World War I And The World Stock Exchanges
The outbreak of World War I 96 years ago this month had a devastating effect on the world’s stock markets. Early in the morning of Friday, July 31, 1914, the London Stock Exchange announced that it would suspend trading until further notice—the first time the venerable center had done so in its century-long history. Stock exchanges in Vienna, Rome and Berlin were already closed.
There was panic on U.S. markets, where blue chip stocks had fallen some 20 percent the day before on record volume. Before the New York Stock Exchange (NYSE) opened on the morning of July 31, there were so many orders to “sell at any price” that the board’s governors decided not to ring the opening bell.
This marked only the second time in U.S. history that the NYSE failed to open on time. It did not reopen until almost a year later, in April, 1915. U.S. banks decided to remain open and a rush by depositors to exchange currency for gold (something that was allowed back then) wiped out many of them. Between July 27 and Aug. 7, 1914, some $73 million worth of gold was withdrawn from New York City banks alone.
Today, of course, exchanging dollars for gold is a bit more complicated. But it’s still a good idea.
Chip Wood is the geopolitical editor of PersonalLiberty.com. He is the founder of Soundview Publications, in Atlanta, where he was also the host of an award-winning radio talk show for many years. He was the publisher of several bestselling books, including Crisis Investing by Doug Casey, None Dare Call It Conspiracy by Gary Allen and Larry Abraham and The War on Gold by Anthony Sutton. Chip is well known on the investment conference circuit where he has served as Master of Ceremonies for FreedomFest, The New Orleans Investment Conference, Sovereign Society, and The Atlanta Investment Conference.
Join the Discussion:
View Comments to “World War I And The World Stock Exchanges”
Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.
Is there news related to personal liberty happening in your area? Contact us at email@example.com