The Collapse Of Black Tuesday In The 1900's

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What’s horrifying for a businessman is to see the stock market crash. On Tuesday, October 29, 1929, the United States stock market suddenly and completely collapsed. A renowned historical disaster, Black Tuesday, is attributed by many historians to be the start of the worst financial crisis in U.S. history, The Great Depression. The Great Crash itself had a devastating impact. Hundreds of banks failed, and because bank deposits were uninsured, their depositors lost some or all of their money. What actually caused black Tuesday to happen? Part of the tantrum that caused Black Tuesday to happen was resulted from how investors used the stock market back in the early 1900’s. Back in the early 1900’s or specifically the 1920’s they didn’t have as much information as they did today, nor did they have the technological advances. Stock prices weren’t on computers, they were on tickertape machines. Machines that printed out stock prices on a slip of sheet. When stock prices plummeted on Black Tuesday, panic followed because no one had ever experienced a dramatic stock drop as this. The tickertape machines couldn’t keep up with the pace of falling stock prices. It was pandemonium on…show more content…
The Federal Reserve thought it would come to the rescue by increasing the value of the dollar. How did it do this? By raising interest rates, this slowed down the economy. Without funds to grow, businesses started firing workers, leading to a vicious downward economic spiral that became With the causes and effects of Black Tuesday, businessmen changed their attitudes on economy; the role in economy changed too. Businessmen and political leaders were more eager to change history and improvise so that this wouldn’t be a repeat in history. Franklin Delano Roosevelt, the president, at the time took into account many things and advised for a special unit to watch over the stocks. With many changes to come, people and businessmen were reassured to know that the government was going to help
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