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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XI. The security collateral loan market

Collection:: Economics Books

SECURITY COLLATERAL LOAN MARKET 287 tained the freest, most highly organized, most accessible, and most public security loan market in the world. Moreover, few if any money markets anywhere are to the same extent as completely subject to the natural forces of supply and demand 7? When an Exchange firm discovers that additional borrow- ings on collateral will be needed to carry its engagements, it usually telephones its floor member on the Exchange; the latter gets the request at his telephone, and goes to the money desk with it to discover a lender. New York bankers usually wait each morning until about IT:30, when their returns from the Bank Clearing House are received; they then know their exact financial position, and therefore whether they should make fresh call loans or with- draw funds already in them. Later in the day, due to the shifting of accounts of local or out-of-town depositors, the bank’s position may be changed, and the amount of its funds available for call loans either increased or decreased. Thus a given lending institution may make new loans early in the day only to withdraw funds from the market later, or call its loans early and make new loans afterwards. In calling a loan, the banker telephones the borrower direct. But in making new loans at the money desk, the incorporated bank cannot g0 upon the Stock Exchange floor itself (not having a Stock Exchange membership) to discover who wishes to borrow. For this reason the banker usually telephones to the office of some Stock Exchange firm and requests it to do so for him. Exchange firms are always willing to perform this service to lenders without fee or charge. The Exchange firm then telephones to its floor member on the Exchange, who next proceeds to the money desk with the bank’s offer to lend money, and enters the offering with the clerk at the desk. Thus, much the same machinery is used in borrowing or lending money on the Exchange, as for purchasing or selling 17 See Appendix XIa. 18 See Chapter XVI, p. 443.

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