名人演讲TheBankingCrisisdoc.docx
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名人演讲TheBankingCrisisdoc
名人演讲:
TheBankingCrisis
franklindelanoroosevelt:
firstfiresidechat
"thebankingcrisis"
myfriends:
iwanttotalkforafewminuteswiththepeopleoftheunitedstatesaboutbanking--totalkwiththecomparativelyfewwhounderstandthemechanicsofbanking,butmoreparticularlywiththeoverwhelmingmajorityofyouwhousebanksforthemakingofdepositsandthedrawingofchecks.
iwanttotellyouwhathasbeendoneinthelastfewdays,andwhyitwasdone,andwhatthenextstepsaregoingtobe.irecognizethatthemanyproclamationsfromstatecapitolsandfromwashington,thelegislation,thetreasuryregulations,andsoforth,couchedforthemostpartinbankingandlegalterms,outtobeexplainedforthebenefitoftheaveragecitizen.iowethis,inparticular,becauseofthefortitudeandthegoodtemperwithwhicheverybodyhasacceptedtheinconvenienceandhardshipsofthebankingholiday.andiknowthatwhenyouunderstandwhatweinwashingtonhavebeenabout,ishallcontinuetohaveyourcooperationasfullyasihavehadyoursympathyandyourhelpduringthepastweek.
firstofall,letmestatethesimplefactthatwhenyoudepositmoneyinabank,thebankdoesnotputthemoneyintoasafedepositvault.itinvestsyourmoneyinmanydifferentformsofcredit--inbonds,incommercialpaper,inmortgagesandinmanyotherkindsofloans.inotherwords,thebankputsyourmoneytoworktokeepthewheelsofindustryandofagricultureturningaround.acomparativelysmallpartofthemoneythatyouputintothebankiskeptincurrency--anamountwhichinnormaltimesiswhollysufficienttocoverthecashneedsoftheaveragecitizen.inotherwords,thetotalamountofallthecurrencyinthecountryisonlyacomparativelysmallproportionofthetotaldepositsinallthebanksofthecountry.
what,then,happenedduringthelastfewdaysoffebruaryandthefirstfewdaysofmarch?
becauseofunderminedconfidenceonthepartofthepublic,therewasageneralrushbyalargeportionofourpopulationtoturnbankdepositsintocurrencyorgold--arushsogreatthatthesoundestbankscouldn'tgetenoughcurrencytomeetthedemand.thereasonforthiswasthatonthespurofthemomentitwas,ofcourse,impossibletosellperfectlysoundassetsofabankandconvertthemintocash,exceptatpanicpricesfarbelowtheirrealvalue.bytheafternoonofmarchthird,aweekagolastfriday,scarcelyabankinthecountrywasopentodobusiness.proclamationsclosingthem,inwholeorinpart,hadbeenissuedbythegovernorsinalmostallthestates.itwasthenthatiissuedtheproclamationprovidingforthenationalbankholiday,andthiswasthefirststepinthegovernment’sreconstructionofourfinancialandeconomicfabric.
thesecondstep,lastthursday,wasthelegislationpromptlyandpatrioticallypassedbythecongressconfirmingmyproclamationa
ndbroadeningmypowerssothatitbecamepossibleinviewoftherequirementoftimetoextendtheholidayandliftthebanofthatholidaygraduallyinthedaystocome.thislawalsogaveauthoritytodevelopaprogramofrehabilitationofourbankingfacilities.andiwanttotellourcitizensineverypartofthenationthatthenationalcongress--republicansanddemocratsalike--showedbythisactionadevotiontopublicwelfareandarealizationoftheemergencyandthenecessityforspeedthatitisdifficulttomatchinallourhistory.
thethirdstagehasbeentheseriesofregulationspermittingthebankstocontinuetheirfunctionstotakecareofthedistributionoffoodandhouseholdnecessitiesandthepaymentofpayrolls.
thisbankholiday,whileresultinginmanycasesingreatinconvenience,isaffordingustheopportunitytosupplythecurrencynecessarytomeetthesituation.rememberthatnosoundbankisadollarworseoffthanitwaswhenitcloseditsdoorslastweek.neitherisanybankwhichmayturnoutnottobeinapositionforimmediateopening.thenewlawallowsthetwelvefederalreservebankstoissueadditionalcurrencyongoodassetsandthusthebanksthatreopenwillbeabletomeeteverylegitimatecall.thenewcurrencyisbeingsentoutbythebureauofengravingandprintinginlargevolumetoeverypartofthecountry.itissoundcurrencybecauseitisbackedbyactual,goodassets.
anotherquestionyouwillaskisthis:
whyareallthebanksnottobereopenedatthesametime?
theanswerissimpleandiknowyouwillunderstandit:
yourgovernmentdoesnotintendthatthehistoryofthepastfewyearsshallberepeated.wedonotwantandwillnothaveanotherepidemicofbankfailures.
