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APPENDIX 
francs were thus taken from the capital of F rance, but she was so 
rich that she was able to submit to it without disaster. She was rich 
because she had piled up these securities. with which she was able to 
part without suffering. . . . 
“France, by the possession of a flexible stock exchange and a 
great mass of the securities negotiable upon such exchanges, was saved 
from the convulsion which must have prostrated her entire industrial 
system if it had been necessary for her to find money to discharge the 
demands of the conqueror.” (Charles A. Conant. Wall Street and 
the Country.) 
Even more convincing examples occurred during and after the 
Great War. Britain could not have financed the war in 1914-17 
without her large holdings of foreign securities, particularly American. 
The avoidance of serious inflation in the United States has been 
largely due to our extensive security investments abroad. The restora- 
tion of sound currency and credit in one European nation after another 
was largely brought about through the sale of foreign securities in 
New York. It is also generally admitted that without extensive sales 
of her securities here, Germany would not have been able to pay 
her reparation accounts. The ultimate settlement of the war debts 
is also generally expected to take the specific form of selling foreign 
securities here. 
(XVIIIk) The increasing rapprochement of the New York Stock 
Exchange with the older stock exchanges of Europe during recent 
years is illustrated by the several visits paid to the latter institutions 
by officers and representatives of the American organization. In 1926 
the Economist of the New York Stock Exchange spent three months 
studying foreign stock exchange methods in London, Paris and Berlin, 
and President E. H. H. Simmons on the same occasion paid an 
official visit to the stock exchanges of London and Paris. In 1927 
the special commission on listing foreign internal shares (consisting 
of Mr. J. M. B. Hoxsey, Mr. R. L. Redmond and the author) visited 
for purposes of study London, Paris, Amsterdam, Berlin, Milan, Rome, 
Vienna, and Brussels. In 1928 the President and the Economist of 
the Exchange visited London; in 1929 Paris, Amsterdam, and Berlin; 
and in 1930 Rome, Milan, and Zurich. These visits have resulted in 
the interchange of much information concerning securities and stock 
exchange operation of real value on both sides of the Atlantic. 
Meanwhile the New York Stock Exchange has been visited officially 
by the representatives of many European stock exchanges, and of 
many financial institutions in Europe. South America and Asia