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50 " It is easy to put down Frances Trollope as a Tory embittered by her American business failure. But her observations on American manners, confirmed by many other observers foreign and domestic, actually provide a sharply drawn picture of daily life in the young republic. Most observers at the time agreed with her in finding Americans obsessively preoccupied with earning a living and relatively uninterested in leisure activities. Not only Tories but reformers like Martineau and Charles Dickens angered their hosts by complaining of the overwhelmingly commercial tone of American life, the worship of the 'almighty dollar.' Americans pursued success so avidly they seldom paused to smell the flowers. A kind of raw egotism, unsoftened by sociability, expressed itself in boastful men, demanding women, and loud children. The amiable arts of conversation and cooking were not well cultivated, foreigners complained; Tocqueville found American cuisine 'the infancy of the art' and declared one New York dinner he attended 'complete barbarism.' Despite their relatively broad distribution of prosperity, Americans seemed strangely restless; visitors interpreted the popularity of the rocking chair as one symptom of this restlessness. Another symptom, even more emphatically deplored, was the habit, widespread among males, of chewing tobacco and spitting on the floor. Women found their long dresses caught the spittle, which encouraged them to avoid male company at social events. Chewing tobacco thus reinforced the tendency toward social segregation of the sexes, with each gender talking among themselves about their occupations, the men, business and politics; the women, homemaking and children. "

, What Hath God Wrought: The Transformation of America, 1815 - 1848

51 " In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. There is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in — or more precisely not in — the country’s businesses and banks. This inventory — it should perhaps be called the bezzle — amounts at any moment to many millions of dollars. It also varies in size with the business cycle. In good times people are relaxed, trusting, and money is plentiful. But even though money is plentiful, there are always many people who need more. Under these circumstances the rate of embezzlement grows, the rate of discovery falls off, and the bezzle increases rapidly. In depression all this is reversed. Money is watched with a narrow, suspicious eye. The man who handles it is assumed to be dishonest until he proves himself otherwise. Audits are penetrating and meticulous. Commercial morality is enormously improved. The bezzle shrinks.



Just as the boom accelerated the rate of growth, so the crash enormously advanced the rate of discovery. Within a few days, something close to a universal trust turned into something akin to universal suspicion. Audits were ordered. Strained or preoccupied behavior was noticed. Most important, the collapse in stock values made irredeemable the position of the employee who had embezzled to play the market. He now confessed. "

John Kenneth Galbraith , The Great Crash of 1929