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

By Harold Bierman Jr. | Go to book overview

CHAPTER 9
An Overview of the Causes of the Crash

The market reached a peak on September 19, 1929, and then started to slide. But the crash actually picked up momentum on October 3. On that day the news report of the talk by Philip Snowden, the British chancellor of the exchequer, concerning the "orgy of American speculation" was reported by the newspapers. The Hatry collapse was old news by October 3, but the consequences to British investors were still relevant.

On August 8 the Federal Reserve Bank of New York increased the rediscount rate from 5 to 6 percent. This increase was approved by the Federal Reserve Board and was the strongest action taken by the board since its letter of February 2, 1929, to all Federal Reserve Banks. The February 2 letter stated, "A member bank is not within its reasonable claims for 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" ( Bierman, 1991, p. 100). Both of these actions were reinforced by repeated messages from the members of the Federal Reserve Board for banks not to make loans to support speculative investments, reducing the inclination of the New York banks to finance broker loans.

In September stock prices peaked and started a slight slide. The action of the New York Federal Reserve Bank to increase the discount rate from 5 to 6 percent on August 8 was not a significant

-133-

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
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

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

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

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
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 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.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, 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." (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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.