The 1931 Financial Crisis in Austria and Hungary

Total Page:16

File Type:pdf, Size:1020Kb

The 1931 Financial Crisis in Austria and Hungary Doctoral Thesis Flóra Macher THE 1931 FINANCIAL CRISIS IN AUSTRIA AND HUNGARY A CRITICAL REASSESSMENT A thesis submitted to the Department of Economic History of the London School of Economics and Political Science for the degree of Doctor of Philosophy September 2017 1 DECLARATION OF AUTHORSHIP I, Flóra Macher, certify that the thesis I have presented for examination for the MPhil/PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without my prior written consent. I warrant that this authorisation does not, to the best of my belief, infringe the rights of any third party. I declare that my thesis consists of 53,469 words. 2 ABSTRACT In this thesis, I re-investigate the 1931 financial crisis in Austria and Hungary with the help of new data compiled from primary sources. Our knowledge about the causes of these calamities is much less extensive than about the German crisis. The aim of my research is to provide for a better understanding of the Central European crises of 1931. Chapter 1 examines the role of international and domestic forces behind the crisis in Austria. Two newly constructed micro-level datasets demonstrate that a domestic factor, exposure to weakly performing industrial enterprises, was essential in accounting for the insolvency and possibly also for the illiquidity of the four universal banks that came under distress between 1925 and 1931. In Chapter 2, the focus shifts to Hungary, where both the national historiography and the international literature documented a currency crisis. A new database on the financial system and macroeconomic indicators reveal that the banking system played a critical role in the calamities and the country experienced a twin crisis in 1931. Chapter 3 zooms in on a particular aspect of the crisis: the political factors behind the weakness of the two countries’ banking systems. Facing social demands but their hands tied by the macroeconomic trilemma, the authorities of both countries had to resort to (ab)using the banking system to provide clandestine economic stimulus. Political interventions into banking encouraged imprudent lending and contributed to the vulnerability of the two banking systems and thereby to the crisis of 1931. Together these findings underscore the economic importance and the political risk of the banking system. They further emphasize the dramatic, and seemingly insurmountable challenges of nation building that Austria and Hungary faced in the interwar years. 3 ACKNOWLEDGEMENTS I would like to thank Professor Max-Stephan Schulze and Dr. Tamás Vonyó, my two supervisors for their guidance on this work. This thesis has evolved through feedback from several other colleagues. I owe gratitude to Olivier Accominotti, Peter Eigner, Clemens Jobst, Nathan Marcus, Matthias Morys, Avner Offer, Albrecht Ritschl, and Tobias Straumann. The thesis has benefitted from the valuable insight of participants at the EHES Summer School in Berlin in September 2014, Economic History Thesis workshops at the London School of Economics in 2015 and October 2016, the WEast workshops in Budapest in January 2015 and in Prague in July 2016, the LSE Interwar Economic History Workshop at the London School of Economics in May 2015, and the seminar of Nuffield College of Oxford University in February 2016. I would also like to express my appreciation for the support I received from Veronika Katz Kálniczkyné at the Hungarian National Archive and Claudia Köpf and Walter Antonowitz at the Archive of the Austrian National Bank. Finally, I would like to thank my family for their support. My boyfriend has been my most important advisor and most avid reader throughout this project. This work would not have been possible without his support. I am also grateful to my parents who always believed in me and who should have had the opportunity to study at the LSE. I hope this thesis makes them proud. It is dedicated to them. I am grateful to everyone who has helped. All remaining errors are my own. Funding from the Economic and Social Research Council is gratefully acknowledged. 4 TABLE OF CONTENTS Introduction 8 Data and methodology ________________________________________________________ 11 Historical context and findings _________________________________________________ 13 Chapter 1 - The Austrian banking crisis of 1931 22 Historical background and literature _____________________________________________ 24 Overview of the banking system ________________________________________________ 27 Exposure to foreign creditors __________________________________________________ 31 Domestic creditors ___________________________________________________________ 37 Konzern and bank solvency ____________________________________________________ 40 Causes and Triggers __________________________________________________________ 52 One bad apple ______________________________________________________________ 58 Appendix __________________________________________________________________ 60 Chapter 2 - The Hungarian twin crisis of 1931 62 Review of the literature _______________________________________________________ 63 Data and method ____________________________________________________________ 65 Pre-crisis currency weakness ___________________________________________________ 67 Pre-crisis banking system weakness _____________________________________________ 77 Event analysis ______________________________________________________________ 87 Missing the wood for the trees _________________________________________________ 95 Appendix __________________________________________________________________ 96 Chapter 3 - The political origins of the Austrian and Hungarian banking crises in 1931 102 The historical context _______________________________________________________ 104 The post-war political contract ________________________________________________ 107 Austria: commitment to industry _______________________________________________ 113 Hungary: commitment to agriculture ___________________________________________ 125 What if...? ________________________________________________________________ 133 Conclusion 135 Primary sources 140 Bibliography 142 5 LIST OF TABLES 1.1 The number of financial accounts in the bank database 1.2 Foreign currency mismatch (million Austrian Schilling) 1.3 The number of financial accounts in the Konzern database 1.4 Theoretical calculations for insolvency thresholds 1.5 Liquidity and solvency measures for the four Konzerns (million Austrian Schilling) A1.1 The number of financial accounts in the bank database - detailed A1.2 The representativeness of the bank database, 1929 (million Austrian Schilling) 2.1 Description of the bank database 2.2 Budget deficit (million pengő) 2.3 National debt denominated in foreign currency (million pengő) 2.4 Balance-of-payments (million pengő) 2.5 Growth and consolidation in the banking sector 2.6 Non-performing loan (NPL) calculation for all financial institutions 2.7 Non-performing loan (NPL) calculation for institutions with agricultural lending over 75 per cent 2.8 Trigger analysis (million pengő) A2.1 The representativeness of the bank database A2.2 Background information on the non-performing loan (NPL) estimation 3.1 Accounting fraud at the four universal banks which were bailed out 3.2 The structure of three mergers among universal banks in the 1920s 6 LIST OF FIGURES I.1 The economic activity index 1.1 The structure and growth of the Austrian financial system by total assets 1.2 The equity and liability side of universal banks' and Sparkassen's aggregate balance sheet 1.3 Foreign and domestic liabilities 1.4 The annual change in the foreign creditors of the banking system 1.5 Rediscount from the central bank to the banking system 1.6 The asset side of Sparkassen's aggregate balance sheet 1.7 Universal banks' foreign and domestic creditors by creditor type 1.8 The exposure of the four banks to good and bad Konzern companies in 1927 based on companies' debt 1.9 Exposure of the four banks to good and bad industries based on companies' debt in 1927 1.10 The reserves of the Austrian National Bank (million Austrian Schilling) 1.11 The rediscount of the Austrian National Bank (million Austrian Schilling) 2.1 Trade account (million pengő) 2.2 U.S. wholesale price of wheat and corn in Chicago (US dollar/bushel) 2.3 Reserves of the Hungarian National Bank (million pengő) 2.4 The structure of the Hungarian banking system by total assets 2.5 The equity and liability side of the banking system's aggregate balance sheet 2.6 The annual change in foreign and domestic currency deposits and credits (million pengő) 2.7 The asset side of the financial system's aggregate balance sheet (1926=100) 2.8 The monthly change in foreign and domestic currency deposits (million pengő) 2.9 The reserves of the Hungarian National Bank (100 = 7 Jan. 1927, 7 Feb. 1929, 7 March 1931) 2.10 Rediscount (100 = 7 January for each year) 3.1 Rediscount practices of the HNB following the 1929 currency crisis (million pengő) 7 INTRODUCTION 1931 was a monumental year in European economic history. It witnessed a series of financial crises following the collapse of Austria’s largest bank, the Credit-Anstalt, and these
Recommended publications
  • Download (Pdf)
    X-6737 TUB DISCOUNT RATE CONTROVERSY BETWEEN THE FEDERAL RESERVE BOARD and THE FEDERAL RESERVE BANK OF NEW YORK -1- November [1st approx., 1930. The Federal Reserve Bank of New York, in its Annual Report for the year 1929, stated: "For a number of weeks from February to May, 1929, the Directors of the Federal Reserve Bank of New York voted an increase in the discount rate from 5% to 6%. This increase was not approved by the Board." Annual Report, Page 6. ~2~ The above statement makes clear the error of the prevailing view that the discount rate controversy lasted from February 14, 1929, - the date of the first application for increase in discount rates, - to August 9, 1929, the date of the Board's approval of the increase from 5% to 6%. The controversy began on February 14, 1929, but practically ended on May 31, 1929. On May 22, 1929, Governor Harrison and Chairman McGarrah told the Board that while they still desired an increase to 6%, they found that the member banks, under direct pressure, feared to increase their borrowings, and that they wanted to encourage them to borrow to meet the growing demand for commercial loans. 16 Diary 76 (69). Furthermore, on May 31, 1929, Chairman McGarrah wrote to the Federal Reserve Board that the control of credit without increasing discount rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis X-6737 - 2 - (direct pressure) had created uncertainty; that agreement upon a program to remove uncertainty was far more important than the discount rate; that in view of recent changes in the business and credit situation., his directors believed that a rate change now without a mutually satis- factory program, might only aggravate existing tendencies; that it may soon be necessary to establish a less restricted discount policy in order that the member banks may more freely borrow for the proper conduct of their business:; that the Federal reserve bank should be prepared to increase its portfolio if and when any real need of doing so becomes apparent.
