The New Deal and World War II Roosevelt’s leadership through economic reconstruction, war THE FIRST NEW DEAL Banking and Finance. When Roosevelt took the presidential oath, the banking and credit system of the nation was in a state of paralysis. With astonishing rapidity the nation’s banks were first closed – and then reopened only if they were solvent. The administration adopted a policy of moderate currency inflation to start an upward movement in commodity prices and to afford some relief to debtors. New governmental agencies brought generous credit facilities to industry and agriculture. The Federal Deposit Insurance Corporation (FDIC) insured savings bank deposits up to $5,000. Federal regulations were imposed upon the sale of securities on the stock exchange. Unemployment . Roosevelt faced unprecedented mass unemployment. By the time he took office, as many as 13 million Americans – more than a quarter of the labor force –
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Reconstruction, New Deal,
Deposit Insurance Corporation, generous credit facilities, moderate currency inflation, savings bank deposits, unprecedented mass unemployment.