I want to talk for a few minutes with the people of the United States about banking—with the comparatively few who understand the mechanics of banking but more particularly with the overwhelming majority who use banks for the making of deposits and the drawing of checks. I want to tell you what has been done in the last few days, why it was done, and what the next steps are going to be. I recognize that the many proclamations from State Capitols and from Washington, the legislation, the Treasury regulations, etc., couched for the most part in banking and legal terms should be explained for the benefit of the average citizen. I owe this in particular because of the fortitude and good temper with which everybody has accepted the inconvenience and hardships of the banking holiday. I know that when you understand what we in Washington have been about I shall continue to have your cooperation as fully as I have had your sympathy and help during the past week.

First of all let me state the simple fact that when you deposit money in a bank the bank does not put the money into a safe deposit vault. It invests your money in many different forms of credit-bonds, commercial paper, mortgages and many other kinds of loans. In other words, the bank puts your money to work to keep the wheels of industry and of agriculture turning around. A comparatively small part of the money you put into the bank is kept in currency—an amount which in normal times is wholly sufficient to cover the cash needs of the average citizen. In other words the total amount of all the currency in the country is only a small fraction of the total deposits in all of the banks.

What, then, happened during the last few days of February and the first few days of March? Because of undermined confidence on the part of the public, there was a general rush by a large portion of our population to turn bank deposits into currency or gold. A rush so great that the soundest banks could not get enough currency to meet the demand. The reason for this was that on the spur of the moment it was, of course, impossible to sell perfectly sound assets of a bank and convert them into cash except at panic prices far below their real value.

By the afternoon of March 3 scarcely a bank in the country was open to do business. Proclamations temporarily closing them in whole or in part had been issued by the Governors in almost all the states.

It was then that I issued the proclamation providing for the nation-wide bank holiday, and this was the first step in the Government's reconstruction of our financial and economic fabric. The second step was the legislation promptly and patriotically passed by the Congress confirming my proclamation and broadening my powers so that it became possible in view of the requirement of time to entend (sic) 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 and a realization of the emergency and the necessity for speed that it 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 affording us the opportunity 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 and thus 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—those banks which on first examination by the Treasury have already been found to be all right. This will be followed on Tuesday by the resumption of all their functions by banks already found to be sound in cities where there are recognized clearinghouses. 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, 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 in order to permit the banks to make applications for necessary loans, to obtain currency needed to meet their requirements and to enable the Government to make common sense checkups.

Let me make it clear to you that if your bank does not open the first day you are by no means justified in believing that it will not open. A bank that opens on one of the subsequent days is in exactly the same status as the bank that opens tomorrow.

I know that many people are worrying about State banks not members of the Federal Reserve System. These banks can and will receive assistance from member banks and from the Reconstruction Finance Corporation. These state banks are following the same course as the national banks except that they get their licenses to resume business from the state authorities, and these authorities have been asked by the Secretary of the Treasury to permit their good banks to open up on the same schedule as the national banks. I am confident that the state banking departments will be as careful as the National Government in the policy relating to the opening of banks and will follow the same broad policy.

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 that the banks will take care of all needs—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 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 has 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 those 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.

One more point before I close. There will be, of course, some banks unable to reopen without being reorganized. The new law allows the Government to assist in making these reorganizations quickly and effectively and even allows the Government to subscribe to at least a part of new capital which may be required.

I hope you can see from this elemental recital of what your government is doing that there is nothing complex, or radical in the process.

We had a bad banking situation. Some of our bankers had shown themselves either incompetent or dishonest in their handling of the people's funds. They had used the money entrusted to them in speculations and unwise loans. This was of course not true in the vast majority of our banks but it was true in enough of them to shock the people for a time into a sense of insecurity and to put them into a frame of mind where they did not differentiate, but seemed to assume that the acts of a comparative few had tainted them all. It was the Government's job to straighten out this situation and do it as quickly as possible -- and the job is being performed.

