ABSTRACT
In Germany the question of the best means of dealing with a crisis had been much discussed amongst bankers and economists after the war scare in 1911, and fairly general agreement had been reached as to the chief steps to be taken. As in other countries, the Stock Exchange was the first section of business to be affected, and prices of securities fell heavily from July 25th onwards. The publication of two-monthly balance sheets being suspended with the outbreak of the War, no statistics are available with respect to the creditbanks between the end of June and the end of December. In the business of the creditbanks the War period was distinguished by three features: firstly, the increase—partly real and partly nominal—in deposits; secondly, the preponderance of public borrowing as against that of private business; and thirdly, the comparative insignificance of transactions in connexion with the Stock Exchange.
