When the Republican Party refused to support the legislation, Peek became a Democrat.[7] His support for the McNary-Haugen bill led President Franklin D. Roosevelt to appoint him administrator of the Agricultural Adjustment Administration (AAA) in 1933.[7]
Peek fought with Wallace over the administration of the agency. Peek asked Roosevelt to make the AAA an independent agency, rather than part of the United States Department of Agriculture; Wallace convinced Roosevelt to deny the request.[12] Peek demanded full authority to run the AAA; Wallace withheld it.[12] Wallace installed Jerome Frank, a liberal young lawyer whom Peek loathed, as the AAA's general counsel.[13]
Peek also disagreed with one of the three fundamental programs created by the Agricultural Adjustment Act, which created three programs designed to boost farm prices. It established marketing programs designed to increase the purchase of American agricultural products overseas. It established a system of price supports. It established a system of incentives to discourage overproduction.[14]
For farmers to participate in the price support program, they had to agree to cut production.[14] Peek was adamantly opposed to the production quotas, which he saw as a form of socialism.[12] Instead, Peek preferred to promote informal cartels of large producers and large food processing companies, which would collude to boost prices,[12] but Wallace repeatedly denied Peek the authority to institute such cartels.[12]
When the Commodity Credit Corporation was established in the early fall of 1933, Roosevelt refused to make it part of the AAA out of concern for Peek's attitudes.[12] On November 15 and again on November 25, Peek demanded that Wallace fire Frank for insubordination; Wallace refused and threatened to have one of Peek's most trusted aides fired instead.[12] In early December 1933, while Wallace was out of town, Peek announced a marketing program designed to sell American butter in Europe at rates below the national domestic price.[12]Rexford Tugwell, acting secretary of agriculture in Wallace's absence, rescinded the program.[12] Wallace quickly convinced many of Roosevelt's top advisors to ask for Peek's resignation.[12] Tugwell himself threatened to resign if Peek were not fired.[12]
Faced with a united front, Peek resigned from the AAA on December 11, 1933.[12] One reporter called the forced resignation "the coolest political murder that has been committed since Roosevelt came into office."[15] The same day, President Roosevelt named Peek his special advisor on foreign trade.[12]
Roosevelt created the Export-Import Bank of Washingtonbyexecutive order on February 2, 1934, and named Peek president of the bank.[16][17] Roosevelt created a Second Export-Import Bank of Washington by executive order on March 9 and named Peek president of the second bank as well.[16]
Peek's tenure at the Export-Import Bank was also short-lived. He clashed repeatedly with US Secretary of StateCordell Hull over a series of reciprocal trade agreements in 1935,[18] and resigned from the bank on December 2, 1935.[19]
In 1936, he published a book on economic matters, Why Quit Our Own, which he co-authored with Samuel Crowther.[20]
^Culver and Hyde, American Dreamer: The Life and Times of Henry A. Wallace, 2001, p.122; Saloutos, Theodore. The American Farmer and the New Deal. Ames, Ia.: Iowa State University Press, 1982, p. 53. ISBN0-8138-1076-0; Volanto, Keith Joseph. Texas, Cotton, and the New Deal. College Station, Tex.: Texas A&M University Press, 2005, p. 34. ISBN1-58544-402-2
^Becker and McLenahan, The Market, the State, and the Export-Import Bank of the United States, 1934-2000, 2003, p. 16.
^ abShearer, Benjamin F. Home Front Heroes: A Biographical Dictionary of Americans During Wartime. Santa Barbara, Calif.: Greenwood Publishing, 2007. ISBN0-313-33423-4
^ abHamby, Alonzo L.For the Survival of Democracy: Franklin Roosevelt and the World Crisis of the 1930s. New York: Simon and Schuster, 2004. ISBN0-684-84340-4
^Leffingwell, Randy. American Farm Tractor. St. Paul, Minn.: MBI Publishing Company, 2002. ISBN0-7603-1370-9; Nelson, Daniel. Farm and Factory: Workers in the Midwest, 1880-1990. Bloomington, Ind.: Indiana University Press, 1995. ISBN0-253-32883-7
^Cuff, Robert D. "A 'Dollar-a-Year Man' in Government: George N. Peek and the War Industries Board". Business History Review. 41:4 (Winter 1967).
^ abcdefghijklmnoCulver, John C. and Hyde, John. American Dreamer: The Life and Times of Henry A. Wallace. Reprint ed. New York: W. W. Norton & Company, 2001. ISBN0-393-32228-9
^Peek referred to Frank and his like-minded colleagues as "Lenin baby chicks" for what Peek saw as their support of communism. See Culver and Hyde, American Dreamer: The Life and Times of Henry A. Wallace, 2001, p. 125.
^ abBecker, William H. and McLenahan, William M. The Market, the State, and the Export-Import Bank of the United States, 1934-2000. New York: Cambridge University Press, 2003. ISBN0-521-81143-0
^Rosenberg, Emily S. and Foner, Eric. Spreading the American Dream: American Economic and Cultural Expansion, 1890-1945. New York: Macmillan, 1982. ISBN0-8090-0146-2
^Butler, Michael A. Cautious Visionary: Cordell Hull and Trade Reform, 1933-1937. Kent, Ohio: Kent State University Press, 1998. ISBN0-87338-596-9
^"Job Offered Jones As Peek Quits Bank". The New York Times. December 3, 1935.
^Why Quit Our Own. By George Nelson Peek with Samuel Crowther [On the desirability of a balanced domestic economy in the United States]. New York: D. Van Nostrand Co., 1936.
