Bank Rush
One of the many causes of the Great Depression was bank failure. When the United States went into the depression, banks went out of business all over the country. The Federal Reserve made a holiday for banks where it got rid of all the bad banks and reopened the few healthy ones. More than 700 banks were closed and millions of people’s savings were lost.
During the depression, banks had loaned money to people who were unable to repay it, causing many people to withdraw their money from banks. Banks had difficult time amassing money on many loans. This caused a reduction in production leading to further increase of unemployment.
During the depression, banks had loaned money to people who were unable to repay it, causing many people to withdraw their money from banks. Banks had difficult time amassing money on many loans. This caused a reduction in production leading to further increase of unemployment.