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.

APPENDIX 631 for renewals and the annual average rate on new loans since 1922 as follows: Year [922 [023 1024 1925 (926 [927 (928 [020 CE “aw Pde a ® 4 9 ® 9 8 © Difference ¢, 069 € co 0n2 FL Also, when either borrowers or lenders, or both, feel that renewal rates do not accurately reflect the fair current price for call money, their tendency is greater to call rather than renew, and to attempt to make new loans later at more favorable rates. In consequence, the volume of turnover at the money desk will increase. Yet it is signifi- cant that when this turnover has been proportionately greatest, it has amounted to only a negligible fraction of total outstanding call loans, thus indicating the high degree of recognized accuracy with which renewal rates are made. (XIk) The safety of stock market loans to lenders has frequently been pointed out by leading financial authorities and students. In the La Follette Resolution hearings (February-March, 1928), O. W. M. Sprague, Professor of Banking and Finance in Harvard University stated (p. 31, ef seq.) : “There are at the present time 26,000 banks in the United States. Five years ago there were nearly 30,000. Between 3,000 and 4,000 have failed in that period of five years. It is, therefore, I think, pertinent to inquire whether banks have failed because of brokers’ loans, and also to inquire whether, if obstacles are placed in the way of using funds for brokers’ loans, the number of bank failures might be affected, either to increase or decrease them . . . “These 26,000 banks are in the main local banks. The rates on their local business are in general higher than the rates upon brokers’ loans . . . They invest in brokers’ loans primarily because they do not find in the local situation a volume of satisfactory loans suffi- cient to absorb all of their funds, consistent with safety . . . that prevails throughout virtually the entire country . . . “During 1920 we had a period of inflation during which prices on and and of commodities were rising rapidly, and it was practically impossible during that period of abnormal advance in prices for banks ro fail: but those banks which put all of their funds into a local situa-

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