Between 1929 and 1933, the public drastically increased its cash holdings by 31%, while commercial banks experienced minimal changes in their reserves. Surviving banks managed to accumulate excess reserves; however, there was a significant decline in both commercial bank deposits, which fell by 37%, and loans, which dropped by 47%. This period is characterized by a severe financial contraction that transformed the economic landscape.

The statistics highlight the devastating impact of this 'great contraction'. The public's gain of $1.2 billion in cash came at a staggering cost of $15.6 billion in lost bank deposits and $19.6 billion in reduced bank loans. This contraction represented about 19% of the Gross Domestic Product (GDP) from 1929, illustrating the dramatic consequences of the economic turmoil during that era.