After a series of five amazing years in which the Dow Jones Industrial Average (DJIA) increase in value fivefold, prices peaked in 381.17 on September 3, 1929. Since then, the market fell deeply for a month, losing 17 of its initial value in the fall. Then, during the following week, prices recovered more than half of the losses, only to fall again soon after. Then the decline accelerated in what is called "Black Thursday" on October 24, 1929. That day was negotiated a record number of 12.9 million shares.
From October 25 the accumulation of selling orders had brought down the values, but the October 24th called Black Thursday, 13 million shares are sold cheaply and can not find buyers, triggering the collapse of the bag . At 1 p.m. Friday October 25, several major Wall Street bankers met to find a solution to the panic and chaos in the negotiations stock. The reunion included Thomas W. Lamont, acting on behalf of JPMorgan Chase, Albert Wiggin, a representative of Chase National Bank, and Charles E. Mitchell, president of National City Bank. They chose Richard Whitney, vice president of the New York Stock Exchange, to act on their behalf. With the financial resources in support of bankers, Whitney placed a bid to buy a large block of shares in the U.S. Steel at a price well above market. Then, before the astonished gaze of the negotiators, Whitnet committed a similar number of shares in another Blue chip. This tactic was similar to a tactic that ended with the panic of 1907 and succeeded in halting the decline that day. In this case, however, the respite was only temporary.
Over the weekend, the events were covered by newspapers across the United States (See the section AMERICA LaVanguardia Published 31-10-1929 - Heroteca of LaVanguardia). Monday, October 28 more investors decided to exit the market and the continuing decline of the record with a 13 loss in the Dow Jones that day. The next day, "Black Tuesday, October 29, 1929 was 16.4 million shares traded, a number that broke the record set seven days earlier and that would not be exceeded until 1969. Richard M. Salsman wrote that on October 29, amid rumors that U.S. President Herbert Hoover not vetaria Act Smoot-Hawley Tariff which was outstanding, stock prices collapsed further. William C. Durant joined with members of the Rockefeller family and other financial giants to buy large quantities of shares in order to show the public their confidence in the market, but their efforts failed in the attempt to arrest the fall. The Dow Jones lost another 12 that day. bag lost 14 billion in value that day, adding 30 billion loss for the week, ten times more than the annual budget of the federal government and much of what United States spending in the First World War.
Another drop occurred on November 13 when the Dow Jones Hill at 198.6, although the market recovered in the following months from that point, reaching a peak of 294.0 in April 1930. In the spring of 1930 Banca Morgan decides to sell the shares he has accumulated and there was another drop in the bag. fishing net Contributions continue to decline. The stock market is on a steady fall in April 1931 that did not end until 1932 when the Dow Jones Hill 41.22 in the July 8, concluding in a deterioration of 89 decline from the highest point. This was the lowest point in which was the stock market since the nineteenth century .