    [Show full text]
  • Service Notes
    of the Government of India in the Department of Education, Health and Lands. Major H. Caldwell Tait, m.b.E., i.m.s., Military Medi- cal Officer, Roorkee, to ibe the Civil Medical Officer of Roorkee, in addition to his own duties, vice Major E. A. Penny, i.m.s., with effect from the afternoon of 23rd April, 1929. The undermentioned temporary commissioned officers are appointed permanently to the Indian Medical Service subject to His Majesty's approval:? Lieutenant Sher Mohammad Khan Mallick, m.b. Dated 16th February, 1928, with seniority from 18th August, 1927. Lieutenant Euruch Ardeshir Ruttanji Ardeshir. Dated 30th April, 1928, with seniority from 16th Decem- ber, 1927. Lieutenant Thaku Chuharmal Ramchandani, m.b., F.r.c.s.E. Dated 30th April, 1928, with seniority from 12th May, 1926. Lieutenant Cheruvari Kottieth Lakshmanan. Dated 30th April, 1928, with seniority from 21st October, 1925. To be Lieutenants (on probation). Service Notes. K. F. Alford, m.b., 4th February, 1929, with seniority 6th January, 1927. H. J. Curran, m.b., 4th February, 1929. Appointments and Transfers. H. T. McWilliams, m.b., 4th February, 1929. P. Shannon, m.b., 4th February, 1929. Colonel W.- D. c.i.E., m.b., v.h.s., i.m.s., J. Megaw, G. m.b., 4th 1929. with the Government of J. O'Connor, February, Officiating Surgeon-General B. Griffiths, 4th 1929. is to that post, with J. February, Madras, appointed permanently E. A. Y. Mackeown, 4th 1929. effect from the forenoon of the 3rd April. 1929. February, H. S. Waters, m.b., 4th 1929.
    [Show full text]
  • Subordinate Laws—1929
    Australian Capital Territory Subordinate laws—1929 A chronological listing of subordinate laws notified in 1929 [includes subordinate laws 1929 Nos 1-14] Subordinate laws—1929 1 22 January 1929 Amendment of Canberra Sewerage and Water lapsed on repeal of Supply Regulations (repealed) SL1924-4 made on made under the Building and Services Ordinance 16 October 1924 1924 2 November 1933 notified 25 January 1929 (Cwlth Gaz 1929 No 10) taken to have commenced 1 January 1929 (see reg) 2 4 March 1929 Amendment of Leases Regulations 1919 repealed by SL1929-3 (repealed) made on 28 March 1929 made under the Leases Ordinance 1918 reg 2 (1) notified 7 March 1929 (Cwlth Gaz 1929 No 22) 25 April 1929 commenced 7 March 1929 (see Interpretation Ordinance 1914 s 5) 3 28 March 1929 Leases Regulations 1929 (repealed) lapsed on repeal of Act (renamed as Leases Regulations) 2 April 1992 made under the Leases Ordinance 1918 notified 25 April 1929 (Cwlth Gaz 1929 No 41) commenced 25 April 1929 (see Interpretation Ordinance 1914 s 5) 4 28 March 1929 Amendment of Canberra Sewerage and Water lapsed on repeal of Supply Regulations (repealed) SL1924-4 made on made under the Building and Services Ordinance 16 October 1924 1924 2 November 1933 notified 11 April 1929 (Cwlth Gaz 1929 No 36) taken to have commenced 1 January 1929 (see reg) 5 28 March 1929 Fish Protection (Close Season) Regulations repealed by SL1931-1 (repealed) made on 24 January made under the Fish Protection Ordinance 1929 1931 reg 2 notified 4 April 1929 (Cwlth Gaz 1929 No 34) 26 February 1931 commenced
    [Show full text]
  • The Observer's Handbook for 1929
