A discussion of stock market speculation by Pierre-Joseph Proudhon

The object of this contribution is to present the ideas behind the thinking of the French economist Pierre-Joseph Proudhon (1809-1865) in relation to the causes and effects of Stock market speculation. It is based upon the works of this author but particularly on his “Manuel du spéculateur à la Bourse” (Stock Market Speculator Manual) edited in 1857 in Paris. Compared to the markets of today, however, the stock market described by Proudhon appears embryonic. Nevertheless it represents the location for transactions in financial assets, commodities, precious metals and even some transactions involving options. This contribution is organised in the following manner - the first section is devoted to the development of Proudhon's thought in relation to speculation. It is divided into two parts. The first part is dedicated to Pierre-Joseph Proudhon's definitions of stock market speculation or gambling with shares that for him served no purpose either from a human or economic perspective and was therefore condemnable and to be contrasted with entrepreneurial speculation that, even though it is a highly-risky activity, involves the spirit of enterprise and provides the lifeblood of economic growth. The second part allows us to present Pierre-Joseph Proudhon's propositions in relation to restricting the speculation that he considers obnoxious. The second section has two objectives: one part places in perspective the views of Proudhon and the characteristics of stock market activity under the Second Empire whilst the other part examines current-day aspects of the characteristics evoked by Proudhon. We are interested especially in the question of the regulation and that of the relevance today of certain accounting practices.Proudhon ; speculation ; stock market ; regulation of financial markets

L'effet de levier de trésorerie

The effect of leverage on liquidity is a tool for analysing the level of liquidity for a given production process. It measures the sensitivity of the level of liquidity that results from changes in the volume of production and unit operating margin. A commercial activity is liquid at the moment when all costs are covered by revenues. However, not all of the cash flows from production influence liquidity levels. The estimated costs do not directly influence the level of liquidity. Therefore, two indicators are to be taken into consideration: the elasticity of ongoing liquidity - fixed costs include estimated costs, and, the elasticity of immediate liquidity - fixed costs only include costs that are payable. The coefficients of leverage of ongoing liquidity and of leverage of immediate liquidity in relation to the operating margin have a behaviour that is identical to that calculated in relation to production. If the productive capacity remains unchanged, the regulation of the change in elasticity of the costs and of its influence on the unitary operating margin is the sole parameter available to the entrepreneur to maintain the liquidity of the company at the desired level. But, if the productive capacity is variable, the entrepreneur can use the volume of sales to control liquidity but then the transformation of the production process must be analysed so as to adjust the relevant elements to retain in the operating structure the degree of liquidity wished for.Liquidity; fixed costs; variables costs; elasticity of liquidity; risk of insolvency; production process; productive capacity.

A discussion of stock market speculation by Pierre-Joseph Proudhon

International audienceThe object of this contribution is to present the ideas behind the thinking of the French economist Pierre-Joseph Proudhon (1809-1865) in relation to the causes and effects of Stock market speculation. It is based upon the works of this author but particularly on his “Manuel du spéculateur à la Bourse” (Stock Market Speculator Manual) edited in 1857 in Paris. Compared to the markets of today, however, the stock market described by Proudhon appears embryonic. Nevertheless it represents the location for transactions in financial assets, commodities, precious metals and even some transactions involving options. This contribution is organised in the following manner - the first section is devoted to the development of Proudhon's thought in relation to speculation. It is divided into two parts. The first part is dedicated to Pierre-Joseph Proudhon's definitions of stock market speculation or gambling with shares that for him served no purpose either from a human or economic perspective and was therefore condemnable and to be contrasted with entrepreneurial speculation that, even though it is a highly-risky activity, involves the spirit of enterprise and provides the lifeblood of economic growth. The second part allows us to present Pierre-Joseph Proudhon's propositions in relation to restricting the speculation that he considers obnoxious. The second section has two objectives: one part places in perspective the views of Proudhon and the characteristics of stock market activity under the Second Empire whilst the other part examines current-day aspects of the characteristics evoked by Proudhon. We are interested especially in the question of the regulation and that of the relevance today of certain accounting practices

Partage de la valeur et flux de trésorerie disponibles.

