The Bank Holiday of 1933 at Princeton University

Franklin Delano Roosevelt was inaugurated President of the United States on Saturday, March 4, 1933. Immediately following his inauguration weekend, at 1:00 AM on March 6, Roosevelt issued Proclamation 2039. This action ordered all banks in the United States to close. No one would be able to withdraw, transfer, or deposit money between Monday, March 6 and Thursday, March 9. But even after some banks were allowed to reopen, those deemed to be in danger of failing would remain closed until they were deemed sound. This emergency measure was intended to prevent runs on banks that would cause a catastrophic ripple effect throughout a fragile economy, giving Congress time to pass legislation to shore up the nation’s banking system. On March 9, they passed the Emergency Banking Act. Gradually, banks reopened, now backed by the Federal Reserve. If a bank failed, account holders were insured against the loss, removing motivation to withdraw and hoard government-issued scrip.

In the interim, citizens all over the United States scrambled to find solutions to the problems that nearly a week or more without access to currency, without warning, would cause. One popular solution was for individuals and private corporations to issue their own scrip to circulate locally. Newspapers, in particular, commonly offered scrip, because they had ready access to printing presses.

Scrip_AC285_Box_2

Daily Princetonian scrip, 1933. Daily Princetonian General Records (AC285), Box 2.

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