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So great was the panic about bank failures that the "bank holiday," as the president euphemistically described it, created a general sense of relief. Three days later, Roosevelt sent to Congress the Emergency Banking Act, a generally conservative bill designed primarily to protect the larger banks from being dragged down by the weakness of smaller ones...

The bill provided for Treasury Department inspection of all banks before they would be allowed to reopen, for federal assistance to some troubled institutions, and for a thorough reorganization of those in the greatest difficulty.

On the morning after the passage of the Emergency Banking Act, Roosevelt sent to Congress another measure- the Economy Act- designed to convince fiscally conservative Americans that the federal government was in safe, responsible hands...

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