Speculation and security. the financial world in trieste in the early years of the twentieth century

Abstract

The years coinciding with the publication of Vinzenz Bronzin's main work, which appeared in 1908, represent for Trieste a time of fast-paced and intense economic and social development, that put this Adriatic town, before the first World War, on the international map as a great industrial, port and financial centre. More and more integrated in the economy of the Habsburg Empire, Trieste's financial landscape is still dominated by the merchant families that were the historical protagonists of the growing trading wealth between the 18th and 19th century. They have control of the Stock Exchange, the evolution of the powerful institution created in 1755 to regulate market exchanges and which has followed the decline of this trading centre, now turned into a port of transit. In spite of the limited number of listed companies and monetary exchanges, the Stock Exchange Committee, through its regulations, puts in place a strong selfmanagement and self-regulating system, it issues strict surveillance provisions, and performs a screening function to shape the trading system, overseeing and defending it from the assaults of unrestrained speculation. The decline of the Stock Exchange is accompanied by the rise of insurance companies. Established in the first half of the 19th century, in the early 20th century Assicurazioni Generali and Riunione Adriatica di Sicurtà were the main insurance companies of the Habsburg Empire, ready to conquer also the markets of Europe and the Far East. They were still in the hands of Trieste's great historical merchant families, who made up the most relevant and influential group of stakeholders. These were business enterprises aimed to collect private savings, with the need to set aside significant reserves to face unexpected risks, which leads the management to opt for investments that offer lower returns but greater security, mainly consisting in government stock and also in real estate. Thus speculation and security coexist in a unique balance in Trieste's financial world. © 2009 Springer-Verlag Berlin Heidelberg.