BANK HOLIDAY/ EMERGENCY BANKING ACTLuke Engelhardt and Tim Gillespie

Bank Holiday • Purpose: shut down banks to prevent collapse and to gain

public confidence• Enacted 2 days after FDR’s inauguration• March 6th to March 9th , but extended to March 13th for

additional banks• Banks shutdown

• Banks went under review: if the bank was deemed healthy it was to be reopened, if not the bank was closed until it was ready to reopen.

• It was a success however• Had questionable constitutionality

The Emergency Banking Act

• Passed during the banking crisis • Purpose: strengthen nation’s banking system• Reason: prevent a banking system collapse• Passed by FDR in 1933 • Unanimous vote by the House of Representatives• Took effect immediately

How it Worked • Allowed the government to issue new currency• Removed national gold standard• Federal examination of banks prior to reopening• Roosevelt enforced reinvestment • Fireside chats

• FDR Broadcasts over the radio• Gave hope and kept morale of people positive• Connected the president with the country more

Change in Government Powers • Government gained control over banks• Control lasted for the state of emergency• Permission of RFC to purchase stock of failing banks • Major powers given to the secretary of Treasury• Led to Glass-Steagal Act which gave the Federal Reserve

more power to banks

The Government and the Economy• During a state of emergency:

-Government control over foreign exchange

-Bank shut down (Bank Holiday)

-Sec. Treasury Gold to currency exchange

-Made bank operation unlawful

• Allowed for the issuing of new currency• No nationalization of banks

Successful? • YES!!!• Roosevelt said reinvestment in banks was safe• Public more confident• Deposits to reopened banks exceeded withdrawals

• Just 8 days after FDR took office

• Some believed government was overstepping boundaries, but was not overturned

Progress under FDR

Time line

Black Tuesday

October 29, 1929

Raid on Banks

Banks SavedBank

HolidayFDR

The Following Months

3/4/1933 3/6-13/1933

The emergency banking act was in effect

Works Cited• Genovese, Michael A. "Bank Holiday of 1933." Encyclopedia of the American Presidency. New York: Facts

On File, Inc., 2004. American History Online. Facts On File, Inc. http://www.fofweb.com/activelink2.asp?ItemID=WE52&iPin=EAP0051&SingleRecord=True (accessed November 20, 2011).

• Jeffries, John W. "Emergency Banking Relief Act." In Jeffries, John W., and Gary B. Nash, eds. Encyclopedia of American History: The Great Depression and World War II, 1929 to 1945 , Revised Edition (Volume VIII). New York: Facts On File, Inc., 2010. American History Online. Facts On File, Inc. http://www.fofweb.com/activelink2.asp?ItemID=WE52&iPin=EAHVIII087&SingleRecord=True (accessed November 20, 2011).

 • Parke, William R. "Stock Market Crash Causes Depression." The Econ Review - Economics News with a

Historical Perspective. 2007. Web. 20 Nov. 2011. <http://www.econreview.com/events/stocks1929b.htm>.

 • Roosevelt, Franklin D. "Bank Holiday Declaration." The Public Papers and Addresses of Franklin D.

Roosevelt. American History Online. Facts On File, Inc. http://www.fofweb.com/activelink2.asp?ItemID=WE52&iPin=E02580&SingleRecord=True (accessed November 20, 2011

• Primary Source: • U.S. Congress. "Emergency Banking Relief Act." United States Statutes at Large,73rd Congress, 1933 p.

1-7. American History Online. Facts On File, Inc. http://www.fofweb.com/activelink2.asp?ItemID=WE52&iPin=E00110&SingleRecord=True (accessed November 20, 2011).