American History 1. Native American Society on the Eve of British Colonization   a. Diversity of Native American Groups   b. The Anasazi   c. The Algonkian Tribes   d. The Iroquois Tribes 2. Britain in the New World   a. Early Ventures Fail   b. Joint-Stock Companies   c. Jamestown Settlement and the "Starving Time"   d. The Growth of the Tobacco Trade   e. War and Peace with Powhatan's People   f. The House of Burgesses 3. The New England Colonies   a. The Mayflower and Plymouth Colony   b. William Bradford and the First Thanksgiving   c. Massachusetts Bay — "The City Upon a Hill"   d. Puritan Life   e. Dissent in Massachusetts Bay   f. Reaching to Connecticut   g. Witchcraft in Salem 4. The Middle Colonies   a. New Netherland to New York   b. Quakers in Pennsylvania and New Jersey   c. City of Brotherly Love — Philadelphia   d. The Ideas of Benjamin Franklin 5. The Southern Colonies   a. Maryland — The Catholic Experiment   b. Indentured Servants   c. Creating the Carolinas   d. Debtors in Georgia   e. Life in the Plantation South 6. African Americans in the British New World   a. West African Society at the Point of European Contact   b. "The Middle Passage"   c. The Growth of Slavery   d. Slave Life on the Farm and in the Town   e. Free African Americans in the Colonial Era   f. "Slave Codes"   g. A New African-American Culture 7. The Beginnings of Revolutionary Thinking   a. The Impact of Enlightenment in Europe   b. The Great Awakening   c. The Trial of John Peter Zenger   d. Smuggling   e. A Tradition of Rebellion   f. "What Is the American?" 8. America's Place in the Global Struggle   a. New France   b. The French and Indian War   c. George Washington's Background and Experience   d. The Treaty of Paris (1763) and Its Impact 9. The Events Leading to Independence   a. The Royal Proclamation of 1763   b. The Stamp Act Controversy   c. The Boston Patriots   d. The Townshend Acts   e. The Boston Massacre   f. The Tea Act and Tea Parties   g. The Intolerable Acts 10. E Pluribus Unum   a. Stamp Act Congress   b. Sons and Daughters of Liberty   c. Committees of Correspondence   d. First Continental Congress   e. Second Continental Congress   f. Thomas Paine's Common Sense   g. The Declaration of Independence 11. The American Revolution   a. American and British Strengths and Weaknesses   b. Loyalists, Fence-sitters, and Patriots   c. Lexington and Concord   d. Bunker Hill   e. The Revolution on the Home Front   f. Washington at Valley Forge   g. The Battle of Saratoga   h. The French Alliance   i. Yorktown and the Treaty of Paris 12. Societal Impacts of the American Revolution   a. The Impact of Slavery   b. A Revolution in Social Law   c. Political Experience   d. "Republican Motherhood" 13. When Does the Revolution End?   a. The Declaration of Independence and Its Legacy   b. The War Experience: Soldiers, Officers, and Civilians   c. The Loyalists   d. Revolutionary Changes and Limitations: Slavery   e. Revolutionary Changes and Limitations: Women   f. Revolutionary Limits: Native Americans   g. Revolutionary Achievement: Yeomen and Artisans   h. The Age of Atlantic Revolutions 14. Making Rules   a. State Constitutions   b. Articles of Confederation   c. Evaluating the Congress   d. The Economic Crisis of the 1780s 15. Drafting the Constitution   a. Shays' Rebellion   b. A Cast of National Superstars   c. The Tough Issues   d. Constitution Through Compromise 16. Ratifying the Constitution   a. Federalists   b. Antifederalists   c. The Ratification Process: State by State   d. After the Fact: Virginia, New York, and "The Federalist Papers"   e. The Antifederalists' Victory in Defeat 17. George Washington   a. Growing up in Colonial Virginia   b. The Force of Personality and Military Command   c. The First Administration   d. Farewell Address   e. Mount Vernon and the Dilemma of a Revolutionary Slave Holder 18. Unsettled Domestic Issues   a. The Bill of Rights   b. Hamilton's Financial Plan   c. Growing Opposition   d. U.S. Military Defeat; Indian Victory in the West   e. Native American Resilience and Violence in the West 19. Politics in Transition: Public Conflict in the 1790s   a. Trans-Atlantic Crisis: The French Revolution   b. Negotiating with the Superpowers   c. Two Parties Emerge   d. The Adams Presidency   e. The Alien and Sedition Acts   f. The Life and Times of John Adams 20. Jeffersonian America: A Second Revolution?   