by George Marron

Created on: May 27, 2008

A brief history of the Dow Jones Industrial Average (DJIA) would show that it has been a period of ups and downs. It is not shocking that this occurrence would be common since it always depends on the ongoing fluctuations of the stock market. Prior to its May 26, 1896 debut, the DJIA first appeared two years earlier in a different manifestation. Dow Jones published its first average of U.S. stocks in the Customer's Afternoon Letter (CAL). The CAL was the forerunner to the Wall Street Journal. Dow Jones then published its first Industrial average consisting of the Original Dow Dozen on that May 26, 1896 date. The final closing average was 40.94. Several members of the Original Dow Dozen were American Tobacco, General Electric, North American, and U.S. Rubber.

During its first couple of months, the DJIA was in decline. It was not until there was discussion about the government raising tariffs was when the average rose. From 1897 to 1900, the Dow Jones took an upward climb for the most part. However, during this period, the Spanish-American War affected a decline in the Dow Jones average, but it was only briefly. As the Gold Standard was confirmed in the beginning of 1900, the average nosedived. With the first auto show, the DJIA increased mostly until the assassination of President McKinley in 1901. 1904 was the year when the average saw a healthy spike. Events such as the Panama Canal Treaty, the Wright Brothers' first flight, and the popularization of motion pictures highly influenced the good feelings of the stock market. From 1906 to the end of 1907, the average took a downturn. The San Francisco earthquake and the Panic of 1907 affected it. When Henry Ford and his Model T debuted in 1908, the upturn in the Dow Jones had already begun. At the end of 1909, the average was at 100.

The recession of 1910 to 1911 decreased the DJIA from 100 to 75. The recession of 1913 to 1914 erased any gains that were made in 1912. The first half of World War I saw an increase in the average, but the latter half saw a dip. Only until victory was in sight and the end of the war were coming to an end that the Dow Jones spiked up again. At the end of 1919, the average was barely over 100 points. The roaring twenties were definitely roaring. Many investors became acquainted with the industrial average. Huge amounts of average citizens began buying stocks by the bundle. The average increased from around 100 in 1924 to nearly 400 in mid-1929. In the 20's, the industrial average set

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