Anguish in The Great Depression 1930's
Stock Market Crash
“Those who cannot remember the past, are condemned to repeat it”
The 1930's was a decade of great fear, for the world. It would be filled with lessons, for future generation's, to learn from. Along with strong emotions, feeling's of fear, sorrow, remorse, and regret. It did not matter where you lived, you would be effected by the results. Here in America it started out with the fall of Wall Street, and the crash of the stock market.
A stock market, or an equity market, is a trading system, used for buying a share/part of a company. The value of that share, depends on how many corporations, are investing in that single piece of stock. The more corporations, that hold a share of a stock. The higher the financial wealth, of that stock will climb. When a stock market crashes, it is loosing potential companies, that allow for a financial climb, of wealth. When this occurs, in the stock market, it causes a financial decline, and makes the company almost worthless.
The stock market, in the 1920's was like a ladder. Every minute that went by, the money climbed higher and higher. A great example of this, would be the stock RCA. In March of 1928, RCA was worth $77. That same share, was worth over $400 by the end of December. If you would have cashed out at that time, you would have cashed your stock out in December. You would gain $323.00. The reason it is not 400, even though that is what it ended on in December, is done to the $77. that it cost for that share.
This was known as a Buy now, Pay later,technique. Which applies to consumer goods, as well as stocks. Investors buy a margin, credit, or other, which they would put 10% of the stock price on. Then borrow the rest from a broker.
The Federal Reserve, (the government agency, in charge of overseeing the nations market). Believed that the stock market was far to out of control. To slow the market down, the Federal Reserve had raised interest rates. After doing such, it then cost more money, to borrow, and that they had less easy money at their finger tips. This would lead to the stock market crash.
However only two days, before the crash had occurred. A wise man working for Fox movie tone, had predicted that stock prices, had hit a permanently high plateau. The man who said this was trusted by all, do to the fact that he was an economist. This economist was Irving Fisher, the grandfather of Kenneth Fisher. Who owns Fisher Investments, and is well known writer for Forbes magazine. Which is still, one of the most wealthiest, professional and outstanding magazines, of current day.
Franklin D. Roosevelt-FDR
The year of 1931, was an election year, and everything America had, and would have, was on the line. If America was to ever get out of the great depression, they would need a man wiling to grab the problem, and fix it. They knew just the guy, that would carry out these tasks. Franklin D. Roosevelt ( FDR for short) , was the 32nd President of the United States of America. When FDR entered the White House, there was more than 13,000,000 unemployed individual's . After only 100 days in office, Roosevelt had started his repair of America through crucial steps. First Roosevelt, would decided to close down the banks for a few days, so that Congress could have some time to pass reform legislation. This would, give a grace time to make preparations.
His next step, was to get the public involved, Roosevelt believed that closed-door conferences would not get the situation resolved. So what he had decided to do next, was start holding open radio conferences. Where Roosevelt would speak directly with the American people. The very first broadcast, had over 60 million listeners tuned in to his speech, among the subject of banking. After his first radio show, he had signed the Emergency Banking Relief Act. This made it available for banks, to reopen.
Also within the first 100 days, FDR had created some of the most influential programs called the New Deal. The New deal, was a concept of laws, to help the American citizens. He would pass laws to help farmers, like the AAA, or better known as Agricultural Adjustment Administration. Roosevelt, would also pass laws to help the elderly and those in despair. That law would be known as SEC, or Security Exchange Commission.
He would pass laws to make sure that the banks didn't over draw, and leave its clients without its money. This is very commonly known as FDIC, or Federal Deposit Insurance Corporation. That is just a few, among the many of laws that FDR had passed within the first year. FDR, did not hesitate he knew America was in danger. He went forth, with the pursuit of fixing America, he tried and accomplished. The actions that he had chosen, helped America, and helped the generations to come.
While FDR, worked on fixing things on the home front,. A man worked diligently, to wreak the already crumbling country of Germany. Ever since the end of WWI, Germany had been in a despair state. The streets ran wild, and money became worthless. There was no morals, and times were extremely tight. There was no way for Germany to survive, but from foreign capital. (Foreign capital, is when a country depends on a source amount, of goods, or foreign trade. These items, goods, and trades,would come from another country). In Germany's, situation they relied upon America. For once,in what seemed like a very long time, Germany, was starting to get back on its feet. But when it came time, for Germany to pay back thous loans. They would not be able to, which caused a world of trouble on both sides.
In Germany, people had lost there jobs, bank's , bank accounts, savings accounts, and the value of their money. The only thing that Germany had left, was worthless money, and a rapid inflation. Almost overnight, the middle class had disappeared. Along with all the enjoyments of a German life. In its place, had been left poverty, despair, and misery. Things only got worse, for Germany.
Gustav Stresmann, the Foreign Minister of Germany. Had spent years, trying to restore the economy status, to Germany. He had many achievements, as the Foreign Minster, as well as many faults. One of these faults would be registration for guns. This would enable the citizens to protect themselves. Only a few days, before the falling of Wall Street, Gustav had a stoke and died. This came as no surprise, considering how hard he fought for Germany. But it did sadden the nation, into a madness state, of mind.
