286 THE WORK OF THE STOCK EXCHANGE

the supply of and demand for call funds each day. From the
banking standpoint, funds in the call loan market are excess or
surplus funds, which may be withdrawn at any time for increased
 commercial needs, or added to because of inadequate
commercial demand. Moreover the stock market, whose distributory
 processes call loans facilitate, is itself a surplus
market, highly sensitive to the relative amounts of capital available
 for security investment. Specifically, call loan interest
rates may be considerably affected by temporary shifts in the
money market arising from lowered bank ratios, Federal Reserve
 rediscounts and open market operations, withdrawal of
government funds, Treasury financing, maturity or interest
dates of outstanding security issues, etc. New York State
usury laws legalize any rate of interest on call loans of $5,000
or over, secured by collateral’ American geography also
plays its part in rendering the supply of and demand for call
funds changeable. Since in point of time Chicago and New
Orleans are one hour, Denver and Omaha two hours, and San
Francisco three hours behind New York, it sometimes happens
that late in the day funds may suddenly pour into the New
York call loan market or be suddenly withdrawn from it, from
causes arising in distant parts of the country. As a result, call
loan interest rates are subject to swift changes, which are as a
rule self-corrective. The jncreased stability imparted to the
whole New York money market by the Federal Reserve system
has had the general effect of rendering security loan rates
much more stable than they were prior to its establishment.
The “Money Desk.”—The “money desk,” where the open
supply of and demand for call funds meet, is located on the
Stock Exchange floor, between the old Board room and the
Wall Street extension (Plate 9). Nearby are posted the current
 and renewal money rates for the day. A clerk records the
demand for and offers of call funds as they come to the desk,
and puts prospective borrowers and lenders together on the
basis of “first come, first served.” In this way, there is main-©
 See Appendix XIg.