10
What factor Could have played this role in the case of the
decline of accumulation in America? My answer was: The
development of the capital market. The rise of the corporate
system was bound up with a development of capital market,
a broadening of this market which led to a cheapening of
t he sources of outside finance. The yield of the shares
declined in the course of time and reached a very low level
in the 20s*Simulanously the issues reached a peak. The effect
must have been equivalent to a large reduction in the long
term rate of interest. It constituted a force counteracting
the secular declineand explains especially the prosperity
of the 2O5 and also the suddeness of the collapse in 1929.