Kings Unit 6

Thursday 31st October, 1929

Economy

Millions of  losses in the bank crash

More than four thousand millions of dolars were discounted and more than two hundred sixty thousand actions of different companies were lost. At the end of last Thursday 24th, the fall was only 12 points, hardly nothing, but it had left in the most complete ruin to many American families.

People in New York after the bank crash

All started the previous year when there was a stagnation of consumption, so that the income of the companies did not offer the desired benefits to the producer.

In March of this year the strong increases continued, however, they began to circulate rumors that the Federal Reserve prepared measures that could mitigate possible economic recessions. 

The 25th of march of this year, the index fell 9,5 points. The scare was quickly forgotten and soon the Stock Exchange began to rise again with force. It was just a fall before continuing to climb, thought most. On the other hand, some investors took advantage of the two days of falling to buy "cheaper".

Colapse in Wall Street.

Then a few months later on Wednesday 23 of October, the stock market suffered a major blow by lowering in a single session 31 points (almost a 7%). That day was only an omen of what would happen the next day: the fateful and remembered Black Thursday of Wall Street.

On Thursday, October 24, according to historians, it was the first day of panic. That day 12 894 650 actions were transferred, many of them at prices that destroyed the dreams and hopes of those who had possessed them.

On Tuesday, October 29, confirm these suspicions less and less unfounded. The total collapse was an imminent reality. Millions of investors saw themselves from one day to the next in economic ruin: the New York Stock Exchange, the most important stock market in the world, had fallen.

The worst part of this unfortunate fact are the numerous suicides of presidents of various companies when they discovered that their actions had gone down dramatically.

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