THIS DAY IN ECONOMIC HISTORY
October
NYSE Sets Up New Digs
On this day, the New York Stock Exchange moved into a new building after growing too big for the old one.
W.T. Grant Files For Bankruptcy
This day saw a once rich and successful retailer, W.T. Grant filing for bankruptcy. The companies downturn was started a decade earlier by management's new growth plan, which called for the opening of a bunch of new stores. At the time of the companies filing they were $1 billion in debt.
U.S. Takes Out First Loan
Needing funds to finance the American Revolution, Congress approved a $5 million dollar loan with a 4% interest rate. This was the first loan taken out by the fledgling nation.
Time To Take Action
President Herbert Hoover changed tactics on this day, going from a hands off approach to convening a meeting of 30 business professionals that would eventually result in the creation of the Reconstruction Finance Corporation. This agency funded institutions like banks and railroads.
Secretary Campbell Steps Down
On this day, George W. Campbell, the nation's fifth Secretary of the Treasury, served his last day in office.
Labor Movement Alive And Well
Boeing machinists went on strike and earned themselves a deal that included $19,200 in salary and benefits.
Stocks Reach Yet Another Milestone
On this day, both the S&P and the Nasdaq climbed to new record highs. The Nasdaq rose to 1,736.10 points, while the S&P climbed to 983.12.
Government Avoids Shutdown
On this day, Congress compromised and passed a budget plan through both houses. The plan passed just in time to avert a government shutdown.
Stock Funds Boom
In the midst of the 1990s economic bull run, the mutual fund emerged as a popular investment choice; it was reported on this day that investors had pumped $16 billion into stock funds during the previous month.
The Nobel Prize
Another University of Chicago professor was awarded the Nobel Prize in Economic Science on this day for his "rational expectations" hypothesis regarding the link between human tendencies and macroeconomics.
War & Economics
Staying with majority opinion, the American Federation of Labor (AFL) opposed U.S. involvement in WWII and began to boycott German, Japanese, and Russian goods.
The Panic Of 1837
On this day in 1837 Congress took action to stabilize the nation's economy during the Panic of 1837; unfortunately their efforts failed, and the depression persisted for seven years.
The Mint Goes Tech
The Bureau of Printing and Engraving ushered in the computer era with the announcement of its first mechanical equipment used to inspect notes.
Noble Enterprises
Lifesavers' candy creator Edward Noble bought one of NBC's radio networks, renaming it American Broadcasting Company, Inc. (ABC).
The Economics Of Technical Innovation
With guidance and funding from J.P. Morgan, Thomas Edison, inventor of the light bulb, unveiled the Edison Electric company; it would later be known as the General Electric Company.
Trust Busting
On this day the Progressive Party nominated Robert LaFollette to be their trust-busting candidate; however fatigue prevented him from carrying the nomination, and a more corporate-friendly Teddy Roosevelt replaced him.
A Bold Move
Several Arab oil producers made a critical move to reduce oil exports to Western countries, an essential embargo that would persist for a year.
A Tax Happy Liberal?
After flip flopping on his stance on taxes, Democratic President Bill Clinton insisted that he made the right decision for a $241 billion tax hike.
The Economics Of The Cold War
On this day the U.S. Government decided to stop exports to Cuba, signaling a surge in efforts to weaken Fidel Castro's communist government.
U.s. Debt Cause For Threat
America's $1.25 billion debt to the U.N. was announced today, threatening its membership and respect in the world community.
The Budget Deficit
President Ronald Reagan signed a bill that sought to reign in the deficit by $11.7 billion.
The Smack On Fiscal Corruption
Congress enacted stricter penalties for insider trading and securities fraud, both crimes for which Wall Street was notorious for during the 1980s.
Green Light For Tax Relief
The House Ways and Means committee approved a $12.7 million tax cut for the middle class on this day.
A Sneak Peak
Black Thursday occurred the week before the crash of 1929; it was a preview to the hard times ahead, when Wall Street's shares would evaporate overnight.
Sprint Jumps Ahead
Sprint announced on this day that it would join with three cable giants to create a multimedia network, something its rival, AT&T, had not yet done.
Giant Losses
The auto industry endured hard times as General Motors announced a $567 million loss during the previous quarter; this was the biggest quarterly drop ever posted by an American company.
Macy Hits The Jackpot
After several unsuccessful business attempts, Roland Macy founded his own department store in his name. Today, Macy's is the biggest department store by volume.
In Debt
Announced on this day was the budget deficit total of $57.93 billion; this number would continue to rise throughout Reagan's presidency.
Black Tuesday
The Great Crash of 1929 took place on this day in history. Over-extended credit and overproduction caused the nation to spiral towards depression, beginning on October 29 when panic struck the nation, and fearful investors sold 16 million shares on the NYSE.
A Big Buy
Philip Morris took over Kraft for the price of $13.1 billion, making Philip Morris the world's largest producer of consumer goods.
Lost Faith In The Dollar
A suffering economy and fear of rising oil prices forced the dollar into historical lows against foreign exchange markets.