Bank Holiday 1933

CrisisEvent1933
RegionUSA
Year1933
TypeCrisis
CategoryEvent

About Bank Holiday 1933

On March 6, 1933, President Franklin Roosevelt declared a national bank holiday, closing all banks for four days during the worst of the Great Depression. The banking system was collapsing, with bank runs across the country. The Emergency Banking Act, passed on March 9, allowed the government to inspect and reopen solvent banks. Roosevelt explained the measures in his first fireside chat on March 12, telling Americans it is safer to keep your money in a reopened bank than under the mattress. The bank holiday restored confidence. When banks reopened on March 13, deposits exceeded withdrawals. The FDIC was created later in 1933 to permanently insure bank deposits and prevent future bank runs.

Related Entries