For example, they want to have their assets accessible in a transferable form, like money. Hoarding money is not the same as putting money in a savings account, because that is like lending money to someone else to spend. Just hoarding cannot cause a recession or depression. As long as prices and wages go down to compensate for the loss of money in the economy, then there will be no problems. This can even bee seen as a good thing to some, who don't hoard, but would benefit from the lower prices. For a country with a gold standard, the hoarding of money could be disastrous.
During this time period, America had a 100 gold standard for its money. In other words all cash was backed up by a government promise to exchange it in a spec