America had gone through the economic and social boom during the 1920’s. Prosperity was growing in nearly every city and society promoted liberation for most but not all social groups. October 1929 arguably marks the most significant financial crash which had devastating effects on the world economy, The Wall Street Crash. The majority of the nation, if not all was drastically affected by this collapse. Many people lived in substandard conditions and groups like the Black Americans experienced the continuity of social injustice. The economy was hit hard by this crash and the banks were one of the thousands who had to bear the consequences. The United States were weak and easy to suppress if a successful attempt was made which led to the inevitable
…show more content…
The banks that people had once trusted became bankrupt as they had invested millions of dollars into the stock market. Bank runs took place in which, large amounts of panicked people withdrew their deposits in the form of cash causing banks to settle loans which led to many bank’s failures. The biggest bank in the USA at the time became bankrupt in the last month of 1930; this bank had 400,000 depositors which led to a large-scale of panic. Many people were unable to pay their loans back and, therefore, poverty became more prominent and led to, arguably the most doomed phase America has been in, The Great Depression. The Wall Street Crash led to the New Deal which opened 5000 banks after inspection and, as a result, this stabilised the banking system and more people instilled their trust in banks once again. Franklin D Roosevelt announced a bank holiday with duration of 4 days to avoid any more nervous people taking their money out of banks. The New Deal provided America with more jobs which led to an increase in profit which inevitably led to a more stable economy. Overall, the Wall Street Crash was the only significant factor of the failure of the banks as it was a collapse of the economy. The banks were the heart of the economy and were trusted by the nation so when the Wall Street Crash took place, the nation was shocked and panicked which led to the failure of the
The banks that people had once trusted became bankrupt as they had invested millions of dollars into the stock market. Bank runs took place in which, large amounts of panicked people withdrew their deposits in the form of cash causing banks to settle loans which led to many bank’s failures. The biggest bank in the USA at the time became bankrupt in the last month of 1930; this bank had 400,000 depositors which led to a large-scale of panic. Many people were unable to pay their loans back and, therefore, poverty became more prominent and led to, arguably the most doomed phase America has been in, The Great Depression. The Wall Street Crash led to the New Deal which opened 5000 banks after inspection and, as a result, this stabilised the banking system and more people instilled their trust in banks once again. Franklin D Roosevelt announced a bank holiday with duration of 4 days to avoid any more nervous people taking their money out of banks. The New Deal provided America with more jobs which led to an increase in profit which inevitably led to a more stable economy. Overall, the Wall Street Crash was the only significant factor of the failure of the banks as it was a collapse of the economy. The banks were the heart of the economy and were trusted by the nation so when the Wall Street Crash took place, the nation was shocked and panicked which led to the failure of the