National audienceL'importance du concept de « flux de trésorerie disponible » a été mise en évidence tant sur le plan théorique que sur le plan pratique. La méthode des comptes de surplus présente un intérêt évident pour analyser la formation du flux de trésorerie disponible. Cet article se limite à l’étude de l’incidence de la structure de la variation du besoin en fonds de roulement sur la trésorerie disponible.On peut décrire les origines internes et externes du flux de trésorerie disponible, source de création de la valeur, et, préciser à qui profite le surplus de trésorerie d’exploitation, de l’entreprise ou de ses partenaires.En étudiant les variations des décalages temporels entre flux d’exploitation et flux de trésorerie on appréhende les transferts de trésorerie entre les parties prenantes à la production. Cette approche permet d’évaluer la structure du cycle d’exploitation et de tester dans un modèle opérationnel de simulation toute politique de restructuration de l’exploitation. Elle repose sur la négociation entre agents et l’acceptation par l’entreprise d’un certain niveau de transfert de risque

Choix strat\'egiques de la firme et contr\^ole financier

Observation of the workings of productive organizations shows that the characteristics of a trade, backed by nature given to a technological environment, determine the productive combination implemented by the decision maker, and the structure of the operating cycle which is related. The choice of the production function and the choice of the ring structure strain the operating conditions under which the firm's cash flow will evolve. New tools for financial control - leverage cash and operating cash surplus - provide the entrepreneur the information relevant to the efficiency of the strategic choices of the firm.

