09-01-2009, 07:52 PM
I was just reading an insider account of the FDR Presidency by his son-in-law. He was present in the White House later much of the time and knew of the events personally. He had been a stock-broker during the 'crash' and has this interesting 'bit' to say - about it being planned and pulled-off with precision...... The book is Curtis B. Dall's
Franklin Delano ROOSEVELT - My Exploited Father-in-Law. This from page 112:
"For six years the stock market and other markets had been rising.
Huge profits had been parlayed from modest starts by many people. Much of it was on paper. Most all the
market prognosticators were still bullish and advised the market was a "buy" on important reactions. Roger
Babson, a well-known investment counselor, had been continually sounding a note of caution, that stocks
were a "sale" on strong points. Of course, he had been wrong for a long while, but on October 24, 1929, he
was more than right.
On one or two previous occasions the Panic had nearly started. Perhaps the stock market had been probed by
powerful forces. Perhaps some foreign interests were getting out, first, those who sought and planned the
downward readjustment of prices for profit.
In any event, on October 24, 1929, the real crash started!
By late morning on the New York Stock Exchange, the tape was hopelessly behind the market. "Floor
prices" in leading stocks had to be flashed to the tape direct from the specialists' posts. In many cases, the
floor prices were "points" under last-sale prices appearing on the tape throughout the country. This fact in
itself created fear and much uncertainty, adding impetus to the recurring stock-selling waves.
Around noon, as I maneuvered through the mob scene there, ugly rumors began to be whispered about the
folding of "this house" and "that house", such as Doak & Company!
Our New York office, like others, was in great turmoil. I was fighting to get stock executions on the Floor
for our orders, and getting "spot" sales information on leading big stocks for the office to relay to our frantic
customers.
The Floor itself was a scene! There, manners and Floor
113
procedure were thrown to the winds. It was almost a riot at times. In many cases, it was sell or shortly be
"called" by a bank protecting its bank loan.
As I recall it, Sir Winston Churchill appeared about 2:15 in the Visitor's Gallery as a "spectator". He was
here in this country, allegedly, on what was blandly described by him as a Lecture Tour. No one on the Stock
Exchange Floor, however, paid the slightest attention to him, but he got an eye full. Perhaps he had lunched
with Mr. Baruch. Perhaps he had been invited to see "the show" which some feel was planned several months
previously.
The Panic was raging in full force. It was indeed a show!
Ugly rumors persisted and deepened. Some distracted people had jumped out of high windows in nearby
buildings unable to face their losses. Sirens from police cars were wailing, which created a strange, eerie
feeling. I was not jumpy. I just felt tense. It was like a battle; people were dying.
Just how many houses were "shaky", no one really knew. The banks were now heavily involved as prices
fell. When evening came, the tall buildings of Wall Street were ablaze with lights burning far into the night,
some blazing all night. Many office managers, margin clerks, and cashiers dozed in chairs or slept on the floor
in the offices. Partners looked at each other with deep concern and talked quietly. That day, 12,894,650 shares
were traded; on October 29th, 16,410,030 shares. Record breaking!
The Boom of the Twenties was over!
Of course, there were subsequent brief rallies in the market, but they were short lived. The year-end
statements of most firms showed losses that were staggering. Mine were.
Soon to feel the effect of the great decline in stock prices was the real estate market, then stores, and then
business in general. Real estate values slumped badly.
The financial community began slowly to regroup its forces. Some stronger firms took over some weaker
houses.
Wall Street alone was not involved; "Main Street" was right in there with it!
Many factors were undoubtedly involved and contributed to that catastrophic event. Even those on the inside
of world money affairs could not tell exactly when the big "break!' would occur. They merely knew that a
"break" would occur.
I recall the observation made by Bernard Baruch, referring to the stock market, in the spring of 1929, that
"he saw storm warnings." Later, in July, he was reported by the press as visiting and vacationing in the south of France, with banker friends. According to newspaper reports, he left
Southern France with Winston Churchill for Scotland early in August to attend the opening of the Grouse
Shooting season there.
In September, came another "flurry" in the stock market, and then in October, "the real McCoy"!
In reviewing the crash of '29, 1 have often wondered if the reported meeting of those very influential
financial leaders assembled in Europe in July and August, had a direct bearing on the October opening of the
"Financial Grouse Shooting Season" on Main Street, U.S.A.1 I think so.
