At the 1929 Conclave held in New York City, Dr. Carter G. Woodson was invited as a guest speaker and saw the creation of the Distinguished Service chapter. The fall of 1929 saw the crash of the nation's stock markets. Like many other organizations during this period, Phi Beta Sigma faced financial difficulties. With brothers faced with financial worries, some members were forced to leave their respective institutions due to lack of funds to continue their educations; several chapters became inactive. The fraternity saw its income drastically shrink to the point of nearly disappearing completely. As a result of the bank closures, the remaining funds of the fraternity were frozen.