Investment analysis of the common stocks of selected California banks. - Page 43 |
Save page Remove page | Previous | 43 of 185 | Next |
|
small (250x250 max)
medium (500x500 max)
Large (1000x1000 max)
Extra Large
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
|
30
on demand d e p o s i t s , and (4) t h e c e s s a t i o n o f t h e d o u b le
l i a b i l i t y f e a t u r e o f s t o c k s o f n a t i o n a l b a n k s * 2^
These l e g i s l a t i v e p r o v i s i o n s p r o v i d e a r e l a t i v e
d e g r e e o f p r o t e c t i o n f o r t h e fu n d s o f d e p o s i t o r s a n d ,
a t t h e same t i m e , a p p e a r t o en h a n c e t h e q u a l i t y and
s o u n d n e ss o f t h e i n v e s t m e n t o f h o l d e r s o f bank s t o c k s * 27
T h is d oes n o t mean t h a t t h e p r i c e s o f b an k s t o c k s a r e
f r e e from w ide f l u c t u a t i o n s • A f t e r t h e b an k m o ra to riu m
©f 1933 > an d t h e B a n k in g A c ts o f 1933 and 1 9 3 5 , t h e
S ta n d a r d an d P o o r ’ s in d e x o f b an k s t o c k p r i c e s r o s e from
t h e low o f 6 0 .3 i n 1932 t o a p p r o x i m a t e l y 1 6 0 .0 i n 1937•
I n M arch, 193# i t h ad d e c l i n e d t o 7 1 * 0 , and t h e n i t
c lim b e d t o a b o u t 100 i n 194©• I n 1942 i t f e l l and e v e n
p a s s e d t h e l o w e s t p o i n t o f t h e d e p r e s s i o n t o a new a l l -
tim e low o f 59 * 2 .
The d e c l i n e i n 1942 was due t 1 o th e e s t a b l i s hm e n t ji
o f c r e d i t c o n t r o l s a s a m e asu re t o c o u n t e r a c t w artim e
!i i n f l a t i o n . Howe^ -v er,• t h e commercial b an k s were t h e c h i e f
*
l e n d e r s t o t h e g o v ern m e n t d u r i n g W orld War I I . T h e i r
I
| l a r g e h o l d i n g s i n g o v ern m en t b o n d s , b i l l s , a n d n o t e s and
26 I b i d . 27I b i d .
2^B oard o f G o v e rn o rs o f t h e F e d e r a l R e se rv e
S y stem , F e d e r a l R e s e rv e C h a r t s on Bank C r e d i t , Money
R a t e s , and B u s i n e s s , J u l y , 1952, p# 3 2 .
Object Description
Description
| Title | Investment analysis of the common stocks of selected California banks. - Page 43 |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 30 on demand d e p o s i t s , and (4) t h e c e s s a t i o n o f t h e d o u b le l i a b i l i t y f e a t u r e o f s t o c k s o f n a t i o n a l b a n k s * 2^ These l e g i s l a t i v e p r o v i s i o n s p r o v i d e a r e l a t i v e d e g r e e o f p r o t e c t i o n f o r t h e fu n d s o f d e p o s i t o r s a n d , a t t h e same t i m e , a p p e a r t o en h a n c e t h e q u a l i t y and s o u n d n e ss o f t h e i n v e s t m e n t o f h o l d e r s o f bank s t o c k s * 27 T h is d oes n o t mean t h a t t h e p r i c e s o f b an k s t o c k s a r e f r e e from w ide f l u c t u a t i o n s • A f t e r t h e b an k m o ra to riu m ©f 1933 > an d t h e B a n k in g A c ts o f 1933 and 1 9 3 5 , t h e S ta n d a r d an d P o o r ’ s in d e x o f b an k s t o c k p r i c e s r o s e from t h e low o f 6 0 .3 i n 1932 t o a p p r o x i m a t e l y 1 6 0 .0 i n 1937• I n M arch, 193# i t h ad d e c l i n e d t o 7 1 * 0 , and t h e n i t c lim b e d t o a b o u t 100 i n 194©• I n 1942 i t f e l l and e v e n p a s s e d t h e l o w e s t p o i n t o f t h e d e p r e s s i o n t o a new a l l - tim e low o f 59 * 2 . The d e c l i n e i n 1942 was due t 1 o th e e s t a b l i s hm e n t ji o f c r e d i t c o n t r o l s a s a m e asu re t o c o u n t e r a c t w artim e !i i n f l a t i o n . Howe^ -v er,• t h e commercial b an k s were t h e c h i e f * l e n d e r s t o t h e g o v ern m e n t d u r i n g W orld War I I . T h e i r I | l a r g e h o l d i n g s i n g o v ern m en t b o n d s , b i l l s , a n d n o t e s and 26 I b i d . 27I b i d . 2^B oard o f G o v e rn o rs o f t h e F e d e r a l R e se rv e S y stem , F e d e r a l R e s e rv e C h a r t s on Bank C r e d i t , Money R a t e s , and B u s i n e s s , J u l y , 1952, p# 3 2 . |
