Feeling refreshed after his vacation, Edel returned to Bucharest in early summer.
Edel immediately fell into work when he returned to the capital, and he did not rush the infrastructure plan he had asked the government to do before. Moreover, after he returned to the capital, Romania's huge sum of 900 million US dollars had also been transferred back to the country.
, Edel, who is safe and secure, has nothing to worry about.
The days passed slowly like this, until one day in September, when I was busy, a guard came in in a hurry.
"Your Majesty, this is a telegram from the United States."
When Edel heard that it was a telegram from the United States, he immediately took it and read it. There was no other content in this telegram, only news about the U.S. stock market. There were just a few sentences written on it. On September 5, the New York stock market
It fell 46 points and 13 million shares were traded throughout the day.
Don't think that this drop is not high. You must know that the current closing price of the Wall Street stock market the day before was only 391 points. This was a drop of nearly 12% in one day, which caused panic in the market. It happened to be Thursday, so it was also called
Black Thursday.
"Is this the beginning of the Great Depression?"
Edel couldn't make up his mind.
While Edel was thinking, the entire United States was also shocked by the sharp drop in the stock market. The White House made a speech in response to the stock market drop in New York, and the new President Hoover declared that the current U.S. economy was normal and the economic structure was functioning well.
As Treasury Secretary, Mellon also told the newspaper in a high-profile manner: There is no reason to worry now, and this boom in prosperity will continue.
However, the speeches of senior White House officials did not seem to enhance the confidence of the stock market. The U.S. stock market continued to fall after the market opened the next day. Although the decline was higher than the previous day, its momentum was unstoppable at first glance. The Wall Street stock market fell 51 points again that day.
It has fallen below the 300-point mark. This made the market wail, and many people suffered heavy losses.
The decline in the Wall Street stock market has caused people to suffer heavy losses, and at this time they especially hope that a hero can step forward to rescue the market. The last hero to rescue the market, Morgan, was so highly anticipated. And the newspapers were all hoping for this Wall Street hero.
The king of finance can save the slumping stock market. Of course, Morgan, who has high hopes, also hopes to save the stock market, and the public's hope makes Morgan unable to refuse.
So when people were calling for it, Wall Street capital represented by Morgan chose to come to the rescue. Because if the financial market fell into depression, the income of Wall Street capitalists would also drop sharply. As for later generations, some people said that this stock market crash had
The shadow of Wall Street is pure fart. The stock market crash will do more harm than good to Wall Street, so it would be abnormal not to save it.
However, they also underestimated the power of this stock market drop. The billions of capital they carried were drowned by the raging wave of decline without even seeing a wave. At this point, the momentum of the stock market crash can no longer be stopped. No one can say
Find out when the decline will end.
The decline in the stock market has caused many losses, and many people have invested all their wealth in the previously prosperous stock market. This wave of decline has left them impoverished. Many people could not bear the huge blow and chose to end their careers.
Life. During that time, many pedestrians in New York did not dare to approach buildings such as high-rise hotels. Maybe a figure would fall from above and end his life with a loud bang. According to statistics, during this period, the average number of people in New York was
Thousands of people end their lives every month by shooting, jumping from buildings, or jumping into rivers.
The Manhattan Bridge and the Brooklyn Bridge have become holy places for suicide. Many people who were destitute during the stock market plunge jumped into the sea from here wearing only decent clothes.
The decline of the stock market also quickly affected the economy, and many companies suffered heavy losses in the decline of the stock market. These were all fascinated by the prosperous stock market and diverted company funds into the stock market in an attempt to make a fortune. But they and those families
Like housewives, they all suffered heavy losses in the wave of stock market decline, which put their own companies in trouble. Layoffs and bankruptcies have become the norm for American companies during this period.
In just two weeks after the crash on September 5, a total of US$30 billion in wealth disappeared. At this time, the GDP of the United States was only US$103.6 billion. It can be said that the United States lost 30% of its GDP in two weeks.
.After that, it was not until the outbreak of World War II that U.S. GDP returned to the level before the Great Depression.
The main reason is the domestic economic imbalance and overproduction in the United States.
From 1920 to 1929, workers' hourly wages increased by only 2%, while the productivity of workers in factories soared by 55%. At the same time, farmers' real income also decreased due to the continuous decline in agricultural product prices, rents, taxes and living expenses.
It is rising and decreasing. In 1910, the income of each farm worker was less than 40% of the income of non-farm workers, and by 1930, this proportion was less than 30%. This kind of poverty in rural areas is a serious problem.
problem, because at that time the agricultural population accounted for one-fifth of the total population.
In the 1920s, there were already some trends that were ignored or ignored at the time that were not conducive to economic development. Agriculture has never fully recovered from the post-war depression, and farmers have always been poor during this period. In addition, the so-called wage level in the industrial sector is relatively low.
High, many of which are illusions. Within this decade, the application of new machines displaced a large number of workers.
For example, from 1920 to 1929, the total industrial output value increased by almost 50%, but the number of industrial workers did not increase, and the number of employees in the transportation industry actually decreased. In the service industry with very low wages, the number of workers increased the most, among which
There is no doubt that many skilled workers who have been unemployed due to technological progress are also included. Therefore, those statistics that indicate a slight increase in wages do not seem to reflect the real situation. Since workers and peasants are basic consumers, these two groups of people encounter
Economic difficulties will certainly have an impact on the consumer goods market.
Under these circumstances, the expansion of advertising and the increase in installment credit sales in the 1920s, which worked hard to expand the market for consumer goods, would have had undesirable consequences.
From 1924 to 1929, installment sales increased from approximately US$2 billion to US$3.5 billion. This shows that the growth rate is astonishing. There is no doubt that the use of installment credit sales increased the number of cars.
, sales of durable consumer goods such as radios, furniture, and household electrical appliances.
However, the promotion and use of the installment sales method also shows the fact that without increasing loans, the consumer goods market cannot accommodate the large number of products produced by the industrial sector. Moreover, from an economic point of view, this sales and loan method itself breeds a certain
This is a risk; as long as consumer credit, that is, installment credit sales, is reduced, consumers' purchases are likely to decrease.
In addition, a large amount of capital poured into the United States, which also caused this situation. In the 1920s, as many countries paid war debts, money continued to flow into the United States; the United States’ gold reserves increased from 1.924 billion U.S. dollars between 1913 and 1924.
It increased to US$4.499 billion, which is half of the world's total gold reserves.
The influx of money could not find other investment environments, so it could only be invested in the stock market. This accelerated the prosperity of the stock market, causing American industrial production to pile up. However, the stock market was extremely prosperous, so it would be strange if there were no problems.
Of course, the U.S. stock market will explode in advance, and Romania's early divestment will also have a certain impact. The withdrawal of US$900 million in funds will inevitably affect the stock market. But for Edel, he doesn't care about the life or death of the American people. It is bound to happen anyway.
Whatever happened, it's important to save yourself first.
