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The brand new Given had to keep gold reserves appreciated during the 40% of the Federal Reserve Notes (paper dollars) it given, also to redeem distributions within the gold during the a fixed rate. The new reserves have been sufficient to backstop distributions inside typical moments, however the ages following the 1929 stock-exchange crash were not regular minutes. Home-based and you will international depositors hurried so you can withdraw its silver; banking institutions went out; plus they was required to intimate the doors.

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