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Yes, with the depression grabbing tight hold on the nation, there was no chance movie theaters were going to invest in expensive widescreens and the necessary refurbishing of theaters during that terrible period especially after they had already incurred great expense putting in sound equipment...

Of the two, Cinerama came first, but Fox had Grandeur (early progenitor of Cinemascope) decades earlier and released films in the process. Other widescreen processes were also used during the silent era.