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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XVII. The stock exchange and American business

Collection:: Economics Books

488 THE WORK OF THE STOCK EXCHANGE mediately marketable, has long depended and will always depend, the rate of progress and growth in American industry. To the fact that the New York money market facilities for carrying unsold securities have long been superior to those of any other money market in the world, can be very largely at- tributed the vast and healthy growth of industry in this as compared with other countries. American business corporations have recently been indebted to the Stock Exchange for two other services of great im- portance. Through financing with rights, they have been able to raise hundreds of millions of dollars by the sale of additional shares through the stock market; this fresh capital has been variously employed to retire bond issues or commercial indebt- edness and strengthen their capital structure, to acquire exten- sive foreign and domestic assets, to install superior equipment, and to provide themselves with ample working capital and large cash assets. But in their new capacity of financial credi- tors, the Stock Exchange has through its call loan market en- abled them to invest cash surpluses safely and productively; such loans “by other lenders” in 1929 aggregated $3,000,000,- 000 all told.*® Since the panic of 1929, these new tendencies in American finance have been subjected to severe criticism, some of which is undoubtedly justified. Yet this should not lead us to overlook the very sound and constructive results which have also flowed from them. The Stock Exchange and Modern Banking.—Almost all bankers are in one way or another investors or dealers in secur- ities, and in consequence almost every variety of bank depends in considerable measure upon the operation of the Stock Ex- change. This fact was realized by the bankers themselves with particular force during the critical autumn of 1914, when the Exchange was compelled to keep its doors closed for sev- eral months. The precise contact of the given banker with the Exchange depends, of course, upon the particular type of banking in 15 See Chapter XI, p. 283.

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