Friday, April 27, 2007

Prelude to a Great Depression (The Chronicle Telegram, 1929)

In the March 8, 1929 issue of the Chronicle Telegram (Elyria, Ohio) Roger W. Babson made predictions of what the future held. Below is an excerpt under the heading of "Stocks and Bonds." Babson couldn't estimate how quickly everything was about to change and that it would be for the worse. It almost reminds me of an Onion article in its optimism for the future.

In finance there will also be marked changes as the years roll by. The present generation has been chiefly interested in trying to buy and sell stocks and bonds at advantageous prices. While this is an important aspect of finance, it is very far from being the only aspect and perhaps it cannot be called the most vital aspect. I am ready to make this forecast, that during the next twenty years the public will develop a totally new viewpoint toward finance. The word will not only take meaning for thousands of people of very moderate income, but those of wealth will get entirely fresh concepts. I foresee with especial assurance that the field of trusts will offer great opportunities. The American public is being taken into partnership in our great industries of large scale. I feel very positive that the number of people interested in stocks and bonds will increase far out of proportion to the mere increase in population.

See also:
Dancing on the Moon (1935)

1 comment:

Anonymous said...

Just now having begun perusal of your collection, I'd like to check-in: We understand the '29 Crash as Caused-By the Great Depression, which began years earlier, yes? If so, please delete me.