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 international
 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 international
 shifting of securities. Automatic character of international
adjustment. The pre-war American trade balance. The international
 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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