The Emergency Banking Relief Act
During the Great Depression the American people began to lose faith in their banks, and kept their money at home. FDR decided to issue a nationwide bank holiday. This meant that, for four days, all banks in America would be closed down. 4 days after FDR declared the bank holiday, he issued the Emergency Banking Act.
The Emergency Banking Act was composed of 5 titles. Title 1 upheld any order, or regulation give by the President. It gave the President the power to declare a national emergency, and to have complete control of the United State's national finances, and foreign exchanges. This essentially gave him greater control of the banks. The Secretary of the Treasury was granted the power to take gold from any individual, or group in exchange for another form of legal currency, in the United States. Banks needed the approval of the President to operate in a national emergency. In FDR's 1st Inauguration Address he declared he would force Congress to broaden executive power to "broade Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe." He fully acted on his promise.
Title 2 gave the Comptroller of the Currency to control banks in United States territory, and set the terms for bank management. Title 3 gave banks the ability to keep the stock market functioning, whether it's in debt, or not.
Title 4 gave Federal Reserves banks to convert any US debt obligation into cash at it's equal value . Checks, bankers acceptance, etc. can be given at only 90% of it's value. Federal Reserve Banks could give any bank part of the Federal Reserve, loans at 1% interest over the discount rate. They could also give loans to anyone for 90 days, if the loan is secured by a United States obligation. Title 5 gave the President 2,000,000 for carrying this law.
The Emergency Banking Act was composed of 5 titles. Title 1 upheld any order, or regulation give by the President. It gave the President the power to declare a national emergency, and to have complete control of the United State's national finances, and foreign exchanges. This essentially gave him greater control of the banks. The Secretary of the Treasury was granted the power to take gold from any individual, or group in exchange for another form of legal currency, in the United States. Banks needed the approval of the President to operate in a national emergency. In FDR's 1st Inauguration Address he declared he would force Congress to broaden executive power to "broade Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe." He fully acted on his promise.
Title 2 gave the Comptroller of the Currency to control banks in United States territory, and set the terms for bank management. Title 3 gave banks the ability to keep the stock market functioning, whether it's in debt, or not.
Title 4 gave Federal Reserves banks to convert any US debt obligation into cash at it's equal value . Checks, bankers acceptance, etc. can be given at only 90% of it's value. Federal Reserve Banks could give any bank part of the Federal Reserve, loans at 1% interest over the discount rate. They could also give loans to anyone for 90 days, if the loan is secured by a United States obligation. Title 5 gave the President 2,000,000 for carrying this law.