The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XI. The security collateral loan market

Collection:: Economics Books

SECURITY COLLATERAL LOAN MARKET 283 The Supply of Call Money.—The security loan market in New York can and does attract funds from all over the United States, and even from foreign countries. The Federal Reserve statistics on stock market loans are for convenience divided into three main classes, according to the three chief sources of the funds: (1) loans for the account of New York banks and trust companies; (2) loans for the account of out-of-town American correspondent banking institutions: and (3) loans for the account of “other lenders” —oprincipally foreign banks, private individuals, and domestic business corporations. Nei- ther the Reserve nor the Stock Exchange statistics as to secu- rity loans in New York are necessarily all-inclusive, since Reserve figures do not, of course, include loans made by non- members of the Federal Reserve system, while the Stock Exchange compilation does not include borrowings by non- members of the New York Stock Exchange. If a non-member of the Reserve system should lend to a non-member of the New York Stock Exchange, the loan would not be reported in either compilation. In the Stock Exchange statistics, bor- rowings are divided into two main classes: (1) those from New York banks and trust companies—which group corre- sponds fairly closely with the total Federal Reserve figures; and (2) those from “private bankers, brokers, foreign bank agencies or others in the City of New York”—which are not of course included in the Reserve compilation at all. When funds of out-of-town banks or “other lenders” are remitted to New York banks and trust companies to be loaned in the stock market, the New York institutions may act either as depository and principal, or as agent. In the former case, the New York institution really borrows the funds itself, pays a rate of interest upon them to the original lender, and relends them in such ways and at such rates as it sees fit. In the latter case, the New York institution is an agent only, and obtains a commission from the original lender. In either case, the New York institution assumes responsibility for making the loan, and supervising its collateral while it is outstanding. Some-

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