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The Federal Reserve Act, meant to regulate the flow and production of money, is instituted in the United States. This act also sets a standard interest rate for loans taken from the Federal Reserve System and it's members.
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Personal Debt in the United States doubled, from $3.1 billion, to $6.9 billion. This set up an economic system where the public was constatnly in debt, and not able to cope with any economic struggles.
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The economic plan, known as the Dawes Plan, is put into action. This plan sets up a loan system for US banks to invest in the German economy. These funds were then used by Germany to pay for war retributions from World War I, mainly to Great Britain and France. This money was then sent back to the US, with interest, to pay for loans given to the allies during the, "Great War."
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On this date, the US stock market crashed from a decade long stock growth bubble, with millions of American's selling all of their stocks in the same day. No American's then purchased stocks, causing the prices to fall, and start a chain reaction of economic stresses.
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News of the stock market crash spreads about America, with billions dissapearing from the US economy. Many people heard about the crisis through newspapers, such as this one of the Brooklyn Daily Eagle.
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The discount rate of the Federal Reserve System goes up, limiting the amount of money moving through the economy, and therefore weakening the economy. This caused the amount of money in the country to fall by 1/3.
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American's vote Franklin D. Roosevelt into the Presidency, who promises to fix the economy with his, "revolutionary" New Deal.
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FDR passes his first ten and most important acts in his New Deal. These were intended to provide relief from the hardships of the Great Depression, promote economic recovery, and enact preventative reforms.
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America finally pulled out of the Great Depression, due majorly in part to the Lend Lease Act. This act created a demand for all kinds of products from the United States, a demand which was filled by lowered interest rates and economic recovery from the New Deal.
