Throughout 1931, Smith advocated for the same policies he had in his previous terms. Although he was typically supportive of a free market and opposed to government intervention in the economy, he had always supported many interventions where he believed they would benefit working Americans and industry alike. As before, he now lobbied the state legislature for more public works, including new parks and highways. He lobbied for public power infrastructure to compete with private utilities. He lobbied for public housing and a state bank to finance new construction. None of this would be easy to achieve at a time when tax revenues were falling.
As Smith resumed his duties as governor, Belle Moskowitz was keen to keep a finger on the pulse of the national Democratic Party to test the popularity of his agenda in New York. Although he had easily won the 1928 presidential nomination on the first ballot, this had in part happened due to the weak circumstances facing the party that year. Many progressive delegations in the South and West, previously loyal to William Gibbs McAdoo, had capitulated to Smith on the first ballot to prevent a drawn-out battle, knowing that he would likely lose in November. The opposite would be true this time; the Democrats had flipped the House of Representatives and seemed to heading for their most opportune year since the Republican split in 1912.
Belle Moskowitz, assisted by James Farley, maintained a massive correspondence campaign throughout 1931 to gauge support for Smith across the country. To their dismay, most Democrats in the South and West regarded Smith as a conservative and far too focused on urban issues. His opposition to prohibition, perceived ignorance on the farm crisis, and friendship with John Raskob, the conservative DNC chairman, attracted criticism, before considering his embarrassing loss in 1928. However, Democrats were divided on who to support instead. McAdoo had been out of office for 12 years and was the first choice of few now. William Randolph Hearst, always searching for an opportunity to rule the party, searched in vain for a credible isolationist alternative among favorite sons like Byrd and Garner. Time remained for Smith to change minds.
As 1931 rolled over to 1932, Smith changed his tune. Looking north of the Bronx, he now lobbied for the establishment of a public authority for electricity transmission and emphasized his past achievements on rural road improvements and electrification to improve the lives of farmers. Speaking on the issue of unemployment, his public works projects were converted from shrewd, fiscally sound affairs to opportunities for putting the country to work. At the request of senator Clarence Dill, Smith endorsed public power in a Washington referendum. The strategy began to work as Western delegations coalesced around him as they had in 1928, but Raskob created some turbulence for the campaign by advocating for prohibition repeal as a top priority. McAdoo jumped into the race, rallying his home state of California, most of the South, and some of the plains states. But by the opening day of the convention, organized by Chicago mayor Anton Cermak to be a coronation for Smith, it was clear who had a commanding lead.

After the first ballot, Smith was still nearly 100 votes short of the 770 needed for the nomination. Working with his old ally Joe Robinson, the Arkansas conservative and his former running mate, Smith cracked open the McAdoo block with a direct offer to make Tennessee senator Cordell Hull his running mate, and won the endorsement of Maryland governor Albert Ritchie.

As Smith resumed his duties as governor, Belle Moskowitz was keen to keep a finger on the pulse of the national Democratic Party to test the popularity of his agenda in New York. Although he had easily won the 1928 presidential nomination on the first ballot, this had in part happened due to the weak circumstances facing the party that year. Many progressive delegations in the South and West, previously loyal to William Gibbs McAdoo, had capitulated to Smith on the first ballot to prevent a drawn-out battle, knowing that he would likely lose in November. The opposite would be true this time; the Democrats had flipped the House of Representatives and seemed to heading for their most opportune year since the Republican split in 1912.
Belle Moskowitz, assisted by James Farley, maintained a massive correspondence campaign throughout 1931 to gauge support for Smith across the country. To their dismay, most Democrats in the South and West regarded Smith as a conservative and far too focused on urban issues. His opposition to prohibition, perceived ignorance on the farm crisis, and friendship with John Raskob, the conservative DNC chairman, attracted criticism, before considering his embarrassing loss in 1928. However, Democrats were divided on who to support instead. McAdoo had been out of office for 12 years and was the first choice of few now. William Randolph Hearst, always searching for an opportunity to rule the party, searched in vain for a credible isolationist alternative among favorite sons like Byrd and Garner. Time remained for Smith to change minds.
As 1931 rolled over to 1932, Smith changed his tune. Looking north of the Bronx, he now lobbied for the establishment of a public authority for electricity transmission and emphasized his past achievements on rural road improvements and electrification to improve the lives of farmers. Speaking on the issue of unemployment, his public works projects were converted from shrewd, fiscally sound affairs to opportunities for putting the country to work. At the request of senator Clarence Dill, Smith endorsed public power in a Washington referendum. The strategy began to work as Western delegations coalesced around him as they had in 1928, but Raskob created some turbulence for the campaign by advocating for prohibition repeal as a top priority. McAdoo jumped into the race, rallying his home state of California, most of the South, and some of the plains states. But by the opening day of the convention, organized by Chicago mayor Anton Cermak to be a coronation for Smith, it was clear who had a commanding lead.

After the first ballot, Smith was still nearly 100 votes short of the 770 needed for the nomination. Working with his old ally Joe Robinson, the Arkansas conservative and his former running mate, Smith cracked open the McAdoo block with a direct offer to make Tennessee senator Cordell Hull his running mate, and won the endorsement of Maryland governor Albert Ritchie.

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