The Chain Of Troubles: Causes Of The Great Depression

The Chains of Troubles The United States had an awful financial disaster, called the Great Depression starting 1929 and ending around 1941 ( “Causes of the Great Depression”). The cause of the Great Depression wasn’t just one, but many factors played in the Great Depression. Making it look like dominos falling one by one quickly. The stock market collapse, banks collapse, overproduction, and many other events affect the Great Depression. There were numerous and varieties of reasons for the Great Depression (“United States”). About ten years continued the Great Depression and it influenced mechanical and nonmechanical countries in some places (“Stock market crash of 1929”). The cause wasn’t just one, but many like the banks failing, overproduction
Commercial banks were around twelve thousands of them in 1900. But, later the twelve thousands banks had increased about to thirtyish thousands in 1920 (“Causes of the Great Depression”). Much of the United States banks had lent a lot in the shares, so when the stock market collapse, the banks parts of their investment got missing. Those banks went bankrupt, bankrupt meant that the earnings of the people were lacking, if the bank went bankrupt (“United States”). The banks did not insurance when working with their clients. So, when times got a little rough, the clients would get alarm (Ushistory.org). Clients weren’t sure anymore, so they wanted their money back in crash, but the banks just had a portion of crash. They had to pay off the credits, to collect the needed money. President Franklin D. Roosevelt announced the “bank holiday”, in which banks had to be close and then open again if only they were looked by investigators of the administration in March 6, 1933. One fifth were declined by 1933 (Pells and Romer). When the financial system and the stock market rose in 1920s or what they were called the Roaring Twenties the collision seem unavoidable hindsight (Tomlinson). Nine thousands were the banks that broke down during the 1930s. Some of the banks that did get through, were insecure and worried about the condition of the economy in the future and if they would remain saved, so
They have the authority of lending money to financial institutions. Through boost and drop the rates of interest (“Causes of the Great Depression”). The U.S Federal Reserve could have done something to remain the banks farming decline and had the responsibility of the banks according to some historians and economists (“United States”). The Federal Reserve rose the rates of interest, so the prices of stocks could slow down in 1928 or 1929. It didn’t maintain the gold standard (Pells and