p h o to g r a p h s: b e t t m a n n /c o r b is; a p ; r...

Section:GDN BE PaGe:22 Edition Date:081004 Edition:01 Zone: Sent at 3/10/2008 19:53 cYanmaGentaYellowblack 22 The Guardian | Saturday October 4 2008 The Guardian | Saturday October 4 2008 23 How the Guardian reported the 1929 crash .. .. .. The day after ‘Black Tuesday’ .. Reporting on ‘Black Thursday’ .. .. .. ‘Black Tuesday’ continued the losses as investors tried to sell all their stocks at once. The market recorded $14bn in paper losses. The volume was so great that tickers could not keep up. By the end of the day the market was down more than 12%, another large drop. Millions of people lost their savings The bull market on Wall Street began in 1923 and led to an unprecedented period of share trading. However, by 1929 there were signs of instability. On September 3 the Dow Jones Industrial Average reached its peak, closing at 381.7. On September 5 the economist Roger Babson, right, gave a speech saying ‘Sooner or later, a crash is coming, and it may be terrific’. He had predicted a crash for years but this time the market fell. The bubble finally burst on October 24 1929. A then record of 13m shares were traded and newspapers reported losses as high as $5bn. Bankers poured money into the market and President Herbert Hoo- ver, pictured above, reassured Americans that business was sound. On October 28, European newspapers were reporting that some brokers believed the worst was over. But when the American markets opened, they went into freefall, and the contagion spread around the world. ‘Black Monday’ saw huge falls in the US stock market. America’s financial elite tried to rescue the market — members of the Rockefeller family and William C Durant of General Motors bought large quantities of stocks to demonstrate their confidence in the market but the move could not stem the tide. The market hit new lows in November, but it was not until July 1932 that it reached the lowest point of the Great Depression, down 89% from its peak. The crash led to higher trade tariffs as governments tried to shore up their economies, and higher interest rates in the US after a worldwide run on US gold deposits. In American unemployment went from 1.5 million in 1929 to 12.8 million —or 24.75% of the workforce — by 1933, a pattern replicated around the world. It took 23 years for the US market to recover. Wall Street crash The view from 2008 The percentage by which the market fell on Monday October 28, the highest one-day decline in American history 22.6 The number of banks that collapsed, with liabilities of more than 124 $50m Millions of shares sold on October 29. In the week that followed the market lost of its value 16.4 30% ‘Black Tuesday’ How it began ‘Black Thursday’ ‘Black Monday’ Battle to save the market The consequences SOURCE: DOW JONES 0 100 200 300 Jul Aug Sep Oct Nov Dec Dow Jones Industrial Average PHOTOGRAPHS: BETTMANN/CORBIS; AP; REUTERS

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Page 1: P H O TO G R A P H S: B E T T M A N N /C O R B IS; A P ; R ...image.guardian.co.uk/sys-files/Guardian/documents/2008/10/03/1929... · Section:GDN BE PaGe:22 Edition Date:081004 Edition:01

Section:GDN BE PaGe:22 Edition Date:081004 Edition:01 Zone: Sent at 3/10/2008 19:53 cYanmaGentaYellowblack

22 The Guardian | Saturday October 4 2008 The Guardian | Saturday October 4 2008 23

How the Guardian reported the 1929 crash

!!.!!."#$%.!!."#&$.!$."#The day after ‘Black Tuesday’

"'.!$."#Reporting on ‘Black Thursday’

!(.!!."#!'.!$."# ").!$."#

‘Black Tuesday’ continued the losses as investors tried to sell all their stocks at once. The market recorded $14bn in paper losses. The volume was so great that tickers could not keep up. By the end of the day the market was down more than 12%, another large drop. Millions of people lost their savings

The bull market on Wall Street began in 1923 and led to an unprecedented period of share trading. However, by 1929 there were signs of instability. On September 3 the Dow Jones Industrial Average reached its peak, closing at 381.7. On September 5 the economist Roger Babson, right, gave a speech saying ‘Sooner or later, a crash is coming, and it may be terrifi c’. He had predicted a crash for years but this time the market fell.

The bubble fi nally burst on October 24 1929. A then record of 13m shares were traded and newspapers reported losses as high as $5bn. Bankers poured money into the market and President Herbert Hoo-ver, pictured above, reassured Americans that business was sound.

On October 28, European newspapers were reporting that some brokers believed the worst was over. But when the American markets opened, they went into freefall, and the contagion spread around the world. ‘Black Monday’ saw huge falls in the US stock market.

America’s fi nancial elite tried to rescue the market — members of the Rockefeller family and William C Durant of General Motors bought large quantities of stocks to demonstrate their confi dence in the market but the move could not stem the tide.The market hit new lows in November, but it was not until July 1932 that it reached the lowest point of the Great Depression, down 89% from its peak.

The crash led to higher trade tari! s as governments tried to shore up their economies, and higher interest rates in the US after a worldwide run on US gold deposits. In American unemployment went from 1.5 million in 1929 to 12.8 million —or 24.75% of the workforce — by 1933, a pattern replicated around the world. It took 23 years for the US market to recover .

Wall Street crashThe view from 2008

The percentage by which the market fell on Monday October 28, the highest one-day decline in American history

22.6The number of banks that collapsed, with liabilities of more than

124

$50m

Millions of shares sold on October 29. In the week that followed the market lost

of its value

16.4

30%

‘Black Tuesday’How it began ‘Black Thursday’ ‘Black Monday’ Battle to save the market The consequences

SOURCE: DOW JONES

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