1. The Stock Market Crash OCTOBER 1929

2. Essential Questions n What were the key events of the stock market’s Great Crash of 1929? n Who, and to what extent, was affected by the Crash? n What were the main causes of the Great Depression?

3. Key Events n The Dow Jones Industrial Average soared from 191 in early 1928 to 381 on September 3, 1929. n This was due to rampant speculation.

4. Key Events - Black Thursday n Stocks began to fall slowly through September an into October. n Oct. 23 - DJIA lost 21 points in one hour. n Thursday, Oct. 24 - Stock selling continued. GE stock fell from $400- $283 per share.

5. Key Events - Black Tuesday n Tuesday, Oct. 29 - 16.4 million shares sold. n By November 13, the market had fallen from its 381 high in September, to 198.7. n $30 billion in losses was the result.

6. Crash Affects Millions n 4 million investors out of a population of 120 million were immediately hit. n Triggered the Great Depression. n Felt by Americans & spread around the world.

7. Crash Affects Millions n 1931 - Henry Ford closes Detroit automobile factories, leaving 75,000 jobless. n 1932 - 12 million unemployed. 25%. n Gross National Product: n 1929 = $103 billion n 1933 = $56 billion

8. Crash Affects Millions n Farmers hit hard. n Already low prices fall further. n Bushel of wheat n 1929 = $1.04. n 1933 = $0.38. n Cotton n 1929 = $0.17 lb. n 1933 = $0.06.5 lb.

9. Crash Affects Millions n By 1933, 5,500 banks close. n 9 million savings accounts vanish.

10. Crash Affects Millions n After WWI, U.S. demands repayment of loans to France & Great Britain. n Both relied on war reparations from Germany. n Reparations stopped = stoppage on war loan payments.

11. Cause and Effect: The Great Depression n Causes: –Economy out of balance –Increasing debt –Over speculation –Overproduction –Tight money policy –Stock market crash in October, 1929 n Effects: –Millions lose their jobs –Gross National Product falls dramatically –Many banks fail –Increased poverty leads to health & social problems –Global economy suffers