Gestion optimale de la trésorerie des entreprises

Where an enterprise is able to anticipate its payments in such a manner as to precisely co-ordinate them with expected receipts, its treasury management is conducted in an optimal manner. In effect it will be possible to reduce costs to a minimum since the enterprise will neither need to hold near-cash assets in its treasury, with their low returns, nor retain an excessive cash balance in order to meet payments. However, the forecasts are of course, uncertain. By attaching to these treasury forecasts a probability, either relating to their timing or to their amount or both, the managers can estimate the risk of technical insolvency and from this deduce a margin of safety. This safety margin is made up of a combination of near-cash instruments and cash balances. The value of the cash balances and the level of receipts are interdependent. An enterprise that finances all of its working capital, after the deduction of operating costs, via long term capital will have less need of liquidity than one that uses short term borrowings, which are assumed to be intrinsically unstable. The choice of the means of financing working capital and the amount of near-cash assets retained are closely connected. According to classical theory the amount of long term funds used to finance working capital dictates the liquidity profile of the enterprise, its cash balances reflecting this. In this scenario, however, the greater the amount of long term funds the lower the profitability of the business, all other thing being equal. Similarly, to the extent that receipts are held in the cash balances the solvency of the enterprise is supported but the return on assets is reduced as a consequence. The objective of the manager is thus to define a compromise between liquidity and yield. Therefore, in order to enhance its safety margin an enterprise can only increase its net receipts or extend the maturity of its borrowings. These two strategies affect the profitability of the enterprise. This traditional rendition conducts the treasury manager to search for an optimal equilibrium that guarantees solvability. Financial equilibrium on the one hand, between inflows and outflows to the cash balances; monetary equilibrium on the other hand, between all the treasury's inflows and outflows, of which net receipts form the foundation. Actually, the issue in management of a treasury can be construed from a different perspective. Contrary to current opinion, an objective of maximising returns is not in conflict with that of maintaining a measure of liquidity. Optimisation consists of improving both the safety margin and the profitability, even within the context of a given treasury strategy. A treasury strategy reconciles the constraints of security and returns whilst minimising the allocation to cash assets. If an enterprise has net receipts that constantly fluctuate mildly around zero, all other things being equal, then the managers: are optimising liquidity movements, are efficiently allocating cash to profitable uses, understand exactly their financing needs, have optimised their banking relations. Without eradicating it completely, the uncertainty relating to receipts and expenditure can and must be considerably reduced and no longer justifies, in any circumstances, the retention of a “mattress” of liquidity. Awareness of the behaviour of cash flows that an enterprise is subject to, that is to say, fluctuations in the bank balances, is in the first instance, a problem of information. Every firm seeks this information. Emergency bank loans – advances and overdrafts – can be used for a relatively small amount and for a brief time to correct the forecasting errors relating to the synchronisation of the flow of funds. The rational use of such assistance requires specific attention to be paid to its adaptation to the need, taking account of the banking terms. The strategy of the treasury could in addition concern itself with the profitability of the various activities of the enterprise, which is the guarantee of long term liquidity. The activity of the enterprise raises the question of its solvability on a daily basis. Optimisation of the treasury function involves not only the coordination of the variations in the bank balances but also a surveillance of the events that generate the flow of funds: investment and its funding, the generation and application of liquidity, control of the fluctuations in the value of cash holdings. Economic literature accords a priority to the profitability criteria in financial strategy. Solvability appears only as a lower order problem that one attempts to resolve separately. Whereas in fact it is the quest to maintain the liquidity of the capital that is the primary objective and this subsumes that of profitability. This only becomes evident rarely, however, when credit is particularly expensive. Thus, all the financial concerns that derive from the operation of an enterprise are connected to importance of liquidity. The imperative of profitability is based upon the cost of holding capital. Every use implies a retention of funds, borrowed or not, for periods of different durations. However, the retention of funds involves costs: explicit costs every time the enterprise has to remunerate the providers of capital as well as opportunity costs corresponding to what the enterprise could have produced via an alternative usage. The operation of the enterprise is only justified if it extracts a sufficient amount from the employment of its resources in order to cover its costs. In other words, profitability is a prerequisite of the liquidity of the enterprise. Profitability and liquidity evolve in the same direction. Neither the retention of significant liquidity nor a collection of positive cash balances are a guarantee of security. Being solvable implies controlling every aspect of the evolution of the financial situation and involves a simultaneous maximisation of profitability and liquidity. Thus the optimal management of the treasury of an enterprise leads us to a consideration of all the financial problems faced by the firm. This comprehensive vision of the financial activity leads to a systematic approach of the treasury that consists of a dynamic response - to maintain the bank balances as close as possible to zero by optimising the funds flow, as well as a structural response – to control the replenishment of liquidity of the enterprise's capital by optimising liquidity flows.Lorsqu'une entreprise est capable de prévoir ses échéances de manière à les faire correspondre exactement à ses prévisions d'encaissements la gestion de la trésorerie est optimale. En effet, les coûts pourront être réduits au minimum puisqu'elle n'aura ni besoin de détenir des actifs liquides de faible rendement en trésorerie, ni de disposer d'un fonds de roulement pléthorique. Toutefois, les prévisions sont dans la réalité, incertaines. En associant aux prévisions de trésorerie une probabilité, soit en date, soit en montant, ou les deux, les responsables peuvent estimer le risque d'insolvabilité technique et en déduire une marge de sécurité. Cette marge de sécurité se compose d'un volant de liquidités et du fonds de roulement. La valeur du fonds de roulement et le niveau de l'encaisse sont interdépendants. Une entreprise qui finance en totalité ses actifs circulants