As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at alarming rates. During the 20s, there was an average of 70 banks failing each year nationally. After the crash during the first 10 months of 1930, 744 banks failed - 10 times as many. In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks failed during the one year of 1933 alone. By 1933, depositors saw $140 billion disappear through bank failures.
Banks were forced to close during the Great Depression as there was a frantic run of customers withdrawing their money. Such was the run that the banks didn't have the actual money in their vaults. Much of the customers' money was on paper, loaned out to other banks, companies, etc. Banks also invested some of their customers' money in stocks and shares.
The banks closed during the Great Depression simply because they ran out or nearly ran out of money. Later deposits made in banks were guaranteed by the federal government.
what did so many banks close during the great depression
120 days
The federal reserve banks did wellduring the depression due to regulations. The bank ended the depression
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=The biggest change during the great depression was the way money is handled. The way money was handled was way different then it is now.=
what did so many banks close during the great depression
In the 10 years of the Great Depression 9,000 banks went under JUST in US.
120 days
the bank faild because they were losing money
The federal reserve banks did wellduring the depression due to regulations. The bank ended the depression
In the Great Depression, over 11,000 banks failed, and over one million family farms were lost.
10000
=The biggest change during the great depression was the way money is handled. The way money was handled was way different then it is now.=
They didn't
Living during the great depression had a major affect on the mentality many people. A good portion of people who lived during that time do not trust banks. This is likely the result of the many widespread bank failures in the 30s that caused people to lose their life savings. Life during the great depression also lead to a more conservative mentality as people learned to buy only what they needed and save the rest, just in case.
they wanted better living conditions for the people. declaring that the depression had ended
There was no insurance. That's why their depositors lost all their money. This was the motivation for the establishment of the FDIC.