According to the lecture, what was a major problem faced by banks in the West before the Federal Reserve System was established? How did the system help solve this problem?

Compared to his other achievements, the formation of the Texas Railroad Commission is good because the much needed regulation of railroads and such from potential extortion by corporations. This was important because it protected consumers from excessive rate costs and unfair railroad railway practices. The TRC had another goal in mind as it took pride in carefully taking care of railroads leaving room for economic growth that would positively impact the economy. Not only that, but in the future years the TRC would soon regulate much more than just railroads, soon handling pipelines along with oil and gas. Through time, the TRC also took part in several movements making Texas better. This was all because of Governer Hoggs approval and belief that the TRC was for the betterment of Texas.

Explanation:

For example,Before the establishment of the Federal Reserve System, the West was had financial problems. There were instances ok which there were a form of crises which led to fears and worries by bank customers. The people ran to their banks to withdraw their deposits. The failure of one bank often had a ripple effect in which customers of other banks rushed to withdraw funds from their own banks even if those banks were not involved in the crisis.

Banks needed a source of emergency reserves to prevent customer fears and banks being driven out of business. Federal Reserve System was created to tackle these banking issues and also to make possible fostering a sound banking system and healthy economy.

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SAMPLE RESPONSE:

Prior to the establishment of the Federal Reserve System, banks in the West dealt with a chronic lack of cash on hand. Cash was concentrated in large banks in the East. This made it difficult for western banks to serve customers that wanted to withdraw money from their accounts. This problem was solved when regional reserve banks were established. These banks could make sure that the banks in their region had the cash they needed when they needed it.

Explanation:

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first industrial revolution - the first wave of the industrial revolution lasted from the late 1700s to the mid-1800s. it industrialized the manufacture of textiles and began the move of production from homes to factories. steam power and the cotton gin played an important role in this period.