Question

In 1 paragraph explain why Roosevelt’s bank holiday was so successful in averting further bank runs for the remainder of the Great Depression.

Answer 1

Roosevelt’s bank holiday was successful in ending the banking crisis during the Great Depression of 1933. In March 1933, an Act called the ‘The Emergency Banking Act’ was passed by the congress to help the banks come out of the Great Depression. Under this Act, the president was given the power of the banking system and to restore people’s confidence in the banking system. As soon as Franklin D. Roosevelt was elected as the president of the U.S.A, he used this power and declared four-day banking holiday. Various impactful steps were taken by Roosevelt that led to the success of national banking holiday in 1933. The Federal government was given the sole responsibility to protect the integrity of payments systems. One major step was taken to gain the confidence of depositors by providing 100 percent guaranteed return on bank deposits. Soon, Banks operations stabilized and the banking crisis was ended under the leadership of Franklin D. Roosevelt. Banking Holiday was the boldest step that was taken by him to restore the integrity of Banks.