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Nov 22, 2013 · March 1933. For an entire week in March 1933, all banking transactions were suspended in an effort to stem bank failures and ultimately restore confidence in the financial system. Crowds gather on Wall Street as banks reopened on March 13, 1933, after the Bank Holiday. (Photo: Bettmann/Getty Images) by Robert Jabaily, Federal Reserve Bank of Boston
These runs on banks were widespread during the early days of the Great Depression. In 1929 alone, 659 banks closed their doors. By 1932, an additional 5102 banks went out of business. Families lost their life savings overnight. Thirty-eight states had adopted restrictions on withdrawals in an effort to forestall the panic.
The Emergency Banking Act of 1933 itself is regarded by many as helping to set the nation’s banking system right during the Great Depression. The Emergency Banking Act also had a historic impact on the Federal Reserve.
May 13, 2021 · By 1933, the wave of bank failures stemmed from the decision of the newly elected president, Franklin D. Roosevelt, to declare a four-day banking “holiday” while Congress debated and passed ...
For the banks in Detroit, Michigan, February 1933 was a loveless month. The industrial state had suffered through the Great Depression, and the slow drain on large banks that began with regional panics in 1930 and expanded throughout the nation in 1931 now increased, with no signs of slowing.
When the banks reopened on March 13, depositors stood in line to return their hoarded cash. This article attributes the success of the Bank Holiday and the remarkable turnaround in the public’s confidence to the Emergency Banking Act, passed by Congress on March 9, 1933.
Bank holiday. Beginning on February 14, 1933, Michigan, an industrial state that had been hit particularly hard by the Great Depression in the United States, declared an eight-day bank holiday. Fears of other bank closures spread from state to state as people rushed to withdraw their deposits while they still could do so.