    The O bserver’s H andbook FOR 1929 PUBLISHED BY The Royal A stronomical Society of Canada E d ited by C. A. CHANT TWENTY-FIRST YEAR OF PUBLICATION TORONTO 198 College Street Printed for the Society 1929 CALENDAR The O bserver’s H andbook FOR 1929 PUBLISHED BY The Royal Astronomical Society of Canada TORONTO 198 C ollege Street Prin ted for the Society 1929 CONTENTS Preface ------- 3 Anniversaries and Festivals - 3 Symbols and Abbreviations - 4 Solar and Sidereal Time - 5 Ephemeris of the Sun - - - 6 Occultations of Fixed Stars by the Moon - 8 Times of Sunrise and Sunset - 9 Planets for the Year ------ 22 Eclipses in 1929 - - - - 26 The Sky and Astronomical Phenomena for each Month 28 Phenomena of Jupiter’s Satellites - 52 Meteors and Shooting Stars - - - 54 Elements of the Solar System - 55 Satellites of the Solar System - 56 Double Stars, with a short list - 57 Variable Stars, with a short list 59 Distances of the Stars - 61 The Brightest Stars, their magnitudes, types, proper motions, distances and radial velocities - 63 Astronomical Constants - 71 Index - - - - - - - 72 PREFACE It may be stated that four circular star-maps, 9 inches in diameter, roughly for the four seasons, may be obtained from the Director of University Extension, University of Toronto, for one cent each; also a set of 12 circular maps, 5 inches in diameter, with brief explanation, is supplied by Popular Astronomy, Northfield, Minn., for 15 cents. Besides these may be mentioned Young’s Uranography, containing four maps with R.A. and Decl. circles and excellent descriptions of the constellations, price 72 cents; Norton's Star Atlas and Telescopic Handbook (10s.
    [Show full text]
  • Survey of Current Business March 1929
    ·.UNITED ·STATES. , , ~' I , , DEPARTMENTI I' ' ' OF:. COMMERCE·I 'I WASHINGTON --,-'--- .· :. ( . ' SU·RV.EY. O'F , . CU.RRENt BUSINESS. ,·'' MARCHj ', ,, :1929' •' \ ~No •. 91 ,,, I '','I , r:.- \1 \ IMPORTANT ·NOTICE ~· • ', , , ~ ' ' ' ' < ' I I I • ," • ' ''\ In addition to fog1f-r(s givcnfrorn.,Gor.itrnmeitt ..tource,s, there art also incorporatedjiJ,r completeness of· I ,•\ , ) 1 • - I ' ',' 1, , .strvite fig~~ts jropi." other sources generally a,ctep.trd by ,the, ,trades, the authopty and resppnsibil#y for whick arepote,d in the','Sourcifoj.Deita" on pages 139-14~ofthe February; 1929, semiannut)i issue, 1 '·, .; ': f , I " , , ,' ' ' i , ,, · ': ' IN,TRODUCTION T~e $uRYEY;OF Cu~~E~T B·u'siNEm3 ~ d~si~ne(to designed to .sh6w- ,the .tren<l of. an. entir~ group of ~present. each month.~ :plc~ure.of;the b:usm~ss situatio~ industries or fo:r;'the :Co~ try as a whol¢, iJ;lstead of for . by setting forth t}le: p:rtnctpa1' facts regardmg _the van~ the ·single commodity· 9r industry 'Yhich the relative . · ous li:Qes of tra.'de and industry:. , ~he fig,ures reported number covets.. Comparis~:ms with the base year or are very· largell. 'those already In ·e:nstence.. The , ' with other pe:riods are ma.de in the same manner as fu 1,·!. chief fuliction 0, .• the department is' to' bring together the case 0~ relative numb~rs. ' these datil- which, if available at. all, arw scaltered in hundreds of dijferent publications. A portion of theae' d1tta arj:l coll~et~4 ~y Go~er9Jl!Emt 9ep~rtments, . In mast instances, the charts ti~d in th~ SuRVEY other figures are.
