Emergency Banking Relief Act - Temporary Savior - Part 2

As people began to lose their trust and faith in the banking system, they started to withdraw their money and just store them all at home.

The initial projects of President Roosevelt that time when he got elected were leaning towards solving the banking crisis. After he was inaugurated, the first thing he did was to call the special session in Congress in which he declared a bank holiday that will last for 4 days.

With the signing of the Emergency Banking Relief Act, 5000 banks opened and later that year, the Federal Reserve Board was empowered by the follow-up law called 1933 Banking Act. The Board was given full control over the investment processes of all the banks that have been reopened. The FDIC was programmed to insure the money deposited in the banks for up to 5000.

Lessons learned from the Great Depression

Governments of different countries today work hard to prevent history to repeat itself. The huge economic crisis that was the Great Depression is a big lesson that was learned by the earlier governments the bitter way.

That big crash in world economy has been studied and considered for every move that industrialized countries make. Modern governments cannot afford to experience the same whiplashes that the Great Depression brought to the countries. The Emergency Banking Relief Act of President Roosevelt did a great job at providing a temporary solution.

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