asaresult,westarttomorrow,monday,withtheopeningofbanksinthetwelvefederalreservebankcities--thosebanks,whichonfirstexaminationbythetreasury,havealreadybeenfoundtobeallright.thatwillbefollowedontuesdaybytheresumptionofallotherfunctionsbybanksalreadyfoundtobesoundincitieswheretherearerecognizedclearinghouses.thatmeansabouttwohundredandfiftycitiesoftheunitedstates.inotherwords,wearemovingasfastasthemechanicsofthesituationwillallowus.
onwednesdayandsucceedingdays,banksinsmallerplacesallthroughthecountrywillresumebusiness,subject,ofcourse,tothegovernment'sphysicalabilitytocompleteitssurveyitisnecessarythatthereopeningofbanksbeextendedoveraperiodinordertopermitthebankstomakeapplicationsforthenecessaryloans,toobtaincurrencyneededtomeettheirrequirements,andtoenablethegovernmenttomakecommonsensecheckups.
pleaseletmemakeitcleartoyouthatifyourbankdoesnotopenthefirstdayyouarebynomeansjustifiedinbelievingthatitwillnotopen.abankthatopensononeofthesubsequentdaysisinexactlythesamesta
tusasthebankthatopenstomorrow.
iknowthatmanypeopleareworryingaboutstatebanksthatarenotmembersofthefederalreservesystem.thereisnooccasionforthatworry.thesebankscanandwillreceiveassistancefrommemberbanksandfromthereconstructionfinancecorporation.and,ofcourse,theyareundertheimmediatecontrolofthestatebankingauthorities.thesestatebanksarefollowingthesamecourseasthenationalbanksexceptthattheygettheirlicensestoresumebusinessfromthestateauthorities,andtheseauthoritieshavebeenaskedbythesecretaryofthetreasurytopermittheirgoodbankstoopenuponthesamescheduleasthenationalbanks.andsoiamconfidentthatthestatebankingdepartmentswillbeascarefulasthenationalgovernmentinthepolicyrelatingtotheopeningofbanksandwillfollowthesamebroadtheory.
itispossiblethatwhenthebanksresumeaveryfewpeoplewhohavenotrecoveredfromtheirfearmayagainbeginwithdrawals.letmemakeitcleartoyouthatthebankswilltakecareofallneeds,except,ofcourse,thehystericaldemandsofhoarders,anditismybeliefthathoardingduringthepastweekhasbecomeanexceedinglyunfashionablepastimeineverypartofournation.itneedsnoprophettotellyouthatwhenthepeoplefindthattheycangettheirmoney--thattheycangetitwhentheywantitforalllegitimatepurposes--thephantomoffearwillsoonbelaid.peoplewillagainbegladtohavetheirmoneywhereitwillbesafelytakencareofandwheretheycanuseitconvenientlyatanytime.icanassureyou,myfriends,thatitissafertokeepyourmoneyinareopenedbankthanitistokeepitunderthemattress.
thesuccessofourwholenationalprogramdepends,ofcourse,onthecooperationofthepublic--onitsintelligentsupportanditsuseofareliablesystem.
rememberthattheessentialaccomplishmentofthenewlegislationisthatitmakesitpossibleforbanksmorereadilytoconverttheirassetsintocashthanwasthecasebefore.moreliberalprovisionhasbeenmadeforbankstoborrowontheseassetsatthereservebanksandmoreliberalprovisionhasalsobeenmadeforissuingcurrencyonthesecurityofthesegoodassets.thiscurrencyisnotfiatcurrency.itisissuedonlyonadequatesecurity,andeverygoodbankhasanabundanceofsuchsecurity.
onemorepointbeforeiclose.therewillbe,ofcourse,somebanksunabletoreopenwithoutbeingreorganized.thenewlawallowsthegovernmenttoassistinmakingthesereorganizationsquicklyandeffectivelyandevenallowsthegovernmenttosubscribetoatleastapartofanynewcapitalthatmayberequired.
ihopeyoucansee,myfriends,fromthisessentialrecitalofwhatyourgovernmentisdoingthatthereisnothingcomplex,nothingradicalintheprocess.
wehavehadabadbankingsituation.someofourbankershadshownthemselveseitherinc
ompetentordishonestintheirhandlingofthepeople’sfunds.theyhadusedthemoneyentrustedtotheminspeculationsandunwiseloans.thiswas,ofcourse,nottrueinthevastmajorityofourbanks,butitwastrueinenoughofthemtoshockthepeopleoftheunitedstates,foratime,intoasenseofinsecurityandtoputthemintoaframeofmindwheretheydidnotdifferentiate,butseemedtoassumethattheactsofacomparativefewhadtaintedthemall.andsoitbecamethegovernment’sjobtostraightenoutthissituationanddoitasquicklyaspossible.andthatjobisbeingperformed.
idonotpromiseyouthateverybankwillbereopenedorthatindividuallosseswillnotbesuffered,buttherewillbenolossesthatpossiblycouldbeavoided;andtherewouldhavebeenmoreandgreaterlosseshadwecontinuedtodrift.icanevenpromiseyousalvationforsome,atleast,ofthesorelypressesbanks.weshallbeengagednotmerelyinreopeningsoundbanksbutinthecreationofmoresoundbanksthroug