Translations:CP 02812/71/en

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↑ Starting on 23 July 1914, the date of Austria's ultimatum to Serbia, the risk of war between the European powers triggers a panic across financial and stock markets (mass withdrawal of holdings, plummeting stock values), which leads the authorities to take emergency measures in order to prevent the crisis from spiraling further. Stock market and banking operations are suspended in many countries. In France, on July 26, the stock market is closed and transactions are suspended. Between July 29 and August 1st, the Minister of Finance, Joseph Noulens, issues four moratoriums: on July 29, the liquidation of July operations on the stock market is postponed until the end of August, and in the following days, further measures, including the deferral of commercial deadlines and the extension of this moratorium to deposits and lines of credit for transaction accounts at banks. This is meant to stop account holders from massively withdrawing their deposits. On August 5, the Chamber of Deputies sets an enforced value for bank bills and prohibits their conversion to gold. On 14 August, a further moratorium is sent on rents. These measures, meant to protect public finances and the gold reserves of the Banque de France, trigger a cash crisis for businesses and individuals. (See Florence Descamps and Laure Quennouëlle-Corre (eds.), Finances publiques en temps de guerre, 1914-1918, Paris, Institut de la gestion publique et du développement économique, 2016.) – The word "moratorium," which in French is translated as "moratoire" (as a noun), is a debated neologism at the time (since "moratoire" was previously used only as an adjective). [FL]

[n10-1] Starting on 23 July 1914, the date of Austria's ultimatum to Serbia, the risk of war between the European powers triggers a panic across financial and stock markets (mass withdrawal of holdings, plummeting stock values), which leads the authorities to take emergency measures in order to prevent the crisis from spiraling further. Stock market and banking operations are suspended in many countries. In France, on July 26, the stock market is closed and transactions are suspended. Between July 29 and August 1st, the Minister of Finance, Joseph Noulens, issues four moratoriums: on July 29, the liquidation of July operations on the stock market is postponed until the end of August, and in the following days, further measures, including the deferral of commercial deadlines and the extension of this moratorium to deposits and lines of credit for transaction accounts at banks. This is meant to stop account holders from massively withdrawing their deposits. On August 5, the Chamber of Deputies sets an enforced value for bank bills and prohibits their conversion to gold. On 14 August, a further moratorium is sent on rents. These measures, meant to protect public finances and the gold reserves of the Banque de France, trigger a cash crisis for businesses and individuals. (See Florence Descamps and Laure Quennouëlle-Corre (eds.), Finances publiques en temps de guerre, 1914-1918, Paris, Institut de la gestion publique et du développement économique, 2016.) – The word "moratorium," which in French is translated as "moratoire" (as a noun), is a debated neologism at the time (since "moratoire" was previously used only as an adjective). [FL]

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Translations:CP 02812/71/en

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