<P> Despite the dangers of speculation, many believed that the stock market would continue to rise forever . On March 25, 1929, after the Federal Reserve warned of excessive speculation, a mini crash occurred as investors started to sell stocks at a rapid pace, exposing the market's shaky foundation . Two days later, banker Charles E. Mitchell announced his company the National City Bank would provide $25 million in credit to stop the market's slide . Mitchell's move brought a temporary halt to the financial crisis and call money declined from 20 to 8 percent . However, the American economy showed ominous signs of trouble: steel production declined, construction was sluggish, automobile sales went down, and consumers were building up high debts because of easy credit . Despite all these economic trouble signs and the market breaks in March and May 1929, stocks resumed their advance in June and the gains continued almost unabated until early September 1929 (the Dow Jones average gained more than 20% between June and September). The market had been on a nine - year run that saw the Dow Jones Industrial Average increase in value tenfold, peaking at 381.17 on September 3, 1929 . Shortly before the crash, economist Irving Fisher famously proclaimed, "Stock prices have reached what looks like a permanently high plateau ." The optimism and financial gains of the great bull market were shaken after a well publicized early September prediction from financial expert Roger Babson that "a crash was coming". The initial September decline was thus called the "Babson Break" in the press . This was the start of the Great Crash, although until the severe phase of the crash in October, many investors regarded the September "Babson Break" as a "healthy correction" and buying opportunity . </P> <P> On September 20, the London Stock Exchange crashed when top British investor Clarence Hatry and many of his associates were jailed for fraud and forgery . The London crash greatly weakened the optimism of American investment in markets overseas . In the days leading up to the crash, the market was severely unstable . Periods of selling and high volumes were interspersed with brief periods of rising prices and recovery . </P> <P> Selling intensified in mid-October . On October 24 ("Black Thursday"), the market lost 11 percent of its value at the opening bell on very heavy trading . The huge volume meant that the report of prices on the ticker tape in brokerage offices around the nation was hours late, so investors had no idea what most stocks were actually trading for at that moment, increasing panic . Several leading Wall Street bankers met to find a solution to the panic and chaos on the trading floor . The meeting included Thomas W. Lamont, acting head of Morgan Bank; Albert Wiggin, head of the Chase National Bank; and Charles E. Mitchell, president of the National City Bank of New York . They chose Richard Whitney, vice president of the Exchange, to act on their behalf . </P> <P> With the bankers' financial resources behind him, Whitney placed a bid to purchase a large block of shares in U.S. Steel at a price well above the current market . As traders watched, Whitney then placed similar bids on other "blue chip" stocks . This tactic was similar to one that ended the Panic of 1907 . It succeeded in halting the slide . The Dow Jones Industrial Average recovered, closing with it down only 6.38 points for the day . The rally continued on Friday, October 25, and the half day session on Saturday the 26th but, unlike 1907, the respite was only temporary . </P>

When did the stock market crash of 1929 recovery