Eigene Aktien und Verwaltungsaktien

Borrowing and business in Australia

Bibliographic data

Monograph

Identifikator:: 1657702049

URN:: urn:nbn:de:zbw-retromon-126269

Document type:: Monograph

Author:: Ruth, Rudolf http://d-nb.info/gnd/1054736723

Title:: Eigene Aktien und Verwaltungsaktien

Place of publication:: Berlin

Publisher:: Heymann

Year of publication:: 1928

Scope:: 88 S.

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: § 2. Gesellschaftsrechtlich und vertraglich beherrschte „eigene" Aktien (Verwaltungsaktien)

Collection:: Economics Books

124 EXCHANGE IN RELATION TO CAPITAL the price of securities accompanied by an increase in the charges for issuing and underwriting gives very plain warning to in- vestors. An extreme example of this method of defence will be remembered from the last chapter. The periodical congestion or over-lending which is typical of the investment market is merely another form of credit inflation which has advanced to the breaking-point. There ensues a contraction of credit accompanied by a rise in the bank rate which discourages both borrower and underwriter. Dear money will persist until the credit position recovers; and the ‘unwillingness of the invest- ment market to hold securities’ is the first authoritative indica- tion that further borrowing is not expedient. The disastrous attempts made at different times by Australian states to persist in attempts to float loans despite the frowns of the market will illustrate the point. ‘If’, as Hawtrey puts the matter, ‘bor- rowers are very insistent there may be a very heavy depreciation of securities. In an extreme case there may be a crisis and a panic, in which the flotations of new issues become temporarily impossible.’ I+ now remains to establish as definitely as may be the link between borrowing and banking; and to indicate how fluctua- tions in the rate of capital injection are followed by corre- sponding oscillations in prosperity as marked by available bank credit. The connexion to be made is, of course, through the movement of gold ; and to test the connexion the accompanying graph was constructed. In this graph the imports of capital are shown year by year in relation to the retention of gold in Australia, i.e. the excess of production plus import over export of the metal. It is obvious that capital, whether in the form of goods or gold, does not move immediately after the market has completed the flotation of a loan. Months may elapse before definite government orders for capital goods, or rather the payment for these, begins to affect the London balances which now represent the loan; or before a government commences to draw upon its London credits in order to defray labour and other expenses upon constructional work in Australia. Many instances could be quoted, indeed, of loans which appear among the flotation figures for one year being carried over in London intact to the following year. As a rough corrective, the plottings representing goldretentioninthe graph weremoved back one year,

Access restriction

Copyright

fullscreen: Borrowing and business in Australia

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation