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Quote of the Day
“When the two largest banks of the fourth largest city of the United States closed their doors in the last week of February 1933, tying up half a billion dollars of depositors’ money, there seemed to be only one thing for the people of Detroit to do, and they did it.
– W.K. Kelsey in an article in Barron’s – 1936
March 3rd – This Day in Stock Market History
March 3rd, 1847: Alexander Graham Bell is born. He would patent the telephone, and would incorporate the American Telephone and Telegraph Company, now just known as AT&T, on his 38th birthday – March 3rd, 1885.
A few AT&T related ‘This Day in History’ pages:
July 9th, 1877 – The Bell Telephone Company is Organized.
December 23rd, 1947 – Bell Labs tests its first transistor.
January 8th, 1982 – Judge orders AT&T broken up.
Also, check out our ‘Read of the Day’ below for one of my favorite books on a very special department of AT&T.
March 3rd, 1933: U.S. stocks rise 2.47% on the day, a much needed rally after stocks had been declining heavily as states begin to close their banks to prevent runs and bank failures.
However, things were not so good outside of Wall Street on this day. After the market closed, President Roosevelt would declare a national banking holiday. Banks across the US would remain closed until March 15th.
From late February to early March, many states had been declaring banking holidays individually. By March 2nd up to 18 states had shut down their banks.
At the close of business on Friday, March 3 1933 the NYSE would follow suit and close its doors until March 15th.
Over the next month, 16% of America’s banks would fail:
Source: It was a Very Good Year
For any fans of stock market history, the next couple weeks marks some significant anniversaries for the 1933 banking crisis. Today’s event starts a series of events that would bring on nationwide banking holidays, a presidential radio address, landmark legislation and use of government power. Check back daily, follow us on Twitter or Facebook as we highlight these events in our “Today in Stock Market History” series.
Best March 3rd in Dow Jones Industrial Average History
1933 – Up 2.47%, 1.30 points.
Worst March 3rd in Dow Jones Industrial Average History
1926 – Down 1.78%, 2.62 points.
Read of the Day
Alexander Graham Bell would create one of the most famous, and most successful businesses in American history.
AT&T was so successful in fact, that it would be broken up by the government after they considered it to be a monopoly. But before that time, its research department Bell Labs, was creating and investing much of the technology that would go on to create our modern world today. We owe semiconductors, the field of information technology, coast-to-coast phone calls, and more to the researchers at Bell Labs. There is an incredible book detailing the history of Bell Labs:
The Idea Factory: Bell Labs and the Great Age of American Innovation
<– Go To Previous Day: March 2nd: 1933: the Federal Reserve refuses to recommend a guarantee on banking deposits, setting up the most significant banking crisis in American history.
Go To Next Day: March 4th: 1957: Standard and Poors launches the S&P 500 index. –>