As the depression deepened, some governors had no choice but to close banks located in their states due to insolvency. Franklin D. Roosevelt (FDR) making banking a priority on March 5, 1933 he too called for a national bank holiday. Not only did FDR close all banks he also prohibited the exporting of gold. Congress working with the president in an act of bipartisanship passed the Emergency Banking Relief Act of 1933. This new law allowed the president to regulate foreign exchange and banking transactions. The Emergency Banking Relief Act would become the first in a series of legislative orders put through by FDR that expanded the authority of the executive branch.
Roosevelt took to the radio to deliver fireside chats that provided comfort …show more content…
The AAAs main purpose was to establish, regulate, and control farming sector. The goal was to increase market prices of agricultural goods so farmers were able to pay for their lands, home mortgages, and equipment in order to maintain agricultural production, and get off government assistance. The AAA paid farmers to plant certain crops, and not plant others. The AAA paid the farmers to destroy crops and certain animals in order to drive up the market price. The program went as far as paying farmers to allow the fields to lay unplanted. They AAA asked famers to cull chickens and piglets in order to drive up prices; the reality for the AAA was they were controlling the supply and demand of farm products. By doing so, they were increasing the farmer’s profits and allowing the economic circular flow to generate wealth and bolster the economy. However, FDR allowed Senator Elmer Thomas of Oklahoma to attach and amendment to FDRs legislation. Thomas wanted the government to coin silver thus reducing the gold content within money. Thomas also required the issuance of 3 billion dollars of unsecured “greenbacks” the intent was to drive up inflation. The greater significance the AAA was it attempted to control the supply and demand of products thus regulating prices, and just as importantly the AAA provided millions of dollars in low interest loans to
Roosevelt took to the radio to deliver fireside chats that provided comfort …show more content…
The AAAs main purpose was to establish, regulate, and control farming sector. The goal was to increase market prices of agricultural goods so farmers were able to pay for their lands, home mortgages, and equipment in order to maintain agricultural production, and get off government assistance. The AAA paid farmers to plant certain crops, and not plant others. The AAA paid the farmers to destroy crops and certain animals in order to drive up the market price. The program went as far as paying farmers to allow the fields to lay unplanted. They AAA asked famers to cull chickens and piglets in order to drive up prices; the reality for the AAA was they were controlling the supply and demand of farm products. By doing so, they were increasing the farmer’s profits and allowing the economic circular flow to generate wealth and bolster the economy. However, FDR allowed Senator Elmer Thomas of Oklahoma to attach and amendment to FDRs legislation. Thomas wanted the government to coin silver thus reducing the gold content within money. Thomas also required the issuance of 3 billion dollars of unsecured “greenbacks” the intent was to drive up inflation. The greater significance the AAA was it attempted to control the supply and demand of products thus regulating prices, and just as importantly the AAA provided millions of dollars in low interest loans to