I do not promise you that every bank will be reopened or that individual losses will not be suffered, but there will be no losses that possibly could be avoided  and there would have been more and greater losses had we continued to drift. I can even promise you salvation for some at least of the sorely pressed banks. We shall be engaged not merely in reopening sound banks but in the creation of sound banks through reorganization. It has been wonderful to me to catch the note of confidence from all over the country. I can never be sufficiently grateful to the people for the loyal support they have given me in their acceptance of the judgment that has dictated our course, even though all of our processes may not have seemed clear to them.

After all there is an element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people. Confidence and courage are the essentials of success in carrying out our plan. You people must have faith  you must not be stampeded by rumors or guesses. Let us unite in banishing fear. We have provided the machinery to restore our financial system  it is up to you to support and make it work.

It is your problem no less than it is mine. Together we cannot fail.

April 07, 2011

US-Colombia Business Partnership
“The member companies of the US-Colombia Business Partnership strongly support the US-Colombia Free Trade Agreement and call for its prompt consideration and passage… The USCBP believes increased trade via the US-Colombia Free Trade Agreement (FTA) furthers economic stability and lessens the dependence and temptation of illicit trade. The US-Colombia FTA will strengthen democratic institutions in Colombia that are under threat by violent actors in Colombian society – guerrillas, self-defense forces and narco-traffickers competing for billions in illegal drug profits, targeting institutions, infrastructure, union members, and civilians in their deadly crossfire. Legitimate trade brings more legitimate jobs and opportunity.”

National Association of Manufacturers
“This agreement is essential to job creation and our global competitiveness. Manufacturers appreciate President Obama’s and U.S. Trade Representative Kirk’s efforts to work with the Colombian government to reach mutual agreement on labor issues so that the U.S.-Colombia Trade Promotion Agreement can be sent to Congress. We urge the Administration to move quickly so manufacturers and the U.S. economy can reap the benefits as soon as possible… We cannot continue to stand on the sidelines and lose market share and our competitive advantage… Exports are driving the economic recovery, and the Colombia agreement is critical to meeting the President’s goal of doubling exports by 2014. U.S. manufacturers face an average tariff of 14 percent in Colombia. This agreement will bring that tariff to zero, reducing the major trade barrier for this growing new market.”

Coalition of Service Industries
“The Coalition of Service Industries (CSI) applauded the framework announced today between Colombia and the United States, which will allow a long-pending free trade agreement between the two countries to move forward…We look forward to working with the Administration and the Congress to secure the prompt approval of this agreement, as well as the pending FTAs with Korea and Panama…The Colombia FTA eliminates barriers to trade and investment in many services in which U.S. companies are extremely competitive… The agreement promotes U.S. economic and commercial goals  it supports our human and labor rights objectives and it advances U.S. geostrategic interests in the region. For these reasons, we believe it unquestionably merits Congressional approval."

Retail Industry Leaders Association
"Lowering trade barriers is vital to the American retail sector- an industry that employs more than 12.45 million U.S. workers. Retailers applaud the Obama administration for striking this deal and ensuring that U.S. job creators and American families have access to the considerable benefits of free trade. RILA encourages Congress and the Administration to act expeditiously to approve all three pending free trade agreements and to reaffirm bipartisan support for free trade… Tearing down trade barriers will create thousands of new jobs as American businesses compete to buy and sell goods and services to customers around the world.”

Cisco Systems, Inc.
“Cisco applauds both governments for agreeing on a path forward and is pleased that the U.S. Congress will soon consider implementing legislation for the U.S.-Colombia Free Trade Agreement (FTA). Cisco strongly supports passage of the FTA, whose implementation will provide meaningful commercial benefits….As a member of the Latin America Trade Coalition and of the U.S.-Korea FTA Business Coalition, Cisco joins our colleagues in the high-technology industry and broader business community to support swift Congressional passage and implementation of the pending FTAs.”

Business Roundtable
“Today’s announcement that the United States and Colombia have reached an agreement on outstanding issues in their trade pact clears the way to move all pending FTAs forward. The Administration and Congress now need to agree on a plan to pass the Colombia, South Korea and Panama FTAs as soon as possible… American companies and workers need trade agreements that promote fairness and allow the United States to compete successfully in world markets. Pending FTAs with South Korea, Colombia and Panama will ensure these countries are held to their promises to open their markets to American goods and services. These agreements will add to the more than 38 million jobs that depend on trade.”

