Bank+Holiday

During the Great Depression Franklin Delano Roosevelt was the US President. On March 5, 1933, he proclaimed **Bank Holiday**, which shut down the banking system for a period of four days. During this period, he sought to identify the banks people should be confident using. Then he put money from the government into the banks and when banks reopened, people were standing in line to put their hoarded money in. A day before the banks reopened, Roosevelt did his first "**fireside chat**". He used this as a way to address to the public and fill them in with the situation and what his intentions were. It was effective because people were reassured about it, they trusted the banks with their money again. In one day over half the money that was taken out of the bank before they closed was put back in due to the public trusting the bank with their oney again. []
 * The Banks Close for "Inspection" **
 * The Banks Reopen **

 The **Emergency Banking Act** was introduced on March 9, 1933, to a joint session of Congress and was passed the same evening amid an atmosphere of chaos and uncertainty as over 100 new Democratic members of Congress swept into power determined to take radical steps to address banking failures and other economic malaise. The EBA was one of Mr. Roosevelt's first projects in the 100 days. The sense of urgency was such that the act was passed with only a single copy available on the floor and most legislators voted on it without reading it. According to William L. Silber "The Emergency Banking Act of 1933, passed by Congress on March 9, 1933, four days after FDR declared a nationwide bank holiday, combined with the Federal Reserve’s commitment to supply unlimited amounts of currency to reopened banks, created de facto 100 percent deposit insurance. Much to everyone’s relief, when the institutions reopened for business on March 13, 1933 depositors stood in line to return their stashed cash to neighborhood banks. __Within two weeks, Americans had redeposited more than half of the currency that they had squirreled away before the bank suspension.The stock market registered its approval as well. On March 15, 1933, the first day of trading after the extended closure, the New York Stock Exchange recorded the largest one-day percentage price increase ever. With the benefit of hindsight, the nationwide Bank Holiday and the Emergency Banking Act of March, 1933, ended the bank runs that had plagued the Great Depression__." This act was a temporary response to a major problem. The 1933 Banking Act passed later that year presented elements of longer-term response, including formation of the Federal Deposit Insurance Corporation (FDIC). http://en.wikipedia.org/wiki/Emergency_Banking_Act