“The crisis banking legislation passed away by the Congress today is a many step that is constructive the solution associated with the economic and banking problems which may have confronted the nation. The extraordinary rapidity with which this legislation ended up being enacted by the Congress heartens and encourages the nation. ” – Secretary of this Treasury William Woodin, March 9, 1933
“I’m able to guarantee you that it’s safer to help keep your profit a reopened bank than underneath the mattress. ” – President Franklin Roosevelt in his Fireside that is first chat March 12, 1933
Just after their inauguration in March 1933, President Franklin Roosevelt attempted to reconstruct self- confidence within the banking system that is nation’s. The Great Depression was crippling the US economy at the time. Many individuals were withdrawing their funds from banking institutions and keeping it in the home. The day after the inauguration and declared a four-day banking holiday that shut direct lender installment loans kansas down the banking system, including the Federal Reserve in response, the new president called a special session of Congress. This course of action had been followed a couple of days later on because of the passage through of the Emergency Banking Act, that was meant to restore Americans’ confidence in banking institutions once they reopened.