The New York Times 25 Industrial Stock Price Index, which was
110 at the beginning of 1924, rose to 135 at the beginning of 1925. On January 2, 1929, it reached 338.35. The boom of the American economy in 1928 caused a rise in speculation on an unprecedented scale. Nearly a million people gamble on the Stock Exchange; gambling on Wall Street was encouraged by banks, industry and government.
There were at least three reasons why people bought stocks in 1929. to participate in the profits made by a company. For others, the most numerous, it is a way to get rich. Finally, there are the speculators; who buy the stocks because of the boom and are ready to get rid of them at the first signs of malaise.
The speculation is well organized. During trading hours, tickers spread news across the country about transactions taking place on Wall Street. Thousands of offices have thus been created throughout the United States:stock market orders are received there, which are transmitted to Wall Street. After a few minutes, the client receives confirmation of his buy or sell order. No prior investigation is made of the capital of new clients, who, thanks to a small provision immediately paid, can acquire shares costing three to five times more. Intermediaries give credit for the rest. Ultimately, it is the bank of issue that makes its credits available to customers. In 1927, these stock market credits reached 3 billion dollars. In the summer of 1929, they increased at the rate of $400 million per month. In September, they reached 7 billion dollars.
With the daily increase in transactions on Wall Street, new categories of buyers are constantly flocking to the Stock Exchange. As no one wants to get rid of their shares without a substantial profit, prices rise vertically. A madness of speculation grips the United States. During this period, almost everyone she grabbed makes money. We had never got rich this way, or so quickly.
The Civil War has been the central episode of contemporary history. Misunderstandings and confrontations latent for decades led to it, and historical events that have developed since then have derived from it, including our most immediate present. It should not be understood, however, as some histor