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Economic depression
As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at rates. During the 20s, there was an average of 70 banks failing each year nationally. After the crash during the first 10 months of 1930, 744 banks failed - 10 times as many. In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks during the one year of 1933 alone. By 1933, depositors saw $140 billion through bank failures.
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