Weltporto-Reform

Bibliographic data

Monograph

Identifikator:: 1008918695

URN:: urn:nbn:de:zbw-retromon-20162

Document type:: Monograph

Author:: Jürgensohn, Arved http://d-nb.info/gnd/1045767883

Title:: Weltporto-Reform

Place of publication:: Berlin

Publisher:: Druck und Verlag von Liebheit & Thiesen

Year of publication:: 1910

Scope:: 1 Online-Ressource (XXIV, 317 Seiten)

Digitisation:: 2017

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

284 THE WORK OF THE STOCK EXCHANGE times there may be intermediaries between the original lender and the New York institution; interior banks, for instance, instead of sending their funds direct to New York banks, may turn them over to large nearby banks in Chicago, Boston, Cleveland, Detroit, and other centers, and these institutions may in turn send them fo New York to be invested in the security loan market. Bankers, whether in New York or not, will necessarily prefer to make commercial loans to their regular clients and depositors, rather than to make largely impersonal security loans. This is due to the fact that to survive and grow in competition, banks must build up their deposits, which com- mercial lending facilitates much more than do stock market loans. As a result, it is only the excess funds of banks, over and above what they can safely lend to commercial customers, that are loaned on security loans.”® Usually the rate on the latter is lower than those for local commercial loans and ad- vances. But the banker must in the interests of self-preserva- tion, keep some of the funds entrusted to his care in speedily recoverable form, and for this purpose the proven safety, liquidity, and availability of security call loans have commended them to him for many years. Due to the highly organized security loan market in New York, lenders everywhere can secure safety and liquidity sin the investment of their short- term funds, and thus avoid the waste incident upon idle funds and the losses arising from improperly secured and illiquid placements of funds. On the other hand, this vast mobilization of surplus funds in New York makes it possible for the finan- cial center there to provide a broad and continuous capital market for the whole country, and to enable the wholesale flow of money into productive facilities for industry and trade. The New York Security Loan Market.—Security collat- eral loans can be and are negotiated in New York in three different ways: (1) by direct dealings between borrower and lender; (2) through professional money-brokers; and (3) 18 See Appendix XlTe.

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