Emergency Banking Relief Act Facts: Fast Fact Sheet for
kids
Fast, fun facts and Frequently Asked Questions (FAQ's)
about the
Emergency Banking Relief Act.
Why was the Emergency Banking Relief Act
passed? The law was passed as the first of FDR's series of
New Deal Programs to stabilize and regulate the banking system
When was the Emergency Banking Relief Act
passed? The date the
Emergency Banking Relief Act (EBA) was
passed on March 9, 1933, three days after FDR declared a
nationwide bank holiday
What was the National Bank Holiday? FDR
declared a National Bank Holiday and temporarily closed all the
banks from March 6, 1933 until March 13, 1933 when the banks
re-opened.
Emergency Banking Relief Act
Facts for kids
The following fact
sheet contains interesting facts and information on the
purpose, effects and significance of the Emergency Banking Relief Act
as part of FDR's New Deal to combat the effects of the Great
Depression.
Facts
about the Emergency Banking Relief Act for kids
Emergency Banking Relief Act Fact 1:
The banking crisis had led to the closure of thousands
of banks. Many people had lost their life savings and
the banks were seen as so unsafe that people were
hoarding their money at home
Emergency Banking Relief Act Fact
2:
FDR became president on
March 4, 1933 and knew that the first thing he had to do
was restore the Nation's confidence in the banking
system.
Emergency Banking Relief Act Fact
3: He appointed William H. Woodin as Secretary of
State and took the dramatic decision to temporarily close all the
banks. The action was referred to as the 'Nationwide Bank Holiday' -
but it was imperative that the banks were opened as quickly as
possible .
Emergency Banking Relief Act Fact
4: At 1:00 a.m. on Monday, March 6,1933
President Roosevelt issued a proclamation ordering the
suspension of all banking transactions. No banks were
permitted to pay out or permit the withdrawal or
transfer of any form of currency, make loans or
discounts or deal in foreign exchange.
Emergency Banking Relief Act Fact
5: During the period of temporary
closure of the banks a way had to be found to prevent
any reopened banks from failing. FDR had tasked
Secretary of State Woodin to prepare an emergency
banking bill in just five days that could be presented
to the special session of Congress on March 9, 1933.
Emergency Banking Relief Act Fact
6: Provisions: The provisions of the
Emergency Banking Relief Act were as follows:
● Provision I formally
legalized FDR's decision to declare a National Bank
Holiday
● Provision II addressed the
evaluation and reorganization of the closed banks
permitting the appointment of a Conservator with the
powers of receivership over all national banks
allowing for the orderly liquidation of banks that
could not be saved and the reorganization of those
that could
● Provision III authorized the
Reconstruction Finance Corporation (RFC), an
independent agency of the US government, to provide
investment in troubled banks, by purchasing the
stock of banks to relieve them of short term debts
provide them with long term investment funds
● Provision IV allowed new
Federal Reserve bank notes to be issued to address
the currency shortage that was due to people
hoarding their money at home
● Provision V appropriated $2
million to implement the Emergency Banking Relief
Act
Facts
about the Emergency Banking Relief Act for kids
Facts
about the Emergency Banking Relief Act for kids
The following fact
sheet continues with facts about Emergency Banking Relief Act.
Facts
about the Emergency Banking Relief Act for kids
Emergency Banking Relief Act Fact
7: The Federal Reserve Banks sent the
Treasury lists of banks recommended for reopening, and
the Treasury licensed those it approved. This was
accomplished by a phased approach in which:
● Stage 1 first allowed all
solvent banks (Class A banks) to reopen
● Stage 2 addressed Class B
banks which were weaker banks, but thought to be
capable of reopening after an indefinite period of
reorganization
● Stage 3 addressed Class C
banks. These were insolvent banks that would not be
allowed to reopen. (4000 banks fell into this
category)
Emergency Banking Relief Act Fact
8: The special session of
Congress convened on March 9, 1933. The House of Representatives
passed the Act unanimously after only 38 minutes of debate. The
Senate approved the bill and President Franklin Roosevelt signed the
new law the same evening.
Emergency Banking Relief Act Fact
9: The provisions of the Act enabled FDR
to encourage the Federal Reserve to create de facto 100%
deposit insurance in the reopened banks that provided
some assurance to the people that their money would be
safe
Emergency Banking Relief Act Fact 10:
FDR explained the provisions of the EBA to the
American people in his first radio
Fireside Chat on March 12, 1933 that helped to restore the
nation's confidence in the banking system.
Emergency
Banking Relief Act Fact 11:
Over 60 million Americans tuned into the radio
and listened to their president. He said "I assure you that it is
safer to keep your money in a reopened bank than under the
mattress"
Emergency Banking Relief Act Fact
12: Effects of the law: The
effects of the law were immediate. The banks re-opened on March 13,
1933, the day after FDR's radio speech (Fireside Chat) and bank
deposits far outweighed the bank withdrawals.
Emergency
Banking Relief Act Fact 13:
Effects of the law: The legislation of the 1933
Emergency Banking Relief Act and the actions of FDR resulted in the
end of the Banking Crisis.
Emergency
Banking Relief Act Fact 14:
The 1933 Emergency Banking Relief Act was largely
replaced later in 1933 by the
Banking Act of 1933, aka the Glass-Steagal Act
Facts
about the Emergency Banking Relief Act for kids
Emergency Banking Relief Act - President Franklin Roosevelt Video
The article on the Emergency Banking Relief Act provides detailed facts and a summary of one of the important events during his presidential term in office. The following
Franklin Roosevelt video will
give you additional important facts and dates about the political events experienced by the 32nd American President whose presidency spanned from March 4, 1933 to April 12, 1945.
Emergency Banking Relief Act
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Interesting Facts about Emergency Banking Relief Act for kids and schools
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Summary of the Emergency Banking Relief Act in US history
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Emergency Banking Relief Act of important, key
events
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Franklin Roosevelt
Presidency from March 4, 1933 to April 12, 1945
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Fast, fun facts about the Emergency Banking Relief Act
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Foreign & Domestic
policies of President Franklin Roosevelt
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Franklin Roosevelt Presidency and
Emergency Banking Relief Act for schools,
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