![]() The FDIC guaranteed the safety of deposits and raised the public's confidence in the banking system. Some would accept a cattle contract as collateral, for example, a practice most city banks would consider too risky.Īfter a number of banks failed during the Great Depression, President Franklin Roosevelt's New Deal reforms included the Federal Deposit Insurance Corporation (FDIC). In the early 1900s, leading citizens in rural areas began to form banks to serve the particular needs of their agricultural communities. The bonds could be purchased in small amounts, and banks welcomed those with moderate means who became first-time investors.įarmers typically asked their merchants to handle basic financial matters, or they traveled long distances to reach city banks. Families entrusted their silver pieces to the bank every summer. ![]() ![]() Posting machines soon replaced hand-written ledgers as a way to create more viable records of deposits and other transactions.ĭuring World War I, the federal government created savings bonds to raise funds for the war effort, and banks administered the program. Banks like the Mercantile Trust & Deposit provided impenetrable vaults to safe-guard valuables. The Federal Reserve was established in 1913 to further stabilize the nation's monetary system. ![]()
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