a. The Election of 1800   b. Jeffersonian Ideology   c. Westward Expansion: The Louisiana Purchase   d. A New National Capital: Washington, D.C.   e. A Federalist Stronghold: John Marshall's Supreme Court   f. Gabriel's Rebellion: Another View of Virginia in 1800 21. The Expanding Republic and the War of 1812   a. The Importance of the West   b. Exploration: Lewis and Clark   c. Diplomatic Challenges in an Age of European War   d. Native American Resistance in the Trans-Appalachian West   e. The Second War for American Independence   f. Claiming Victory from Defeat 22. Social Change and National Development   a. Economic Growth and the Early Industrial Revolution   b. Cotton and African-American Life   c. Religious Transformation and the Second Great Awakening   d. Institutionalizing Religious Belief: The Benevolent Empire   e. New Roles for White Women   f. Early National Arts and Cultural Independence 23. Politics and the New Nation   a. The Era of Good Feelings and the Two-Party System   b. The Expansion of the Vote: A White Man's Democracy   c. The Missouri Compromise   d. The 1824 Election and the "Corrupt Bargain"   e. John Quincy Adams   f. Jacksonian Democracy and Modern America 24. The Age of Jackson   a. The Rise of the Common Man   b. A Strong Presidency   c. The South Carolina Nullification Controversy   d. The War Against the Bank   e. Jackson vs. Clay and Calhoun   f. The Trail of Tears — The Indian Removals 25. The Rise of American Industry   a. The Canal Era   b. Early American Railroads   c. Inventors and Inventions   d. The First American Factories   e. The Emergence of "Women's Sphere"   f. Irish and German Immigration 26. An Explosion of New Thought   a. Religious Revival   b. Experiments with Utopia   c. Women's Rights   d. Prison and Asylum Reform   e. Hudson River School Artists   f. Transcendentalism, An American Philosophy 27. The Peculiar Institution   a. The Crowning of King Cotton   b. Slave Life and Slave Codes   c. The Plantation & Chivalry   d. Free(?) African-Americans   e. Rebellions on and off the Plantation   f. The Southern Argument for Slavery 28. Abolitionist Sentiment Grows   a. William Lloyd Garrison and The Liberator   b. African-American Abolitionists   c. The Underground Railroad   d. Harriet Beecher Stowe — Uncle Tom's Cabin 29. Manifest Destiny   a. The Lone Star Republic   b. 54° 40' or Fight   c. "American Blood on American Soil"   d. The Mexican-American War   e. Gold in California 30. An Uneasy Peace   a. Wilmot's Proviso   b. Popular Sovereignty   c. Three Senatorial Giants: Clay, Calhoun and Webster   d. The Compromise of 1850 31. "Bloody Kansas"   a. The Kansas-Nebraska Act   b. Border Ruffians   c. The Sack of Lawrence   d. The Pottawatomie Creek Massacre   e. Canefight! Preston Brooks and Charles Sumner 32. From Uneasy Peace to Bitter Conflict   a. The Dred Scott Decision   b. The Lincoln-Douglas Debates   c. John Brown's Raid   d. The Election of 1860   e. The South Secedes 33. A House Divided   a. Fort Sumter   b. Strengths and Weaknesses: North vs. South   c. First Blood and Its Aftermath   d. Sacred Beliefs   e. Bloody Antietam   f. Of Generals and Soldiers   g. Gettysburg: High Watermark of the Confederacy   h. Northern Plans to End the War   i. The Road to Appomattox 34. The War Behind the Lines   a. The Emancipation Proclamation   b. Wartime Diplomacy   c. The Northern Homefront   d. The Southern Homefront   e. The Election of 1864   f. The Assassination of the President 35. Reconstruction   a. Presidential Reconstruction   b. Radical Reconstruction   c. A President Impeached   d. Rebuilding the Old Order 36. The Gilded Age   a. Binding the Nation by Rail   b. The New Tycoons: John D. Rockefeller   c. The New Tycoons: Andrew Carnegie   d. The New Tycoons: J. Pierpont Morgan   e. New Attitudes Toward Wealth   f. Politics of the Gilded Age 37. Organized Labor   a. The Great Upheaval   b. Labor vs. Management   c. Early National Organizations   d. American Federation of Labor   e. Eugene V. Debs and American Socialism 38. From the Countryside to the City   a. The Glamour of American Cities   b. The Underside of Urban Life   c. The Rush of Immigrants   d. Corruption Runs Wild   e. Religious