By Sadie Kiefer & Jeremiah Forehand

 Widespread banking failure  Cash reserve depleted  Banks unable to imburse investors

 No more trust in banks  Unreliable cash circulation

 March 5 th, 1933 declared bank holiday  Congress Passed Emergency Bankning Relief Act

 Treasury Dep. inspects banks  Insolvent banks  Self-Sufficient banks

 Established FDIC  Federal Securities Act-banks liable for misrepresentations (May 1933)  Securities Exchange Commission- prevented people “rigging” in stock market

 Bank Failure- cash reserve depleated  Emergency Banking Relief Act- Treasury inspected banks  FDIC- federal insurance for accounts of less than $5,000

$ Problems of G.D. Avg. PeopleStock Investors Too much credit payments Stock Market Crash Banks fold Lost jobs Lack of self-sufficiency Unable to imburse people with $ Lost jobs Debt, home foreclosures

1. Who was the ‘new’ role forced to be involved with nations economy, as a result of laws passed in FDR’s first 100 days? 2. What were two reasons why Roosevelt declared a bank holiday?

1. Who was the ‘new’ role forced to be involved with nations economy, as a result of laws passed in FDR’s first 100 days?  The federal government (e.g., FDIC & SEC) 2. What were two reasons why Roosevelt declared a bank holiday?  1. To prevent further withdrawals 2. To pave the way for actions necessary in the emergency banking relief act