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So great was the panic about bank failures that the "bank holiday," as the president euphemistically described it, created a general sense of relief. Three days later, Roosevelt sent to Congress the Emergency Banking Act, a generally conservative bill designed primarily to protect the larger banks from being dragged down by the weakness of smaller ones...
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The bill provided for Treasury Department inspection of all banks before they would be allowed to reopen, for federal assistance to some troubled institutions, and for a thorough reorganization of those in the greatest difficulty.
On the morning after the passage of the Emergency Banking Act, Roosevelt sent to Congress another measure- the Economy Act- designed to convince fiscally conservative Americans that the federal government was in safe, responsible hands...
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