and individuals. For individuals, between 1933 and 1934, Congress passes many pieces of legislation to assist the poor, refinance mortgages, and create jobs in public works and government projects. For banking, Roosevelt requested Congress to approve the Emergency Banking Relief Act, the Federal Deposit Insurance Corporation, the Homeowners Loan Corporation and the Farm Credit Administration.
