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.

528 APPENDIX stock market denying commerce and industry credit? I can find no evidence of credit being denied to commerce or productive industry.” Again (p. 76): “I cannot discover anywhere where commerce and industry have been denied credit for the benefit of making these brokers’ loans.” (XIf) The true economic nature and significance of call loan rates were well set forth in the analysis of the call loan market made in ‘Senate Document 262, 66th Congress, 2nd Session” (p. 9): “The anderlying cause of fluctuations and especially of increases in call money rates is the operation of the law of supply and demand. In other words, as the supply of loanable funds diminishes in proportion to the volume of the demand, the rate for collateral demand loans advances. However, in the case of daily borrowings of call money— to which the abnormal high and low rates apply and which represent but a comparatively small proportion of the total outstanding loans— other factors, incidental to the temporary circumstances and conditions of the market, tend in times of stress to greater fluctuations in rates than result from the more normal operation of the law which is reflected in the renewal rate for the greater volume of the outstanding call loans. The renewal rate is regarded as the real barometer of market conditions and its fluctuations throughout the longer periods more nearly reflect the relation between the amount of the loanable funds and the amount of the demand. In other words, high renewal rates are mainly due to other demands for credit, resulting in part from other temporary factors, such as depletion of bank reserves resulting . either or both from credit expansion or loss of reserves through gold export, speculation in commodities and real estate, and congestion of commercial transactions incidental to slow or interrupted transportation.” (XIg) “The only financial center in this country in which there is maintained a call money market of national importance is New York City, and while the rates charged there on call loans are fre- quently in excess of the legal rates allowed for commercial paper, they are not usurious under the laws of the State of New York, which specifically exempt collateral call loans from the 6 per cent limitation which lenders must observe on other loans on pain of incurring the penalty prescribed for usury. Section 115 of the banking law (L. i914, ch. 369; Consol L. ch. 2) provides that upon advances of money repayable on demand to an amount not less than $5,000 made upon warehouse receipts, bills of lading, certificates of stock, etc., or sther negotiable instruments, as collateral, any bank may receive and

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