Banks During The Great Depression

The Great Depression was a time in American history where there was mass poverty and job loss all over the country due to the stock market losing all of its value. Because of this, most banks also lost the money they had stored inside, and therefore the victims of this were unable to retrieve what little money they had left inside. Most people left jobless were forced to take up odd jobs, such as being a temporary rancher, or being a textile factory worker. This caused many people caught in this time to lose hope, but most would still keep looking for work. The Great Depression all started with a recession during the summer of 1929, where consumers started spending less of their earnings, and unsold goods began to build up. The stocks of …show more content…
The Hoover Administration tried to help banks that would soon shut their doors permanently by supporting them with loans from the government, in hopes that the banks would once more grow into businesses, and be able to hire back their workers. This worked for a while, however, soon even the US Treasury did not have the funds necessary to loan to the banks or even to pay government workers. Once president Franklin D. Roosevelt was put into office he proposed a system that first started with a four day “holiday” for banks. During these four days, all banks in the country would shut down so that Congress could pass reform legislation and determine which banks deserved to be reopened, so that the government could only help those that earned it.
The Great Depression ended with America declaring war after the events occurring in December 1941, also known as the Pearl Harbor incident. This caused the start of World War II, which gave the whole nation a reason to give more jobs. The government started giving people jobs in the form of making supplies for the war. Because of this, the nation’s factories went back into full production limits, and ensured that almost all of the people in America once again reclaimed their …show more content…
Nearly all of the banks had to shut down due to not having the money to be able to stay in business. Even though the government supported said banks in attempt to help the economy bounce back, it did not help the banks very much, as they had to prove that they were able to stay in business after the government helped them. But in the end, what saved America from this economic crisis was the start of World War II, where the need for war supplies grew so that it created jobs for people willing to make the