March 12, 1933
FDR’s First Radio Address
Today is our fourth excerpt from the first of FDR’s famous “Fireside Chats”, where he inspires confidence in the American people in order to stabilize the financial system.
All emphasis mine.
It is possible that when the banks resume, a very few people who have not recovered from their fear may again begin withdrawals. Let me make it clear to you that the banks will take care of all needs — except, of course, the hysterical demands of hoarders — and it is my belief that hoarding during the past week has become an exceedingly unfashionable pastime.
It needs no prophet to tell you that when the people find that they can get their money — that they can get it when they want it for all legitimate purposes — the phantom of fear will soon be laid. People will again be glad to have their money where it will be safely taken care of, and where they can use it conveniently at any time. I can assure you that it is safer to keep your money in a reopened bank than it is to keep it 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.
Remember that the essential accomplishment of the new legislation is that it makes it possible for banks more readily to convert their assets into cash than was the case before. More liberal provision bas been made for banks to borrow on these assets at the Reserve Banks and more liberal provision has also been made for issuing currency on the security of these good assets.
This currency is not fiat currency. It is issued only on adequate security — and every good bank has an abundance of such security.
The language of persuasion here is subtle, yet all over this address.
He classifies those hoarding cash as “hysterical” and “unfashionable” while saying that the success of his new program to make the banks more financially sound depends on the people’s cooperation.
He makes them feel like they are part of the solution, and all of us are working together.
He also makes it clear that putting your money into the bank is safe and convenient — the “intelligent” thing to do.
He’s not lecturing, he’s persuading.
Here’s the audio:
Some historic context from the FDR Presidential Library — On March 12th, 1933 — only one week after taking office — President Roosevelt appealed directly to the people of the United States by radio. On March 5th — the day after his inauguration as President — he had declared, by proclamation, a nation-wide bank holiday, this resulting in practically a complete stoppage of the entire business of the country.
People were literally bartering for groceries during this two weeks in March. No currency was circulating unless you had gotten some out of the banks before they all shuttered.
My ex-husband’s grandparents were Greatest Generation — from Kansas. Grandpa went to the war while Grandma stayed home and worked in a munitions factory. They bought the house they lived in until they died with the GI Bill.
And sometimes, when you were at their house, you’d open a book and a $100 bill would fall out.
They never forgot what happened when the Hoover government abandoned the American people.
This week I’ll be treating you to more from FDR’s first Fireside Chat with the American people.
He’s incredible at explaining stuff to the American people and making them feel like they are a part of something bigger than themselves.
No wonder he helped save the Free World.
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