were bank funds insured before the great depression?
547673
No, the FDIC was formed later.
124335
FDIC insured bank accounts. T-Bills (Treasury Direct).\nBe very careful of answers you recieve on this system that direct you to a web site!
737766
Social insurance\n\nBefore government-run social insurance programs were enacted, private groups had developed the concept of shared risk. In ancient Greece and Rome there were burial societies to which people contributed regularly to ensure that upon their deaths they would be buried with dignity. Some Medieval guilds had programs under which members contributed to funds which were drawn upon when members were no longer able to work, or died. In more recent times, some fraternal organizations and labor unions had similar programs. Many of the systems in continental Europe were developed, not through the state, but through occupational, mutualist and voluntary organisations.\n\nThe first state-run social insurance program paying retirement benefits was implemented in Germany in 1889 by Chancellor Otto von Bismarck. Bismarck sought to hold back the historical wave that was building in support of socialism across Europe at the time. His system was funded with payroll taxes paid by the employee and the employer, along with contributions from the government. It also included a disability benefit. Today such programs are common, though not universal, among developed countries. They often include features of the initial German system.\n\nIn the United Kingdom the first contributory pension scheme was enacted in 1911, enthusiastically supported by Winston Churchill who described the social insurance principle as "bringing the miracle of averages to the rescue of the millions". Subsequently, the Beveridge Report of 1942 offered the main alternative model. Beveridge attempted to make insurance the basis for a comprehensive, universal scheme covering all the main social needs. President Franklin Roosevelt described the ideal social insurance system as one which provided economic protection "from the cradle to the grave."\n\nSocial security is seen as providing assistance to retired workers, often in the form of a superannuation system that provides a pension from a fund to which workers and their employers (and in most countries the government) have contributed throughout their working lives. Workers may also contribute to some form of insurance scheme that provides income and assistance in the event of injury or illness for them and their families. While the scheme may be compulsory, the contributions or historic income often determine the level of support provided, once basic eligibility criteria such as age or inability to work are established. In most of the developed "first world" countries, social security also includes a system of universal health care.\n\nAnd That's My Best Answer!
763112
During the 1920's in the US the economic boom lead to a great number of investors in the stock market. The laws applying to the purchase of stocks allowed for the purchase of stock on margin.  This meant a small amount of money was put down and the rest was held on credit.  Much of the debt was foreign, in loans to European nations who were struggling to recover from World War I. The market did not generate sufficient cash to meet the increased value of stocks.  As the investors took "profits" the market became more and more strapped for cash.  When US banks tried to call in foreign loans the nations were unable to pay. The lack of cash resulted in the rapid decline of stock values and lead to the crash of 1929, bringing about a world wide economic depression in which many people lost all they had.
629513
$100,000 bills don't exist anymore and were only ever issued as gold certificates, used to transfer money between banks. They were all purchased by the government by order of FDR in 1933 and subsequently used for intragovernmental transactions. It had Woodrow Wilson on the front and $100,000 in numbers and words on the back. See the page below for pictures.
331671
.\n.\n.\nIn the beginning the Bank was the Government's banker; managing the Government's accounts and providing and arranging loans to the Government. It was also a commercial bank, dealing in bills - the then total equivalent of overdraft finance, furnishing finance for trade and took deposits and issued notes. The concept 'credit' or imaginary money' emerged during this period also. It was realised that money could take on new forms, possess no intrinsic value and yet still retain qualities to fulfil payment obligations. Therefore at the same time that the National Debt was born, paper money came into existence. \n\nDuring the 18th and early 19th centuries great demands were placed on the Bank for finance; the National Debt grew from £12 million in 1700 to £850 million by 1815, the year of Napoleon's defeat at Waterloo. However, in creating credit-issuing notes that were not fully backed by cash (gold) in hand, but were partly supported by credit given to the Government or by commerce - rendered itself liable to its depositors wanting all their money returned at once. The Bank therefore, needed to retain a prudent reserve of gold to ensure liabilities could be met on demand. This can be seen as the beginning of a policy of monetary stability. \n\nEventually, though, prudence and discretion proved insufficient. The Bank was the nation's bank, and at times of natural crisis its gold reserve was needed for national purposes.\n\n.\n.\n.\n\n1946: Bank of England nationalised\nNationalisation, after the Second World War, made little immediate practical difference to the Bank. The Bank remained the Treasury's adviser, agent and debt manager. During and for years after the war it administered exchange control and various borrowing restrictions on the Treasury's behalf. However, a revival of interest in monetary policy during the high inflation period of the seventies ultimately led to a re-evaluation of the role of the Bank of England.\n\n1997: Bank now responsible for monetary policy and the creation of the United Kingdom Debt Management Office\nIn 1997 the Government announced its intention to transfer full operational responsibility for monetary policy to the Bank of England. The Bank was given its independence as a central bank. Debt Management on behalf of the government was continued through the creation of the UK Debt Management Office, an executive agency of HM Treasury. The Bank's regulatory functions passed to the Financial Services Authority. ( http://www.dmo.gov.uk/bginfo/bofe.htm )
834878
The enabling act for the federal reserve was passed in December of 1913, so the federal reserve was in operation before your target year.  Try the website for a history or statistical report.  You might search the Treasury Dept website for that as well.
