AS MILLIONS of Americans hurried to work on the morning of October 24, 1929, it seemed like the start of an ordinary day. It seemed just as ordinary to the brokers and bankers who were entering their offices on New York’s Wall Street. True, the prices of stocks had been falling for several days, but that was nothing to worry about. There were bound to be ups and downs in the stock market and prices would surely rise again. For never before had the United States known such prosperity as it did in the 1920’s. Herbert Hoover, who had become President seven months before, had said, “We in America are nearer to the final triumph over poverty than ever before in the history of any land. . . . We have not reached the goal, but given a chance to go forward with the policies of the last eight years, we shall soon with the help of God be in sight of the day when poverty will be banished from this nation.” Many Americans agreed with him. They invested their savings in stocks and just as they hoped, the price of stocks rose. To make even more money, they bought stocks on margin — that is, on credit. They knew that they could be wiped out if stocks took a sudden tumble, but why should that happen? The richest men in the country said it wouldn’t and if they didn’t know, who did? The country was booming and anyone who didn’t get rich was a fool. More and more Americans bought stocks and prices went higher and higher — until October of 1929. As the prices of stocks began to fall, people stopped buying and began to sell. The more they sold, the lower prices fell; the lower prices fell, …
Read More »Panic in Wall Street 1929-1932
