TITLE

CREDIT EXPANSION, 1920 TO 1929, AND ITS LESSONS

AUTHOR(S)
Persons, Charles E.
PUB. DATE
November 1930
SOURCE
Quarterly Journal of Economics;Nov30, Vol. 45 Issue 1, p94
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses the credit expansion between 1920 to 1929 and its lessons. The fact is that the existing depression of 1929 was due essentially to the great wave of credit expansion in the past decade. There is a lamentable lack of comprehensive and accurate data concerning this process of debt creation. But highly suggestive information has been assembled regarding the growth of bank loans and investments, the increase in urban and rural mortgage indebtedness, the increasing volume of securities outstanding, and the expansion of installment credit. The great field of credit expansion in the last decade lies in the realm of urban real estate mortgages. It will be noted that the period of rapid expansion in this investment field is in the four years following 1924. The investments of Life Insurance Companies in real estate loans rose to imposing totals. Such a course of events is dearly proven by the evidence as to credit expansion in the period 1920 to 1929. The depression into which the nation fell in the latter year was undoubtedly due in part at least to these developments in the complicated economic structure of the United States.
ACCESSION #
8553700

 

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