Börsengeschichte – Einführung

Abstract

In this introduction, we review the state of the art of stock market history in Germany and preview the main findings of the articles published in this special issue. In Germany, scholars have long focused on institutional aspects of stock market history. Yet, starting in the late 1990s, quantitative work also started to take-off. Some of the articles published in this special issue go further down this road. Moreover, several of the following papers deal with the history of German stock markets during the interwar period, a period so far neglected by research.

Financial markets and economic growth

“…So in addition to the reparations that partly entered the financial market, an enormous expansion of circulation credit through the banking system took place, especially in 1872. 1033 It might be argued that deposits have not been used as money in the same degree as it is the case today. 1034 But sight credit alone increased by 697.1 million Marks from 1870 to 1872, 1035 which seems to account nearly completely for the growth of deposits during these two years.…”

“…1033 It might be argued that deposits have not been used as money in the same degree as it is the case today. 1034 But sight credit alone increased by 697.1 million Marks from 1870 to 1872, 1035 which seems to account nearly completely for the growth of deposits during these two years.…”

The German bank–growth nexus revisited: savings banks and economic growth in Prussia†

“…In 1871, eight of the 30 largest banks were stock-market-listed universal banks, and within 20 years, this number had risen to 17. 35 Cost advantages of large banks can emerge due to their better screening and monitoring process, given that they have more customers and credit applications.…”

“…Moreover, since savings banks often supplied credit to cooperatives, they often acted as complementary institutions. 51 Wolf and Süsse have studied the determinants of the foundation of credit cooperatives in East Prussia. 52 If we compare the number of newly founded savings banks with the number of newly founded credit cooperatives over time, we see that credit cooperatives also experienced a wave of establishment in the second half of the nineteenth century (figure 1).…”

“…Indeed, for many inhabitants, savings banks were the first and often only contact they had with a financial intermediary. 19 Thus, savings banks created opportunities to take personal precautionary measures by accumulating private savings, reducing the burden on local funds for poor relief. 20 Furthermore, because of the local authorities' close relationship with 'their' savings banks, they had easy access to capital, since savings banks generally existed as dependent departments of the local government up until the 1930s.…”