The Functional Change of German Stock Exchanges during Inter-War Period (1885-1939)

Resource Type
Dataset : Survey and aggregate data
  • Beer, Joachim
Publication Date
  • ZA:
    • Historical Studies Data
  • Abstract

    The aim of this investigation is, to describe the development of the German Stock Market during the inter-war period. Causes for the so called change of the stock exchange functions are analysed. The author wants to make a contribution on special aspects of the economic history of the Weimar Republic and the following NS-regime. In his investigation the researcher analyses the activities of the involved players in a historical-institutional framework. The Study’s subject In the year 1890 the constitution of security exchange markets and stock markets has been the object of political debate and there has been discussed similar questions according to this topic in public and in policy as today. A current question is about the possibilities to boost the functionality of the security exchange and stock markets, not least in the face of Germany’s position in the global economy. In 1896 as a result of massive political conflicts a stock exchange act has arisen that disappointed the representatives of liberal trading interests because of the restriction of the stock market system’s autonomy and the prohibition of certain forms of trade. In 1908 an amendment to the stock exchange act has been adopted by the parliament. The stock market act in this new form has had validity until today. After the years of the hyperinflation deep changes of the stock market processes has been taken place. This changes can be described as a change of function. The economic-historical study at hand deals with the description of the development of the German security exchange markets during the interwar period. Reasons of the functional changes, which means mainly the decrease in importance, are analysed. In this context the primary investigator’s analysis contributes also to specific aspects of the economic history of the Weimar Republic and the Nazi empire. Due to a lack of date the needed statistical information concerning the period of interest is not available and therefore a statistical analysis cannot meet cliometric requirements. Therefore, the study’s concept is primary a desciptive one. On the basis of the quantitative information an identification of the functional change and the definition of stages of this process is made. The researcher tries to carve out the factors which have led to the functional change particularly during the period between 1924 and 1939. In this context the annual reports of banks, reports of the Chamber of Commerce and Industry, contributions of professional journals, and documents of authorities charged with the stock exchange market, are the empirical basis for the investigation. The researcher analyzed the effects of the banking sector’s concentration-process on the stock exchange market and assessed quantitatively the functional change. On the basis of the collected time series for the period of the late 19th century until 1939 the investigator analyzed the activities at the stock markets. First, the focus on interest is on the development of investments and securities issues. Then information on the securities turnover of German capital market before 1940 are given on the basis of an estimation procedure, developed by the researcher. The sepcial conditions during the inflation between 1914 and 1923 are discussed separately and the long term effects of this hyper-inflation on the stock exchange are identified. The effects of the taxation of stock exchange market visits and the high transaction costs are discussed, too. Used sources for the investigation have been: Archives of German Public Authorities: - finance ministry of the German Reich, - imperial chancellery - Reich´s ministry of economics - reference files of the German Reichsbank - Imperial commissioner of the stock market in Berlin Official Statistics, statistics of trade associations, chambers of commerce, enterprises, the press, and scientific publications. Finally, the author made estimates and calculations. The Study’s data: Data tables are accessible via the search- and download-system HISTAT unter the Topic ‘State: Finances and Taxes’ (= Staat: Finanzen und Steuern). The Study’s data are diveded into the following parts: A. Quantitative Indicators on the Change of Functions (Quantitative Indikatoren des Funktionswandels) A.1 Structure of floatation (Struktur der Wertpapieremission ausgewählter Zeitspannen (1901-1939).) A.2 Tax revenues of exchange turnover (Börsenumsatzsteueraufkommen (1885-1939).) A.3 Vergleich des unkorrigierten mit einem fiktiv möglichen Börsenumsatzsteueraufkommen (1906-1913). A.4 Estimation of everage tax rates (Geschätzte Durchschnittssteuersätze (1884-1913).) A.5 Amount of stock companies of the German Empire (Zahl der Aktiengesellschaften im Deutschen Reich zu bestimmten Jahren (1886-1939).) A.6 Shares listed on the Berlin stock exchange at the end of the year (Die zum Jahresende an der Berliner Börse notierten Aktien (1926-1939).) A.7 Reports und Lombards der Berliner Großbanken in Mio. Goldmark (1912-1926). A.8 Securities total lending of Berlin’s large Banks ( Effektenkreditvolumen der Berliner Großbanken in v.H. der Aktiva (1900-1939).) A.9 Circulation of securities issued by residents at the end of the year im million Mark. (Umlauf von Wertpapieren inländischer Emittenten zum Jahresende in Mio. Mark (1895-1913).) A.10 Circulation of securities issued by residents at the end of the year im million Reichsmark (Umlauf von Wertpapieren inländischer Emittenten zum Jahresende in Mio. Reichsmark (1924-1939).) A.11 Issuing resident and foreign securities in the German Empire in million Mark or Reichsmark respectively (Wertpapierausgabe in- und ausländischer Emittenten im Deutschen Reich in Mio. Mark bzw. Reichsmark (1897-1939).) A.12 Net National Product at market prices in million mark or reichsmark respectively. (Nettosozialprodukt (NSP) zu Marktpreisen in Mio. Mark bzw. Reichsmark (1891-1938).) A.13 Tax revenues of exchange turnover (Börsenumsatzsteueraufkommen ausgewählter Jahre (1910-1925).) A.14 Estimated securities turnover in billion mark or reichsmark respectively and in current prices (Geschätzter Wertpapierumsatz in Mrd. Mark bzw. Mrd. Reichsmark in laufenden Preisen (1885-1939).) A.15 Estimated securities turnover in billion mark or reichsmark respectively in prices of 1913 per capita of the respective population (Geschätzter Wertpapierumsatz in Mrd. Mark bzw. Mrd. Reichsmark in Preisen von 1913 je Kopf der jeweiligen Bevölkerung (1885-1939).) A.16 Monthly data of the share index, basis 1913 = 100 (Monatswerte des Aktienkursindex, Basis 1913=100 (1870-1943).) A.17 Reports und Lombards der Berliner Großbanken in Mio. Mark bzw. Mio. Reichsmark (1900-1939). A.18 Persons authorized to trade on the stock exchange and overall number of visitors at Berlin’s stock exchange market. (Zum Börsenhandel zugelassene selbständige Besucher sowie die Gesamtzahl der Besucher an der Berliner Börse für ausgewählte Jahre (1901-1939).) B. Stock Exchange at Inter War Period (Börse in der Zwischenkriegszeit) B.1 Amount of businesses and trading turnover of securities deposit transactions of the Berlins central securities depositary (Berliner Kassenverein) (Anzahl der Geschäfte und Umsätze im Effekten-Giroverkehr des Berliner Kassenvereins (1913-1923).) B.2 Silent self-financing of German Share-Companies in percent of the profits. (Stille Selbstfinanzierung deutscher Aktiengesellschaften in v.H. vom Gewinn im Zeitraum 1925-1939.) B.3 Amount of start-ups and capital increases of share-companies in the German Empire, monthly data. (Anzahl der Neugründungen und Kapitalerhöhungen von Aktiengesellschaften im Deutschen Reich, Monatswerte (1921-1923).) B.4 Monthly Share-Index on the basis of 1924 to 1926=100. (Monatlicher Aktienindex zur Basis 1924-1926=100 (1926-1930).) B.5 Gold- and foreign currency holdings of the German Empire Bank (Reichsbank) in million Reichsmark as well as provided cover of cash in circulation by Gold and foreign currency in percent at the end of the month. (Gold- und Devisenbestand der Reichsbank in Mio. Reichsmark sowie Deckung des Bargeldumlaufes durch Gold und Devisen in v.H. zum Monatsende (1930-1932).) (Schlagworte: 20th Century, Inter-War Period, German Empire, Stock Exchange Trade, Stock Exchange Functions, Stock Market, German Stock Market, Security Floatation, Stock Exchange Tax, Shares, foreign exchange balance of the German Reichsbank, Bank of Germany, Banking System, Banking Crisis)
Temporal Coverage
  • 1885 / 1939
Geographic Coverage
  • German Reich (1871-1945) (DXDE)
Data and File Information
  • Unit Type: Text Unit
    Number of Units: 73
    Number of Variables: 50
A - Data and documents are released for academic research and teaching.
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Alternative Identifiers
  • ZA8527 (Type: ZA-No.)
  • Beer, Joachim (1989): Der Funktionswandel der deutschen Wertpapierbörsen in der Zwischenkriegszeit (1924-1939). Frankfurt a.M., New York: Peter Lang Verlag.

Update Metadata: 2020-10-21 | Issue Number: 19 | Registration Date: 2013-02-22