Greeley Daily Tribune from Greeley, Colorado on October 30, 1969 · Page 5
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Greeley Daily Tribune from Greeley, Colorado · Page 5

Greeley, Colorado
Issue Date:
Thursday, October 30, 1969
Page 5
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Block Tuesday. 1929 f he Stock Market Reached a Dizzy Pinnacle Then Came the Crash and Great De pression By DON McLEOD Associated Press Writer WASHINGTON (AP) - Ne. York was convulsed by the mai ket crash that spawned th Great Depression 40 years ag but Washington still believe prosperity would last forever. "They roared like a lot o lions and tigers," a witness a the New 1 'York Stock Exchang related. "They hollered am screamed. They clawed at on another's collars. It was like i bunch of crazy men. "Every once in a while, when Radio or Steel or Auburn would take another tumble, you'd see some - poor devil collapse am fall to the floor." No Response ? President Hoover was up' by 7 and at his desk for business as usual. There was no response to the panic in New York. But symbolically, the sun didn'i shine all day in Washington. In New York it was "Black Tuesday," Oct. 29, 1929. The greatest selling wave in history touched off a panic, that eventuallyiwould destroy $30 billion-in "paper wealth." Du Pont dropped .-70 points. The average prices of 50 leading stocks, as compiled by the New York Times, .fell .nearly 40 points. The Times figured 240 issues had lost nearly $16 billion since the first of the month. Brokers were swamped with sell orders. Everyone wanted to get out before prices dropped any lower. Those who had bought on margin, were forced out at a total loss! Thousands of Americans saw life savings vanish in worthless stock. Headlines Reassuring In Washington, the afternoon headlines were ' reassuring-."Stocks . In Rally"--after a bankers' pool had bought a slight, comeback. ' . . "Regardless of ' regrettable speculative uncertainties," Asst. Secretary of Commerce Julius Klein said, "the Indus- sound common stock. "Sure, he's buying," quipped Iddie Cantor. "Who else has any money left?" At year's end, Secretary 'of :he Treasury Andrew W. Mellon ronounced, with a ' straight ONLY A FEW WEEKS LEFT TO PLANT DUTCHJULBS1 FRANK'S "^ 70S' · '\\l 352-1096 **"· trial and commercial structure of the nation is sound." "Variety" was more rate: "Wall Street Lays An Egg." After the crash of Oct. 29 the panic waned amid a flurry o assurances from Washington and Wall Street. Secretary of Commerce Robert P. Lament recounted the gains of 1929 and predicted lha prosperity would continue "for Ihe long run." "There is nothing in the business situation to warrant the destruction of values that has taken place in the past week,' : John D. Rockefeller Sr., said, "and my son and I have for some days past been purchasing In an age when business w ' ' " king, the drive Was to hold jrices and' profits while holdi: down wages'. The real fruits of prosper! reached only a privileged fe About. 5 per cent of the popul :ion received one-third of I' "ace: "I see nothing in the situa- national income. ion which ..warrants pessi- nism." . . "· · Too Sold on Prosperity America was too sold 'on pros- jerity to believe at first, shock hat it had vanished., ilobver lad promised 'that . "given' a :hance to go forward with the jolicies of the last-eight, years, ve-shall soon, ; with. the help! of ~od, be in sight of the 'day. when joverty will be- banished' from his nation." Before the crash, stock; mar- et prices had risen steadily, onie people were .making a lot f money, and those' who .were ot still, felt their chance was ust around the corner. "I am firm in. my belief that nyone not only can be rich but ught to be rich," declared ty- oon John J. Raskob. Keeping up with the Joneses the. 