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