HIST 221 Chapter Notes - Chapter reading: Economic Reconstruction, Mattress
19 Oct 2018
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Document Summary
People don"t really understand the mechanics of banking, but use banks for deposits and cheques. When you deposit your money it doesn"t go into a vault it goes into investments and loans in order to keep the economy going. A small part of the money is kept in currency. The total amount of the currency in the country is a small proportion in the banks in the country. Because of lost confidence in the banking system, there were people taking their money out from the bank. The rush was so big that the banks couldn"t get enough currency to meet the demand. The national bank holiday was the government economic reconstruction. There was a program of rehabilitation of the banking system. The banks are to continue their functions - the bank holiday was an inconvenience but it allows them to supply the currency that people want to take out.
