Bank Crisis

Bank Crisis

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  • Legitimacy- The constitution allows for a national bank, only states have the authority to charter banks.
  • Power- The bank needs the power to regulate the economy, the bank has too much control over the economy.
  • Debt- The bank prevents the buildup of debt, the bank has too much control over loans.
  • Currency- A national back should create uniform banknotes, states should create their own money.
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  • On March 6, 1933 in order to keep the banking system in America from complete collapse the president used the power given him by the trading with the enemy act of 1917 and suspended all transactions in the Federal Reserve as well as other banks and financial institutions
  • A banking crisis usually refers to a situation in a general "market adjustment" when faith in banking institutions falls, and people start trying to move and keep safe their money "run on the banks."
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