Die Paumgartner von Nürnberg und Augsburg

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Monograph

Identifikator:: 897232399

URN:: urn:nbn:de:zbw-retromon-12062

Document type:: Monograph

Author:: Krag, Wilhelm http://d-nb.info/gnd/11637523X

Title:: Die Paumgartner von Nürnberg und Augsburg

Place of publication:: München

Publisher:: Verlag von Duncker & Humblot

Year of publication:: 1919

Scope:: 1 Online-Ressource (VIII, 135 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: II. Die Paumgartner von Augsburg

Collection:: Economics Books

CREDIT TRANSACTIONS IN SECURITIES 179 ment of money. Smith owns a fertile farm, where in the past he has grown wheat both successfully and profitably. But early one spring he finds himself without money enough to buy seed and pay for plowing, sowing, and harvesting the next year’s crop. It seems a hopeless situation to Smith, as he murmurs to himself those ancient and tragic words, “If I only had the money. . . .” But the affair is not so impossible after all. The fundamental earning power in his dark rich s0il is undoubtedly there. And so, perhaps just when Smith is most discouraged, a commission grain merchant who has heard of his dilemma, visits him and offers to buy the crop that Smith is so confident he can raise, before it is even planted. If this is the first time that Smith ever made such an arrangement, he may perhaps think the whole transaction fan- tastic and impracticable. Yet the modern machinery for han- dling such credit operations has rendered them a universally beneficial commonplace in American agriculture. With the money advanced by the merchant, Smith proceeds to purchase seed and do his plowing, sowing, and harvesting. Of course, the transaction has its risks. Smith has sold a wheat crop which as yet he does not possess. \Vinds, rains, and insects may prevent him from making the deferred delivery of wheat in return for the money advanced him by its purchaser. Never- theless, without this sale for future delivery Smith would not have been able to raise a crop at all. In the ma jority of cases both Smith and the commission merchant will find their bar- gain a profitable one. Other similar examples both of purchases or sales made on credit could, of course, be cited almost indefinitely. Use of Credit in Security Transactions.—Buying and selling securities on credit is no different in principle from buy- ing or selling houses or wheat on credit; neither does one have to go to the Stock Exchange to meet with such transactions. In floating the Liberty Loans our Government employed the buying and selling of securities on credit to a vast extent. In

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