CONTENTS 
CeAPTER XVIII 
THE STOCK EXCHANGE AS AN INTERNATIONAL MARKET - - 
The international traffic in securities. Communication between 
markets by arbitrage. Former arbitrage on the floor. Dealings 
between New York and London. Changes in the arbitrage system. 
Benefit of a broader market. Securities as a medium of inter- 
national exchange. Composition of the international balance of 
trade. The “invisible trade.” The actual balance of trade. How 
international payments come to balance. International shifting of 
oank credit. The market for foreign exchange. The interna- 
tional shifting of securities. Automatic character of international 
adjustment. The pre-war American trade balance. The inter- 
national trade position of Great Britain. Epoch-making character 
nf the Great War. The Stock Exchange at the outbreak of war. 
Reversal of our international trade balance. The Stock Exchange 
luring the war. The post-Armistice adjustment. The role of 
America. Economic functions of foreign security investments. 
Dangers of foreign investment. Needs for constructive foreign 
investing. America’s economic maturity. Future international 
role of the New York Stock Exchange. 
APPENDIX 
REFERENCES FOR FURTHER StUTr: 
(GENERAL BIBLIOGRAPHY 
INDEX . . 
PAGE 
501 
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