This Day in Wall Street History 1933: Roosevelt takes on the economy

Mere moments after taking the oath of office, newly elected President Franklin Roosevelt set about pulling America out of the depths of the Depression. He temporarily closed the nation's banks, passed emergency legislation aimed at stabilizing financial institutions, and hit the airwaves to give the country a much-needed pep talk. And, on this day in 1933, Roosevelt continued his aggressive first month in office, signing the Economy Act into law. Another strike against the Depression, the Economy Act slashed the salaries of federal employees in the name of preserving the nation's fiscal resources. It also forced veterans to forgo part of their war benefits in the name of the economy. Along with these austerity measures, the Economy Act also forced the federal government to shuffle various agencies in hopes of maximizing their cost efficiency.

-Source: www.history.com