| President Franklin Roosevelt signed the | | | | 1929 and concluded at different periods in the |
| Emergency Banking Relief Act (EBRA) in 1933 | | | | 1930s in different countries of the world. |
| during the Great Depression. This act dictated the | | | | This economic crisis rooted from the United |
| closing down of some banks and reopening of | | | | States and is also earmarked as the beginning of |
| others that have the strong backing to survive | | | | the stock market crash in 1929, which was, |
| the crisis and which have been inspected to be | | | | coined Black Tuesday. The Great Depression |
| financially secure. | | | | completely ended in 1939 during the economy |
| The same bill gave the Secretary of the | | | | war of Word War II. |
| Treasury the power to confiscate the gold owned | | | | Effects of the Great Depression |
| by individuals in exchange for some amount in the | | | | * Sharp decline in international trade |
| form of paper currencies, which can devaluate as | | | | * Devastating effects on exportations of raw |
| the gold devaluates. | | | | materials |
| The act was very controversial since not so | | | | * Decline of income |
| many members of the Congress had the chance | | | | * Grave effects in tax revenues, prices, and |
| to review or study the act first before it got | | | | profits |
| passed as a law. Most of the congress | | | | * Cities that depended on heavy industries got hit |
| representatives also only heard of the act when | | | | very hard in terms of business viability |
| the clerk read it. | | | | * Construction in many countries stopped |
| Three hundred days after the passing and signing | | | | * Prices of crop dropped to sixty percent making |
| of the bills, 5000 banks got inspected and passed | | | | farming and rural areas suffer |
| and were opened again. Under the Emergency | | | | * Wall Street crashed |
| Banking Relief Act, people regained their faith in | | | | * Very few alternate sources of income for the |
| the banking system as more than sixty five | | | | people especially in farming, mining, and logging |
| percent of all US banks reopened. | | | | Different countries saw the depression end at |
| President Roosevelt and the Congress | | | | different times. Almost all countries have devised |
| representatives that allow the act provided a | | | | their own relief programs as many of these |
| solution that temporarily solved one major | | | | countries experienced political instability. |
| economic problem that time. The 1933 Banking | | | | This crisis caused a great damage in the banking |
| Act that followed suit became the more | | | | system in America. When the Wall Street Crash |
| permanent solution to backup the EBRA leading to | | | | happened, private banks, which had investments |
| the birth of the Federal Deposit Insurance | | | | in the form of stocks and shares, saw a |
| Corporation or FDIC. | | | | significant lost of funds. The Bank of United |
| The Great Depression of the 1930s | | | | States was forced to close down in 1930 and |
| The Great Depression is considered as a reminder | | | | many small banks found it extremely hard to |
| and warning of how modern economy can crash | | | | cope. In just a few years time, one-fifth of all |
| and fall really hard. This huge world economic | | | | banks in the United States closed down bringing |
| phenomenon occurred in most places in the year | | | | with them the life savings of so many people. |