causes of the great depression topic 19
TRANSCRIPT
Causes of the Great Depressionwww.buschistory.net Topic 19
James Byem• January 1927• Newlywed• Uses the new
“Installment buying” from the Department Store• “I can have anything I
want and only pay a little each month.”• New apartment. Wants
nice things
Harold Bildit• March 1927• Factory owner – 500
workers• Builds chairs, sofas,
refridgerator• Business was good –
“couldn’t turn them out fast enough”• “Business is slowing now
- but I’ll keep producing, I want to be ready when business picks up”
Emma Saveit• August 1927• Retirement savings are in
the bank – “I don’t trust the stock market – banks are safe!”• $5000.00 in the bank on
Main Street – “My Life’s Savings!”
Leonard Ditz (Len Ditz) • December 1928• Loan Officer – Main Street
Bank• “I like this new Margin Buying
for stocks”• “People borrow money from
me to buy stocks and pay it back when the stock price rises.”
• “I lend 90% of the value and the borrower puts up 10%”
• “I have lots of money to lend – I’m the bank!”
• “I Work on Commission.”
Ima Sucker• Feb. 14, 1929• “All my friends are
buying stocks… I will too.” • “It’s like a game – and
the bank will lend me the money.”• “I have almost nothing to
lose – 10%.”• “I like playing with
money like this.”
Zeke• July 1929
• “I love this land. My Father and Grandfather farmed here before me.”• “I had some great years.
Borrowed some money and bought some new tractors.”• Prices are dropping• Produces more
Bent• Sept. 1929• Mill worker – 12 hours a
day• $.18 per hour• “ My Boss has stocks,
railroads, and even owns some buildings.”• No savings
In Summary• James Byem – using
credit poorly. Too much borrowing• Harold Bildit –
Overproducing. Keeps paying workers to make more. • Emma Saveit – Blind
trust in the Bank
• Len Ditz – Risky Lending• Ima Sucker – buying
stocks w/o understanding• Zeke Peferlee –
overproducing to pay debt, driving prices down• Bent – innocent victim,
boss is heavily invested