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Stock Market Crash
The stock market crashes, marking the end of six years of unparalleled prosperity for most sectors of the American economy. The "crash" begins on October 24 (Black Thursday). By October 29, stock prices will plummet and banks will be calling in loans. An estimated $30 billion in stock values will "disappear" by mid-November. -
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The Great Depression
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President Hoover's Foolishness
President Herbert Hoover says, "Any lack of confidence in the economic future or the basic strength of business in the United States is foolish." -
Unemployment
More than 3.2 million people are unemployed, up from 1.5 million before the October, 1929 crash. President Hoover remains optimistic, however, stating that "all the evidences indicate that the worst effects of the crash upon unemployment will have passed during the next 60 days." -
Apple Sellers
The street corners of New York City are crowded with apple-sellers. Many unemployed individuals work at selling apples for five cents apiece. There are about 6,000 apple-sellers. -
Food Riots
"Food riots" begin to break out in parts of the U.S. In Minneapolis, several hundred men and women smash the windows of a grocery market and make off with fruit, canned goods, bacon, and ham. One of the store's owners pulls out a gun to stop the looters, but is leapt upon and has his arm broken. The "riot" is brought under control by 100 policemen. Seven people are arrested. -
Ford Motor Strike
Three thousand unemployed workers march on the Ford Motor Company's plant, The plant is located in River Rouge, Michigan. Dearborn police and Ford's company guards attack the workers, killing four and injuring many more. -
Bonus Bill
Texas congressman Wright Patman introduces legislation authorizing immediate payment of "bonus" funds to veterans of World War I. The "bonus bill" had been passed in 1924. It allots bonuses, in the form of "adjusted service certificates," equaling $1 a day for each day of service in the U.S., and $1.25 for each day overseas. President Hoover is against payment of these funds, saying it would cost the Treasury $4 billion. -
Bank of the United States Collapse
New York's Bank of the United States collapses. At the time of the collapse, the bank had over $200 million in deposits, This makes it the largest single bank failure in the nation's history. -
Reconstruction Finance Corporation
Congress establishes the Reconstruction Finance Corporation. The R.F.C. is allowed to lend $2 billion to banks, insurance companies, building and loan associations, agricultural credit organizations and railroads. Critics of the R.F.C. call it "the millionaires' dole." -
City Relief
More than 750,000 New Yorkers are reported to be dependent upon city relief. An additional 160,000 are on a waiting list. Expenditures average about $8.20 per month for each person on relief. -
World War I Veterans
More than 300 World War I veterans leave Portland, Oregon en route to Washington, D.C. They leave to urge Congress to pass the Bonus Bill. It will take them 18 days to reach Washington, D.C. -
WWI Veterans Camp in Washington
Determined to collect their "bonus" pay for service, 15,000 - 25,000 World War I veterans gather and begin setting up encampments near the White House and the Capitol in Washington, D.C. On June 15, the House passes Congressman Wright Patman's "bonus bill" by a vote of 209 to 176. The bill falls to defeat in the Senate, however, 62 to 18. The vets maintain their determination to stay camped out until they get their pay. -
Transportation Bill
The Reconstruction Finance Corporation is authorized to lend needy states sums from the National Treasury. The money is to target relief and public works projects. President Hoover signs a $100,000 transportation bill to assist "Bonus Army" demonstrators in getting home. He sets a July 24 deadline for the men to abandon their encampments. -
"Bonus Army" Violence
On July 28, when some "Bonus Army" members resist being moved from their camps, violence erupts, leading to the deaths of two veterans. Hoover orders Federal troops, under the command of General Douglas MacArthur, to assist D.C. police in clearing the veterans. -
FDR Elected as President
Franklin Delano Roosevelt is elected president. He won in a landslide over Herbert Hoover. Roosevelt receives 22.8 million popular votes to Hoover's 15.75 million. -
FDR Inaugurated
Before a crowd of 100,000 at the Capitol Plaza in Washington, D.C., Franklin Delano Roosevelt is inaugurated. FDR tells the crowd, "The people of the United States have not failed. In their need they have registered a mandate that they want direct, vigorous action. They have asked for discipline and direction under leadership. They have made me the present instrument of their wishes. In the spirit of the gift I take it." -
Bank Holiday
FDR announces a four-day bank holiday to begin on Monday, March 6. During that time, FDR makes a promise. He promises Congress will work on coming up with a plan to save the failing banking industry. -
Fireside Chats
On March 12, FDR delivers the first of what came to be known as his "fireside chats." In his initial "chat" he appeals to the nation to join him in "banishing fear." People responded well and families listened to the fireside chats each week. -
Federal Spending
FDR asks Congress to authorize $3.75 billion in federal spending to stimulate the sagging economy. Economic indicators respond favorably over the next few months. Still, unemployment will remain high and is predicted to stay that way for some time. -
FDR's 3rd Term
Franklin Roosevelt is elected to an unprecedented third term as president, defeating Wendell Willkie. FDR's victory is seen as proof of the nation's support of his war policies. Roosevelt lobbies Congress to pass the Lend-Lease Act, which will aid Britain in its struggle to fend off Germany. -
Pearl Harbor and end of Depression
In little over a year, Japan will bomb Pearl Harbor in December of 1941. The U.S. will enter the war in the Pacific and in Europe. The war effort will jump-start U.S. industry and effectively end the Great Depression.
