The stock market crash - and after

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Monograph

Identifikator:: 1023136384

URN:: urn:nbn:de:zbw-retromon-39354

Document type:: Monograph

Author:: Neumann, Paul

Title:: Der Salzhandel, die Salinen und Salzbergwerke Württembergs im 19. Jahrhundert

Place of publication:: Tübingen

Publisher:: Druck von H. Laupp jr.

Year of publication:: 1912

Scope:: 1 Online-Ressource (III, 175 Seiten)

Digitisation:: 2018

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Plowed-Back Earnings day” or plowed-back into business for larger future corporate returns, has likewise risen. Prosperity Rooted in War Earnings The roots of the prosperity that attended the long bull market were partly in the thrifty corporate handling of profits during the War. As prices rose rapidly in the execution of war contracts, larger and larger proportions of profits were plowed-back into renewals and extensions. of plant. In individual hands these profits might easily have been squandered. But with corporate management —especially with the practice of war-time economy and the wish of the larger stockholders to avoid surtaxes—dividends were quite generally kept at Per cent on par value while earnings kept up to 10 per cent, in some cases, and, even to 25 per cent a year. 79 Such abnormal profits were due primarily to the rising price level, or lessened purchasing power of the dollar, which helped the stockholder at the expense of the bondholder. The withholding of profits, thus effected, increased enormously the reserve produc- tive power of the nation. It fertilized, so to speak, the topsoil of business production and stirred its subsoil. The result was a deeper-rooted growth of business, of which the increased cash returns were the thrifty fruitage from stocks representing ade- quately the entire market. During this period of war and post-war prosperity the mounting billions of deposits placed in savings

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