The Great Depression

22 Pages 5420 Words

ence was a number of bank failures, caused in part by an erosion of public confidence in banking that led to large-scale withdrawals of cash by depositors, until banks were forced to close and declare bankruptcy. (Himmelberg, 9)
American’s economic condition had become desperate, and it only worsened during the next year. When the depression bottomed, a staggering number of workers, one out of four, had no employment at all, and many of those still with jobs had only part-time work. (Himmelberg, 9) Many Americans, unable to make mortgage payments, lost their homes, and even more lost their savings as the banks came under increasing pressure. The rate of bank failures mounted rapidly during 1930 but rose to epidemic proportions in 1931, in that year conditions forced 2,294 banks, holding deposits worth $1.7 billion, to close, with depositors losing much of their money. (Himmelberg, 9)
Statistics tell the same story everywhere we look. Farm prices dropped by 55 percent between 1929 and 1932, drastically lowering farm income and worsenin...