Causes of the Great Depression Topic 19.
Transcript of Causes of the Great Depression Topic 19.
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James Byem• January 1927• Newlywed• Uses the new
“Installment buying” from the Department Store• “I can have anything I
want and only pay a little each month.”• New apartment. Wants
nice things
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Harold Bildit• March 1927• Factory owner – 500
workers• Builds chairs, sofas,
refridgerator• Business was good –
“couldn’t turn them out fast enough”• “Business is slowing now
- but I’ll keep producing, I want to be ready when business picks up”
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Emma Saveit• August 1927• Retirement savings are in
the bank – “I don’t trust the stock market – banks are safe!”• $5000.00 in the bank on
Main Street – “My Life’s Savings!”
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Leonard Ditz (Len Ditz) • December 1928• Loan Officer – Main Street
Bank• “I like this new Margin Buying
for stocks”• “People borrow money from
me to buy stocks and pay it back when the stock price rises.”
• “I lend 90% of the value and the borrower puts up 10%”
• “I have lots of money to lend – I’m the bank!”
• “I Work on Commission.”
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Ima Sucker• Feb. 14, 1929• “All my friends are
buying stocks… I will too.” • “It’s like a game – and
the bank will lend me the money.”• “I have almost nothing to
lose – 10%.”• “I like playing with
money like this.”
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Zeke• July 1929
• “I love this land. My Father and Grandfather farmed here before me.”• “I had some great years.
Borrowed some money and bought some new tractors.”• Prices are dropping• Produces more
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Bent• Sept. 1929• Mill worker – 12 hours a
day• $.18 per hour• “ My Boss has stocks,
railroads, and even owns some buildings.”• No savings
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In Summary• James Byem – using
credit poorly. Too much borrowing• Harold Bildit –
Overproducing. Keeps paying workers to make more. • Emma Saveit – Blind
trust in the Bank
• Len Ditz – Risky Lending• Ima Sucker – buying
stocks w/o understanding• Zeke Peferlee –
overproducing to pay debt, driving prices down• Bent – innocent victim,
boss is heavily invested