名人演讲：TheBankingCrisis.doc

名人演讲：TheBankingCrisis FranklinDelanoRoosevelt:FirstFiresideChat TheBankingCrisis Myfriends: IwanttotalkforafewminuteswiththepeopleoftheUnitedStatesaboutbankingtotalkwiththeparativelyfewwhounderstandthemechanicsofbanking,butmoreparticularlywiththeoverwhelmingmajorityofyouwhousebanksforthemakingofdepositsandthedrawingofchecks. Iwanttotellyouwhathasbeendoneinthelastfewdays,andwhyitwasdone,andwhatthenextstepsaregoingtobe.IrecognizethatthemanyproclamationsfromStatecapitolsandfromWashington,thelegislation,theTreasuryregulations,andsoforth,couchedforthemostpartinbankingandlegalterms,outtobeexplainedforthebenefitoftheaveragecitizen.Iowethis,inparticular,becauseofthefortitudeandthegoodtemperwithwhicheverybodyhasacceptedtheinconvenienceandhardshipsofthebankingholiday.AndIknowthatwhenyouunderstandwhatweinWashingtonhavebeenabout,IshallcontinuetohaveyourcooperationasfullyasIhavehadyoursympathyandyourhelpduringthepastweek. Firstofall,letmestatethesimplefactthatwhenyoudepositmoneyinabank,thebankdoesnotputthemoneyintoasafedepositvault.Itinvestsyourmoneyinmanydifferentformsofcreditinbonds,inmercialpaper,inmortgagesandinmanyotherkindsofloans.Inotherwords,thebankputsyourmoneytoworktokeepthewheelsofindustryandofagricultureturningaround.Aparativelysmallpartofthemoneythatyouputintothebankiskeptincurrencyanamountwhichinnormaltimesiswhollysufficienttocoverthecashneedsoftheaveragecitizen.Inotherwords,thetotalamountofallthecurrencyinthecountryisonlyaparativelysmallproportionofthetotaldepositsinallthebanksofthecountry. What,then,happenedduringthelastfewdaysofFebruaryandthefirstfewdaysofMarch?Becauseofunderminedconfidenceonthepartofthepublic,therewasageneralrushbyalargeportionofourpopulationtoturnbankdepositsintocurrencyorgoldarushsogreatthatthesoundestbankscouldntgetenoughcurrencytomeetthedemand.Thereasonforthiswasthatonthespurofthemomentitwas,ofcourse,impossibletosellperfectlysoundassetsofabankandconvertthemintocash,exceptatpanicpricesfarbelowtheirrealvalue.BytheafternoonofMarchthird,aweekagolastFriday,scarcelyabankinthecountrywasopentodobusiness.Proclamationsclosingthem,inwholeorinpart,hadbeenissuedbytheGovernorsinalmostallthestates.ItwasthenthatIissuedtheproclamationprovidingforthenationalbankholiday,andthiswasthefirststepinthe * sreconstructionofourfinancialandeconomicfabric. Thesecondstep,lastThursday,wasthelegislationpromptlyandpatrioticallypassedbytheCongressconfirmingmyproclamationandbroadeningmypowerssothatitbecamepossibleinviewoftherequirementoftimetoextendtheholidayandliftthebanofthatholidaygraduallyinthedaystoe.Thislawalsogaveauthoritytodevelopaprogramofrehabilitationofourbankingfacilities.AndIwanttotellourcitizensineverypartoftheNationthatthenationalCongressRepublicansandDemocratsalikeshowedbythisactionadevotiontopublicwelfareandarealizationoftheemergencyandthenecessityforspeedthatitisdifficulttomatchinallourhistory. Thethirdstagehasbeentheseriesofregulationspermittingthebankstocontinuetheirfunctionstotakecareofthedistributionoffoodandhouseholdnecessitiesandthepaymentofpayrolls. Thisbankholiday,whileresultinginmanycasesingreatinconvenience,isaffordingustheopportunitytosupplythecurrencynecessarytomeetthesituation.Rememberthatnosoundbankisadollarworseoffthanitwaswhenitcloseditsdoorslastweek.Neitherisanybankwhichmayturnoutnottobeinapositionforimmediateopening.ThenewlawallowsthetwelveFederalReserveBankstoissueadditionalcurrencyongoodassetsandthusthebanksthatreopenwillbeabletomeeteverylegitimatecall.ThenewcurrencyisbeingsentoutbytheBureauofEngravingandPrintinginlargevolumetoeverypartofthecountry.Itissoundcurrencybecauseitisbackedbyactual,goodassets. Anotherquestionyouwillaskisthis:Whyareallthebanksnottobereopenedatthesametime?TheanswerissimpleandIknowyouwillunderstandit:Your * doesnotintendthatthehistoryofthepastfewyearsshallberepeated.Wedonotwantandwillnothaveanotherepidemicofbankfailures. Asaresult,westarttomorrow,Monday,withtheopeningofbanksinthetwelveFederalReserveBankcitiesthosebanks,whichonfirstexaminationbytheTreasury,havealreadybeenfoundtobeallright.ThatwillbefollowedonTuesdaybytheresumptionofallotherfunctionsbybanksalreadyfoundtobesoundincitieswheretherearerecognizedclearinghouses.ThatmeansabouttwohundredandfiftycitiesoftheUnitedStates.Inotherwords,wearemovingasfastasthemechanicsofthesituationwillallowus. OnWednesdayandsucceedingdays,banksinsmallerplacesallthroughthecountrywillresumebusiness,subject,ofcourse,tothe * sphysicalabilitytopleteitssurveyItisnecessarythatthereopeningofbanksbeextendedoveraperiodinordertopermitthebankstomakeapplicationsforthenecessaryloans,toobtaincurrencyneededtomeettheirrequirements,andtoenablethe * tomakemonsensecheckups. Pleaseletmemakeitcleartoyouthatifyourbankdoesnotopenthefirstdayyouarebynomeansjustifiedinbelievingthatitwillnotopen.Abankthatopensononeofthesubsequentdaysisinexactlythesamestatusasthebankthatopenstomorrow. IknowthatmanypeopleareworryingaboutStatebanksthatarenotmembersoftheFederalReserveSystem.Thereisnooccasionforthatworry.ThesebankscanandwillreceiveassistancefrommemberbanksandfromtheReconstructionFinanceCorporation.And,ofcourse,theyareundertheimmediatecontroloftheStatebankingauthorities.TheseStatebanksarefollowingthesamecourseastheNationalbanksexceptthattheygettheirlicensestoresumebusinessfromtheStateauthorities,andtheseauthoritieshavebeenaskedbytheSecretaryoftheTreasurytopermittheirgoodbankstoopenuponthesamescheduleasthenationalbanks.AndsoIamconfidentthattheStateBankingDepartmentswillbeascarefulasthenational * inthepolicyrelatingtotheopeningofbanksandwillfollowthesamebroadtheory. Itispossiblethatwhenthebanksresumeaveryfewpeoplewhohavenotrecoveredfromtheirfearmayagainbeginwithdrawals.Letmemakeitcleartoyouthatthebankswilltakecareofallneeds,except,ofcourse,thehystericaldemandsofhoarders,anditismybeliefthathoardingduringthepastweekhasbeeanexceedinglyunfashionablepastimeineverypartofournation.Itneedsnoprophettotellyouthatwhenthepeoplefindthattheycangettheirmoneythattheycangetitwhentheywantitforalllegitimatepurposesthephantomoffearwillsoonbelaid.Peoplewillagainbegladtohavetheirmoneywhereitwillbesafelytakencareofandwheretheycanuseitconvenientlyatanytime.Icanassureyou,myfriends,thatitissafertokeepyourmoneyinareopenedbankthanitistokeepitunderthemattress. Thesuccessofourwholenationalprogramdepends,ofcourse,onthecooperationofthepubliconitsintelligentsupportanditsuseofareliablesystem. Rememberthattheessentialacplishmentofthenewlegislationisthatitmakesitpossibleforbanksmorereadilytoconverttheirassetsintocashthanwasthecasebefore.MoreliberalprovisionhasbeenmadeforbankstoborrowontheseassetsattheReserveBanksandmoreliberalprovisionhasalsobeenmadeforissuingcurrencyonthesecurityofthesegoodassets.Thiscurrencyisnotfiatcurrency.Itisissuedonlyonadequatesecurity,andeverygoodbankhasanabundanceofsuchsecurity. OnemorepointbeforeIclose.Therewillbe,ofcourse,somebanksunabletoreopenwithoutbeingreorganized.Thenewlawallowsthe * toassistinmakingthesereorganizationsquicklyandeffectivelyandevenallowsthe * tosubscribetoatleastapartofanynewcapitalthatmayberequired. Ihopeyoucansee,myfriends,fromthisessentialrecitalofwhatyour * isdoingthatthereisnothingplex,nothingradicalintheprocess. Wehavehadabadbankingsituation.Someofourbankershadshownthemselveseitherinpetentordishonestintheirhandlingofthepeoplesfunds.Theyhadusedthemoneyentrustedtotheminspeculationsandunwiseloans.Thiswas,ofcourse,nottrueinthevastmajorityofourbanks,butitwastrueinenoughofthemtoshockthepeopleoftheUnitedStates,foratime,intoasenseofinsecurityandtoputthemintoaframeofmindwheretheydidnotdifferentiate,butseemedtoassumethattheactsofaparativefewhadtaintedthemall.Andsoitbecamethe * sjobtostraightenoutthissituationanddoitasquicklyaspossible.Andthatjobisbeingperformed. Idonotpromiseyouthateverybankwillbereopenedorthatindividuallosseswillnotbesuffered,buttherewillbenolossesthatpossiblycouldbeavoided;andtherewouldhavebeenmoreandgreaterlosseshadwecontinuedtodrift.Icanevenp