222 The Stock Market Crash—And After
securities in the market as a floating supply until investors
 will buy them at prices mutually advantageous
to them and to the industries.
By this process brokers’ loans aided mass production
 for the motor car industry; they hastened the
day of the radio in every home, and of the photoplay
 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 expectations
 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 industry
 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 Acceptance
 Council on November 11, 1929. The study is
linked with an accounting of new security flotations,