Essay Sample on Emergence Banking Act
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WHO: The people of the United States of America.
WHAT: Emergence Banking Act- it refers to a law that was developed in the United States of America (Burns, 1974).
WHEN: 9th March 1933 (Burns, 1974).
WHERE: All states of the United States of America, both south and North America (Burns, 1974).
WHY: To solve the financial crisis that was going on in the country as a result of problems with the banks.
HOW: The bill that was passed meant that the government would offer loans to different banks to help them recover from the crisis they were experiencing.
The Emergence Banking Act was developed through a process that involved different stages. All the banks in the United States were shut down, and this allowed various investigations to be carried out in the country. This survey was concerning the banks, and afterward, inspections in all the banks were initiated (Preston, 1933). These inspections allowed the government to learn which major banks were contributing to the banking difficulties. After the inspections, the banks were re-opened (Preston, 1933). These banks were afterward required to create trust among different investors so that they could make the decision of saving their funds through them. Once a bank was declared financially stable, it was allowed to reopen. This is how the Emergency Banking Act process was carried out as explained in different sources. The first deal in this act was aimed at identifying the major concern in the banks of the U.S. the second deal was proposed by President Franklin, and it involved different goals of improving the economy of the country (Preston, 1933).
During the development of the Emergency Banking Act in the United States, depression lasted for an extended period. This depression is sometimes connected with the way the bill was being developed. While President Franklin was being sworn into parliament, the country was in a panic as a result of the difficulties that were being experienced in the banking sector (Bremer, 1935). Customers had begun to pull out of most banks in the country due to the situation that was going on (Bremer, 1935). The government was being distracted by the introduction of the new president, and therefore, attention was being divided between swearing in the President and resolving the issues that were affecting the country financially (Bremer, 1935). The work of swearing the president was, therefore, part of the reason why depression lasted longer than expected in the country. Most banks had reached a level where they were unable to pay customers the money that they had deposited in these banks. As a way of resolving this issue, President Franklin declared a national holiday that extended from 6th to 13th March (Bremer, 1935). This period is sometimes considered as one of the worst periods that America had to go through due to the stress that was being experienced economically.
RESULTS: The Federal government, through its efforts, decided to offer assistance by providing loans so as to cool the panic that was being experienced in the United States as explained from the first source (Freidel, 1952). These loans were offered to different states. The Democratic Party benefited from the myth of the new deal in such a way that the deal enabled President Franklin to prolong the campaign of the party (Freidel, 1952). In general, the Emergency Banking Act can be said to have offered a solution to America concerning the financial crisis that was being experienced. Though it took time, the different sources used in this paper shows that final solution was found and this act resulted in financial stability in the country.
WHO: President Franklin Delano Roosevelt and members of the democratic party.
WHAT: The development of Emergency Banking Act and the holiday declared by President Franklin.
WHEN: Between 1933-1934.
WHERE: The congress that had been formed by the United States government.
WHY: To revive the banks of the United states which were not able to handle their customers.
HOW: The bill ensured the reopening of banks by providing them with the necessary funds after the financial crisis was declared to be over.
Work Cited
Burns, Helen M. The American banking community and New Deal banking reforms, 1933-1935. Vol. 11. Praeger Pub Text, 1974.
Bremer, Cornelius Daniel. American Bank Failures. No. 412. Columbia University Press, 1935.
Freidel, Frank Burt. Franklin D. Roosevelt: Launching the New Deal. Vol. 4. Little, Brown, 1952.
Preston, Howard H. "The Banking Act of 1933." The American Economic Review (1933).
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