he Great Depression can be traced back to the New York Stock Exchange, and the year 1929. At the stock exchange private individuals (Brokers), banks, and businesses are allowed to buy and sell shares of corporations. The higher the stocks rose in value the more investors thought it was a good buy. This meant they would buy even more shares of the stock. As this kept continuing, the share prices were way above the real value in terms of the dividends they might produce. In 1928, a common share of Du Pont stock increased from 310$ to 525$ in one year. Montgomery Ward stock jumped from 117$ to 440$. But by 1928 while the prices were soaring, demand for manufactured goods was falling off, and just when shares were climbing most rapidly it seemed like the time for a crash. In September of 1929, investors began to grow uneasy and a selling frenzy began. As they kept selling there shares, the prices kept tumbling. These prices kept falling because the government would not intervene based on their Laissez Fair Policy (hands-off the economy). Things were getting worse by the day. People where selling their stocks more furiously than ever before. It was October 24, 1929, more commonly known as "Black Thursday." (The Great Depression, Pg. 3) Black Thursday was described as a day where "Fear struck the big investors and the little ones… thousands of them threw their holdings into the whirling stock exchange for whatever money they could bring." (New York Times, October 25, 1929, Pg.1) On this day, investors saw several years profits vanish. The White Sewing Machine Company had reached 48$ a share, but by the end of Black Thursday a broker offered it for a dollar a share with no takers. American Telephone and Telegraph fell 28$, and Allied Chemical fell 35$. October 24, 1929 was a day of commotion and hysteria on the streets, people stood outside Wall Street like zombies awaiting the results. (The Great Depression, Pg. 8) As people began to feel as though the worse was over, another terrible day came upon them. "Black Tuesday" came 5 days after "Black Thursday." This time, so many shares were sold that the market collapsed completely. These "Black Days" were a blow from which the business community could not recover. They indicated the beginning of the economic crisis which scarred millions.(The Great Depression, Pg. 8) Another major cause of the depression was over-production. Manufacturers were producing products at a much faster rate than which they could sell them. Also, people where struggling to pay for their living

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