By mid-1930, Germany was manic, without anything to hold them together. Then from some dark, puss pocket of a whole, somewhere in Hades, came a man, from the abyss. Who wore a symbol, of the black sun on his arm, and greeted all that he met with a masonic salute. Some would swear, that his heart was so evil, that even demons feared him. His name, was Adolf Hitler Schickelbruber, and he would be in charge of Germany from the beginning of 1930, until his supposed death in 1945.
The early part of the decade, Hitler would spend paving Germany's way towards dictator ship. In 1930, by popular vote, Hitler would become the, German Elect Nazis. Hitlers had received 6,371,000 votes, or more than 18% of the populations consent. But it seemed as if it wasn't only the citizens, that had fallen for his savvy lies. But in 1931, Hitler would soon encourage the Germany Army to gather with his forces. This had taken place do to tearing up of the Treaty of Versailles, which had limited the German army to a total of 100,000 men only. Hitler encouraged to have better, and bigger army's, and that was all the convincing it took. To persuade the German Army, to join Hitler.
In 1932, Hitler was in a tie to become the next Chancellor of Germany. Although the Nazi party had received, more than half of the population votes, there was still however a majority. In order for Hitler to win, he had to move quickly to reach the public. Hitler, gathered together his German National People's Party, (G.N.P.P for short), who then followed through with Hitlers plan, for power. This precise plan was known as Gleichschaltung, or in English coordination. Gleichschaltung, is a form of totalitarian control, along with coordination that reigned over all aspects of German society, religion, life, and career. The goal was to bring about a new culture, a new wave of similar thinkers and doers. By these means, he had rapidly spread his Dominic wings over the people, and gained his power. Hitler had become the next Chancellor of Germany on January 30, 1933.
Although Hitler had portrayed a great show, flashing his American dollars, and establishing companies. It can never change the actions, and life's that Hitler had changed, and took within those years. The 1930's in Germany, are difficult to explain, even for most historians. Hitler was a very complex man, with multiple layers that are unfeasible to explain.
Hitler would not be the only sign of sorrow, during the 1930's. There was war, death, and humiliation still to come. There where a few wars of the 1930's these wars consisted, of the following.
The war of Leticia, was an extremely short war that started in September 1932, and had ended in May of 1933. This war was based in the Amazon Basin of Colombia, and only lasted until May 1933. This was a territorial war, caused by a disagreement of a treaty. This war killed roughly around 400 people, and most of them were due to jungle diseases.
Then there was The thirsty war, which was fought between Bolivia, and Paraguay, from 1932-1935. The thirsty war, was fought in northern, South America in hopes of finding oil. The war had ended, with Paraguay in control of the region. The casualties, and losses, would consist of over 100,000 lives. Paraguay had captured over 21,000 Bolivian soldiers, and 10,000 civilians. That would be over 1% of the Bolivian population. There was also 2,300 machine guns, 28,000 rifles, and over 40 years worth of ammunition confiscated. The saddest thing, was 77 years later they had finally found out, there was no oil found.
The last war of the 1930's, was the second Sino-Japanese War. That ran from July of 1937, through September of 1945. This would be a major war fought between the Republic of China, (which was at that time under British ruling), and the Empire of Japan. The war had begun, do to Japan invading China, and then claiming of being attacked. In return Japan had fired back, this action lead to an eight year war. That would, grow so big that it would even bomb pearl harbor. The war would not only bomb pearl harbor but cause many casualties. Japan would lose, 20,750,000, while China had lost 21,480,000.
All of the war's that had taken place, in the 1930's , had one thing in common. They had all broken out, do to confiscation of firearms, and deadly weapons by the government. When other country's tried to help, it only caused more death. That being said, truly look at how many lives, were token, do to lack of self protection.
But the 1930's was not just a time of war, and despair. It was a time of disasters and explosions. One of these disasters would be in the town of Lakehurst, New Jersey. On May 6, 1937, when the German Hindenburg, blimp came through, Lakehurst, New Jersey.
Another disaster, would take place in the Mid-West, and would travel as far as to California, and New York. This disaster was known as the dust bowl. The dust bowl, occurred in the 1930s, and lasted until 1936, although in some places it lasted until 1940. It was a time when extreme drought had left the farmers without nothing but dust. They became unable to harvest their crops, and there for food became hard to get. The dust would occupy over 100,000,000 acres of land, and would travel as far as to New York. The storms had caused family's to separate, and would also cause mass migration.
The war, the poverty, and disaster, is only the frosting of a truly soulful cake. To really be able to attempt upon such a rich taste of the culture of the 1930's you must explore every combination, a degree possible. Although this article is becoming, quite longer than imagined. So please stay tuned, for my next article, which will make up sequel two of the 1930's.
“Those who cannot remember the past, are condemned to repeat it”