- Emergency Banking Act
The Emergency Banking Act (also known as the Emergency Banking Relief Act) was an act of the
United States Congressspearheaded by President Franklin D. Rooseveltduring the Great Depression. It was passed on March 9, 1933. The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive.
March 5, 1933, the day after Roosevelt's inauguration, he called a special session of Congress which instituted a mandatory four-day bank holiday. This act provided for the reopening of banks after federal inspectors had declared them to be financially secure.
The bill also gave the Secretary of the Treasury the authority to confiscate the gold of private citizens, in exchange for an equivalent amount of paper currency which was subject to later devaluation with relation to gold.
Despite the importance of the bill, it was passed in immense haste by Congress. Few, if any, Congressmen had the chance to read the bill; most were only able to hear the clerk read it. Quite a few Congressmen vocally protested the haste in which the bill was considered, but nevertheless it was passed sight unseen.
Within 300 days of the act's passage, 5,000 banks had passed inspection and were reopened. Roughly two-thirds of U.S. banks quickly reopened under this act, and faith in banking institutions was somewhat restored.
This act was a temporary solution to a major problem. The
1933 Banking Actpassed later that year presented elements of a more permanent solution, including formation of the Federal Deposit Insurance Corporation(FDIC).
* [http://tucnak.fsv.cuni.cz/~calda/Documents/1930s/EmergBank_1933.html Full Text of the Emergency Banking Act]
Wikimedia Foundation. 2010.
Look at other dictionaries:
Emergency Banking Act — Emergency Banking Relief Act Franklin D. Roosevelt en train de signer le texte de loi en 1933. L Emergency Banking Relief Act ou Emergency Banking Act est un texte de loi du congrès des États Unis entré en vigueur dans le cadre de la politique de … Wikipédia en Français
Emergency Banking Act, 1933 — Faced with the collapse of the country’s financial institutions in the aftermath of the Wall Street Crash and onset of the Great Depression, newly elected president Franklin D. Roosevelt convened a special session of Congress to enact the… … Historical Dictionary of the Roosevelt–Truman Era
Emergency Banking Act Of 1933 — A bill passed during the administration of former U.S. President Franklin D. Roosevelt in reaction to the financially adverse conditions of the Great Depression. The measure, which called for a four day mandatory shutdown of U.S. banks for… … Investment dictionary
Emergency Banking Relief Act — Franklin D. Roosevelt L Emergency Banking Relief Act ou Emergency Banking Act est un texte de loi du congrès des États Unis entré en vigueur dans le cadre de la politique de New Deal de Franklin D. Roosevelt en 1933, pendant la Grande Dépression … Wikipédia en Français
Federal Emergency Relief Act — Le Federal Emergency Relief Act (en français Loi fédérale d assistance d urgence) que l on rattache surtout aujourd hui à la Federal Emergency Relief Administration ou FERA est le nom d un programme semblable à la Reconstruction Finance… … Wikipédia en Français
Banking — Historically, banking in the United States was a complex political and economic issue. Opposition to a strong centralized government led to the demise of the National Bank in 1836. Although national banking was restored with the banking acts… … Historical Dictionary of the Roosevelt–Truman Era
Banking business intelligence — refers to all general functionalities business intelligence but is focused on the informational needs of banks and the finance community. With the increase of governmental regulations, information is the key component to compliance. Therefore,… … Wikipedia
Emergency Economic Stabilization Act of 2008 — This article is about one division of an enacted statute. For the entire statute, see Public Law 110 343. For the enacted rescue program, see Troubled Asset Relief Program. The Emergency Economic Stabilization Act of 2008 (Division A of Pub.L.… … Wikipedia
Emergency Economic Stabilization Act of 2008 — Plan Paulson Immeuble abritant le Département du Trésor des États Unis Le Plan Paulson, ou TARP[note 1], est l une des mesures mises en place par les États Unis à partir de septembre 2008 pour faire face à la crise financi … Wikipédia en Français
Banking (Special Provisions) Act 2008 — Infobox UK Legislation short title=Banking (Special Provisions) Act 2008 parliament=Parliament of the United Kingdom long title=An Act to make provision to enable the Treasury in certain circumstances to make an order relating to the transfer of… … Wikipedia