The work of the Stock Exchange

Bibliographic data

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.

624 APPENDIX “When you stop to realize that every Stock Exchange house has not one or two but many such loans, and every lending institution hundreds of such loans, you can readily see the great advantages of an agreed-upon rate covering all renewals, and so obviating the hundreds of telephone calls, misunderstandings, and confusion which would necessarily arise if each loan, or even each house or institution, had ‘0 make individual arrangements as to the renewal rate. “Now when a brokerage house requires money, the ordinary way is to send a slip to the money desk, asking to borrow, say, $100,000, or whatever the amount may be. These slips are honored in the order of their receipt, and what money there is available at the time is apportioned to borrowers, by the clerk at the money desk, in their regular order, and as far as the money available will permit. In the same way, money is placed at the money desk by the lending insti- tutions, either directly or through their Stock Exchange representa- tives, and is distributed among the borrowers under exactly similar conditions. “The customary procedure is something like this: The cashier of a house sends word to the floor telephone clerk to borrow, say, $100,000. The telephone clerk writes, probably on an order pad of his firm, ‘Borrow $100,000,” and sends the slip to the money desk. The clerk at the desk files these slips in the order in which they are received, and, as promptly as possible, writes on the slip the name of the lending institution and the rate at which the loan is made. This slip is then sent back to the telephone clerk of the borrowing house, and at the same time the clerk at the money desk notifies the bank of the loan just made, and the rate, giving both the name of the house and the rate, so, you see, the borrower and the lender do not come together. The details are all arranged through the clerk at the money desk. It is as simple as it can possibly be made. “Of course there are times when the borrowing demands cannot be satisfied with the funds on hand, and then it becomes necessary to attract money by the effectual method of raising the rate. The oppo- site side of the picture occurs when there is a lack of borrowing with plenty of money on hand, and the law of supply and demand is again the controlling influence effecting the temporary changes in the rate which you so often see. “In this connection I might say that the efforts of the Money Committee in charge of the money market are all centered in keeping a stable money market, and preventing, as far as possible, not only wide fluctuations in the rate, but even the change in the rate whenever

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