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Safety Fund System : ウィキペディア英語版 | Safety Fund System
The Safety Fund System was one of many banking systems created after the failure of the Second Bank of the United States and before a national banking system was established. Other notable systems include the Suffolk System, the free banking system and the Forstall System.〔Holdsworth 1971, p. 28〕 The Safety Fund System was the nation's first experiment in bank liability insurance.〔Bodenhorn, Howard. “Antebellum Banking in the United States.” EH.Net Encyclopedia, edited by Robert Whaples. March 26, 2008. 〕 It was enacted by the New York legislature in 1829 and it began to fail following the Panic of 1837.〔Holdsworth, John T.. Proceedings of the Academy of Political Science. Vol. 30, No. 3, Control or Fate in Economics Affairs (May, 1971), pp. 23-36 〕 ==Background== Throughout the antebellum period, there were several attempts to establish appropriate banking controls by employing different systems. These different experiments helped the banking industry decide which kinds of regulations worked and which ones did not. The number of banks increased from 327 to 1,562 in this time and total loans increased from just over $55.1 million to $691.9 million. Bank supplied credit also increased at an average annual rate of 6.3 percent.〔 The financial sector was increasing rapidly and the government saw fit to place regulations on the banks. Most of these regulations were at the state level because of the federalist views held by the Jackson administration.〔
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