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President Roosevelt Bank Holiday and Reconstruction Finance Corporation

Roosevelt was inaugurated in March, the year 1933. It was the period of the deepest depression in the history of the United States. Apart of other economical problems, by March, 4, 32 of 48 states closed their banks. Next day The New York Federal Reserve Bank could not open.

In his inauguration address Roosevelt blamed the economic crisis on financiers and bankers. Next day the President declared the “bank holiday” and suggested the plan that would allow banks to open when “the holiday” finish. It was the first step to recovery. A decision to continue the Hoover’s relief program for the unemployed was made. According to Winkler (2008), this program was given a new name: Federal Emergency Relief Administration. The most popular of New Deal agencies was the CCC (Civilian Conservation Corps). It helped to find a job for 250,000 unemployed young people.

President Roosevelt created the Reconstruction Finance Corporation and made it a source of employment for majority of people. Coleman (2002) stated that he made a relief for agriculture a main priority as well and set up the AAA (the first Agricultural Adjustment Administration).

The goal of the National Industrial Recovery Act (1933) was reform of the economy. It was trying to stop the cruel competition with help of industries’ coming up with codes and rules of operations for every firm within the specific industry (like minimum prices, production restriction and agreement not to compete).

Summarizing the main point of Roosevelt’s initial approach to the banking crisis and later efforts regarding the monetary supply, banks, securities, and the stock market, we can conclude that he understood that the country needed fast relief. Right after the inauguration he started making steps to help the United States to recover after the Great Depression; and this approach was rather successful.

References:

Coleman, D. (2002). Depression to Cold War: a history of America from Herbert Hoover to Ronald Reagan. Siracusa Press.
Winkler, A. (2008). Franklin D. Roosevelt and the Making of Modern America. Pearson Education Press.