aw the largest percentage losses ever experienced by the NYSE; between the beginning of September and the end of November securities values dropped $18 billion. These losses were not followed by gains; the market continued to lose value through 1932.
With the crash of the market, corporations throughout the country, and the world, lost much of their value. This loss of value was then suffered not only by the shareholders, but also by the employees, as companies shed "fat" in order to survive. This, in turn, only worsened the situation, as consumer purchases plummeted and corporate sales fell. The crash revealed the basic unsoundness of the economy at that time.
The second chapter of this thesis will deal with the political background of the crash and the New Deal. The 1920s were dominated by the pro-business attitude of the Republican Party. Warren Harding had entered the White House in 1920 on a wave of reaction to the perceived internationalism of the Democrats, as exhibited by Woodrow Wilson's support of the L
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