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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. Speculation and Brokers' Loans

Collection:: Economics Books

Speculation and Brokers’ Loans 221 Undoubtedly the contagion of the long bull mar- ket had encouraged unwise speculation. But for the most part it was unwise in a peculiar sense, namely, that it would have been entirely proper had the spec- ulators used their own money in following a generally sound judgment to profit by reasonably expected gains in the future. Function of Brokers’ Loans Did brokers’ loans rise too high during the period preceding the panic? If so, should there be some method of governing their output and of restricting them to prevent undue speculation? President E. H. H. Simmons of the New York Stock Exchange, in an address before the Indiana Bankers’ Association at Evansville, September 11th, defended brokers’ loans, notwithstanding their abuse in inflating the stock market, and notwithstanding the discrimination against them embodied in the Federal Reserve Act. “To wipe out brokers’ loans or violently reduce them,” Mr. Simmons told the Indiana bankers, “would inevitably slow up American industry; if not totally halt its continued progress.” Before new securities will appeal to outright in- vestors, he pointed out, they must be seasoned. New industries and new extensions of industry need tre- mendous outlays if they are to get promptly into large-scale production, with its attendant economies and lower prices. This need is met, in part, by holding the new

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