How Did The Stock Market Crash Affect Rural America

Year by year the farmers who lived on soil, whose returns were diminished by unrotated crops were offered the virgin soil of the frontier at nominal prices. Their growing families demanded more lands, and these were dear. The competition of the unexhausted, cheap, and easily tilled prairie lands compelled the farmer either to go west and continue the exhaustion of the soil on a new frontier, or to adopt intensive culture.

During the 1920's millions of Americans began investing in stocks for the first time. They heard about how rich people were getting by investing so they all decided to do it. Many new investors entered the stock market using borrowed money. Stock market prices rose steadily as inflated market demand outpaced increases in the capital value of businesses. Investors began to realize that a large imbalance existed between stock prices and the amount of money needed to back them up, and began to sell. On October 29, 1929, great numbers of people tried to sell their stocks all at once. This created chaos in the accounting of stocks and for brokers. The New York Stock Exchange and other exchanges prices dropped so dramatically that this event became known as the crash of 1929. Millions of investors lost their savings in the crash and many were deeply in debt since

Farmers came to the Great Plains is great abundance, as this was heavily encouraged by government land policies and cheap land that was readily available. One of these policies was The Homestead Act, which would provide free or inexpensive land to farmers. The ever-growing railroad industry also offered attractive deals to those wishing to move onto the plains. All of these incentives were very enticing at first for farmers, but when they arrived in their new land they were met with a few problems. This new environment was difficult and dry. The animal and plant life was strange to the farmers. Not only that, but the native inhabitants of this land were warlike. However, farmers soon adapted to their new environment by implementing a few solutions. Lack of wood was solved by sod houses and barbed wire. Windmills and dry farming techniques were used to overcome the lack of water, and new machinery was used for farming. But expensive machinery soon led to debt and this debt led to bankruptcy. Farmers were faced with the same issue as the cattleman and many had to sell out to corporate

After the Civil War there were many factors that contributed the changes that occurred in farming in America. Among them was the drive for the South to renew and regain what had been lost due to the war. Leaders saw it as a time to diversify and turn towards industrialization. The Industrial revolution was underway and with it brought many new inventions that would lead to growth in the farming industry. The wide open space between the East and the West called “The Frontier” was open for homesteading. New immigrants with their farming knowledge and ability were flooding the East and West gates of the U.S. This was a time in American history when Americans

The stock market crash of 1929, additionally called the Great Crash, was a sharp decrease in U.S. stock exchange values in 1929 that added to the Great Depression of the 1930s. The market accident was a consequence of various economic imbalances and structural failings (Pettinger). In the 1920s, there was a fast development in bank credit and advances. Energized by the quality of the economy, individuals felt the share

When Franklin D. Roosevelt was elected to his first term as president of the United States in 1932, America was in a severe depression. When Franklin Roosevelt took office in March of 1933, President Hoover handed the problems of the Great Depression over to Roosevelt. Upon taking office, Franklin Roosevelt issued a bank holiday which forced all banks to close from March 6 to March 10 while he met with Congress to pass the Emergency Banking Act to allow banks with enough money to reopen and for the Federal Government to help the banks that did not have enough money (A Bank). This act was a prerequisite to many other programs that would develop under Franklin D. Roosevelt’s administration. Under

Two days after taking office, Roosevelt issued a proclamation closing all American banks for four days until Congress could meet in special session to consider banking-reform legislation. So great was the panic about bank failures that the "bank holiday," as the president euphemistically described it, created a general sense of relief. Three days later, Roosevelt sent to Congress the Emergency Banking Act, a generally conservative bill designed primarily to protect the larger banks from being dragged down by the weakness of smaller ones. The bill provided for Treasury Department inspection of all banks before they would be allowed to reopen, for federal assistance to some troubled institutions, and for a thorough reorganization of those in the greatest difficulty.

During the 1920s Wall Street was representing the decade of expanding economic opportunity for every American. During 1927 some American banks failed due to bad investments and low prices for agricultural products. On Thursday October 1929 American stock market failed and millions of investors are plunged into bankruptcy. Over 12,894,650 shares changed hands, many at fire. About two months after the crash in October, stockholders had lost more than $40 billion dollars. The slump was made worse by the share-buying fever that infected the country in the 1920s. Everyone wanted to make quick fortunes, therefore they bought company shares on margin. Competitive buying of the shares drove share prices high above their actual value. Then, when cautious

During the 1920's, the North American economy was roaring, but this decade would eventually be put to a stop. In October of 1929, the stock market began its steepest decline to this date in history. Many stock market traders and economists believe and pray that it was a one-shot episode never to be repeated. On the other hand, many financial analysts and other economists believe that the current stock markets are in place to repeat the calamitous errors of the 1920's. In this paper, I will analyze the causes of the crash and discuss the possibilities of it re-occurring.

The people who lived on the Great Plains suffered greatly and this in turn changed America. Since there was too much dust everywhere this time period was called the “dirty 30s”. Farm families usually did not have an indoor bathroom, heat, or electricity like the people who lived in town. All of the farmers worked with each other through these rough times because they believed it would get better. Although, whenever the crops were destroyed by the drought; farmers were left with no one to buy food or make payments on their farm loans. “Yet, a majority ‘toughed it out’ and stayed. And millions continue to stay, despite decades economic pressure to leave”(Reinhardt and Ganzel). This quote shows how people believed it could get better. The government started programs to hook up electricity to make farm life easier. “The Great Depression changed the lives of people who lived and formed on the Great Plains, and in turn changed America”(Reinhardt and Ganzel). The Great Depression changed millions of lives. Farm life was very difficult during the Great

With many farmers having such high yields, there was an abundance of crops so the prices fell and a farmer had to plant more in order to have enough money to support their families. The Enlarged Homestead Act guaranteed 320 acres of land to farmers who were willing to take land that were considered to be marginal and could not be irrigated well. They plowed up the virgin soil and planted acres and acres of golden wheat, leaving the land vulnerable to the elements after the yearly harvest. The farmers also implemented the use of fossil fuel ran machinery that made it easier to plow up hundreds of acres in a short period of time, which exposed even more soil than what would have been open to the elements had the farming been done by an animal pulled plow. The massive influx of farmers because of that act caused major soil erosion which was made worse by the Dust Bowl of the 1930s.

In the 1920s many people felt like they could benefit enormously from the stock market. Not keeping in mind that the stock market was liable to change rapidly and unpredictably. Many people invested majority of their savings. As more people invested, the stock prices began to rise. Through the years the stock prices went up and in time people started realising. As they realised, more people stared to invest. Therefore the boom of the stock market had begun. This changed the way the people saw the stock market and it was no

economy, people began buying stocks on the margin. They would borrow most of the stock’s price from a stockbroker and only pay a little bit of the price. If the stock prices kept rising, this system would work well, but if the prices fell, people could not pay the loan back. Near the end of the 1929 year, prices were too high, so people wanted to sell their stocks. They thought the prices would lower soon. Stock prices did go lower and people were not buying. They all wanted to sell their stocks. Prices went even lower on October 29, where 16 million stocks were sold. This caused the collapse of the market.

<br>Stock prices had been rising steadily since 1921, but in 1928 and 1929 they surged forward, with the average price of stocks rising over 40 percent. The stock market was totally unregulated. Margin buying in particular proceeded at a feverish pace as customers borrowed up to 75 percent of the purchase price of stocks. That easy credit lured more speculators and less creditworthy investors

In the 1920’s the U.S. economy was booming. The value of stocks were rising and being bought. People were buying tons of stocks. They put as little as ten percent in. Then everything started tumbling down and people lost about ten times as much as they put in.