New York on the day Wall Street crashed: in photos

On October 24, 1929, the New York Stock Exchange experienced a significant downturn immediately after the opening bell. In just a few minutes, the market plummeted by 11%, triggering widespread panic among investors. A combination of factors, including delays in communication at brokerages throughout the country, contributed to this financial crisis. This date would later be dubbed Black Thursday, a precursor to the catastrophic events of Black Tuesday, which occurred on October 29 when the stock market ultimately collapsed. Estimates suggest that over the four days of trading during this tumultuous period, the markets lost approximately $396 billion in today’s currency.

The atmosphere in New York City was one of chaos and distress. Rumors began circulating that bankers and brokers were jumping from buildings, although these claims were largely exaggerated. In an era devoid of the internet and television, misinformation spread rapidly and was difficult to dispel. One prominent figure staying at the Savoy Plaza Hotel recounted witnessing a man leap from a building just hours before the market opened on Black Thursday. While this account was factual, the interpretation of the incident was misguided. As Winston Churchill noted, his observations carried weight, influencing public perception during a time of uncertainty.

The stories of brokers supposedly leaping to their deaths became entrenched in popular culture, even inspiring humor among comedians of the time. Eddie Cantor, a well-known entertainer, reportedly quipped about his experience trying to book a room on the 19th floor of a hotel, where the clerk asked him, "What for? Sleeping or jumping?" It is worth noting that Cantor himself suffered significant financial losses during the crash, as documented by the History Channel.

The aftermath of Black Thursday led to Black Monday, another day characterized by frantic selling. Jonathan Leonard, a reporter present on Wall Street that day, described the evening atmosphere: "That night Wall Street was lit up like a Christmas tree. Restaurants, barbershops, and speakeasies were open and doing a roaring business. Messenger boys and runners raced through the streets whooping and singing at the tops of their lungs. Slum children invaded the district to play with balls of ticker tape. Well-dressed gentlemen fell asleep in lunch counters. All the downtown hotels, rooming houses, even flophouses were full of financial employees who usually slept in the Bronx." Leonard noted that despite the festive scene, it was likely Wall Street's worst night, as everyone, from seasoned traders to young office boys, understood that the following day would likely bring even more turmoil.

Then came Black Tuesday, when the market's decline reached catastrophic levels. By October 29, 1929, much of the wealth that investors had amassed evaporated, plunging the United States into the Great Depression. This economic downturn had far-reaching effects, impacting not only the U.S. economy but also much of the Western world. The Great Depression lasted over a decade, resulting in numerous unintended consequences, including the rise of Adolf Hitler in Germany. Ironically, it was World War II that ultimately provided employment opportunities for the vast numbers of unemployed Americans and played a significant role in ending the Great Depression. The stock market would not recover to its pre-crash levels for another 25 years.

The events of October 1929 also gave rise to what is now known as the "October Effect," a phenomenon where stock markets appear to decline during that month. Although the market crash on October 19, 1987, also occurred in October, statistical analysis shows that the month is similar to others in terms of market performance. However, the unpredictable nature of the markets means that perceptions can often overshadow reality. As we reflect on this historic day, one must consider the date: is it Thursday, October 24?