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 XVIII. The stock exchange as an international market

Collection:: Economics Books

tion between the leading central rediscount banks of the world has already shown a similar power. Nevertheless, there are important limitations upon the em- ployment of bank credit for such purposes. To begin with, it is of only temporary usefulness, for bank credit except in special circumstances cannot readily be tied up in large amounts and for long periods in foreign countries. Moreover, as in the case with international gold shipments, the extent to which bank credit can be employed internationally to balance trade accounts is limited. For if the banks of a given country should attempt to transfer their credit abroad in unlimited quantities, violent and convulsive movements in the home money markets would soon be produced, to the disadvantage of domestic business 16 516 THE WORK OF THE STOCK EXCHANGE The International Shifting of Securities.—In conse- quence, to avoid the harmful economic results of over-export- ing or over-importing gold or bank credit to right national trade balances, the third expedient of shifting securities from one country to another must be constantly and extensively em- ployed. As a result, the international shifting of securities contributes today in a very vital way toward the maintenance of balanced trade and exchange rates and the avoidance of excessive exports or imports of gold or bank credit; it likewise serves as a stabilizing force upon the production rate of goods and services, the buying power of currencies, and upon all the other items which enter into foreign trade accounts. The international shifting of securities occurs most readily, of course, in security issues listed upon both a domestic and a foreign stock exchange. It is, of course, true that securities not so listed are frequently shifted from one country to an- other, yet this process as a rule does not occur so readily. Thus it came about that in recent years no small part of the task of restoring the gold standard abroad really fell upon the New York Stock Exchange because of the important part TT 15 See Appendix XVIITd.

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