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When people learned of the huge bank losses they thought that they were going to run out of peoples money and not be able to pay people off. This made people go in a rush to banks and withdraw all their money after losing all the faith in the banks. Unable to raise fresh funds from The Federal Reserve banks ended up closing by the hundreds...

Unable to raise fresh funds from The Federal Reserve banks ended up closing by the hundreds. Any business opening could not get a loan. No one would accept checks at the time because they were basically worthless. A lot of bank action basically ceased. Roosevelt proceeded to give the banks a three day holiday to recover from the losses and reopen...

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