The Wall Street Crash

• On Thursday 24th October 1929, lots of selling on the New York Stock Exchange forced prices down and more sales of shares
• On the 24th October 1929, Radio Corporation of America fell from 68.75 points to 44.5
• Panic began as the trading floor couldn't keep up with the falling prices and the police had to be called to restore order
• Initially, six bankers agreed to put up $40 million to help the market and vice-President of the Stock Exchange was buying stock above current prices to try to restore confidence in the market
• By the end of the Thursday, the market had lost 9% of its value and there had been 13 million transactions, rather than the usual 3 million
• After Thursday, calm was restored for a short time
• On Monday, the Dow Jones Industrial Average showed a 38 point drop. This time, bankers did not step in to protect the markets
• On Tuesday 29th October 1929, Wall Street crashed, 16 410 030 shares were sold and the Dow Jones Industrial Average fell another 30 points
• A few weeks after the crash, $30 billion had been lost
• After the crash, the Rockefellers lost over $50 million and Clarence Mitchell's bank lost half its assets
• No-one could afford to consume or invest further, leading to a drop in the consumer demand that had led to the 1920s prosperity
• Credit collapsed and loans were called in, leading to a credit squeeze. Business and financial activity reduced