The work of the Stock Exchange

Bibliographic data

Monograph

Identifikator:: 890175551

URN:: urn:nbn:de:zbw-retromon-11398

Document type:: Monograph

Author:: Großmann, Stefan http://d-nb.info/gnd/118542664

Title:: Ferdinand Lassalle

Place of publication:: Berlin

Publisher:: Verlag Ullstein & Co

Year of publication:: 1919

Scope:: 1 Online-Ressource (260 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Eine Liebesepisode

Collection:: Economics Books

APPENDIX 625 it is at all possible, and in their efforts to do so they have had the cooperation of most of the large lending institutions.” Governor Benjamin Strong bore witness to the rapid improvement in the Stock Exchange technique of handling security loans, in the Stabilization hearings, p. 354. In the hearings on the amended stabili- zation bill (p. 192), Dr. Adolph Miller stated: “The greatest open money market in the country today is the call loan market. It is more important than it ever was, and vastly more important than anyone ever thought it could become after the enactment of the Federal Re- serve Act. It is the most available market, the most attractive market, that exists for idle funds. Anybody from the Atlantic to the Pacific, from Canada to Mexico, who puts his money into the money market today, provided the loans are properly handled, knows that he can always get his money out whenever he wants it.” (XIe) Senate Document 262, 66th Congress, 2nd Session (p. 6), states: “In the matter of the supply or attraction of funds to the call-money market, there is generally a definite and well-understood obligation on the part of the banks to accommodate first their own commercial clients, so that it is only the excess of loanable funds which they may have from time to time that is available for the col- lateral call-money market or for the purchase of commercial paper in "the open market. This excess of loanable funds available for employment in the securities market varies, therefore, according to the commercial requirements of the country. It has long been recog- nized that for assurance of a sufficient amount of money to finance the volume of business in securities, reliance cannot be placed on a rate of interest limited to the rates which obtain or are permitted in commercial transactions whose prior claim on banking accommodations is universally conceded.” The same authoritative document goes on to say: “It is the uni- versal custom of the banks to satisfy first the commercial needs of their customers, They feel an obligation to customers but none to those who borrow in the open market on securities. Besides, as the resources of the banks mainly come from the commercial customers, their own self-interest compels a preference in favor of their com- mercial borrowers, since failure to grant them reasonable accommoda- tion would induce them to withdraw their deposits and so reduce the ability of the banks to do business. Although the money of the banks and trust companies comprises by far the greater proportion of the money loaned on the securities market, an examination of the pre- vailing rates on commercial paper at times when the call money market

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