1015453
I'm sure you could probably find it on wikipedia.com or something.\n\nBut to 4A:\n\nThe Great Depression resulted in a more secure way to organize the U.;S. economy in the furture.  Like they have to check to make sure stocks are worth what they are selling for or something like that.  People would get all of their money back if there was another depression instead of totally losing it all.
971719
No, but that is a desired outcome from their primary purpose of providing a "safer, more flexible"  banking system. (see FR mission statement referenced below)\n\nProtecting a depositors money in case of bank failure would be the main purpose of the FDIC.
989264
I was not around then but definitely studied history and this comes to mind:\n\nPresident H. Hoover, 1932 - government loans to banks.  End of November 1,493 banks have suspended operations.  \n\nIt already started crashing from the America's economy in the 1920's to a sudden end in Oct 1929 - before the Wall Street Crash.   Then America started facing economical crisis that even impacted other coutries including Germany, a country that built up their economy on American loans.  Then the wealth from the 20's was dissapearing fast.\n\nThe rich lost money on Wall Street crash. The rest of Americans could not afford to lose any money then. Afterwards, noone had money to invest nor to buy comsumer products. \n\nThere was not shopping of any kind, and stores, factories, farmers, restaurants, industries, had no reason to employ people who were making products that were not being sold. \n\nUnemployment reigned. The depression took a while to get going but by the winter of 1932, it reached his top.\n\nAt the time there where: 12 million people out of work, 12,000 people being made unemployed every day, 20,000 companies had gone bankrupt, 1616 banks had gone bankrupt, 1 farmer in 20 evicted, and sadly, 23,000 people committed suicide in one year - the highest ever in the history of the US.\n\nIn addition: we had many social problem which, in spite of being such rich country we continue to have.  They were and still are:\n\nUnemployment and poverty \nBreakdown of families\nSoaring high school dropout rates (2 to 4 million)\nHomelessness\nOrganized protests\n\nAt the time, the American people  laid the blame on:\n"Three B's" then responsible for the Wall Street Crash and the Depression:\n\nThe "Bankers"\nThe "Brokers"\nThe "Businessmen"\n\nI am not sure this answer your question but that what I thought of as soon as I saw your date onthe screen!\n\nBye....
63499
The Wall Street Crash of 1929, also called the Great Crash or the Crash of '29, is the stock-market crash that occurred in late October, 1929. It started on October 24 ("Black Thursday") and continued through October 29, 1929 ("Black Tuesday"), when share prices on the New York Stock Exchange (NYSE) collapsed. However, the days leading up to the 29th had also seen enormous stock-market upheaval, with panic selling and vast levels of trading interspersed with brief periods of recovery.\n\nThe stock market lost 40% of its value in September and October of 1929. From a high of 381.17 on September 3, 1929, to a low of 41.22 in July, 1932, the Dow Jones Industrial Average lost 89%.\n\nBoom-bust theory\nKeynesian, Monetarist, and Austrian economists agree that the Crash followed an alleged speculative boom that had taken hold in the late 1920s, which had led millions of Americans to invest heavily in the stock market, even borrowing money to buy more stock. Banks lent heavily to fund this share-buying spree.\n\nThis investment drove share prices up to artificially high levels; the rising share prices encouraged more people to invest, as they hoped the shares would rise further, thus fueling further rises, and creating an economic bubble. On October 24, 1929 (with the Dow just off its September 3rd peak from at 381.17), the bubble finally burst and panic selling set in. Thirteen million shares were sold in the space of one day, as people desperately tried to dispose of their shares before they became worthless.\n\nOver the following few days another thirty million shares changed hands and share prices collapsed, ruining many investors.\n\nThe banks which had lent heavily to fund share buying found themselves saddled with debt, which caused many banks to fail.\n\nWhile millions of people lost their savings, businesses lost their credit lines and were forced to close, causing massive unemployment.\n\nThe crash dramatically worsened an already fragile economic situation, and was a major contributing factor to the Great Depression. There is a good deal of controversy among economists and historians about the nature of that contribution, though. Some hold that political over-reactions to the crash, such as in the passage of the Smoot-Hawley Tariff Act through the US Congress, caused more harm than the crash itself.