The stock market crash - and after

Bibliographic data

Monograph

Identifikator:: 1815583320

URN:: urn:nbn:de:zbw-retromon-204544

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The stock market crash - and after

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1930

Scope:: XXVI, 286 S.; graph. Darst

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Introduction

Collection:: Economics Books

XX Introduction The public utilities stocks reached such a height that the average yield was only 3 per cent. Allied Chemical & Dye, one of the “blue chips,” was sell- ing so that the yield was only 134 per cent, and there were other stocks higher priced than that, and with correspondingly smaller yields. In many companies, the common stocks had lower yields than the bonds in those same companies. Now with all these facts before us, we are tempted to conclude that such an advance in stock prices was thoroughly unsound, if not that deflation should go on until the level of 1926 should again prevail, or even that of 1913. Based on such a diagnosis, the prognosis would show the business of the country to be in a very bad way. During the rise of the market, brokers’ loans reached the unprecedented total of more than $8,000,000,000, and of this total $3,000,000,000 were cut off within a few weeks. Investment trusts, genuine and so-called, had become the fashion. They had absorbed $3,000,000,000 of investors’ money, $1,000,000,000 of it during the rise of the market in 1929. They had had a rapid mushroom growth, rising from under 200 in number in January, 1929, to 400 or more by the time of the panic. The Federal Reserve Board had issued its warn- ing of an inflated stock market back in March, 1929, with a resultant shutting off of stock market credit that at once precipitated a near-panic. This was alleviated through the action of Charles E. Mitchell, Chairman of the National City Bank of

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