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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. Speculation and Brokers' Loans

Collection:: Economics Books

236 The Stock Market Crash—dAnd After Board’s open market policy, which would have been helpful in holding down both customers’ and brokers’ loans. For several years the country has had surplus gold, with potentialities of credit inflation that have been restricted by devices of “earmarking” and the policy of buying and selling government securities in the open market under the auspices of the Federal Re- serve Board's Open Market Committee. This has been supplemented by business methods restricting inventories to actual trade demands. But the policy of the Federal Reserve Board during the year pre- ceding August, 1929, when the Reserve Bank at New York was belatedly permitted to increase the =edis- count rate to 6 per cent, encouraged the inflation of the stock market with surplus credits. While the country was enjoying unparalleled com- mercial prosperity and stability, and while the inflated stock market credits aided in financing American industries, the outcome has proved disastrous to American security holders. This might have been avoided by a sharp increase in the discount rate dur- ing the Fall of 1928 or at any time up to the Spring of 1929, with comparatively little consequent hard- ship to business. The overissuance of shares during August and September would have been prevented, and any shortage of credit to business would have been largely remedied through an orderly deflation of brokers’ loans. The ultimate effect of such an aggressive policy would have been a gradual decline in the peak of stock prices. The new plateau would

Access restriction

Copyright

fullscreen: The stock market crash - and after

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation