The Causes of the 1929 Stock Market Crash: A Speculative Orgy or a New Era?

By Harold Bierman Jr. | Go to book overview

CHAPTER 4
The Week of March 25, 1929

Secretary of the Treasury Mellon opened 1929 with a statement for the January 1 newspapers. The New York Times (p. 26) headed a column with "Mellon Optimistic on Business Trend." His comments were eagerly awaited by the investment community. Mellon did not make frequent announcements. The Times said the comments were awaited "with unusual interest because of the unprecedented speculative activities on the Stock Exchange." The closest Mellon came to commenting on the state of the stock market was in reference to interest rates: "High interest rates in the open market, due to the speculation on the Stock Exchange, forced the Treasury during the year to pay 4 ¾ per cent in selling one of its short-term issues."

In February the Federal Reserve Board sent out its famous letter dated February 2, 1929, to all Federal Reserve banks. The objective was to tell all members banks that a bank could not use the rediscount facilities at its Federal Reserve Bank "when it borrows either for the purpose of making speculative loans or for the purpose of maintaining speculative loans." This letter alerted the participants of the New York Stock Exchange that the board believed that there was too much stock market speculation. Member banks were urged not to borrow from the Federal Reserve Bank to finance stock market speculation.

-41-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Causes of the 1929 Stock Market Crash: A Speculative Orgy or a New Era?
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Tables vii
  • Preface ix
  • Acknowledgments xiii
  • 1 - Was the Stock Market Too High? 1
  • Conclusions 17
  • 2 - The Hatry Case and the 1929 Stock Market Crash 19
  • Conclusions 27
  • 3 - The Attempts to Stop the Speculators 29
  • Conclusions 38
  • 4 - The Week of March 25, 1929 41
  • Conclusions 50
  • 5 - Significant News and Dates in the Month of October 1929 51
  • Conclusions 69
  • 6 - Investment Trusts and Margin Buying 71
  • Conclusions 83
  • 7 - The Public Utility Sector 85
  • Conclusions 100
  • 8 - The Accused 103
  • Conclusions 131
  • 9 - An Overview of the Causes of the Crash 133
  • Conclusions 142
  • 10 - The 1929 Market and the 1990s 145
  • Bibliography 153
  • Index 157
  • About the Author 163
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 170

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.