Emergency Bank Relief Act also known as the Bank HolidayFormer Presidents of the United States of America, Franklin D. Roosevelt was the beginning and throttle of the Emergency Bank Relief Act during the Great Depression. The Emergency Bank Relief Act would have called for the termination of banks that services do not meet the requirements of their clients. The banks were concerned, thinking that all banks would be closed down for good, which caused most banks to change the ways they lent out money during the Great Depression. The Emergency Bank Relief Act, also known as The Bank Holiday, called for the 4 day closing of all banks in the United States. This time of all banks being closed would give the federal inspectors a chance to review all banks in the United States and decide which banks would need to be improved or stay closed forever.The Emergency Bank Relief Act granted the Secretary of the Treasury in the United States to take all gold in possession of private Unites States citizens and then returned paper money to the citizens they took the gold from. The act caused chaos because people didn’t have time to read it and the clerk of congressmen read it to them and this outraged some of the congress. Although many people opposed the act, it was still passed. After about ten months of the act, 5,000 banks were up and running. Many banks re-established the trust between them and the people that banked with them.The Emergency Bank Relief Act was only a temporary fix in the U.S. economy during the Great Depression. During the following year after the act was passed, The FDIC was formed. By definition the “FDIC is a government organization that helps secure the money of the depositors.” For the depositors to be able to acquire the work of the FDIC, the deposit has to be less than $100,000 and their bank must be apart of FDIC. President Roosevelt was the first person against the FDIC and argued that it was a bad idea and that it was a type of insurance company that gave protection to irresponsible banks in the United States. Then he realized that the support of the congressmen was too much for him to handle and he fell through and was for the formation of the FDIC.Pictures:
Source:- http://ezinearticles.com/?The-Essence-of-the-Emergency-Banking-Relief-Act&id=1464408Personal Thoughts and Opinions:I think that the formation of the FDIC is what caused people to start going back to the banks and caused the re-establishment of the trust between U.S. citizens and their banks. The FDIC helps people to be ensured people’s money in a single bank up to a certain amount of money. If you have more than that certain amount of money, then it would be smart to put your money in more than one bank.
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