Wall Street Crash

Reasons for the Crash

Speculation- stocks could be bought on "credit"
Market saturated- credit meant that everyone could take part
Overproduction- efficient industry, too much to sell
Trade- Europe placed high tarriffs on US goods (because of Forndey-McCumber Law)
Poverty- farmers, black Americans, immigrants and industry workers were still poor
Small Banks- did not have resources to cope with panic after crash

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19th October- heavy trading, prices fell
21st October- prices fell, rose again as people bought
22nd October- prices rose slightly
23rd October- heavy trading in cars spread to others, people tried to sell all, people tried to pay back credit
24th October- Black Thursday, prices dropped, panic
25th October- Top bankers met and decided to support stocks, prices steadied, even rose
26th October- President Hoover gave speech
28th October- Heavy trading, prices dropped
29th October- Buyers not found, values lost, panic

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Loss of $30billion in 1 week
20,000 companies bankrupt- 1,616 banks, by 1933 wages fallen by 60%, production by 40%
12 million people out of work- 12,000 a day, by 1933 unemployment risen to 25%
1 farmer in 20 evicted
23,000 people committed suicide in 1 year

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