December 10, 1930 — The Bank of the United States collapses

Although the effects of the Depression had been gaining momentum since Black Tuesday, on October 29, 1929, and several smaller banks had already fallen, the collapse of the Bank of the United States kicked things up a notch or two. The Bank, at that time the third largest bank in New York City (and twenty-eighth in the United States), sent shockwaves through the economy after a run on its savings began at its Bronx branch on December 10, 1930.

The panic that led to the run on the bank caused it to fail when it did (although it quite possibly would have collapsed even without this, although not until months or even years later) – and the collapse of the bank led to runs on other banks, which led to more collapses. The Great Depression deepened after 1930, and in many countries, did not end until the wartime economies of World War Two changed the playing field again.

Bank of the United States failure NYWTS.jpg
By World Telegram staff photographer – Library of Congress. New York World-Telegram & Sun Collection. http://hdl.loc.gov/loc.pnp/cph.3c17261, Public Domain, Link

As mentioned in:

2020 — Ben Folds

Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *