The year of 1929 began a time period of horror in America. It was the
beginning of the great depression. A time in which many lost their jobs became
homeless, and went hungry. Many people had to live off the nutrition of weeds or
some worked fifty - five hours and only earned seventy - five cents. The cause
of the depression was the stock market crash of 1929 known to investors as Black
Tuesday. Black Tuesday is said to be the most shocking financial event in the
history of the united states. Not only did the stock market prices drop
drastically but the business world was brought down with it. Inflation also rose
because of the crash. The crash that occurred on October of 1929 caused
Americans to lose Thirty billion dollars and the American dollar value was 90%
less than it was prior to October of 1929. Wholesale and retail food prices
dropped 40% and farm prices dropped over 60%. About four million families were
left unemployed and on relief support only receiving fifteen dollars a month.
Because of the crash the government was required to set new regulations
regarding stock market trade. The reason for this was to attempt to prevent
another stock market crash from happening in the future. The depression brought
about many problems not only did people have to worry about unemployment they
also had to worry about crime. Many Americans tried to get easy money by taking
part in robberies kidnappings and murders. In 1935 criminals out numbered
carpenters four to one, grocers six to one, and doctors twenty to one. In the
mid west, crooks with shot guns and Tommy Gun were a common thing. In large
cities the criminals were making money off of extortion prostitution and auto
theft. GREAT DEPRESSION TIMELINE 1929 Herbert Hoover became president Stock
market crash begins on October 24 investors call October 29 Black Tuesday Losses
for the month are sixteen billion congress passes Agricultural Marketing Act to
support farmers until they can get on their feet 1930 By February, Federal
Reserve cut prime interest rate 6% to 4% The smoot-Hawley Tariff passes on June
17 Democrats gain in congressional elections but still don’t have majority The
GNP fails 9.4% and unemployment rate climbs 3.2% to 8.7% 1931 A second banking
panic occurs in the spring The GNP falls another 8.5% Unemployment rises to
15.9% 1932 This year and next year are the worst of the depression GNP falls a
record 13.4% Unemployment falls another 23.6% Congress creates the
reconstruction finance corporation Congress passes the federal home loan bank
act Congress passes the glass steagall act of 1932 1933 Roosevelt inaugurated
Third banking panic occurs Congress passes the Emergency Banking Bill,The farm
credit Act,and National Industrial Recovery Act 1934 Gnp rises 7.7% Unemployment
falls 21.7% 1935 GNP rises 8.1% Unemployment falls 20.1% 1936 GNP rises 14.1%
Unemployment falls to 16.9%