Use of credit in security speculation

A close relationship has dveloped in market because of (1) the widespseed this country between the stock market and the money need, especially under a system of cmeltPlaeice of margin trading in securities and (2) the may employ reserves and temporary s, for a liquid money market where banks street loans with changes in speculative activits. Wide fluctuations in the volume of orset opposite movements in volume of credit used by busineszing inhuence when they street loans increased along with other loans and investments of banks. The Speculative move and 1929, and brokers obtained t checked by limitations on the supply of money in 1928 use of credit and diversion of credit om non-banking lenders. Increase in volume and loans affected the volume of produco certain uses resulting from the increase in street system. Absorption of credit by the stoe and also the equilibrium of the economic version of credit resulting from market activit was less important than creation and di is necessary for business stability, Adeouate.contEive control of stock-market credit only by making stock-market activity the principal guide of cedit policy. over supply of funds gin trading are needed to limit demand for brokers' loans. New restrictins on both on mar and demand have been imposed by the Banking act of 1933 and the Securities Exhange act supply of 1934.