![]() In the waning hours of the Hoover Administration, his advisors, together with members of the incoming Roosevelt administration, tried to convince Hoover to declare a bank emergency and close all the banks. ![]() In the end, 32 states closed at least some of their banks. The crisis appeared to deepen as inauguration day approached. Millions of dollars were being pulled out of the banks each week. In the meantime, the contagion that hit the banks in Detroit did indeed spread to neighboring states. Furthermore, FDR did not think the policies advocated by Hoover were correct. Roosevelt refused because he believed there could only be one President at a time. Roosevelt declined to make these commitments. The situation was getting more perilous by the day, and the world wanted to hear from the new President. The country and the banks desperately wanted to hear assurances from Roosevelt what he was planning to do. Roosevelt's election had been in early November and Inauguration Day was not until March 4th. ![]() Unfortunately, the period between the election and the time that the new President was sworn in was better suited for the days of the horse and not the modern world. The banks in Detroit were saved only by a bank holiday. Still, as 1933 dawned, the state of US banks continued to worsen. In 1932, the situation had gotten better after Congress established the Reconstruction Finance Corporation to give emergency loans to banks. The worst year for the banks was 1931 when 2, 298 banks failed. Bank after bank was forced to close, as one after another suffered a run on their bank. However, the financial crisis soon spread to banks. The Great Depression did not begin with a crisis in American banks.
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