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Roosevelt’s Initial Approach to the Banking Crisis

The main aim of this paper is to discuss Roosevelt’s initial approach to the banking crisis and his further actions regarding the monetary supply, banks, securities, and the stock market.

First of all it is necessary to mention that Roosevelt was trying to help his own country to overcome the banking crisis and create a stable economic system. There were implemented a variety of actions regarding existed situation and during the first hundred days after taking an office, the president presented of a lot of bills to Congress for approval. Among the urgent actions we see temporary closure of banks to organize their activities and to restore confidence in the banking system, as well as organization of public works for the unemployed. Thus, dwelling on this question with some details, according to Best (1991), we see that “Roosevelt ‘s initial action to meet the crisis was to declare a four day banking holiday with the basic aim of giving a signal to the general public in the country that their money have been secured as there will be no more crashes at least for four days .” The next step at the time of worsening economic crisis was a creation of the Interim Emergency Authority in the state to assist the families of unemployed. It allows us to understand that a realization of the program began almost imultaneously in all major areas of economic and social relations. According to Winkler (2008), with an aim to stabilize the monetary system, was banned the export of gold abroad, was carried out the devaluation of the dollar, was enlarged the banking system. The result of all those actions was in fact that the largest banks received substantial loans and subsidies from the country’s treasury.

Thus, it is necessary to say in conclusion that the new president made a detailed program for the crisis that has become known as “New Deal for the forgotten man.” Roosevelt was trying to find a fast relief program for own country and looking at contemporary situation we see that his political and economical program was successful.

References:

Best, G. (1991). Pride, Prejudice, and Politics: Roosevelt Versus Recovery, 1933-1938. Praeger Publishers.
Winkler, A. (2008). Franklin D. Roosevelt and the Making of Modern America. Pearson Education Press.

References:

Dunar, A. (2006). America in the 50’s. Syracuse University Press.
Salzman, J. (1996). Encyclopedia of Afro-American history. New York Press.