    [Show full text]
  • Monthly Weather Review March, 1929 Bibliography
    MONTHLY WEATHER REVIEW MARCH,1929 BIBLIOGRAPHY C. FITZHUQHTALYAN, in Charge of Library RECENT ADDITIONS Jantzen. K.-Continued. Zehnjiihrige meteorologische Beobachtungen (1918-1927) in The following have been selected from among the Wilno. Wilno. 125. 37 p. 24:1 cm. (Trav. SOC. sri. titles of books recently received as representing those et des lettres de Wilno. Classe des sci. math. et natur. T. 4,) most likely to be useful to Weather Bureau officials in (Bull. de l’Observ. astron. de Wilno. 11. MBt. no. 5.) [Auth- their meteorological work and studies: or, title and text in German and Polish.] Japan. International latitude observatory. Aldrich, L. B Soundings with pilot balloons on clear nights concuirently with Study of body radiation. Washington. 1928. 54 p. figs. the latitude observations during the period 1922-1925. 25 cm. (Smith. misc. coll. v. 81, no. 6.) n. p. 1928. iv, 301 p. figs. plates. 30% cm. Boasolaaco, M. I1 concambio di masse nella libera atmosfera. Pisa. 1928. KaminskijyBeitrageA. zur Klimntologie der Nordkuste Asiens. Leningrad. 16 p. 25 cm. (Estr. L’Aerotecnica, Giorn. atti dell’ass. ital. 1925. lsxvi, 231 p. 31 cm. (,Acad. sci. de 1’Union r6p. di aerotec. Anno. 8, N. 10. 1928. VI.) sov. soc. Trav. de la Comm. pour 1 Btude de la RBp. autonome Chammy, N. P. Climatology of the Gold Coast. London. 1928. 63 p. sov. soc. Iakoute. T. 5.) plates (part fold.) 25 cm. (Dept. agric. Gold Coast. Bull. Kemp, W. B., & Metzger, J. E. no. 15.) Environmental factors influencing wheat production in hiary- Chaptal, Lton &nile. land. College Park.
    [Show full text]
  • Friendly Endeavor, April 1929
    Digital Commons @ George Fox University Northwest Yearly Meeting of Friends Church Faith and Practice (Quakers) 4-1929 Friendly Endeavor, April 1929 George Fox University Archives Follow this and additional works at: https://digitalcommons.georgefox.edu/nwym_faithpractice Part of the Christian Denominations and Sects Commons, Christianity Commons, History of Religion Commons, and the United States History Commons Recommended Citation George Fox University Archives, "Friendly Endeavor, April 1929" (1929). Faith and Practice. 10. https://digitalcommons.georgefox.edu/nwym_faithpractice/10 This Book is brought to you for free and open access by the Northwest Yearly Meeting of Friends Church (Quakers) at Digital Commons @ George Fox University. It has been accepted for inclusion in Faith and Practice by an authorized administrator of Digital Commons @ George Fox University. For more information, please contact [email protected]. The Friendly Endeavor Volume 8, No. 4. PORTLAND. OREGON. April, 1929. TWIN ROCKS BANQUET, NEWBERG, APRIL 27 VICTORY OVED DEATH. the Lord in the air*. The law of grav T H E C O N F E R E N C E S H I P . itation shall lose its power because of a "O death, where is thy sting? O higher law which the Lord shall allow The Conference Ship has been an to operate—a law of gravitation which chored for several months, but she will grave, where is thy victory? The sting of death is sin; and the strength of sin pulls the opposite direction. What a be ready to start sailing on April 27th. is the law. But thanks be to God grand chorus shall then sing as the re She will reach Twin Rocks by July 30th.
