All of your song (and other media) files are still on your computer's storage (and likely to be fine), even if the iTunes library (database) file has become corrupted. If you use the default iTunes settings for where media files are stored, they are located at
[startup disk]/Users/[user account folder]/Music/iTunes/iTunes Media
NOTE: In some cases, that last folder is called iTunes Music.
That iTunes Media folder has sub-folders for each media type. Songs are in the Music sub-folder (in iTunes Media), organized by into additional sub-folders by Artist name and then Album name. Take a look using Finder, to confirm they are there.
The Previous ITunes Libraries folder has backups of your iTunes Library.itl file. These backups are made by iTunes, when you install a major update to iTunes. The backup allows you to recover, if you have problems with the new version. What you probably did was this procedure (or something close to it)
If you don't see your content after you update iTunes - Apple Support
Do you use the built-in Time Machine feature to back up your data? If you do, you can restore your iTunes Library.itl file to a version just before this corruption occurred. That would be ideal.
Otherwise, I see these choices, and none are ideal.
(1) Start with a brand new (empty) iTunes library. Use the Add to Library command to import your entire iTunes Media folder. If all of your existing media files are stored in that iTunes Media folder, you should have all of your songs (and other media) in that new iTunes library. However, you won't have any of your playlists, so you'll need to recreate them. You also won't have any "history" data, such as play count, ratings, date added, etc.
(2) Use the procedure linked above to go back to the last available backup of your iTunes Library.itl file. Manually add missing songs (and other media) from the iTunes Media folder. This could be a pain, if you added "more than 1000 songs" since that older version of your iTunes library. And you'll need to recreate missing playlists too.
(3) Use this method (linked below) to "rebuild" your iTunes library using the .xml files, if that file is fairly recent. If it's old, option (1) is better. If it's called "iTunes Music Library.xml," it may be MUCH older than the last available backup from option (1). But if it's recent, this article provides a good description of how to "rebuild" your iTunes library using the .xml file
http://www.mcelhearn.com/how-to-rebuild-your-itunes-library/
Please post back with any questions about the above.