The second step was the legislation promptly and patriotically passed by the @Congress. It confirmed my proclamation and broadened my powers so that it became possible to extend the holiday and lift the ban of that holiday gradually. This law also gave authority to develop a program of rehabilitation of our banking facilities. I want to tell our citizens in every part of the nation that the national Congress -- Republicans and Democrats alike -- showed by this action a devotion to public welfare. They demonstrated a realization of the emergency and the necessity for speed that is difficult to match in our history.
The third stage has been the series of regulations permitting the banks to continue their functions to take care of the distribution of food and household necessities and the payment of payrolls.
This bank holiday, while resulting in many cases in great inconvenience, is giving us the chance to supply the currency necessary to meet the situation. No sound bank is a dollar worse off than it was when it closed its doors last Monday. Neither is any bank which may turn out not to be in a position for immediate opening. The new law allows the twelve Federal Reserve Banks to issue additional currency on good assets. Therefore, the banks that reopen will be able to meet every legitimate call. The new currency is being sent out by the Bureau of Engraving and Printing in large volume to every part of the country. It is sound currency because it is backed by actual, good assets.
A question you will ask is this: why are all the banks not to be reopened at the same time? The answer is simple. Your government does not intend that the history of the past few years shall be repeated. We do not want and will not have another epidemic of bank failures.
As a result, we start tomorrow, Monday, with the opening of banks in the twelve Federal Reserve Bank cities. These are the banks which, on first examination by the treasury, have already been found to be all right. This will be followed on Tuesday by the return of all functions by banks already found to be sound in cities where there are recognized clearing houses. That means about 250 cities of the United States.
On Wednesday and succeeding days, banks in smaller places all through the country will resume business. This is subject, of course, to the government's physical ability to complete its survey. It is necessary that the reopening of banks be extended over a period of time.
