Introducing KNOVA — A free reading app with curriculum-aligned passages on History & Science for Grades 3-8Learn More →

Bank Holiday 1933: FDR Restores Confidence — Reading Comprehension

No ratings yet

Premium Resource

Grades

Standards

D2.HIS.2.3-5
D2.HIS.3.3-5
RI.4.3
RI.4.4
W.4.2

Rate this resource

Send Feedback / Report an Issue

About This Reader

This rigorous passage explores the 1933 Bank Holiday declared by President Franklin D. Roosevelt (FDR) to address the nationwide banking crisis during the Great Depression. Students will analyze the causes and effects of the banking panic, evaluate FDR's motivations, and consider the perspectives of ordinary Americans, bankers, and government officials. The passage models historical reasoning, uses primary source evidence, and incorporates academic vocabulary to build literacy skills. Activities include a multiple-choice quiz, writing prompts, glossary, timeline, and a T-Chart graphic organizer to deepen understanding. The reading is aligned with C3 Framework and Common Core standards, and provides both read aloud audio and a Spanish translation, making it accessible for diverse learners interested in U.S. economic and political history.

CONTENT PREVIEW

"President Franklin D. Roosevelt Broadcasting his First Fireside Chat Regarding the Banking Crisis, from the White House, Washington, DC"/ Wikimedia Commons (Public domain).

In March 1933, President Franklin D. Roosevelt declared a nationwide bank holiday. This action meant that all banks across the United States were ordered to close their doors temporarily. The decision was made in response to a severe financial crisis during the Great Depression, a period when the U.S. economy was suffering from high unemployment, falling prices, and loss of trust in banks. Many Americans were withdrawing their savings out of fear that banks would collapse and their money would be lost forever.

The immediate problem facing Roosevelt was a growing wave of panic known as bank runs. In a bank run, large numbers of people rush to withdraw their money at the same time, overwhelming banks’ reserves. Most banks do not keep all customers’ money in cash, so they cannot pay everyone who demands it. As a result, even stable banks can fail if people lose confidence in the system. By early 1933, over 5,000 banks had already closed, and Americans worried that more would collapse soon.

President Roosevelt’s solution was bold and unprecedented. By declaring a bank holiday, he gave time for the government to inspect banks and decide which were financially stable. Federal inspectors quickly examined each bank’s records and assets. Only banks judged to be sound were allowed to reopen. This process was designed to restore public trust and ensure the stability of the banking system. Roosevelt also used his first "Fireside Chat" radio address to explain the situation and encourage Americans to keep their money in banks.

After four days, banks began reopening in stages. People lined up outside, but this time, most deposited their money instead of withdrawing it. The public’s confidence was largely restored. The Bank Holiday marked a turning point: the banking system began to recover, and fewer banks failed afterward. Roosevelt’s quick action showed the power of federal emergency measures to solve national problems.

The Bank Holiday also set a precedent for future government intervention in the economy. It led to important reforms, such as the creation of the Federal Deposit Insurance Corporation (FDIC), which guaranteed people’s deposits up to a certain amount. This further increased stability and helped prevent future panics. The event demonstrated the importance of public trust and swift leadership in times of crisis.

Interesting Fact: During the Bank Holiday, many Americans listened to President Roosevelt’s radio speech together, which became one of the most famous uses of mass media to calm a nation.

What year did the Bank Holiday occur?

1933192919411930

Who was president during the Bank Holiday?

Franklin D. RooseveltHerbert HooverHarry TrumanCalvin Coolidge

What is a bank run?

People rushing to withdraw moneyBanks opening new branchesBanks making large loansBanks closing for holidays

Why did Roosevelt declare a bank holiday?

To stop panic and restore trustTo celebrate a new lawTo start a new bankTo prepare for war

How did the public react after banks reopened?

Deposited money backWithdrew more moneyRefused to use banksProtested in the streets

What was a result of the Bank Holiday?

Fewer banks failedPrices fell sharplyUnemployment increasedNo changes occurred