'nation, ^'is on a sound an ecame a national obsession. """""" 'hose who couldn't do it with' ash- used credit. Ten million Americans were buying some- Ian. Stock Market Lure The real lure was the'stock market, where fortunes could be made overnight. -There-were housands 'of new stockholders --housewives and clerks,' butch- rs and bakers. '. "You can't lick- this prosperi- ','.' Will Rogers. observed. "Even the fellow who hasn't g any is all excited over I idea.' The market reached a diz pinnacle on Sept. 3, 1929. Gen al Electric reached 396 co pared to 128 the year befoi RCA had quintupled in months. "In no nation are the fruits accomplishment more secure Hoover had said. But econom Roger Babson warned th "sooner or later a crash is con ing and it may be terrific:" Even at its height prosper! was a spotty blessing. The were many who never shared "t--farmers, miners, millham Tended to Gamble Those who prospered, £ .hose, who hoped to, tended ja'mble. Credit, for buying ar speculation, was strained to t reaking point. By 1930 the tot debt burden'reached about on hird of the national wealth. The break began Sept. 5, t\ days after the peak. Several ki stocks .fell off. Another dip f owed Oct. 4. A stampede i Oct. 21 was barely chedtec r resh selling. Oct. 23 brought 15 billion loss. Tickers ran close to an hoi ate as trading opened on Blai Thursday, Oct. 24.'The day wi aved by a $240 million po ormed by the big bankers. "The fundamental business he country," Hoover reassure irosperous basis." : Panic Was Waiting But panic was waiting whe he market opened on Monda ding or other on the installment Losses exceeded $10 billion. Th icxt day the roof- fell in. You stand in line to get vindow to jump out of," W Rogers said. Industrial production and n ional income fell by half ov he next two years. Farm pric Topped G4 per cent by 193 instruction ' dropped in U ears to one-fifth its pre-cra; PANT HE PA1 THE;PA!CRACK: THE PANT RACK THE PANT RJ etc THE THE PAN RAC Join the "Sta-Press" Set CK THI K TH RACK MTRAC THE PAF K M RACK T :KTHE TRACK THE PA THEPAI RACK · F R A . HE PA THE NT Olive hopsack "sta-press" pants. Blue stitched "sta-press" pants. Gold twist "sta-press" pants. Harvest tone plaid "sta-press" pants. · Brown flare "sta-press" pants. More. Get the right belt, get the right color socks to go with your new "sta- press" pants. Permanent Press Pants 10.00 and 11.00 values Now 6.39. All sizes. What a buy! 2S11 11th Avenue 0 «.m. to 8:30 p.m. © copyright 1969, Pant Rack Ltd. ACK NTR CO ·ACK HE PA RACK PANTR -PAST RACK THE PANT RACK THE PANT RACK level. One-third of the railroads passed into receivership. In 1930 bank failures reached 1,320 and rose to 2,294 the following year. People who hac been wise enough to stay out of fought over garbage barrels. the market still lost life savings. By spring of 1933 unemployment was pushing the 15 million mark. At Hoover's urging, employers maintained wages for a time, but after 1931 they began to retrench. People lucky enough to have jobs often worked only part-time. For millions of Americans the transition from prosperity to poverty was slow and painful. Savings were quickly exhausted. Then loans, from life insurance, friends, relatives. Then credit, from the grocer, the druggist, the merchantile merchant. Last Resources Exhausted Eventually the last resources were exhausted. Mortgages were foreclosed or rent unpaid wrought eviction. Families built sheds from scraps in dumps and vacant 'ots, or made homes in junked automobiles. One lived for a year in a cave in New York's Jentral Park. The shanty towns were called "Hoovervilles." St. L/juis had the biggest with 1,000 inhabitants. New York's Municipal Lodging House was called 'Munie." An annex on an Sast River pier b e c a m e on an East River pier became ':he infamous "Cold Dock. Many preferred telephone Moths, subway benches or doorways. They stood in breadlines or outside soup kitchens. Men Men stood all night outside factories hoping for work, with surlap wrapped around their feet were used for cover against the night. When gas and electricity were cut off, families cooked over wood fires in the back yard. With no light, not even candles, :hey sat evenings in darkness. The apple peddler, lasting symbol of the depression, appeared on street corners in 1930. Shoeshine "boys" who might