Revival: The "Social Gospel"   f. Artistic and Literary Trends 39. New Dimensions in Everyday Life   a. Education   b. Sports and Leisure   c. Women in the Gilded Age   d. Victorian Values in a New Age   e. The Print Revolution 40. Closing the Frontier   a. The Massacre at Sand Creek   b. Custer's Last Stand   c. The End of Resistance   d. Life on the Reservations   e. The Wounded Knee Massacre 41. Western Folkways   a. The Mining Boom   b. The Ways of the Cowboy   c. Life on the Farm   d. The Growth of Populism   e. The Election of 1896 42. Progressivism Sweeps the Nation   a. Roots of the Movement   b. Muckrakers   c. Women's Suffrage at Last   d. Booker T. Washington   e. W. E. B. DuBois 43. Progressives in the White House   a. Teddy Roosevelt: The Rough Rider in the White House   b. The Trust Buster   c. A Helping Hand for Labor   d. Preserving the Wilderness   e. Passing the Torch   f. The Election of 1912   g. Woodrow Wilson's New Freedom 44. Seeking Empire   a. Early Stirrings   b. Hawaiian Annexation   c. "Remember the Maine!"   d. The Spanish-American War and Its Consequences   e. The Roosevelt Corollary and Latin America   f. Reaching to Asia   g. The Panama Canal 45. America in the First World War   a. Farewell to Isolation   b. Over There   c. Over Here   d. The Treaty of Versailles and the League of Nations 46. The Decade That Roared   a. The Age of the Automobile   b. The Fight Against "Demon Rum"   c. The Invention of the Teenager   d. Flappers   e. The Harlem Renaissance   f. A Consumer Economy   g. Radio Fever   h. Fads and Heroes 47. Old Values vs. New Values   a. The Red Scare   b. The Monkey Trial   c. Intolerance   d. Books and Movies   e. Domestic and International Politics 48. The Great Depression   a. The Market Crashes   b. Sinking Deeper and Deeper: 1929-33   c. The Bonus March   d. Hoover's Last Stand   e. Social and Cultural Effects of the Depression 49. The New Deal   a. A Bank Holiday   b. Putting People Back to Work   c. The Farming Problem   d. Social Security   e. FDR's Alphabet Soup   f. Roosevelt's Critics   g. An Evaluation of the New Deal 50. The Road to Pearl Harbor   a. 1930s Isolationism   b. Reactions to a Troubled World   c. War Breaks Out   d. The Arsenal of Democracy   e. Pearl Harbor 51. America in the Second World War   a. Wartime Strategy   b. The American Homefront   c. D-Day and the German Surrender   d. War in the Pacific   e. Japanese-American Internment   f. The Manhattan Project   g. The Decision to Drop the Bomb 52. Postwar Challenges   a. The Cold War Erupts   b. The United Nations   c. Containment and the Marshall Plan   d. The Berlin Airlift and NATO   e. The Korean War   f. Domestic Challenges 53. The 1950s: Happy Days   a. McCarthyism   b. Suburban Growth   c. Land of Television   d. America Rocks and Rolls   e. The Cold War Continues   f. Voices against Conformity 54. A New Civil Rights Movement   a. Separate No Longer?   b. Rosa Parks and the Montgomery Bus Boycott   c. Showdown in Little Rock   d. The Sit-In Movement   e. Gains and Pains   f. Martin Luther King Jr.   g. The Long, Hot Summers   h. Malcolm X and the Nation of Islam   i. Black Power 55. The Vietnam War   a. Early Involvement   b. Years of Escalation: 1965-68   c. The Tet Offensive   d. The Antiwar Movement   e. Years of Withdrawal 56. Politics from Camelot to Watergate   a. The Election of 1960   b. Kennedy's New Frontier   c. Kennedy's Global Challenges   d. Kennedy Assassination   e. Lyndon Johnson's "Great Society"   f. 1968: Year of Unraveling   g. Triangular Diplomacy: U.S., USSR, and China 57. Shaping a New America   a. Modern Feminism   b. The Fight for Reproductive Rights   c. The Equal Rights Amendment   d. Roe v. Wade and Its Impact   e. Environmental Reform   f. Others Demand Equality   g. Student Activism   h. Flower Power 58. A Time of Malaise   a. Undoing a President   b. The Sickened Economy   c. Foreign Woes   d. Finding Oneself   e. The New Right 59. The Reagan Years   a. "Morning in America"   b. Reaganomics   c. Foreign and Domestic Entanglements   d. Life in the 1980s   e. The End of the Cold War 60. Toward a New Millennium   a. Operation Desert Storm   b. A Baby Boomer in the White House   c. Republicans vs. Democrats   d. Living in the Information Age   e. The End of the American Century