\n\nExplanation from supply-side economic theory\nMany commentators view the Smoot-Hawley Tariff Act as a consequence of the Crash, since the act was not signed by President Hoover until June of 1930. However, supply-side economists (and others) argue that stock-market prices anticipate future profits. The Crash reflected investors’ rational expectations that tariffs would raise prices for U.S. consumers (both final consumers and manufacturers that used the imported products as inputs) and reduce firms’ future profits.\n\nSupply-siders also blame two tariff laws for the earlier, sharp recession of 1920-21.\n\nThe Crash of 1929 and the subsequent Great Depression were in part longer and deeper for three reasons: [9]\n\nThe Smoot-Hawley Tariff Act applied tariffs to more than 3,200 products (many more than the previous tariffs). \nThe tariff rates were very high — averaging 60%. \nOther countries responded by enacting their own tariffs against U.S. goods in retaliation.
350684
I just learned about this in class today. \n\nAn example would be the Great Depression. When the stock market was first 'invented', everyone put their money into the stock market because it just kept going on up. It was almost like a 'gravy train'. Because people didn't have a whole bunch of money, they would put things like their houses up for collateral for the banks. Even the banks put money into the Stock Market.As the prices rose, more and more people sold their stocks but this caused a panic because other people thought that there was something wrong with the stocks so they sold them too and asked for their money back from the banks. But since the banks had invested in the Stock Market, their stocks were losing money because no one wanted to buy them. In order to recoup their loses, the bank's called for all the collateral and loans back whick closed down factories which put people out of work and made them go to the banks to call for more loans. This pushed the banks into further debt whih caused the Great Depression. All because this little thing called the stock market came along.\n\n I don't know if that helped but I hope it did.
1152017
Hi.!!\n\nCould you explain the purpose of this question. Because that would really determine the answer. i have a huge resource of data on insurance.
240307
The stock market crash in late 1929 was widely believed to have sparked the Great Depression. The US stock market was a bubble in 1928-29 with overvalued stocks. On October 19, 1929, the Dow Jones average lost 500 points in one day. \n\nFurther, some of the nation's banks failed to maintain adequate reserves while investing in the stock market or lending money to clients who were. By 1932, stocks had declined by 80 per cent. Companies could no longer obtain finance to maintain new investment and consumers cut back spending due to declining incomes. One third of US households had been seriously affected with many breadwinners losing their jobs. \n\nSource(s):\n\nWikipedia Causes of the Great Depression\nhttp://en.wikipedia.org/wiki/causes_of_t...\nWikipedia Great Depression\nhttp://en.wikipedia.org/wiki/great_depre...\nThe Crash of 1929\nhttp://www.btinternet.com/~dreklind/thec...
224878
There are a lot of WPA projects that are still around today... The New Deal also gave us the FDLIC (government insuring our money in a bank).. that's about all that one can be certain of without conjecture...\n\nHowever, many (including myself) believe that economic policies of the New Deal extended the great depression by eliminating many of the natural market mechanisms that would have restored the economy.  In fact, the New Deal policies in many people's opinions did not end Japanese Depression, it was the advent of the WWII that did.  At this point, if one was to believe in conspiracies, one would hypothesize that FDR forced Japan to attack us and invited the attack by giving the Japanesse an easy target.  At that point, the sky is the limit as far as what things would have changed if the U.S. remained neutral for the war.
131579
Banking has always been around.  Similar to stock piling or saving for a rainy day.\n\nIt has just progressed from saving hay for the winter, to saving dollars, but it is all the same system.
13735
Probably religious temples. Jesus tried to deal with them, but they're still here. Go figure.\n\nFrom wikipedia:\n"The very first banks were probably the religious temples of the ancient world. In them were stored gold in the form of easy to carry compressed plates. Their owners justly felt that temples were the safest places to store their gold as they were constantly attended, well built and were sacred, thus detering would-be thieves. There are extant records of loans from the 18th Century BC in Babylon that were made by temple priests to merchants."