Caterpillar
"Not only is Colombia one of Caterpillar's ten largest U.S. export markets by country, but it is also one of America's closest allies. The U.S.-Colombia Free Trade Agreement will promote U.S. exports and support American jobs. The agreement is also a validation that Colombia is a good place to conduct business. Perhaps more importantly, it will bolster understanding and improve living standards of citizens in both countries… Previous trade agreements have proven a powerful engine of growth. This has been especially true in Latin America… Since FTAs went into effect, Caterpillar exports have dramatically increased. Last year, exports to Mexico were up five-fold, three-fold to Chile, and by more than 60 percent to Peru.”

American Soybean Association
“The trade agreement will create new opportunities for American farmers and ranchers in the Colombian market. U.S. soybean farmers will also have the opportunity to regain some of the market share previously lost to competitors in South America. As a result of delays in approving the pending FTA, the U.S. has lost market share to competitors in Colombia…ASA is also urging approval of the pending FTAs with South Korea and Panama that would significantly improve access to foreign markets for U.S. soy and livestock products, these three trade agreements combined represent almost $3 billion of additional agricultural exports to these trading partners."

Grocery Manufacturers Association
“On behalf of GMA and its member companies, I commend the efforts of both President Obama and Colombian President Santos in striking this accord, which is a significant breakthrough in moving toward the ultimate goal, ratification by Congress of the U.S. - Colombia Free Trade Agreement. With some of the highest tariff rates in South America, to date Colombia has been a relatively small market for U.S. exports. However, with 45 million consumers, including a significant middle class, ratification of the Colombian FTA would result in a significant increase in US exports of food, beverages and consumer products.”

Consumer Electronics Association (CEA)
“The U.S.-Colombia trade agreement is a critical trade pact for U.S. workers and companies. It will immediately eliminate Colombian duties on more than 80% of U.S. exports… We urge swift action to send the Colombia, Panama and Korea trade agreements to Congress for approval. These agreements are job creating for our small businesses and will help us remain competitive against other nations such as Canada and the EU which also have trade agreements pending with these countries… Colombia’s economy is the third largest in Central and South America. This trade agreement will eliminate tariffs and other barriers to U.S. exports, promote economic growth, and expand trade between the US and Colombia.”

Corn Refiners Association (CRA)
“The benefits of this trade agreement with Colombia to our industry’s workers and to the U.S. economy are clear… We urge Congress to act quickly to approve the agreement once it is finalized. Tariffs on corn gluten feed and meal, corn starch, and dextrose will be reduced to zero when the United States-Colombia Trade Promotion Agreement becomes effective. Duties on other corn products, including corn oil, corn sweeteners, and corn starch, will be phased out over the life of the Agreement. U.S. exports of refined.”

The Dow Chemical Company
“For Dow, the agreement is a significant step forward, as it removes tariffs and barriers to key American exports and supports growth in the Colombian domestic market…The agreement will remove 90% of current tariffs assessed to Dow's more than $200 million in American manufactured goods exported to Colombia. Removal of these tariffs levels the playing field, sustaining American manufacturing by ensuring free and fair market access to Colombia's vital and growing domestic economy. Dow has operated in Colombia for 51 years with an excellent safety and productivity performance. The Company’s solid community programs have benefited thousands of people in key development areas such as education and entrepreneurship.”

Information Technology Industry Council (ITI)
"We are very much encouraged by the prospect that the agreement with Colombia will clear the way for swift Congressional approval of all three pending agreements with Colombia, Korea and Panama. We must pursue an ambitious trade agenda to reduce market access barriers around the world for American tech products and services so our industry can continue to grow and create jobs and economic benefits here at home. These three agreements represent big steps forward that will spur growth in the American economy and increase U.S. competitiveness."

