Causes of the Great Depressionwww.buschistory.net Topic 19

James Byem• January 1927• Newlywed• Uses the new

“Installment buying” from the Department Store• “I can have anything I

want and only pay a little each month.”• New apartment. Wants

nice things

Harold Bildit• March 1927• Factory owner – 500

workers• Builds chairs, sofas,

refridgerator• Business was good –

“couldn’t turn them out fast enough”• “Business is slowing now

- but I’ll keep producing, I want to be ready when business picks up”

Emma Saveit• August 1927• Retirement savings are in

the bank – “I don’t trust the stock market – banks are safe!”• $5000.00 in the bank on

Main Street – “My Life’s Savings!”

Leonard Ditz (Len Ditz) • December 1928• Loan Officer – Main Street

Bank• “I like this new Margin Buying

for stocks”• “People borrow money from

me to buy stocks and pay it back when the stock price rises.”

• “I lend 90% of the value and the borrower puts up 10%”

• “I have lots of money to lend – I’m the bank!”

• “I Work on Commission.”

Ima Sucker• Feb. 14, 1929• “All my friends are

buying stocks… I will too.” • “It’s like a game – and

the bank will lend me the money.”• “I have almost nothing to

lose – 10%.”• “I like playing with

money like this.”

Zeke• July 1929

• “I love this land. My Father and Grandfather farmed here before me.”• “I had some great years.

Borrowed some money and bought some new tractors.”• Prices are dropping• Produces more

Bent• Sept. 1929• Mill worker – 12 hours a

day• $.18 per hour• “ My Boss has stocks,

railroads, and even owns some buildings.”• No savings

In Summary• James Byem – using

credit poorly. Too much borrowing• Harold Bildit –

Overproducing. Keeps paying workers to make more. • Emma Saveit – Blind

trust in the Bank

• Len Ditz – Risky Lending• Ima Sucker – buying

stocks w/o understanding• Zeke Peferlee –

overproducing to pay debt, driving prices down• Bent – innocent victim,

boss is heavily invested