When Roosevelt took the presidential oath, the banking and
credit system of the nation was in a state of paralysis. With
astonishing rapidity the nation's banks were first closed – and
then reopened only if they were solvent. The administration
adopted a policy of moderate currency inflation to start an
upward movement in commodity prices and to afford some relief to
debtors. New governmental agencies brought generous credit
facilities to industry and agriculture. The Federal Deposit
Insurance Corporation (FDIC) insured savings ‑ bank deposits up
to $5,000. Federal regulations were imposed upon the sale of
securities on the stock exchange.
|
