U. s. bank failures reached around 600 per year in the early 1930s because

Answer: Too much money was loaned out to people for risky investments.

Explanation:

One of the major reasons for the crash in 1929 was an unbelievable use of margin. The margin requirements were only 10%. As the people had less and less money to spend, banks began to fail at alarming rates. On an average, more than 600 banks failed each year between 1921 and 1929.