Sir Winston attended both planned "openings" that summer and fall and his observations on the latter event
would have been especially interesting to many of us, perhaps quite enlightening."
......interesting!
Franklin Delano ROOSEVELT - My Exploited Father-in-Law. This from page 112:
"For six years the stock market and other markets had been rising.
Huge profits had been parlayed from modest starts by many people. Much of it was on paper. Most all the
market prognosticators were still bullish and advised the market was a "buy" on important reactions. Roger
Babson, a well-known investment counselor, had been continually sounding a note of caution, that stocks
were a "sale" on strong points. Of course, he had been wrong for a long while, but on October 24, 1929, he
was more than right.
On one or two previous occasions the Panic had nearly started. Perhaps the stock market had been probed by
powerful forces. Perhaps some foreign interests were getting out, first, those who sought and planned the
downward readjustment of prices for profit.
In any event, on October 24, 1929, the real crash started!
By late morning on the New York Stock Exchange, the tape was hopelessly behind the market. "Floor
prices" in leading stocks had to be flashed to the tape direct from the specialists' posts. In many cases, the
floor prices were "points" under last-sale prices appearing on the tape throughout the country. This fact in
itself created fear and much uncertainty, adding impetus to the recurring stock-selling waves.
Around noon, as I maneuvered through the mob scene there, ugly rumors began to be whispered about the
folding of "this house" and "that house", such as Doak & Company!
Our New York office, like others, was in great turmoil. I was fighting to get stock executions on the Floor
for our orders, and getting "spot" sales information on leading big stocks for the office to relay to our frantic
customers.
The Floor itself was a scene! There, manners and Floor
113
procedure were thrown to the winds. It was almost a riot at times. In many cases, it was sell or shortly be
"called" by a bank protecting its bank loan.
As I recall it, Sir Winston Churchill appeared about 2:15 in the Visitor's Gallery as a "spectator". He was
here in this country, allegedly, on what was blandly described by him as a Lecture Tour. No one on the Stock
Exchange Floor, however, paid the slightest attention to him, but he got an eye full. Perhaps he had lunched
with Mr. Baruch. Perhaps he had been invited to see "the show" which some feel was planned several months
previously.
The Panic was raging in full force. It was indeed a show!
Ugly rumors persisted and deepened. Some distracted people had jumped out of high windows in nearby
buildings unable to face their losses. Sirens from police cars were wailing, which created a strange, eerie
feeling. I was not jumpy. I just felt tense. It was like a battle; people were dying.
Just how many houses were "shaky", no one really knew. The banks were now heavily involved as prices
fell. When evening came, the tall buildings of Wall Street were ablaze with lights burning far into the night,
some blazing all night. Many office managers, margin clerks, and cashiers dozed in chairs or slept on the floor
in the offices. Partners looked at each other with deep concern and talked quietly. That day, 12,894,650 shares
were traded; on October 29th, 16,410,030 shares. Record breaking!
The Boom of the Twenties was over!
Of course, there were subsequent brief rallies in the market, but they were short lived. The year-end
statements of most firms showed losses that were staggering. Mine were.
Soon to feel the effect of the great decline in stock prices was the real estate market, then stores, and then
business in general. Real estate values slumped badly.
The financial community began slowly to regroup its forces. Some stronger firms took over some weaker
houses.
Wall Street alone was not involved; "Main Street" was right in there with it!
Many factors were undoubtedly involved and contributed to that catastrophic event. Even those on the inside
of world money affairs could not tell exactly when the big "break!' would occur. They merely knew that a
"break" would occur.
I recall the observation made by Bernard Baruch, referring to the stock market, in the spring of 1929, that
"he saw storm warnings." Later, in July, he was reported by the press as visiting and vacationing in the south of France, with banker friends. According to newspaper reports, he left
Southern France with Winston Churchill for Scotland early in August to attend the opening of the Grouse
Shooting season there.
In September, came another "flurry" in the stock market, and then in October, "the real McCoy"!
In reviewing the crash of '29, 1 have often wondered if the reported meeting of those very influential
financial leaders assembled in Europe in July and August, had a direct bearing on the October opening of the
"Financial Grouse Shooting Season" on Main Street, U.S.A.1 I think so.
Sir Winston attended both planned "openings" that summer and fall and his observations on the latter event
would have been especially interesting to many of us, perhaps quite enlightening."
......interesting!