13) On March 9, 1933, both houses approved and drafted the Emergency Banking Act which among other powers over the banking industry, confirmed the President's ability to declare a bank holiday and provided that banks wishing to reopen apply for a license certifying their soundness.
18) Therefore, in comparison to the Emergency Banking Act, which enabled the American president to freeze the commercial banking sector completely, (19) the Bank Charters Continuation Act illustrates the Canadian preference for continuance of the status quo despite "the severity of the depression and of the special problem which surrounded the revision.
Cohen's account provides a few new details about the Emergency Banking Act
, the Economy Act, labor law reforms, the Agricultural Adjustment Administration, and relief programs (FERA, CWA, and PWA), but it fails to flesh out institutional roots, implementation, and limitations of these policies.
The Emergency Banking Act of 1933, passed by Congress on March 9-combined with the Federal Reserve's commitment to supply unlimited amounts of currency to reopened banks--created de facto 100 percent deposit insurance.
Together, the Emergency Banking Act and the de facto 100 percent deposit insurance created a safety net for banks and produced a regime shift with instantaneous results, similar to Sargent's (1986) description of "The Ends of Four Big Inflations.
After declaring a four-day bank holiday the day after his inauguration in early March 1933, Roosevelt (and a compliant Congress) followed with the first of a long series of federal outrages: the Emergency Banking Act.
Following the Emergency Banking Act, Roosevelt moved to bring agriculture under the federal umbrella, creating a new system of farm subsidies and production controls under the aegis of the Agricultural Adjustment Administration (AAA).
The Emergency Banking Act
provided for inspections of federal banks.
The Emergency Banking Act
of March 9, 1933, boosted confidence in the banking system.
As the author makes clear, holdovers from Hoover's Treasury Department played signature roles in shaping the financial actions taken by FDR during that critical first week, including crafting the Emergency Banking Act
, putting the Bank Holiday in place, and the drafting of the first Fireside Chat.
When Congress convened on March 9, Roosevelt had his ducks in a row to wrangle passage of the Emergency Banking Act.
the Emergency Banking Act had also passed the Senate, and later that night it was signed into law by President Roosevelt.