Causes Of The Great Depression

“I can assure you that it is safer to keep your money in a reopened bank than under the mattress” (qtd. By Greene). stated by Franklin Roosevelt. The economy was being crippled because people were taking their money out of the banks across America. The banks had been devastated due to the Stock Market Crash and had no money to pay off their depositors because of the investments they had made on the stock market. Several thousand banks had closed across America to the people losing faith in the banking system and withdrawing their money from them. Banking acts were put in place to help pull the banks out of such a devastating period in time. Were forced to change their currency in order to help get the money rolling through the banks in

Millions of people were unemployed, businesses were closed, and people lost all their savings. The major cause of this being the Great Stock Market Crash of 1929 which devastated the U.S. and other nations around the world. The Stock market crash ruined many big time investors and put big businesses out of work all in one day called black tuesday. 16,410,030 shares were reported to be traded on the New York Stock Exchange in a single day. Billions of dollars was lost wiping out everything throwing the United States into a Great Depression. By 1932 the stocks were only worth about half of what they were the summer of 1929. (A New Deal For Dark

The banking crisis was a result of the Great Stock Market crash which forced closed half of the banks throughout America. It is said that around 5,000 banks were closed due to the Stock Market Crash and later on the numbers went up. The banks were unable to pay off depositors , and many of the banks had invested into the stock market a suffered major losses. So the public had lost faith in the banking system and so therefore went in mass groups and withdrew their savings. Which hurt the banks even more because of the public taking their money it leaves the banks with no money flowing at all so they could not pay anything or anyone who needed money from them. And if you still had money in the bank then you lost it all to the simple fact they needed any and all the money they could get to try and help them from going under with the economy. Banking acts were put into place to help pull the banks and the economy out of the depression the Emergency Banking Act of 1933. The Emergency Banking Act was put into place to help put the nation confidence back into the banking system. The main goal was to help the banks across the nation from failing and collapsing during the time of this crisis. The passing of the emergency banking legislation by the government was the most constructive step toward the problem of the financial and banking