Depression of 1920
DEPRESSION OF 1920
DEPRESSION OF 1920. The prosperity generated by World War I prevailed into the early part of 1920. Prices began to rise, however, and rumors of a buyers' strike spread. After commodity prices peaked in May, they declined rapidly, precipitating an unprecedented cancelation of orders. Money was extremely tight, although the stringency did not become acute until autumn. A noticeable flight of gold from the country caused a marked advance in money rates, and the end of the year saw a 30 percent decline in industrial stocks. Depression—characterized by inactive industries, business failures, and a severe decline in foreign trade—continued throughout 1921.