nets des dettes d'exploitation par des capitaux à long terme aura moins besoin de liquidités que si elle les avait financés avec du crédit à court terme, supposé instable par nature. Le choix des moyens de financement des actifs circulants et la part des actifs liquides à maintenir sont étroitement liés. Selon la conception classique le volume des fonds permanents affectés au financement de l'actif circulant conditionne la liquidité de l'entreprise : le fonds de roulement est l'expression de cette liquidité. Or, plus l'immobilisation de fonds est importante et moins l'affaire est rentable, toutes choses égales par ailleurs. De même, plus l'encaisse détenue est forte plus la sécurité de l'entreprise est assurée, mais le rendement des actifs en est affaibli d'autant. L'objectif du responsable financier est donc de définir un équilibre entre liquidité et rentabilité. Ainsi, pour accroître sa marge de sécurité une entreprise ne peut qu'augmenter la proportion de son encaisse, ou allonger la durée de son endettement. Ces deux actions affectent la rentabilité de l'entreprise. Cette conception traditionnelle aboutit au niveau de la gestion de la trésorerie à rechercher un équilibre optimum gage de solvabilité. Equilibre financier, d'une part, entre les emplois et les ressources dont le fonds de roulement est le critère essentiel d'analyse. Equilibre monétaire, d'autre part, entre les flux d'entrée et de sortie de liquidités dont l'encaisse est la garantie. En fait, le problème de la gestion de la trésorerie se pose en d'autres termes. Contrairement à l'opinion courante l'objectif de rentabilité ne s'oppose pas au maintien de la liquidité. L'optimum réside dans l'amélioration conjointe de la sécurité et du profit, contenu même d'une politique de trésorerie. La politique de trésorerie concilie les contraintes de sécurité et de rentabilité en minimisant le volume de l'actif monétaire. Une entreprise dont l'encaisse fluctue en permanence légèrement autour de zéro indique, toutes choses égales par ailleurs, que les responsables : maîtrisent les flux de liquidités, réaffectent efficacement le cash-flow dans des emplois rentables, apprécient au plus juste leurs besoins de financement, négocient au mieux leurs conditions de banque. Sans disparaître totalement l'incertitude relative aux encaissements et aux décaissements peut et doit être sérieusement réduite et ne justifie plus, en tout état de cause, la détention d'un « matelas » de liquidités. La connaissance du comportement des flux monétaires qui transitent par l'entreprise, c'est-à-dire des variations du solde bancaire, est avant tout un problème d'information. La recherche de cette information est à la portée de toutes les firmes. Les crédits bancaires de « dépannage » - escompte et découverts - viennent éventuellement pour une faible part et un temps très court, corriger les erreurs de prévision relatives à la synchronisation des entrées et des sorties de fonds. L'utilisation rationnelle de ces concours nécessite une attention toute particulière de façon à les adapter aux besoins, compte tenu des conditions de banque. La politique de trésorerie doit en outre se préoccuper de la rentabilité des activités, gage de la liquidité à terme. L'activité de l'entreprise remet quotidiennement en question sa solvabilité. La maîtrise de la trésorerie passe non seulement par le contrôle des variations du solde bancaire mais aussi par la surveillance des faits générateurs des flux monétaires : l'investissement et son financement, la formation et l'affectation des flux de liquidités, le contrôle de la variation de la valeur de la monnaie. La littérature économique donne la place essentielle au critère de rentabilité dans la politique financière. La solvabilité n'apparaît que comme un « sous-problème » que l'on tente de résoudre séparément. Or, la recherche et le maintien de la liquidité du patrimoine est en réalité l'objectif prioritaire qui englobe celui de rentabilité. Cette évidence ne devient véritable contrainte que dans les périodes de rareté et de cherté de l'argent. Ainsi, toutes les préoccupations financières qui découlent elles-mêmes du fonctionnement de l'entreprise se rattachent à la nécessaire « liquidité ». L'impératif de rentabilité a pour origine le coût de détention des capitaux. Tout emploi implique une immobilisation de fonds, propres ou empruntés, pour une durée plus ou moins longue. Or toute immobilisation de fonds entraîne des coûts : coûts explicites chaque fois que l'entreprise doit assurer la rémunération des apporteurs de capitaux et coûts d'opportunité correspondants au produit que l'entreprise aurait pu tirer de l'emploi alternatif. L'activité d'entreprise ne se justifie que si elle dégage de ses emplois des ressources suffisantes pour couvrir ses coûts. Autrement dit, la rentabilité est la condition de la liquidité de l'entreprise. Rentabilité et liquidité varient dans le même sens. Ni la détention de liquidités importantes, ni un fonds de roulement positif ne sont une garantie de sécurité. Etre solvable signifie contrôler dans tous ses aspects l'évolution de la situation financière et se traduit par une maximisation simultanée de la rentabilité et de la liquidité. Ainsi la gestion optimale de la trésorerie des entreprises nous conduit à une synthèse de tous les problèmes financiers qui se posent à la firme. Cette vision globale de l'activité financière conduit à une approche système de la trésorerie qui se décline en une action conjoncturelle, dont l'objectif est de maintenir le solde bancaire le plus proche de zéro par la maîtrise des flux d'entrée et de sortie de fonds et une action structurelle, dont l'objectif est de contrôler le potentiel de reconstitution des liquidités du patrimoine de l'entreprise par la maîtrise de la formation et de l'affectation du flux de liquidité

L'effet de levier de tr\'esorerie

The effect of leverage on liquidity is a tool for analysing the level of liquidity for a given production process. It measures the sensitivity of the level of liquidity that results from changes in the volume of production and unit operating margin. A commercial activity is liquid at the moment when all costs are covered by revenues. However, not all of the cash flows from production influence liquidity levels. The estimated costs do not directly influence the level of liquidity. Therefore, two indicators are to be taken into consideration: the elasticity of ongoing liquidity - fixed costs include estimated costs, and, the elasticity of immediate liquidity - fixed costs only include costs that are payable. The coefficients of leverage of ongoing liquidity and of leverage of immediate liquidity in relation to the operating margin have a behaviour that is identical to that calculated in relation to production. If the productive capacity remains unchanged, the regulation of the change in elasticity of the costs and of its influence on the unitary operating margin is the sole parameter available to the entrepreneur to maintain the liquidity of the company at the desired level. But, if the productive capacity is variable, the entrepreneur can use the volume of sales to control liquidity but then the transformation of the production process must be analysed so as to adjust the relevant elements to retain in the operating structure the degree of liquidity wished for.

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