Finanzwissenschaft

The work of the Stock Exchange

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Monograph

Identifikator:: 1017727422

URN:: urn:nbn:de:zbw-retromon-56103

Document type:: Monograph

Author:: Földes, Béla http://d-nb.info/gnd/119338211

Title:: Finanzwissenschaft

Place of publication:: Jena

Publisher:: Verlag von Gustav Fischer

Year of publication:: 1920

Scope:: 1 Online-Ressource (XIV, 686 Seiten)

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

52 THE WORK OF THE STOCK EXCHANGE the willingness of lenders sometimes to accept active speculative shares as collateral in preference to more conservative but comparatively inactive investment issues. A subsequent discussion will cover the significance of security collateral loans to the ready distribution of securities, to the New York money market, and to American business in general.® 6. Increased Availability of Capital for Investment. The enhanced facilities resulting from the higher organization of a securities market into a stock exchange perform a con- tinuous and important economic service in putting capital and ‘investments into close touch with each other. Due to the nation-wide extension of the Stock Exchange ticker service, and the fanlike spread of wires connecting Stock Exchange member offices in New York with their branch and corre- spondent offices throughout the country, capital can easily flow into or out of the leading security issues in the American market. This service, of course, greatly increases the national habit of thrift and security investment. It prevents capital from remaining idle, and provides a ready incentive to public security buying that has proved of enormous importance to large-scale American business enterprises, which continually look to public investors for their increasing capital require- ments. Walter Bagehot, in a celebrated passage,’ declared that: A million in the hands of a single banker is a great power; he can at once loan it where he will, and borrowers can come to him, because they know or believe that he has it. But the same sum scattered in ros and sos through a whole nation has no power at all; no one knows where to find it or whom to ask for it. What is true of a bank is also true in a slightly different way of the Stock Exchange, which as our leading organized security market collects the funds of individual investors and speculators from all over the nation, and even at times from : Soo Chgiey 21. Street.”

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