The author included the information about 1920 and 1925 because that was the time the U.S economy expanded rapidly, The Roaring Twenties. Until 1925 there wasn’t legal requirement to separate the operations of commercial and investment banks, the investment banking was consisted of <em>JP Morgan & Co, Kuhn, Loeb & Co, Brown Brothers and Kindder, Peabody & Co</em>. Their funds could be used to fund the underwriting business of the investment baking side.
In 1929 everyone was putting their savings into stocks, not only the wealth part but the poor part too and because of that the stock market reached the peak in August 1929. But than the production declined causing unemployment and with that the stock prices were much higher than their actual value. The economy was struggling, the debt was rising and the banks had and excess of large loans that couldn’t be liquidated.
In the 1930s over 9,000 banks failed because people didn’t trusted them to put their saving. The Great Depression the official unemployment rate was 25% and the stock marked declined 75% since 1929. But in 1933 now with Rooselvet’s administration he took immediate action about the economic woes first announcing that all banks would close, Bank Holiday. The Congress would pass reform legislation and reopen the banks. In “<em>first 100 days</em>” Roosevelt’s administration stabilized the industrial and agricultural production and created jobs and also created the Federal Deposit Insurance Corporation (FDIC) to protect depositors’ accounts and the Securities and Exchange Commission (SEC) to regulate the stock market and prevent what happened in 1929.
The big change between the crises in the 20s and 30s were all about who was in charge, President Hebert Hoover didn’t take much lead about the crises but Roosevelt did.
Answer:
Federalists believed in a centralized national government and believed in the making of the Constitution.
Answer:
1. The government could not make laws under the Articles but would be able to under the Constitution.
Explanation:
The Articles of Confederation mandated the passage of constitutional law to entail the consent of at least nine of the thirteen states, and the adoption of an amendment mandated unanimous approval. This has made lawmaking difficult. this reflects the ineffectiveness of the government to make laws because more power was vested in state governments. Furthermore, each State has been granted the right to decide whether or not they wish to follow certain laws. On the other hand, federal government became more strong under the new constitution.
English ships sailed into New Amsterdam and occupied the land, demanding the area from the Netherlands. Soon after the Second Anglo-Dutch war followed. At the treaty of Breda, it was decided that England would get to keep New Amsterdam which was renamed into New York while the Dutch would get sugar plantations in Suriname.
Answer:
Democracy.
Explanation:
Democracy originated in Ancient Greece.
