THE WORK OF THE STOCK EXCHANGE 
bonds of political subdivisions resemble national government 
bonds in their basic characteristics. 
Government Securities.— While sufficient space is lacking 
here for any adequate exposition of the technical features of 
government securities, nevertheless a few essential points may 
briefly be enumerated. There is considerable difference among 
present-day government securities as to the coin in which they 
are repayable. While in most cases the coin of the issuing na- 
tion is specified, with some “external loans’ the standard coin 
of some other nation where the bonds have been mainly sold 
may be designated. Some government securities which have 
had an international distribution provide for repayment in the 
coin of any one of several different countries. Also the prac- 
tice in respect to the redemption or maturity date varies wide- 
ly—contrasting with some temporary government obligations 
extending only a few months, are the classic British Consols 
or French rentes which, having rio specified maturity date, are 
in theory irredeemable. Some government securities possess 
sinking fund provisions whereby a certain sum must be period- 
ically set aside for retiring and paying off the issue at its 
maturity. 
Almost all government securities, however, are fundamen- 
tally based upon taxation, and their value must therefore 
depend upon the honor and prospective financial future of their 
respective governmental organizations. In the abstract, the 
obligation of a government, whether a nation or only a city, 
may constitute a claim against all the wealth of its inhabitants, 
but practically no way is provided for the holder of a govern- 
ment bond in default to attempt to enforce any such claim. 
Evolution of the Stock Corporation.—We now come to 
the other type of security-creating organization—the private 
business stock corporation. As in the case of governments, 
something of the historical background of the stock corpora- 
tion must be known before its present-day economic signifi-