When depressions were great: 79 years ago today

The problem with the current financial crisis is that no one knows what’s going to happen. By contrast, it’s almost comforting to read the news from 79 years ago today. Markets are “reactionary,” trading is “largely professional in character,” and the United States is owed (rather than owes) unfathomable sums of money. It’s ominous, to be sure, but at least you know how it ends up:

THE MINNEAPOLIS JOURNAL, Sept. 23, 1929

Market Turns Reactionary When Heavy Selling Hits Utilities; Steels Lead Turn

New York, Sept. 23 — (AP) — Nervous trading again characterized today’s stock market, which bounded upward at the opening, turned reactionary before midday when heavy selling developed in some of the public utilities and then headed upward again in the early afternoon under the leadership of the steel shares. Trading was largely professional in character, due largely to commission house advices suggesting that small investors and trader [sic] restrict their commitments until a more definite trend was established.

THE MINNEAPOLIS MORNING TRIBUNE, Sept. 23, 1929

Everybody’s Business: Debts Settled?

From the North American Newspaper Alliance — All national debts, including that of the United States, will grow lighter as the years roll by, because a certain amount of principal is paid annually with the interest.

Every nation in Europe has settled her war debt with the United States with the exception of Russia. That nation, not yet recognized by the United States, is not able to effect a settlement of her debt of $187,729,750.

In the recent debt settlements, the United States has waived all claims against Germany and has left it to the allies to collect from Germany, so they can pay this country. The United States spent $25,000,000,000 in the war. The allied debt to the United States originally was about $10,500,000,000. With interest added, the 14 nations which have settled have agreed to pay the United States $11,542,684,000.

For instance, total interest payments over this long preiod will amount to $10,621,185,993. Now put this amount on top of the original debt — the principal involved — and the European countries, to square the debt, will have to pay more than $22,000,000,000.

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