Stock market inquiry commission

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Börsenenquetekommission is the name of an expert commission that was set up in Germany in 1892 as a result of severe financial crises and the accumulated bankruptcies of stock corporations to regulate the corrupt conditions, excessive speculation and abuses on the stock exchanges through guidelines for stock exchange activities. Its purpose therefore consisted in the introduction of stock exchange supervisory authorities and provisions under stock exchange law and securities law.

Historical background

In England in 1875 and 1877/78 stock market queries took place because of previous financial crises, such as the founder crash of 1873 and the economic crisis of 1857 . In 1890 the renowned London trading bank Baring Brothers was on the verge of bankruptcy. As a result, a general run on the German banks set in and triggered the collapse of the Berlin Stock Exchange, which did not recover from this until autumn 1891. In order to counter the crisis, Chancellor Leo von Caprivi used the stock market quete.

Stock Exchange Quete Commission 1892

In Germany, Chancellor Count Leo von Caprivi convened a 23-member stock market inquiry commission on February 16, 1892, which consisted of various experts, councilors, members of the Reichstag, senators, professors and representatives of chambers of commerce . It met in the period from April 6, 1892 to May 17, 1893 under the chairmanship of Reichsbank director Koch and held a total of 93 meetings.

Roughly speaking, five topic groups were discussed:

In addition to the sometimes heated and controversial debates between the economically liberal and reformist wings of the main commission, sub-commissions were formed, statistics were drawn up and a total of 115 experts were consulted in expert commissions. After numerous motions and tense votes, the commission finally drew up proposals, which were presented to Chancellor Caprivi on November 11, 1893 in the form of a report along with appendices and minutes .

In Chapter 4, stock exchange discipline, there is the suggestion to set up a stock exchange disciplinary court at every stock exchange, in front of stock exchange visitors who, through their behavior on the stock exchange or in the course of business operations, violate commercial honor or indulge in actions which they respect their respect Depriving peers of their class, being held accountable .

Attendees

The commission was organized under the chairmanship of the Reichsbank director Richard Koch . On February 16, 1892, the stock market inquiry commission had 23 members, in May and October 1892 a total of 5 additional members were added.

expert

Among the 115 experts were

  • 39 from the field of securities transactions, including von Wallenberg-Pachaly (Breslau), Wilhelm (Munich)
  • 16 from the grain trade, including Rosenfeld (Posen) and Gustav Adolf Ramdohr (Aschersleben), who proposed the introduction of a court of honor chaired by a state commissioner,
  • 10 from agriculture, including Leo von Graß-Klanin
  • 10 from milling,
  • as well as others from the alcohol, sugar, textile, coffee industries (including Alexander von Gülpen (Emmerich), who demanded a central state stock exchange register and state control of price quotations ).

Aftermath: Stock Exchange Act 1896

The results of the commission appeared in the "Official Printed Papers of the Börsenenquetekommission" (Berlin 1894), and the report of the commission to the Reich Chancellor was published on December 28, 1893 in the "Deutsches Reichsanzeiger". On the basis of the extensive preparatory work and expert opinions of the commission, the Reich Stock Exchange Act of June 22, 1896 and the Depot Law of July 1896 came into being, the preliminary form and basis of the German Stock Exchange Act (BörsG) and the Depot Act.

The Stock Exchange Act of 1896 turned the entire finance and banking system in Germany upside down. Speculation was massively suppressed in Germany and referred to the casinos. Nevertheless, there was some resistance. For example, after the 68th committee meeting on February 8, 1893 was devoted to monopolistic Kammzug futures trading, the Stock Exchange Act of 1896 was drawn up and published, in the spring of 1899 the Federal Council made use of an authorization granted to it and ordered the closure of the Leipziger Kammzug- Futures exchange for June 1, 1899. Futures transactions were nevertheless continued quietly in Leipzig, only an official quotation and publication of the same could no longer take place.

The differences in financial practice between the Anglo-American and German regions are still evident today. Soon Holland, Japan and, with restrictions, Switzerland joined the German model.

Sources and literature

  • German reform. Organ of the German Reform Movement. Advocate of the working people against international Manchesterism and stock market liberalism. - Daily newspaper for politics, honest business dealings and entertainment. Dresden, 10. – 20. September 1882.
  • Henning August von Arnim (Ed.): Is the stock exchange in need of reform? Excerpts from the official stenographic reports of the stock market survey commission. 1896.
  • Horst Baier , M. Rainer Lepsius , Wolfgang J. Mommsen (eds.): Max Weber Complete Edition (MWG) . 41 volumes. Mohr-Siebeck, Tübingen, Department I: Writings and Speeches. Volume 5. Stock Exchange. Writings and speeches 1893–1898. (from 1999 until 2009 - not all volumes have been published yet).
  • Lujo Brentano , Walther Lotz (Ed.): Munich Economics Studies.
    • Volume 15: Franz Josef Pfleger, Ludwig Gschwindt: Stock exchange reform in Germany. A presentation of the results of the German stock market competition. Section I: General Part.
    • Volume 16: Stock Exchange Reform in Germany. Section II: The product exchange according to the surveys of the Exchange Quete Commission. JG Cotta, Stuttgart / Berlin 1897.
  • The proposals of the Exchange Study Commission. Discussed Ludwig Cohnstaedt ; Adamant Media Corporation, June 13, 2002. ISBN 0-543-69900-5 .
  • Carmen Buxbaum: Investor protection between banking conditions and legal norms. An investigation into the Depot Act of 1896. Duncker & Humblot, 2004, ISBN 3-428-09161-2 .
  • Stock market survey. In: Meyers Großes Konversations-Lexikon. Volume 3. Leipzig 1905, p. 245 ( zeno.org ).

Web links

Individual evidence

  1. ↑ Horst Baier, Mario Rainer Lepsius, Wolfgang J. Mommsen (eds.): Max Weber-Gesamtausgabe (MWG). 41 volumes. Mohr-Siebeck, Tübingen 1999 ff. Division I: Writings and speeches. Volume 5. Stock Exchange: Writings and Speeches 1893–1898. P. 263 ( books.google.de ).
  2. ^ Journal for the entire political science.  - Internet Archive Volume 57, 1901.
  3. ↑ Lujo Brentano, Walther Lotz (ed.): Cash payments and credit transactions in trade and commerce in the Rhenish-Westphalian industrial district. Verlag der JG Cotta'schen Buchhandlung Nach Successor, Stuttgart / Berlin 1906 ( archive.org ) and Franz Josef Pfleger, Ludwig Gschwindt: Stock exchange reform in Germany: A presentation of the results of the German stock exchange quête . Cotta, 1896.