Texas A&M University (TAMU) HIST106 History of the United States Practice Exam 2

Franklin D. Roosevelt's effective response to the Banking Crisis on his first day in office is a pivotal moment in U.S. history. Upon assuming the presidency on March 4, 1933, FDR was immediately faced with a severe banking collapse that had led to widespread panic and bank runs. This crisis was rooted in the economic turmoil that had escalated throughout the Great Depression, but the urgency on Roosevelt's first day revolved specifically around the banks' failure.

Recognizing the key role of banks in restoring public confidence and stabilizing the economy, FDR enacted emergency banking legislation. This included a nationwide bank holiday that temporarily closed all banks and allowed the government to inspect their financial health. The immediate goal was to halt the panic, assure the public that their deposits were safe, and implement reforms to prevent future crises.

By addressing the banking crisis so swiftly, FDR not only worked to stabilize the financial system but also laid the groundwork for his broader New Deal programs aimed at economic recovery. This decisive action on his first day highlighted his commitment to addressing the pressing needs of the country and marked a significant shift in governmental approach to economic issues.