    [Show full text]
  • 1929 Congressional Record-Senate 663
    1929 CONGRESSIONAL RECORD-SENATE 663 immigration act of 1924 ; to the Committee on Immigration and RELIEF OF. STORM AND FLOOD STRICKEN AREAS Naturalization. 268. By Mr. LUCE: Petition of members of the Boston The j.oint resol~tion (H. J. Res. 59) to extend the provisions of Pubhc Resolutwn No. 92, Seventieth Congress, approved Feb­ Authors' Club, regarding classification of authors' manuscripts ruary 25, 1929, was read twice by its title. as first-class mail ; to the Committee on the Post Office and Post Mr. GEORGE. A similar joint resolution introduced by me Roads. on yesterday was referred to the Committee on Agriculture and 269. By Mr. O'CONNELL of New York: Petition of the Na­ Forestry, and that resolution is before the committee. The com­ tional Society, Daughters of 1812, favoring the continuance of mittee has not yet made its report. I ask that this resolution the bas!c provisions of the immigration act of 1924, including may lie on the table. the national-origins system, etc.; to the Committee on Immigra­ .The. PRESIDENT pro. tempore. The House joint resolution tion and Naturalization. Will be upon the table m accordance with the request of the 270. Also, petition of the National Society, Daughters of the Senator from Georgia. American Revolution, with reference to the restriction of immi­ gration; to the Committee on Immigration and Naturaliza­ PETITIONS tion. The PRESIDENT pro tempore laid before the Senate a reso­ 271. Also, petition of the National Society, Dames of the lution adopted by Local Union No. 151, International Brother­ Loyal Legion, favoring the continuance of the basic provisions hood of .Electrical Workers, of San Francisco, Calif., favoring of the immigration act of 1924, including the national-origins a reductiOn of 50 per cent in the Federal tax on earned incomes system, etc.
    [Show full text]
  • HSR Vol. XLV, Nos. 1-2 (Spring-Fall, 2018)
    Hungarian Studies Review, Vol. XLV, Nos. 1-2 (Spring-Fall, 2018) In this volume: Jason Kovacs reviews the history of the birth of the first Hungarian settlements on the Canadian Prairies. Aliaksandr Piahanau tells the story of the Hungarian democrats’ relations with the Czechoslovak authorities during the interwar years. Agatha Schwartz writes about trauma and memory in the works of Vojvodina authors László Végel and Anna Friedrich. And Gábor Hollósi offers an overview of the doctrine of the Holy Crown of Hungary. Plus book reviews by Agatha Schwartz and Steven Jobbitt A note from the editor: After editing this journal for four-and-a-half decades, advanced age and the diagnosis of a progressive neurological disease prompt me to resign as editor and producer of this journal. The Hungarian Studies Review will continue in one form or another under the leadership of Professors Steven Jobbitt and Árpád von Klimo, the Presidents res- pectively of the Hungarian Studies Association of Canada and the Hungarian Studies Association (of the U.S.A.). Inquiries regarding the journal’s future volumes should be directed to them. The contact addresses are the Departments of History at (for Professor Jobbitt) Lakehead University, 955 Oliver Road, RB 3016, Thunder Bay, ON, Canada, P7B 5E1. [email protected] (and for Prof. von Klimo) the Catholic University of America, 620 Michigan Ave. NE, Washing- ton DC, USA, 20064. [email protected] . Nándor Dreisziger Hungarian Studies Review, Vol. XLV, Nos. 1-2 (Spring-Fall, 2018) Contents Articles: The First Hungarian Settlements in Western Canada: Hun’s Valley, Esterhaz-Kaposvar, Otthon, and Bekevar JASON F.
    [Show full text]
  • Hungarisn Studies Review
    Hungarian Studies Review, Vol. XLV, Nos. 1-2 (Spring-Fall, 2018) In this volume: Jason Kovacs reviews the history of the birth of the first Hungarian settlements on the Canadian Prairies. Aliaksandr Piahanau tells the story of the Hungarian democrats’ relations with the Czechoslovak authorities during the interwar years. Agatha Schwartz writes about trauma and memory in the works of Vojvodina authors László Végel and Anna Friedrich. And Gábor Hollósi offers an overview of the doctrine of the Holy Crown of Hungary. Plus book reviews by Agatha Schwartz and Steven Jobbitt A note from the editor: After editing this journal for four-and-a-half decades, advanced age and the diagnosis of a progressive neurological disease prompt me to resign as editor and producer of this journal. The Hungarian Studies Review will continue in one form or another under the leadership of Professors Steven Jobbitt and Árpád von Klimo, the Presidents res- pectively of the Hungarian Studies Association of Canada and the Hungarian Studies Association (of the U.S.A.). Inquiries regarding the journal’s future volumes should be directed to them. The contact addresses are the Departments of History at (for Professor Jobbitt) Lakehead University, 955 Oliver Road, RB 3016, Thunder Bay, ON, Canada, P7B 5E1. [email protected] (and for Prof. von Klimo) the Catholic University of America, 620 Michigan Ave. NE, Washing- ton DC, USA, 20064. [email protected] . Nándor Dreisziger Hungarian Studies Review, Vol. XLV, Nos. 1-2 (Spring-Fall, 2018) Contents Articles: The First Hungarian Settlements in Western Canada: Hun’s Valley, Esterhaz-Kaposvar, Otthon, and Bekevar JASON F.
