Some of the causes of the Great Depression was the crash of the Stock MarketOctober 29, 1929 Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and a lot of people lost their savings, and when they went to go get their money it was not there. Lots of people lost their jobs and they stopped purchasing merchandise. They stopped the production of merchandise and many people in the workface lost their jobs. The unemployment went up to 25% in the 1930’s. A higher tax was charged on imports to other countries. The trade between other countries decreased.
Some of the causes The Crash of the Stock Market is when people didn't have enough money to pay full price for stocks, they could buy stocks "on margin". The buyer only had to put down 10 to 20 percent if their money, and borrowed up to 80 to 90 percent. Buying on margin was very risky, the buyer had to come up with money immediantely. Once the stock market crashed, the buyers money was permantely lost. The crash of the Stock Market was a big reason why they went into the Great Depression
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In the spring of 1932, between 10,000 and 20,000 World Veterans and Vietnam came to Washington D.C and formed an army called the Bonus Army. The marched around Washington D.C to prove a point that they wanted to get paid for their service now. The Veterans set camp at Anacostia Flats. The War Adjustment Compensation of 1924 said that the World War 1 and the Vietnam soliders certificates weren't going to redeem till 1945. The Veterans were going to get paid $1.25 for each day served overseas, $1.00 for each day served in the States. The veterans and their families need their money now. The marchers waited at their campsite until President Hoover would take action. Attonery General William D. Mitchell ordered the police to take act and remove the Bonus Army. Not many people were killed and about 70 policemen were injured. The Bonus Army took the chances for President Hoover to win the re-election, he lost big time to Franklin D. Roosvelt. Roosevelt passed the Compensation Adjustment Payment Act in 1936 with over $2 billion dollars to the Veterans.
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