L' Allemagne économique ou histoire du Zollverein Allemand

The stock market crash - and after

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Monograph

Identifikator:: 832279064

URN:: urn:nbn:de:zbw-retromon-64432

Document type:: Monograph

Author:: Worms, Émile

Title:: L' Allemagne économique ou histoire du Zollverein Allemand

Place of publication:: Paris

Publisher:: Ainé

Year of publication:: 1874

Scope:: 1 Online-Ressource (VII, 631 S)

Collection:: Economics Books

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Remedies and Preventives of Panic 245 The contention is that during the 1929 break the governing authorities of the Exchange might have come to its rescue in order to save the market from a price level which was universally admitted to be far below any reasonable estimate of the worth of stocks traded. It has been said that the same scheme was partly balked in 1914 by a ‘“‘gutter” market which spontaneously sprang up. This showed that it was impossible to keep traders from each other very long against their will. There is a big differ- ence between a long and a short period; the essence of the scheme in 1929 was of a moratorium—to extend enough but not too long the time for getting buyers. That is, the virtue of the idea was not to fix the minimum price, so much as thereby to give rea- sonable time for a natural price to appear in place of the artificially low price of suddenly forced sales. Auctioneers have a minimum price on each article offered at auction for any one day. Foreclosures on mortgages require time, and ample notice given through advertisement in order to gather buyers to the scene of the foreclosure, from whom a natural competition is to be expected to produce a reasonable price for the foreclosed property. The stock ex- change is the only place of public sale where the forced selling of property is made instantaneous—to the great detriment, during panic, of transfers by any proper estimate of the value of stocks. It is not always a practicable requirement. Every action requires time. There are records that the London and Conti-

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