    [Show full text]
  • Currency Vs. Banking in the Financial Crisis of 1931∗
    Crisis? What Crisis? Currency vs. Banking in the Financial Crisis of 1931∗ Albrecht Ritschl Samad Sarferaz LSE and CEPR ETH Zurich Dept. of Economic History KOF Swiss Economic Institute Houghton Street Weinbergstrasse 35 London WC2A 2AE, UK 8092 Zurich, Switzerland Phone: +44-20-7795-6482 Phone: +41-44-632-4683 E-mail: [email protected] E-mail: [email protected] December 2, 2010 Abstract This paper examines the role of currency and banking in the German financial crisis of 1931 for both Germany and the U.S. We specify a structural dynamic factor model to identify financial and monetary factors separately for each of the two economies. In contrast to conventional wisdom, we find only a minor role for monetary policy transmission, while financial distress was important. Monetary or financial crisis prop- agation from the U.S. to Germany was weak. Instead there is evidence of substantial crisis transmission from Germany to the U.S. via the banking channel. We also find major real effects of the 1931 crisis on both economies, again transmitted via the bank- ing channel. Financial distress itself responded more strongly to real than to monetary factors. Results confirm Bernanke's (1983) conjecture that a non-monetary financial channel of crisis propagation was operative in the Great Depression. JEL: N12, N13, E37, E47, C53 Keywords: Great Depression, banking channel, 1931 financial crisis, international business cycle transmission, factor analysis ∗This research was funded by Deutsche Forschungsgemeinschaft under Collaborative Research Project SFB 649. Samad Sarferaz acknowledges financial support by the European Science Foundation via the Globalizing Europe Economic History Network and the Marie Curie Research Training Networks, and thanks the University of Zurich and the European University Institute in Florence for their hospitality.
    [Show full text]
  • Federal Reserve Bulletin December 1929
    FEDERAL RESERVE BULLETIN DECEMBER, 1929 ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON The Banking Position Branch and Chain Banking Recent Changes in the Wholesale Price Level UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1929 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD Ex officio members: ROY A. YOUNG, Governor. A. W. MELLON, EDMUND PLATT, Vice Governor. Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. J. W. POLE, GEORGE R. JAMES. Comptroller of the Currency. EDWARD H. CUNNINGHAM. WALTER L. EDDY, Secretary. WALTER WYATT, General Counsel. J. C. NOELL, Assistant Secretary. E. A. GOLDENWEISER, Director, Division of Research E. M. MCCLELLAND, Assistant Secretary. and Statistics. W. M. IMLAY, Fiscal Agent. CARL E. PARRY, Assistant Director, Division of Re* Chief, Division of Examination, and Chief Federal search and Statistics. Reserve Examiner. E. L. SMEAD, Chief, Division of Bank Operations. FEDERAL ADVISORY COUNCIL District No. 1 (BOSTON) ARTHUR M. HEARD. District No. 2 (NEW YORK) WM. C. POTTER. District No. 3 (PHILADELPHIA) L. L. RUE. District No. 4 (CLEVELAND) HARRIS CREECH. District No, 5 (RICHMOND) JOHN POOLE. District No. 6 (ATLANTA) J. P. BUTLER, Jr District No, 7 (CHICAGO) FRANK O. WETMORE, President. District No, 8 (ST. LOUIS) W. W. SMITH. District No. 9 (MINNEAPOLIS) THEODORE WOLD. District No, 10 (KANSAS CITY) P. W. GOEBEL. District No, 11 (DALLAS) B. A. MCKINNEY, Vice President. District No, 12 (SAN FRANCISCO) F. L. LIPMAN. WALTER LICHTENSTEIN, Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis OFFICERS OF FEDERAL RESERVE BANKS Federal Reserve Bank of— Chairman Governor Deputy governor Cashier Boston Frederic H.
    [Show full text]