The Emergency Banking Act (the official title which is Emergency Bank Relief Law ), Public Law 1, 48 Stat. 1 (March 9, 1933), was an act authorized by the United States Congress in March 1933 in an attempt to stabilize the banking system. Beginning on February 14, 1933, Michigan, an industrialized country that had been hit hard by the Great Depression in the United States, announced an eight-day bank holiday. Other bank closing fears spread from state to state as people rushed to withdraw their deposits while they could still do so. Within weeks, all other states held their own bank holidays in an effort to stem the bank runs (on March 4, Delaware became the 48th and last state to close its banks.) After his inauguration on March 4, 1933, the President Franklin Roosevelt set out to rebuild confidence in the national banking system. On March 6 he announced a four-day banking holiday that will keep all banks closed until Congress can take action. A draft law, prepared by Treasury staff during the Herbert Hoover administration, was adopted on 9 March 1933. The new law allows twelve Federal Reserve Banks to issue an additional currency on good assets so that the reopened bank will be able to fulfill any legitimate calls.
The Emergency Banking Act, the Trade amendment with the Enemy Act of 1917, was introduced on March 9, 1933, to a joint session of Congress, and passed on the same night amid an atmosphere of chaos and uncertainty as more than 100 new Democratic congressmen swept into power determined to take radical steps to tackle banking failures and other economic downturns. EBA was one of President Roosevelt's first projects in the first 100 days of his presidency. The sense of urgency is such that the action is endorsed with only one copy available on the DPR floor and legislators voted after the bill was read aloud by House Banking Committee Chairman Henry Steagall. Copies were made available to senators because the bill was proposed in the Senate, after being passed in the House.
According to William L. Silber: "Emergency Banking Act of 1933, passed by Congress on March 9, 1933, three days after the FDR declared a national bank holiday, combined with the Federal Reserve's commitment to supply an unlimited currency to the reopened bank , created 100 percent deposit insurance, much help everyone, when the institution reopened for business on March 13, 1933, depositors stood in line to return their deposits to neighboring banks. In two weeks, America has done redeposit more than half the eyes the money they had gnawed before the bank's suspension. The stock market registered its approval as well. On March 15, 1933, the first day of stock trading after Wall Street's extended closing, the New York Stock Exchange recorded the largest one-day percentage price increase ever with the Dow Jones Industrial Average gained 8.26 points to close at 62.10, a keunt ungan 15.34%. With the benefit of behind, the National Bank Holiday and Emergency Banking Act of March 1933, terminated the bank operations that have plagued the Great Depression. "
One month later, on 5 April 1933, President Roosevelt signed the 6102 Executing Ordinance which criminalized monetary gold holdings by individuals, partnerships, associations or companies and Congress passed a similar resolution in June 1933.
This action is a temporary response to a big problem. The Banking Act of 1933 passed later that year presented elements of a long-term response, including the establishment of the Federal Deposit Insurance Corporation (FDIC).
Video Emergency Banking Act
See also
- 6102 Executive Command
- Gold Clause Cases
Maps Emergency Banking Act
References
External links
- Full Text of Emergency Banking Act
- The 1933 Banking Emergency Document is available at FRASER
Source of the article : Wikipedia
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