World Between The Two World Wars (A.D.1919·A.D.1939) Economic Depression
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The economic depression in late 1929 was one of the most important events of the world between the two wars. It is called ‘Great’as it adversely affected almost all the great countries of the world except USSR. The Great Depression which began in USA, extremely affected the European countries
Causes
The main cause of the depression was the collapse of American share market. The share market collapse was due to speculation on borrowed money.
In 1929 Herbert Hoover became the President of America. During his period the share market reached its zenith. Share market was the greatest craze in America. People from all walks of life bought shares not for the dividend but for resale value. They wanted to become rich quickly
“The Great Depression..began on Oct 24, 1929 with the fall in the prices of shares. It created panic and people began to sell their shares speedily which led to a further fall. This was followed by the failure of banks which led to the non availability of credit which affected industrial growth and agricultural produce.
Remedial measures of the American President Hoover
In 1932, Hoover, the American president adopted many remedial measures. He set up the Reconstruction Finance Corporation to lend money to banks and industries, but the people lost faith on Hoover.
When the Presidential election came in 1932. Franklin D. Roosevelt, commonly known as FOR became the President of U.S.A. In his election manifesto he said ·1 pledge you, I pledge, myself to a New Deal for the Americans”. He assumed office on March 4, 1933.