Franklin D. Roosevelt

Why did President Franklin D. Roosevelt declare a national bank holiday when he first took office?

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November 17, 2009 5:13AM

On March 5, one day after taking office, Roosevelt declared a

bank holiday, which closed all banks to prevent further withdrawls.

This allowed the banks to pay back any debt they had and once they

paid their debt they could reopen. Those that could not pay their

debt are given loans. This help reassure people to have faith and

trust the bank now that they are in good financial shape.

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