Yesterday the House of Representatives voted a second time and passed the staggering $700 billion bailout bill. It’s all the news, broadcasters and pundits are talking about. Some suggest it’s the most important piece of legislation since the Great Depression in the thirties.
I have reams of newspaper clippings dating back to the 1930s. Today I dug into some storage boxes and began reading articles published back then. It’s amazing what a striking resemblance there is to what is happening today. With that said, I thought you might be interested in reading the Text of Roosevelt’s message asking for the bank opening law. I quote verbatim from the article (dated March 9, 1933):
TO THE SENATE AND HOUSE OF REPRESENTATIVES:
“On March 3, banking operations in the United States ceased. To review at this time the causes of this failure of our banking system is unnecessary. Suffice it to say, the government has been compelled to step in for the protection of depositors and the business of the nation.
Our first task is to reopen all sound banks. This is an essential preliminary to subsequent legislation, directed against speculation with funds of depositors and other violations of positions of trust.
In order that the first objective—the opening of banks for the resumption of business—may be accomplished, I ask of Congress the immediate enactment of legislation giving the executive branch of the government control over the banks for the protection of depositors; authority forth with to open such banks as have already been ascertained to be in sound condition, and other such banks as rapidly as possible; and authority to reorganize and reopen such banks as may be found to require reorganization to put them on a sound basis.
I ask amendments to the Federal Reserve Act to provide for such additional currency, adequately secured, as it may become necessary to issue to meet all demands for currency, and at the same time to achieve this end without increasing the unsecured indebtedness of the government of the United States.
I cannot too strongly urge upon the Congress the clear necessity for immediate action. A continuation of this strangulation of banking facilities is unthinkable. The passage of this proposed legislation will end this condition, and I trust within a short space will result in a resumption of business activities.
In addition, it is my belief that this legislation will not only lift immediately all unwarranted doubts and suspicion in regards to banks that are 100 percent sound, but will also mark the beginning of a new relationship between the banks and the people of this country.
The members of the new Congress will realize, I am confident, the grave responsibility that lies upon me and upon them.
In the short space of five days, it is impossible for us to formulate completed measures to prevent the recurrence of the evils of the past. This does not and should not, however justify any delay in accomplishing this first step.
At an early moment, I shall request of the Congress two other measures that I regard as of immediate urgency. With action taken thereon, we can proceed to the consideration of a rounded program of National Restoration.”
Signed,
Franklin D. Roosevelt
The White House
March 9, 1933
An older relative left me a box of scrapbook material, a stack of news items and memorabilia. This text by President Roosevelt was among the stuff she left.
It was interesting for me to read today, particularly in view of the fact that Congress passed another bailout package. Therefore, I decided to pass along to my readers.
As always, your comments are welcome and encouraged . . .
Let Freedom Ring!
JUST ME,
AC
