Please base your answers to the following question on the March 12, 1933 Firesid
ID: 1197288 • Letter: P
Question
Please base your answers to the following question on the March 12, 1933 Fireside Chat on Banking delivered by President Franklin D. Roosevelt: “The Fireside Chat on Banking”.
The President explains the currency is being supplied to banks so that the banks can reopen and meet the demand for currency by depositors. The currency supplied to individual banks is independent of the quality of the bank’s assets. This is to assure the public that no depositor will suffer any losses. FDR emphasizes that the government will absorb all losses rather than depositors.
True or False. Why?
Explanation / Answer
Yes, it is true that Franklin D. Roosevelt were emphasizing that the government will absorb all the losses rather than depositors. It was essential for the FDR to chat with the bank depositors of the country because due to panic bank depositors were rushing towards the bank to withdraw their money. If all the bank depositors did the same thing than all the banks in U.S.A. were become bankrupt. So that’s why President Franklin D. Roosevelt did the fireside chat with the depositors to remove their panic.