The French Bourse during the War
In our chapter on "France at the outbreak of the war",
attention was centered on the bourse. The list of securities dealt
in there had been weakened by prewar speculation and depression. We have seen how largely they consisted of second rate
issues of foreign governments, Russians, Bulgarians, Brazilians,
Argentine securities, Mexican securities and the like. When to
this weakness was added the frightened selling on the bourses of Vienna,' Berlin and other centers, followed by the wild panic
when war was clearly in sight, it is not surprising that the whole
fabric collapsed. We saw something of the extent of the decline
of representative securities and the extent of the recovery by December 7, 1914, when the bourse was reopened for cash
trading only. A preceding chapter has given an account of the
bourse moratorium and of the lapsing of that moratorium in October, 1915.The main story of the bourse in the four years following the
outbreak of the war is best told in the accompanying charts.
Attention may be called to the divergence between the prices of
shares of the Banque de France
and of the other French banks.
The five banks treated in the curve for the other French banks
|Banque de Paris et des Pays-Bas
Crédit Industriel (liberée)
There has been a steady rise in the shares of the Banque de
France from the last quarter of 1915 and a decided decline in
the shares of the other banks. The reasons for this have been
fully stated in our previous discussions of these institutions.
The two railway shares chosen are the Midi and the Lyons,