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Comparatively small part of the money you put into

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comparatively small part of the money you put into the bank is kept in currency—an amount which innormal times is wholly sufficient to cover the cash needs of the average citizen. In other words, thetotal amount of all the currency in the country is only a small fraction of the total deposits in all of thebanks.What, then, happened during the last few days of February and the first few days of March? Becauseof undermined confidence on the part of the public, there was a general rush by a large portion of ourpopulation to turn bank deposits into currency or gold—a rush so great that the soundest bankscould not get enough currency to meet the demand. The reason for this was that on the spur of themoment, it was, of course, impossible to sell perfectly sound assets of a bank and convert them intocash, except at panic prices far below their real value. By the afternoon of March 3, scarcely a bankin the country was open to do business….This was the problem.The first step was passing an emergency banking law….This law gave authority to develop aprogram of rehabilitation of our banking facilities through a temporary banking holiday…This bank holiday, while resulting in many cases in great inconvenience, is affording us theopportunity to supply the currency necessary to meet the situation... The new law allows the 12Federal Reserve banks to issue additional currency on good assets, and thus the banks whichreopen will be able to meet every legitimate need of its customers.The new currency is being sentout by the Bureau of Engraving and Printing in large volume to every part of the country. … As aresult, we start tomorrow, Monday, with the opening of banks in the 12 Federal Reserve bank cities—those banks which on first examination by the Treasury have already been found to be all right. Thiswill be followed on Tuesday by the resumption of all their functions by banks already found to besound in about 250 cities of the United States.On Wednesday and succeeding days, banks in smaller places all through the country will resumebusiness—subject, of course, to the government’s physical ability to complete its survey. It isnecessary that the reopening of banks be extended over a period in order to permit the banks tomake applications for necessary loans, to obtain currency needed to meet their requirements and toenable the government to make common-sense checkups...People will again be glad to have their money where it will be safely taken care of and where they canuse it conveniently at any time. I can assure you that it is safer to keep your money in a reopenedbank than under the mattress.The success of our whole great national program depends, of course,upon the cooperation of the public—on its intelligent support and use of a reliable system….We shallbe engaged not merely in reopening sound banks but in the creation of sound banks throughreorganization...Confidence and courage are the essentials of success in carrying out our plan. You

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