Pros And Cons Of Fixing The Banking System

During the Depression, the banking systems were failing. FDR and Congress focused their time on fixing the banking systems. On March 9, Congress passed the Emergency Banking Act. The law gave the government more power to inspect failing banks; as well as, giving Congress the power to reopen stable ones (Rung). This helped the American people because it gave the banks time to stabilize themselves and then reopen when they could run properly. When Congress began to reopen the banks the people flocked to them and the newly opened banks held 90% of the country’s deposits (Rung). This proved that the act was helping the people because they put their trust back into the banks. After the Emergency Banking Act ⅔ of the public had redospited their money back into the banks (Greene). This was further proof that the Emergency Banking Act was helpful to the American people and was a huge step into fixing the banking systems. Another act responsible for fixing the banks was the Glass-Steagall Act of JUne 1933. The Glass-Steagall Act gave the Federal Reserve the power to regulate loans (Rung). This was helpful because it gave the federal government power to …show more content…
One important thing it did was create jobs with the Tennessee Valley Authority and help farmer by raising the crop prices. The New Deal also had social programs; such as, Social Security. Also the New Deal focused heavily on business reform programs; such as, The National Industrial Recovery Act, The National Recovery Administration, and The Fair Labor Standards Act. Also the New Deal was meant to fix the banking system through the Emergency Banking Act, The Glass-Steagall Act, and the Securities Exchange Commission. The New Deal also had a ton of work programs; such as, the Works Progress Administration and the Civilian Conservation Corps. The New Deal was a standout historical event because it helped the lives of the American