Crash of '29 effects delayed in Midwest
By KATE POUND
Staff Reporter
Tick. Tick. Tick. The final messages for Oct 29, 1929. Tick, good.
The final messages for Oct 29, 1929. Tick, good.
Across the country, stock brokers, bankers and speculators watched, witnesses to the death of the Roaring Twenties and the birth of an ugly legacy: the Great Depression.
Halfway across the country, students and professors on Mount Oread, unaware of the panic on Wall Street. Wall Street, hurried home from classes, 1929, revealed a normal day on campus. The big news was an accusation made by the Iowa State University football coach that KU paid its players. Iowa State
The stock market was far away from most KU students and faculty, Ruth McNair, professor emeritus of biology, said recently. Few people at the university had the money to spend on the market, she said.
"I DIDN'T HAVE enough money to worry about the stock market. That was only for the rich in the country."
According to Donald McCoy, professor of history,
the full effect of the market crash did not hit the
business. "People were better off," he said.
Investors and industry were the hardest hit by the crash, McCoy said and, except for Chicago, there was no impact.
"Some people became nervous, but it wasn't until well after the 1929 Christmas sales rush that any more people learned."
It was different on the East Coast. The panic on Wall Street climaxed on Oct. 29, but had actually begun Sept. 1. The New York Times carried an article describing how the stock market decline was slow at first, picked up momentum, then slowed again. By the middle of October, the Times reported that investment campaigns and predicting a boom year in 1930.
The 1920s HAD been boon years on the market; speculation became easy, a quick way to make money. Middle income earners bought stocks on the margin, that is, on a system of credit, often paying as much as $750.
By 1923, there were more than 9 million stockholders in America and brokers, politicians and industrialists were encouraging wage earners to buy into the market.
Early in the decade, speculation fever had hit. The post World War I economic boom had suddenly made Americans consumers instead of simply producers, who were spending more and more on Glassbriar. Growing industries needed more capital*
investments and Americans, with more money than ever to spend, willingly deposited their savings into banks.
TO THE CASUAL stock market watcher, there was no end in sight to easy money. But catering artists and craftsmen have a special interest according to Galbraith. Credit is too easy to obtain; far too many of the stocks purchased during the period have already been sold.
Fortunes were being made of paper, Emberzebels knowing that speculation fever made people reckless, sold phony stocks or stocks they didn't own. The expert speculator knew the crush was coming, the speculator knew the crash was coming.
Even President Herbert Hover knew, McCoy said. "Hoover was aware of the situation. He tried to help but he couldn't do it alone. He wasn't able to get the country together on a policy." McCoy said.
RUNNING ALMOST pill-mell, the market entered the fall of 1929. When the market slumped in September, several large investment firms combined efforts to combat it. Charles E. Mitchell, president of New York's National City Bank, Amadeo Peter Gianmilian, president of the Bank of America and Joseph Morgan meet several times. According to McCoy, their efforts only delayed the inevitable crash.
On Oct. 24, Black Thursday, the New York Times headline read, “Prices of Stocks Crash in Heavy Liquidation, Total Drop of Billions” Stockholders who had been buying shares at once. Speculation fever had developed into fear and anger was infectious, Galbraith said. More than 700 million dollars more was more than $4 billion, according to the Times.
ON FRIDAY, OCT. 25, the headlines were more optimistic. The crash had been sterned, the Times reported, and the crowds formed early Friday morning outside the Stock Exchange Building. They went away assured that the crash was over.
The weekend was peaceful. Investment companies kept their offices open on Saturday and Sunday, trying to clear the mounds of paperwork. Few changes occurred in the situation on Monday.
Wall Street stood silent, a massive, bushed ruin.
Tuesday morning, Oct. 29, was different. Selling became break, then surged into a franchise, untouched by the ticketer. In the time the ticker tape machines signed off with the deadline, the ticketed had been sold. Total loss was more than $10 billion.
"NONE OF THE experts foresaw how bad it would get," McCov said.
Slowly, the force of the crash hit industry. Factors such as high insurance and credit were tight. By 1922, more than 18 million employable Americans were jobsless, Galbraith wrote in 1943. Prices dropped, but even at a low no one was buying.
The plight of Midwestern farmers added to the economic woes. At the beginning, overproduction
THE UNIVERSITY DAILY
KANSAN
Vol. 90. No. 46
The University of Kansas—Lawrence, Kansas
10 cents off campus
free on campus
Monday, October 29, 1979
See story page six
Yankees fire Billy Martin
KCCR to investigate clubs
The director of the Kansas Commission on Civil Rights said yesterday that a KCCR investigation of alleged discriminatory practices against those clubs would begin "relatively shortly."
the commission can vote to enter a complaint on its own behalf or conduct an investigation without one. Bailey said.
The director, Michael I. Bailey, said the KCCR had to complete an investigation that could begin its investigation of the clubs, Shenamigans, 901 Missoula St., and Clyde St., in which Mr. Bailey
He said the commission's decision $^{b}$ based on information obtained from news media reports of allegedly discriminatory attributing membership application forms.
Earlier this fall, local and area media, including the University Daily Kansan, conducted inquiries into inconsistencies in
"If it's relevant, the investigator might interview parties employed there or patrons of the clubs," he said.
Bailey said he hoped the officials of the clubs would voluntarily give information requested by the investigator.
"But we do have subpoena power if it is needed," he said.
He said that if the investigation revealed that membership policies at the clubs were discriminatory, a cease-and-desist order would be issued to club officials.
THE FIRST ANNUAL LITE BEER BANQUET AND"I RESPECT RODNEY DANGERFIELD"TELETHON.
(CLOCKWISE STARTING FROM ROTTOM (FET))
Jim Hancock: Not-so-keen evening caused him to flower arrangement for main course (after mistock
Don Carter! Received compliment on his jacket from
Jim Hennonchirk
Bubba Smith: Said best thing about life is it tastes great. Norm Sneed argued best thing is it's less filling. Changed mind with Smith's suggestion of easy-opening earphones.
Mickey Spillane! Announced plans to open chain of hair salons featuring unisex crewcuts
Boom Boom Geoffrion: Said, "La bier leste de Miller
Boom Boom Geoffition: Said, 'La bête刃 die Millean a un goût magnifique; Monrise Dangerfief' et 'Le grand magnifique.'
Deacon Jones: Picked fight with state of New York. New York hacked down.
Grits Gresham Claimed he once caught Great White
Shark in his hat.
Rodney Dangerfield. As toastmasters, figured he might finally get some respect. Forgot wrong. Meal arrived.
3en Davidson Disagree with Grits over best thing
about Gordon's belief that the United States is a global leader.
Mendy Rudolph: *affective offal on Rainey's* tommy Tommy Heilson: *HIT with technical for using wrong*
Quarterbacks Norm Snead, Charlie Johnson and
and chirped Johnson and Terry Hanratty. Aftertermed forward pass at waitress.
Happy Hairstain. Even happier than usual. May change name to "Ecstatic Hairstain".
Steve Mizerak: Just showed off
There were 16 famous Lite Beer drinkers on hand for the first Initial Lite Beer Banquet — and good times (am) at the event.
Considering how much they are, it comes as no surprise when some of the guys said that life goes great with food because it's less filling — it gets a third less calories than our regular beer.
But then some of the other guys stopped eating long
enough to argue that Lite goes great with food because it tastes terrific.
Well, at least they all agreed on one thing. Whether you eating beetwell Wellington or belly jerky, make sure you eat a lot of it.
P. S. The "I" Respect Roaney Dangerfield" Telephone was cancelled to complete lack of interest
©1979 Miller Brewing Co. Milwaukee, Wis.