During the 1860’s Austria was prospering through “an enormous additional amount of production.” (The Vieana Panic) During this time of prosperity, the German Empire was founded in 1871. Because Vienna’s market was growing and expanding it became the perfect location for the World Exposition. In the summer of 1873, the Rotunde was built, which was known as a world meeting ground. This structure signified the significant achievements Vienna had made. Unfortunately, just a few weeks later on May 9, 1873, the Vienna stock market crashed. The timing of the crash gave way to its name “Gründerkrach,” or in English “Founder’s crash.” The focus shifted from Vienna progress and expansion to the panic that consumed the globe (Expo). The crash led to “a very natural panic”, which plagued all of Europe as well as the United States (The Vieana Panic); this panic was regarded as “The Panic of 1873.” The pandemonium was international, and everyone felt the effects of the panic. This crash was very similar to the minor crash that was experienced by the American economy a couple years ago. The recent crash led the country into a recession, unlike the crash of 1873 that lead the world into a depression. There are many other reasons why the crash occurred and the short term as well as long-term effects the crash had on the international economy. The crash not only left Austria crippled but its effects left marks on many market all over the world, including London, New York, and Berlin.
The Vienna Stock Exchange crash occurred because of the emergence of unstable banks, over speculation and the rapid increase of business. The crash, however, was preceded by a flourishing German and Austrian economy. After Germany’s victory in the Franco-German war a...
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... Stock Exchange crash had great influence on economy and politics and marked the US history significantly.
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The stock market crash of 1929 was one of the main causes of the Great Depression. Before the stock market crash, many people bought on margin, which caused the stock market to become very unbalanced, which led to the crash. Many people had invested heavily in the stock market during the 1920’s. All of these people who invested in the stock market lost all the money they had, since they relied on the stock market so much. The stock market crash also played a more physiological role in causing the Great Depression.
The joint financial failures of the companies sparked a crash in the stock market. This served as a catalyst for a surge of bank failures because many New York banks were big investors in the Stock Market. The financial disaster began in New York and soon permeated its way throughout the country. Over a six-month period, over 8,000 businesses, 156 railroads, 400 banks failed, and 20% of Americans were unemployed By July of 1893, there was massive unemployment in factories and extensive wage cuts.... ... middle of paper ... ...currency.
Frederick Lewis Allen’s book tells in great detail how the average American would have lived in the 1930’s. He covers everything from fashion to politics and everything in between. He opens with a portrait of American life on September 3, 1929, the day before the first major stock market crash. His telling of the events immediately preceding and following this crash, and the ensuing panic describe a scene which was unimaginable before.
The Panic of 1819, preceded by land speculation, the expansion of state and private banks, easy credit, inflation, and an increase in agricultural exports, was triggered by the tightening of credit, the collapse of the export market, and increased imports.
Jones, Thomas. History of New York during the Revolutionary War: New York, New York Times, 2008
Walens, Susann. A. United States History Since 1877. Western Connecticut State University, Danbury, CT. September 2007.
“The Stock Market Crash was the most devastating in history. After World War I it was a period of peace and the crash interrupted it.” (“The Wall Street”). The public demanded deposits from the banks and as they were handing the cash over little did they know it was leading to less money in circulation. Companies closed down because of deflation and low demand while others laid off over half of their workers. As the unemployment levels increased, properties were repossessed and citizens started mortgaging their houses and selling everything just to get through the depression with their own home. Post war time the United States was booming, with the trade from Germany and Europe. The 1920’s turned out to be a decade, which lead America into the depression. As more and more people invested their money, the stock prices raised. “A multitude of large bank loans that could not be liquidated, and an economic recession that had begun earlier in the summer.” (“American
Slotkin, Richard. Regeneration Through Violence: The Mythology of the American Frontier, 1600-1860. Middletown: Wesleyan University Press, 1942.
Hoffman, Elizabeth Cobbs and Jon Gjerde. edit., Major Problems in American History: Volume 1 to 1877. Massachusetts: Houghton Mifflin Company, 2007.
5. Foner Ph.D., Phillps Business and Slavery, The New York Merchants and the Irrepressible Conflict
Post the era of World War I, of all the countries it was only USA which was in win win situation. Both during and post war times, US economy has seen a boom in their income with massive trade between Europe and Germany. As a result, the 1920’s turned out to be a prosperous decade for Americans and this led to birth of mass investments in stock markets. With increased income after the war, a lot of investors purchased stocks on margins and with US Stock Exchange going manifold from 1921 to 1929, investors earned hefty returns during this time epriod which created a stock market bubble in USA. However, in order to stop increasing prices of Stock, the Federal Reserve raised the interest rate sof loanabel funds which depressed the interest sensitive spending in many industries and as a result a record fall in stocks of these companies were seen and ultimately the stock bubble was finally burst. The fall was so dramatic that stock prices were even below the margins which investors had deposited with their brokers. As a reuslt, not only investor but even the brokerage firms went insolvent. Withing 2 days of 15-16 th October, Dow Jones fell by 33% and the event was referred to Great Crash of 1929. Thus with investors going insolvent, a major shock was seen in American aggregate demand. Consumer Purchase of durable goods and business investment fell sharply after the stock market crash. As a result, businesses experienced stock piling of their inventories and real output fell rapidly in 1929 and throughout 1930 in United States.
To start with the stock market, fears of further economic woes appeared after the crash. The tragic turn of events forced the population to stop purchasing consumer goods. Consumerism came to a halt, and the underconsumption of luxury goods led to businesses failing. With America trying to save industries, tariffs were raised and strict foreign policies were put into place. The idea of isolationism that came from nativists was activated in the United States. The blocked international trade contributed in forcing some countries to economically retaliate against America’s nation. Thus, all of the causes and issues previously mentioned connect together into a flowing
Brinkley, Alan American History A Survey, Volume I: To 1877, New York, NY: McGraw-Hill, 2003. pg. 101-122, 209-213.
The stock market crash of 1929 is the primary event that led to the collapse of stability in the nation and ultimately paved the road to the Great Depression. The crash was a wide range of causes that varied throughout the prosperous times of the 1920’s. There were consumers buying on margin, too much faith in businesses and government, and most felt there were large expansions in the stock market. Because of all these...
Grant, Peter. "The Giant J.P. Morgan and The Panic of 1907." The New York Daily News 20 Mar. 1998: 49 "J. P. Morgan". Dictionary of American Biography. New York: Charles Scribners and Sons, 1934. Vol. 7 "J. P. Morgan". International Directory of Company Histories. Chicago: St. James's Publishing, 1990. Vol. 2