TechAmerica
“Expanding trade with Colombia will give U.S. tech companies a competitive edge in that region while strengthening free markets, enhancing stability, and fostering democracy… As a result of this Agreement, Colombia will eliminate tariff and non-tariff barriers to a number of tech products and strengthen intellectual property and investor protections. All of these aspects are vital to our members, large and small, who generate over 60 percent of their revenue from foreign markets… U.S. high-tech exports to Colombia grew by 22 percent between 2009 and 2010, reaching $1.87 billion, according to a recent TechAmerica Foundation report. Since 2004, U.S. high-tech exports to Colombia have grown 125 percent, creating a high-tech trade surplus of nearly $1.84 billion.”

Distilled Spirits Council of the United States
“This free trade agreement will result in measureable benefits for the U.S. distilled spirits industry… This agreement provides important protections for Bourbon and Tennessee Whiskey, which account for the vast majority of U.S. spirits exports worldwide... These safeguards will benefit both producers and consumers by ensuring that only genuine Bourbon and Tennessee Whiskey produced in the United States, in accordance with U.S. laws and regulations, will be available in the Colombian market.”

Emergency Committee for American Trade
“The Emergency Committee for American Trade applauds the efforts of both the U.S. and Colombian governments…ECAT is also heartened by Administration statements that Panama is in the final stages of implementing a series of actions that the Administration has asked it to undertake before submitting that agreement to Congress… Both the Colombia and Panama trade agreements will open these markets to U.S. goods and services, while also setting into place strong rules, including ones for the protection of investment and intellectual property rights for many sectors, and for the promotion of transparency and non-discrimination… Quick Congressional approval of these agreements is vital to reverse the loss of market share that has occurred for U.S. farm products since other countries have implemented their agreements with Colombia.”

The National Foreign Trade Council
“Colombia has long been a vitally important strategic ally in the region and a key export market for U.S. companies and agricultural producers. Implementation of the Colombia FTA will further strengthen our longstanding bilateral economic ties and help to promote export growth and job creation…With other countries, namely Canada, working to implement agreements with Colombia over the next few months, we are encouraged that the Administration has taken the necessary steps to move the FTA forward as soon as possible this year. Achieving today’s milestone is a significant accomplishment for both nations and symbolizes the importance of our economic and diplomatic relationship.”

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On December 4th, 2010, President Obama stated that -- very important statement about win-win for both our countries- SOME OF THIS STATEMENT COULD APPLY FOR MANY OTHER COUNTRIES FREE TRADE.

It is for American workers. For our farmers and ranchers, it will increase exports of American agricultural products. From aerospace to electronics, it will increase our manufacturing exports to Korea, which already support some 200,000 American jobs and many small businesses. In particular, manufacturers of American cars and trucks will have much more access to the Korean market, we’ll encourage the development of electric cars and green technology in the United States, even to ensure a level playing field for American automakers here at home.

It is expecting to boost annual exports of American goods by up to $11 billion. And all told, this agreement -- including the opening of the Korean services market -- will support at least 70,000 American jobs.

This Free Trade Agreement is also a win for our ally and friend South Korea not only gaining greater access to our markets and also make American products more affordable for Korean households and businesses -- resulting in more choices for Korean consumers and more jobs for Americans. With all that, if the congress continue delay for this great opportunity, hopely, The congress will be able to think about the EU - Korea Free trade is not being ahead of U.S.

Many are hoping the congress would "THINK, DEEP AND WISE" and move forward.....

FTAs like these will spur job-creating growth in U.S. exports at a time when the U.S. economy is still on the road to full economic recovery and will signal continuing leadership by the U.S. in developing a global free trading system as what Chairman, President and CEO Jim McNerney says.....

The Boeing President and CEO Jim McNerney was appointed as a Chair, President’s Export Council since March 11, 2010 by President Obama.

Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined. Additionally, Boeing designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Boeing Company is the largest exporter by value in the United States. Its stock is a component of the Dow Jones Industrial Average.

References

Jim McNerney bio

United State Free Trade Representative (Executive Office of The President)

The Boeing Company

White House

catch4all.com

catch4all.com, Sandra Englund, April 6, 2011. Rev. April 13, 2011