Coming Soon: An Open Bank Near You
- First, a caution.
- Roosevelt says that not all banks will reopen at the same time.
- Why not? "Your Government does not intend that the history of the past few years shall be repeated" (31).
- By reminding his listeners of the very recent economic collapse, he reassures them that the government is being careful as they move forward.
- Now, the plan.
- The government will start tomorrow, opening banks in the twelve major cities of the U.S. (If you're curious, those cities were: Boston, New York, Cleveland, Philadelphia, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.)
- The next day, banks in "about 250 cities" (35) will reopen.
- As you can see, the reopening of banks is kind of like a "rolling restart."
- One day later (we're at Wednesday at this point) most of the rest of the banks in the country will reopen.
- FDR reminds us that this slow opening plan is to ensure that banks have the currency they need, and that the government can keep and eye on the banks in case of bank runs.
- Next, Roosevelt reassures Americans that "if your bank does not open the first day you are by no means justified in believing that it will not open" (38).
- He's trying to calm people and tell them what to expect.
- FDR inserts a quick note about state banks versus national banks, and that they will function the same way.
- Now the president takes a moment to call out Americans who have been "hoarding" their money. He says that when the banks reopen, fear may again take hold and people will rush to the bank and withdraw as much cash as possible.
- He calls this practice "unfashionable" (45) and that as long as people take only what they need, everyone will be fine.
- A great line comes next: "the phantom of fear will soon be laid" (46).
- His point? As soon as people realize that there is money in the bank, everyone will breathe easier and feel better about their ability to get money when they need it.
- Just like he explained in Section 1, money in the bank is doing much more than money "under the mattress" (48).
- So what's the catch? FDR takes a moment to remind his listeners that success in this operation depends "upon the cooperation of the public" and the public's "use of a reliable system" (49). Things will get better as long as people work together, trust in the system, and don't become hoarders.