Since the beginning of the depression, one-fifth of all banks had been forced to close. As a consequence, around 15% of the peoples life savings had been lost. By the beginning of 1933 people began losing faith in the banks and alot of people bagan with drawing their money and keeping it at home. The day after taking office, FDR ordered all banks to close, then asked Congress to pass legislation which would guarentee that people would not lose money if there were to be another crisis. On March 9 th, 1933 FDR told the congress that unemployment could be solved “by direct recruiting by goverment itself.” The goverment employed people to carry out a variety of tasks, such as the Works Project Adminstration, the civilian Conservation Corps.
While reducing unemployment, FDR also wanted to help the disabled. He formed the federal Emergency Relief Adminstration. Which provided federal money to help those in need of it. He also passed the agricultural adjustment act, and in august 1935, the social security act. it set up a national system of old age pensions and coordinated federal and state actions for relief of the unemployed. Congress passed the 1933 Banking act.
the federal reserve board was given tighter control of the investment practices of banks and the federal deposit insurance corporation was set up to insure all deposits in banks up to $5000. The new deal helped us tremendously to get out of financial ruin. FDR was one of the greatest presidents of all. FDR died in 1945 and Truman came in and helped the US end the depression and get out of WWII.
The Essay on Federal Reserve System Banks Board Money
Although the name the Federal Reserve System sounds governmentally controlled, that assumption of conducting is false. The FRS is independently within the outskirts of the government. Final decisions within the board are not concluded by the president, but the Federal system allows for a review by Congress. The FRS will annually report to Congress basically to inform them on the status of their ...
