Bank Holiday
(Economic & Intellectual)
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What is it?
Only two days after Franklin Delano Roosevelt became president he declared a bank holiday that lasted from March 6th to March 10th. Every transaction from the banking system was suspended for these five days except for making change. During the bank holiday Roosevelt issued the Emergency Banking Act which was an act that gave the President the right to open up banks that were stable and to help banks with government aid to those that were not stable. To determine whether banks were stable they were put into one of the four categories. The first category was fit to reopen; the second was for banks only to allow a percentage of its deposits to be withdrawn. Banks that were on the brink of collapse were put into the third category and were only allowed to accept deposits. While the fourth category was declared unfit to continue business which consisted of about five percent of banks. This helped ensure that people could trust the banks and not lose all of their money like what previously happened in the beginning of the Great Depression.
Why is it important?
The Bank Holiday was important because it allowed all of the banks to shut down for a day or for however long was needed in order to come up with an idea to solve the financial problem the United States was having. This was decided after two days that Roosevelt became president which was his number one priority to stablize the banking system because the world revolves around money. So the first step to having your country become strong was to ensure that the banking system was strong. If a bank was viewed as unstable then the government would step in and run the banks until they became stable and with this system made up the banks were back on track which was the first step towards coming out of the Great Depression.
Is this progress?
Having a Bank Holiday was a progress in history. The financial state of the entire world was at a breaking point and Roosevelt knew this. So he made progress in the banking system by having all of the banks shut down until there was a plan on how to make all of the banks and the banking system stable. Banks would be opened up when the government thought that they were stable and able to help out the people and if the banks were not stable then the government would take over the bank and run it until it became stable. By making sure that the banking system was stable with the bank holiday this helped the Great Depression come to an end which made this a history of progress.
Leading to...
The Banks holiday itself did not help lead to the next era in history known as WWII. However the financial state itself of all the banks around the world could have helped push the war further along because if every nation was struggling then there must have been some turmoil between the people and their government. So it was likely that countries began fighting because no one was happy at home and so they were fighting for a reason. This reason could of been to gain more land, money, and take control over more nations so that they were powerful.
Only two days after Franklin Delano Roosevelt became president he declared a bank holiday that lasted from March 6th to March 10th. Every transaction from the banking system was suspended for these five days except for making change. During the bank holiday Roosevelt issued the Emergency Banking Act which was an act that gave the President the right to open up banks that were stable and to help banks with government aid to those that were not stable. To determine whether banks were stable they were put into one of the four categories. The first category was fit to reopen; the second was for banks only to allow a percentage of its deposits to be withdrawn. Banks that were on the brink of collapse were put into the third category and were only allowed to accept deposits. While the fourth category was declared unfit to continue business which consisted of about five percent of banks. This helped ensure that people could trust the banks and not lose all of their money like what previously happened in the beginning of the Great Depression.
Why is it important?
The Bank Holiday was important because it allowed all of the banks to shut down for a day or for however long was needed in order to come up with an idea to solve the financial problem the United States was having. This was decided after two days that Roosevelt became president which was his number one priority to stablize the banking system because the world revolves around money. So the first step to having your country become strong was to ensure that the banking system was strong. If a bank was viewed as unstable then the government would step in and run the banks until they became stable and with this system made up the banks were back on track which was the first step towards coming out of the Great Depression.
Is this progress?
Having a Bank Holiday was a progress in history. The financial state of the entire world was at a breaking point and Roosevelt knew this. So he made progress in the banking system by having all of the banks shut down until there was a plan on how to make all of the banks and the banking system stable. Banks would be opened up when the government thought that they were stable and able to help out the people and if the banks were not stable then the government would take over the bank and run it until it became stable. By making sure that the banking system was stable with the bank holiday this helped the Great Depression come to an end which made this a history of progress.
Leading to...
The Banks holiday itself did not help lead to the next era in history known as WWII. However the financial state itself of all the banks around the world could have helped push the war further along because if every nation was struggling then there must have been some turmoil between the people and their government. So it was likely that countries began fighting because no one was happy at home and so they were fighting for a reason. This reason could of been to gain more land, money, and take control over more nations so that they were powerful.