A Bank Holiday

Nathan Stefan

Risk

Depositing money in a savings account carried a degree of risk because if the bank made bad investments and was forced to close people that had money in the bank and did not withdraw there money fast enough were out of luck and lost there money. It was not hard for a bank to close because all it took was a simple rumor to force a bank to close.

Closing the Banks

In 1929, 659 banks closed their doors and many people lost there money. By 1932, Added to the 659 banks that closed 5102 banks went out of business as well. Overnight families just lost there whole life savings. In 1933 bank failures increased and Franklin Roosevelt said these failing financial institutions would be his first thing that he fixes when he got inaugurated.

Bank Holiday

Roosevelt declared a bank holiday. This "bank holiday" said that all banking transactions were suspened across the nation from March 6 to March 10, except for making change.