A Bank Holiday

By Nick Schreier

Before it Started

Before the late 1930s people deposited money in a savings account at there own risk. If a bank closes of making bad investments or of simple rumor, people whos didn't withdraw their money in time, the bank kept the money. In the Great Depression, many banks nation wide closed down. In 1929, 659 banks were out of buiness. By 1932, 5102 banks in addition closed there doors. Many familys lost their money in a short period of time.

President Roosevelt created the Bank Holiday

While many banks closed there doors in 1933, President Rossevelt want to find away to keep banks opened, (this was his first priority as igraugurated as president. After two days in office, Roosevelt created a "Bank Holiday." The point of this was to give banks a holiday basically. From March 6 to March 10 Banks were suspended across the nation. During this time, Roosevelt created the Emergency Banking Act. It states that the "President throught the Treasury Department to reopen banks that were solvent and assist those that were not," (ushistory.org). 

After it was created

When this happened, banks were split into for categories. Surprisingly, which was over half the banks nation wide because they demanded to reopen. Banks that permitted to allow a certain percentage of deposits to be withdrawn at a time. Banks that are on the edge to go out of buisness. And banks that are unfit for buisness.  On the first day of buisness after the holiday, many deposits had withdrawals. On June 16, 1933 Rossevelt signed the Glass-Steagall Banking Reform Act which later on created the  Federal Deposit Insurance Corporation. This gave depositors a garentee if the bank collapses, the federal government will give all the the money the depositors lost to them. After this many more people justed the banks for depositing money into a savings account and banks grew larger.   

Work Sited