crisis

Stock Market Crash of 1929

October 29, 1929

Stock market collapsed, triggering the Great Depression

great-depressioneconomicscrisishoover

Historical Significance

Began the worst economic crisis in American history

Causes

1.Stock market speculation
2.Easy credit and margin buying
3.Agricultural overproduction
4.Unequal distribution of wealth

Effects

1.Great Depression began
2.Unemployment reached 25%
3.Bank failures widespread
4.Led to New Deal reforms

Key Figures

Herbert Hoover

President

President during the crash and early Depression

Primary Sources

New York Times Front Page - Black Thursday (1929)

New York Times ()

newspaper

"STOCKS COLLAPSE IN 16,410,030-SHARE DAY, BUT RALLY AT CLOSE CHEERS BROKERS; BANKERS OPTIMISTIC, TO CONTINUE AID. The stock market yesterday went through its worst storm of liquidation in the memory of the present generation of financiers, and the number of shares that changed hands set the terrifying total of 16,410,030... The losses represented by the decline in prices were staggering, running into billions of dollars."

President Herbert Hoover's Statement on the Economy (1930)

Herbert Hoover ()

speech

"Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body—the producers and consumers themselves... The best contribution of government lies in encouragement of this voluntary cooperation in the community. The Government—Loss of confidence in the future leads to hesitation. Hesitation leads to unemployment. The real victory is to be won by the restoration of confidence, by the revival of spirit."

Related Events

The New Deal

FDR's program of economic and social reforms to combat the Great Depression

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