After the Stock Market Crash of 1929 and the Hoover administration, something had to be done regarding the relief and recovery of the Great Depression. This was one of the more important objectives of Franklin Delano Roosevelt’s first term as president. Although Herbert Hoover made somewhat of an attempt trying to reconcile the country, but he was unable to live up to his rhetoric, “prosperity is right around the corner.” Hoover failed to comprehend the extent of the damage of the stock market crash from a global perspective and simply did too much too fast. When Franklin Roosevelt came into presidency in 1933, he set out his first hundred-day plan. Within the first term, FDR created a series of relief and recovery acts to start the prosperity and stimulation for an economic and social recovery. However, there are fifteen major pieces of legislation that were put into place that was highly influential to end the despondency of the depression. This paper will provide the fifteen infamous acronyms for these acts, what they were intended to do, and their impact for America and her citizens.
President Roosevelt’s first set of acts was regarding the relief of those effected by the Great Depression. It was quickly determined that practically every citizen was effected in some way. On March 12, 1933, FDR came over the radios of Americans in his famous Fireside Chat. This particular speech was regarding the banking crisis. He dove right in and mentioned the issues on the forefront of American’s minds. In the last days of February and into the first weeks of March there was surge of people that took their entire savings out of their banks for cash or gold because they feared loosing their money all together. Roosevelt explains that, “The bank puts your money to work to keep the wheels of industry and of agriculture turning around.” Meaning that the banks cannot function without a circulation of money in their banks. Thus, with all of America’s money out of the banks, the federal, state, and local banks were unable to function daily. This caused a nation-wide bank “holiday”.
Starting on March 6, every national bank was closed on holiday. From here, the Emergency Banking Act (EBA) was used to empower the President to reopen banks only when they were ready and to assist those that were not. He act was used to develop a program of rehabilitation for the banks. The Federal Reserve was put into twelve banks to issue currency to that other banks, once they reopened, will have what they need to stay afloat. The EBA also allowed state banks to receive assistance from Reconstruction Finance Corporation if the banks were not members of the Federal Reserve System. It was not until a month later that 90% of the deposits in the national banks had been made available to the depositors.
Following the weeks after the Emergency Banking Act, the Glass-Steagall Banking Act was passed on June 6, 1933. With this act came the Federal Deposit Insurance Corporation...