Speaks His Mind
|Calvin Coolidge (1872
- 1933), former governor of Massachusetts and 30th President of
the U.S. during 1923 - 1929, once informed some newsmen that it
was clearly in America's best financial interests to help America,
rather than other nations.
|Following World War
I, Germany had been unable to pay its huge debts. The nation of
France, who was not satisfied by Germany's shortcomings, sent
in soldiers. As a direct result of these military actions, several
riots and acts of violence took place. To make matters worse,
the value of German money plummeted, making it of no value.
Adopts the Gold Standard (1925)
|In April of 1925, Great
Britain's Prime Minister Sir Winston Leonard Spencer Churchill
(1874 - 1965) made a very important announcement concerning finance.
An economist named John Maynard Keynes (1883 - 1946) advised against
reviving the Gold Standard that had been done away with in 1914.
He also warned that trading countries would be required to hand
over more money for exports if this system were adopted. Nonetheless,
this plan that would make sure that there would be equal amounts
of gold and money in circulation at all times was reborn. Exchanges
between the two would also be made available.
Market Crash (1929)
During the 1920's, many American
people saw "the good times." These times of prosperity would
not last forever, however. The stock market crash of 1929 would
end "The Roaring Twenties" and the Jazz Age. Not everyone had
invested in the stock market, but the majority of all people
were soon hurt by the loss of $30 billion. The rise of the Great
Depression would create hardships for many families.
In early 1929, the Dow Jones industrial
average continued to rise and set new records. After climbing
all the way to 381, the average began to decline. With the drop
came panic, and investors started to rid of their stocks, trying
to make any money that they could from selling them. On earlier
dates, some economists had warned that the market would not
prosper forever, but now it was too late. On October 29, 1929,
(otherwise known as "Black Tuesday") a total of 16.4 million
shares were sold in all. The market would not be able to revive
itself. Soon, unemployment and several other problems in the
economy would arise. In later years, President Franklin Delano
Roosevelt's (1882 - 1945) New Deal programs and World War II
would help to make the U.S. an economic power once more.
| The U.S. gross national product
(GNP) rose to $71.6 billion. In 1910, it had been $30.4 billion.
| Throughout the decade, the
usual weekly salary for a skilled work in Great Britain was £5.