Sunday, July 15, 2012

Debt Consolidation And The National Emergency Banking Act Of 1933

In these recessionary times, it is somewhat cautionary to look back in time to when a dollar was a dollar and gold was precious. When President Franklin Delano Roosevelt was inaugurated, the National Emergency Banking Act was passed to go into effect on the inauguration day. In those tumultuous days, regular citizens had been unable to withdraw their own money from their accounts at the various banks, and when they could, it was no where near worth what it was when it was first deposited.

Bank Holidays

Because of this situation, a so-called bank holiday was declared in effect to allow the national financial institutions a chance to get back on their feet so they could better serve the regular citizenry. As the Great Depression started having its way with the country finances, the banks were running out of paper money. And the paper money was becoming more and more worthless with each passing day. Of course, the citizenry were upset, even angry, about this unacceptable circumstance.

National Emergency Banking Act

Thus, the Congress passed the National Emergent Banking Act. The Federal government was afraid of the civil and political turmoil that might wash through the streets of American urban centers. The redundancy of the banking situation forced the Feds to what they felt they had to do and that was to open up business using gold as the measure of worth for business and other legal transactions.

Like Nowadays

The state of our economy today was not that much different than at the beginning of 1933. But back then the Federal Government had recourse to let citizens use their gold for paper money of equitable worth. The citizens were urged to turn in their gold. At first they were offered the value of .22 for an ounce of gold. Ultimately, conditions warranted offering .00 for each ounce.

Anger and Resentment

The anger and resentment toward the Federal Government then with these hard-working and honest folks wanting to get their money back from what they saw as worthless banks, is akin to what the Federal Government is leaning towards today in the overdone American financial scene today. Sometime soon, the Federal Government may call another bank holiday, but the consequences may be a little more frightening than the jail term expected in 1933.

Resources for Consolidation

Importance rests in looking for a debt consolidation or assistance firm that will help improve your financial situation and, hopefully, the quality of your life. You must consider many things before choosing the properly helpful debt solution to meet your varying needs. Great care should be taken when choosing the best debt counseling, consolidation, and assistance services. Any firm that says that they can make your debts vanish is not to be trusted. These sort of firms cannot help you re-establish your financial reputation. If a firm has the term Credit Repair in its title or its advertising materials, look elsewhere. These companies cannot instantly dissolve your debts.

You should shop around, starting with the internet would be most helpful in procuring a debt assistance or management firm to best suit your needs. Rates or fees charged can vary considerably, so shop with an eye on those with the lowest. Also check their business standing with the Better Business Bureau as well as online personal finance forums.

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