once have been executives crowded the streets. New Breed of Hobo Maybe two million men wan- iered about the country--a new )reed of hobo seeking, not fleeing, work. Family men stayed and shuffled in long lines all day and all night for a chance of employment--until hey lost hope. Then they stayed lome and became quiet--very, very quiet. People stopped visiting, even relatives. · They mostly sat at lome and listened to the radio if they had-one. They began to look around for the someone to blame and found some targets as Congress began '.o look into things. One banker admitted before a Senate committee that he had Thurs., Oct. 30, 1969 GREELEY TRIBUNE Page 5 and enterprising people wit pick up the wrecks from less competent people." If, postulated John Edgerlon, president of (he National Association of Manufacturers, people do not "practice the habits of thrift and conservation, or if they gamble away their savings in the stock market or elsewhere, is our economic system, or government, or industry to blame?" Couldn't Understand What people couldn't understand was why they wore threadbare clotliing while farmers couldn't sell 13 million bales of cotton; why they were shoeless while shoe factories were idle for lack oE orders; why people spent scrip instead of money and bartered while $10 billion lay in bank vaults. "Plenty is out our doorsteps, but a generous use of it languishes in the very sight of the supply," Franklin Delano Roosevelt told them. "Primarily this is because the rulers of the exchange of mankind's goods have tailed because of their own stub- Dornness and their own incompetence. . ." Spirits Were Lifting It was bleak and gray again became president on March 4, 1933, but spirits were lifting. "This great nation will endure as it has endured, will revive and prosper," he said. ". . . The only thing we have to fear is fear itself-- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." "The whole world is with him," said Will Rogers, "Even if what he does is wrong, they are with him. Just so he does- something. If he burned down the Capitol, we would cheer and say, 'Well, at least we got a fire started anyway.' " Quantify Rates LONDON -- Cuts in production costs could reduce the price of Britain's new wonder mater- al, carbon fibres, by up to 20 :imes, it was estimated recently. This would open up a big ex- Mrt market for the fibre, which las widespread industrial uses --especially in aircraft parts. The first permanent European settlement in North America north of Spanish Florida was Port Royal, in Canada, founded HILLSIDE STORE Open Evenings till 8:30 Open .Saturdays till 6:00 p.m WIN A NEW 1970 DODGE CHALLENGER! ENTER THE DODGE CHALLENGER SWEEPSTAKES, OCTOBER Chenille and Feather BIRD CAGE KITS It's fun to make this Decorative Bird Cage with luxurious marabou feathers and long "Swag" Chain. NOW 1.99 MAKE IT YOURSELF BALBOA SUITING ASSORTMENT Fabrics in bsautiful textures, featuring blends novelty synthetics. Woven and yarn dyed solids, checks, Houndstooth and plaids. Crease stain-resistant. Machine washable. NOW.)9C yd. Reg. 77e Battery Operated Power-Cut SCISSORS · Cuts cloth or paper · Cuts smoothly in straight lines or curved · Tempered Stce! cutting edges NOW 2.00 Reg. $3.99 SAVE $1.99 Mini Sewing CHEST · Fold Away Handle ·· Organizer Tray · 10 Thread Holders · 6 Compartments An Assortment of Colors N O W I . Z 9 SAVE Reg. 1.99 New Fall Colors POPLIN PRINTS Dacron Polyester and cotton poplin, machine washable. 45" wide 2-7 yd. lengths NOW J7C yd. Reg. 77e GUILDFORD PRINTS 100% Oxford Type Cotton Crease Resistant Finish. Machine Washable 45" Widths Vast Selection Fabrics PROMISING PRINTS AND STAND-OUT SOLID COLORS YD Cotton broadcloth in solid colors, make the nicest things. Mix and match with other colors and fabrics. 77c Reg. 1.19 Printed cottons become whatever you want them to--dresses, tots' things, little curtains -most everything; 2-10 yard lettgtitt Open a CHRISTMAS LAY-A-WAY Open Monday thru Friday till 8:30 - Saturday till 6:00

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