222 The Stock Market Crash—And After 
securities in the market as a floating supply until in- 
vestors will buy them at prices mutually advantageous 
to them and to the industries. 
By this process brokers’ loans aided mass produc- 
tion for the motor car industry; they hastened the 
day of the radio in every home, and of the photo- 
play in every neighborhood and hamlet. They 
SIMILARITY IN MOVEMENTS : 
AROKERS Loans —1 
5T0CK VALUES ==== 
1926 * 100 ik 
Los 
A 
CHART 24.—As stock prices increased, reflecting greater expecta- 
tions of profits due to improved processes, the public resorted more 
and more to borrowing in order to share in prospective gains. 
may help to establish the American airplane in- 
dustry on a scale greater than would otherwise be 
possible. 
How did the extraordinary growth in brokers’ 
loans come about? 
Fred I. Kent has made a study of the expansion 
of these loans during 1929, the substance of which is 
embodied in his address before the American Accept- 
ance Council on November 11, 1929. The study is 
linked with an accounting of new security flotations,