48a. The Market Crashes

It was a boom time for the stockholder. Stock prices soared to record levels. Millionaires were made overnight. Sound like the stock market of the 1990s? Try the New York Stock Exchange on the eve of the Great Crash in 1929.

Although the 1920s were marked by growth in stock values, the last four years saw an explosion in the market. In 1925, the total value of the New York Stock Exchange was $27 billion. By September 1929, that figure skyrocketed to $87 billion. This means that the average stockholder more than tripled the value of the stock portfolio he or she was lucky enough to possess.

In his Ladies' Home Journal article, "Everyone Ought to Be Rich," wealthy financier John J. Raskob advised Americans to invest just $15 dollars a month in the market. After twenty years, he claimed, the venture would be worth $80,000. Stock fever was sweeping the nation, or at least those that had the means to invest.

Fueling the rapid expansion was the risky practice of buying stock on margin. A margin purchase allows an investor to borrow money, typically as much as 75% of the purchase price, to buy a greater amount of stock. Stockbrokers and even banks funded the reckless speculator. Borrowers were often willing to pay 20% interest rates on loans, being dead certain that the risk would be worth the rewards. The lender was so certain that the market would rise that such transactions became commonplace, despite warnings by the Federal Reserve Board against the practice. Clearly, there had to be a limit to how high the market could reach.

What causes stock prices to fall? Although the workings of the New York Stock Exchange can be quite complex, one simple principle governs the price of stock. When investors believe a stock is a good value they are willing to pay more for a share and its value rises. When traders believe the value of a security will fall, they cannot sell it at as high of a price. If all investors try to sell their shares at once and no one is willing to buy, the value of the market shrinks.

On October 24, 1929, "Black Thursday," this massive sell-a-thon began. By the late afternoon, wealthy financiers like J.P. Morgan pooled their resources and began to buy stocks in the hopes of reversing the trend.

But the bottom fell out of the market on Tuesday, October 29. A record 16 million shares were exchanged for smaller and smaller values as the day progressed. For some stocks, no buyers could be found at any price. By the end of the day, panic had erupted, and the next few weeks continued the downward spiral. In a matter of ten short weeks the value of the entire market was cut in half. Suicide and despair swept the investing classes of America.