In October 1929, stock market crashes sent people running to retrieve their money in banks before they lost it all. As stock prices plummeted, so did people's trust in the U.S.'s banking system. Loans had left banks with little money in reserves, so few actually got back the money they deposited. This crash began a long, unfortunate chain of events.
This Brooklyn Daily Eagle story on the stock market crash illustrates the urgency of the situation in their article 'Wall St. in Panic a Stocks Crash' from October 24, 1929. During October when prices were dropping like stones, many newspapers just like this one had headlines updating nervous Americans on the state of turmoil on Wall Street. Investors hurriedly tried to sell their stocks, the situation worsened. The viscous cycle left people all over the country in 'panic' as this article vividly shows with its use of bold words. Notice that things were going downhill so fast and the situation was getting so bad that a story on the assassination is placed below the stock market headline in much smaller type. The newspapers recognized the influence of this fatal event on the economy, and they were right. The stock market crash created an awful domino effect. The Brooklyn Daily Eagle clearly illustrates the feeling of horror that the stock market crash evoked for the whole U.S.
The Daily Mail was another newspaper that emphasized the impact of the Stock Market Crash. It claims the Stock Market Crash was the 'Greatest Crash in Wall Street's History' in its article from October 25, 1929. Just the title of this work screams of the importance and urgency of the crash to the reader.
|
This photograph from October 24th, 1929 was titled 'Bank Run' by its unknown photographer and shows the sheer panic people felt in trying to retrieve their money. People rushed to the banks to grab their money, hoping they wouldn't be too late. The Millbury Savings Bank had a line outside and around the block one day, when people had heard that nearby banks were running out of reserves. Not wanting to get caught in a bankrupt situation, people went to the banks, hoping for the best.
The Hawley-Smoot Tariff was passed to try to improve the US's economy by limiting outside trade. As expressed in this image from 1922 (no artist or title), however, it was an issue. Other countries retaliated with tariffs, essentially halting all trade and damaging economies around the world
As these images show, the stock market crash sent people into panic to get back their money. The banks only had so much, however, and many were left penniless. This caused a lack of trust in the banking system and it all collapsed. This poverty and bank system crash led to unemployment. In hopes to improve the U.S.'s internal economy, the Hawley-Smoot Tariff was passed, making it hard for imports and exports to be obtained. Instead of helping, it created a Global depression. Other countries retaliated with other tariffs, so world trade was shut down almost completely. War dept could not be paid and people all around the world were living in poverty. Who knew that a stock market crash could do so much damage?