What Actions Did President Roosevelt And Congress Take To Prevent The Collapse Of The Banking System

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1. What actions did President Roosevelt and Congress take to prevent the collapse of the banking system and reform its operations? Shortly after taking office, President Roosevelt went straight to work on preventing the complete collapse of the American banking system. Not even a week after taking office, Roosevelt forced banks to take a holiday, which suspended all bank operations, and called a meeting with Congress. On March 9, 1933, only five days after becoming President, Roosevelt and Congress passed the Emergency Banking Act, “…which provided funds to shore up threatened institutions” (Foner 803). This helped prevent closures of banks that were in trouble, which would have only added more problems and panic in the country. In order …show more content…
The act, “…prevented many of the irresponsible practices that had contributed to the stock market crash” (Foner 803). In addition to this, the Federal Deposit Insurance Corporation was established, and their purpose was to federally insure individual’s bank account deposits. In order to try to stimulate the economy, Roosevelt also connected the American dollar with the United States’ gold reserve. Through all of his efforts, Roosevelt prevented the complete collapse of the banking system and reformed its operations—all of which led to no bank failures in the year 1936.
2. Explain what labor did in the 1930s to rise from being "slaves of the depression" to secure "economic freedom and industrial democracy" for American workers. At the beginning of the 1930s, life in American factories was similar to that in a dictatorship, where labor unions were often rare or frowned upon. No set of standards existed, and “…workers could be beaten by
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Roosevelt, the First New Deal, a product of the Depression, was focused on the recovery of the economy while the Second New Deal focused on economic security. The goal of the First New Deal was “…to reconcile democracy, individual liberty, and economic recovery and development” (Foner 802), with the hopes of pulling the United States out of the pit named the Great Depression. In his first “Hundred Days”, Roosevelt implemented his plan, which sought to relieve the burdens facing the country as a whole. The First New Deal took actions that immediately began to remedy the banking crisis, established agencies like the National Recovery Administration, provided unemployment relief through the Civilian Conservation Corps and Public Works Administration, and began to rehabilitate agriculture and the housing market in the country. The Second New Deal, however, had a goal to “…guarantee that Americans would be protected against unemployment and poverty” (Foner 815). By 1935, the shift of focus changed from recovery to redistribution, and measures were taken to begin tackling “…the problem of weak demand and economic inequality” (Foner 815). Through the Second New Deal, new agencies and programs were created, focused on improving both the American society and economy. The Rural Electrification Agency sought to bring electricity to those who lacked it, and some farmers began to receive federal assistance, and the Wagner Act changed the

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