Emergency Banking Act of 1933

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Emergency Banking Act of 1933

Legislation in the United States that was used to respond to the banking crisis of the Great Depression quickly until more long-lasting legislation could be passed. It established regulations for the orderly liquidation of banks that could not be saved and the reorganization of those that could. It also gave the President power to declare a national banking emergency, which would give the President complete control over the nation's finances and render it illegal for banks to operate without presidential approval. It was largely replaced later in 1933 by the Glass-Steagal Act.
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References in periodicals archive ?
In the meantime, Congress quickly passed the Emergency Banking Act to give legislative backing to FDR's proclamation, which was made under the Trading with the Enemy Act of 1917.
On March 9, Congress passed Roosevelt's Emergency Banking Act, which recognized banks and closed ones that were insolvent.
The Emergency Banking Act of March 9, 1933, included two sections that broadened the lending powers of the Federal Reserve System.
(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.
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.
A Columbia University government professor who founded the Brain Trust during FDR's presidential campaign, Moley masterminded the rescue of the banks and the revival of public confidence in the financial system through the declaration of a bank holiday and passage of the Emergency Banking Act. Cohen also introduces us to the most conservative member of FDR's inner circle, budget director Lewis Douglas.
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. This bill provided for new federal inspection of banks and conferred upon federal inspectors the authority to close down banks deemed insolvent.
The Emergency Banking Act provided for inspections of federal banks.
The New Deal confirmed this type of authority (in section 403 of Title III of the Emergency Banking Act of March 9, 1933, that added section 13(13) to the Federal Reserve Act).
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.
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.
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