Effects of the Wall Street Crash.

1. The demand fell again and so many people lost

money.
2. Many people lost their jobs because companies
closed.
3. People who had money spent it sparingly for fear of
exhausting it.
4. More workers were laid off by the companies.
5. Companies cut back on production.
Financial effects.
1. It led to the ruining of many individuals and
businesses.
2. People could not afford to pay mortgage hence lost
their homes.
3. Banks that offered loans could not get their money
back.
4. People with savings in the banks lost their money.
5. Farmers were evicted because they could not service
loans.
6. Thousands of companies went out of business
because their shares were worth so little.
 Source D.
Arthur A. Robertson, a business man remembers the crash.
Suicides, left and right made a terrific impression of me, of course.
People I knew. It was heartbreaking. One day you saw the prices at
a $100, the next day at $20, at $15. On Wall Street, the people
walked around as zombies. You saw people who yesterday rode
around in cadillacs lucky now to have fare for a bus.

Questions.
1. Why did the American economy collapse in the
1930s? You must include;
-Overproduction.
-Cycle of depression.
-Speculators.
-Wall Street Crash.
2. How useful is source A to a historian studying the
reasons for the Wall Street crash?
3. What were the economic and financial effects of the
Wall Street crash?
4. What does source D tell you about the effects of the
crash? Which information would be more useful to a
historian?