It was not the slowdown in the trade cycle, foreign exchange protectionism, or the stock market crash of 1929 that plunged the country into misery. This was the collapse of the banking system amid three waves of panics during the period 1930-33. After the market collapse, certainty and trust in the US monetary system was virtually non-existent, which influenced the banks enormously. Many Americans began withdrawing the money they had deposited in banks, preferring to store it or buy gold. Bank accounts were being withdrawn and the banks did not have the money to cover all the withdrawals. Bank runs like these are carried out by investors in an attempt to get their money back. Recently, banks have completely collapsed in the worst case scenario; in this case, the worst situation turned out to be real life and more than 9,000 banks went bankrupt. The result was billions of dollars that bank contributors could not recover. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay On December 10, 1930, a huge swarm gathered at the Southern Boulevard branch in the Bronx looking to withdraw their money and began what is considered the bank run that started the Great Depression. By early afternoon, a swarm of 20,000 to 25,000 individuals had accumulated and had to be controlled by the police, and by the end of the day, 2,500 to 3,000 contributors had withdrawn $2,000,000 of the department. In any case, most of the 7,000 contributors who came to withdraw their money have emptied their resources within the bank. One person waited in line for two hours to claim their $2 account adjustment. As word spread, there were fewer runs at several other Bronx branches as well as the East Modern York segment of Brooklyn. The next day, fearing another run on the bank, the directors decided to close the bank and asked the Superintendent of Banks to take over the bank's assets. The stock market announcements reacted negatively, with the bank's stock price, which had traded as high as $91.50 during the year, falling from $11.50 to $3.00. Most other bank stocks were also sold off. It would be difficult to quantify a financial collapse in a single number, but as president, amid the stock market crash, the Smoot-Hawley Tariff Act, and more than 9,000 failed banks, Herbert Hoover was a pretty simple number to quote. As the face of a nation in turmoil, Hoover fought a hard fight for re-election and was effortlessly defeated by Franklin Delano Roosevelt. Roosevelt campaigned for change, and after a campaign of depression led by Hoover, Americans were prepared for it. There are many speculations about what ended the Great Depression, one being that when Roosevelt took office, he quickly began implementing approaches that were part of what would be known under the name “New Deal”. The first New Deal began in 1933 and focused on the economy and helping banks try to strengthen them where they were weakest. The emergency banking law attempted to stabilize the banking system after thousands of bankruptcies. The first New Deal also helped end Prohibition and establish public works projects, such as the Civilian Conservation Corps. After a few years of one-off initiatives aimed at saving businesses and.