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.

632 tion, especially where the local situation was one of a single industry or a single occupation, and whose values of land and values of Inventories were inflated, have either failed or experienced exceedingly great difficulties . . . “The First National Bank of Miami, Florida, held $66,000,000 of deposits at the height of the boom, and # had $8,000,000 lent in Miami, and the rest of its funds were in balances in New York banks, in call loans and in United States bonds and other available bonds. When deposits went off from $66,000,000 to, I think, $23,000,000 it was able to meet that situation . . . That is sound banking . . . it does not seem to me altogether wise to create by legislation conditions which will confine the employment of bank funds to local uses . . . now, so far as safety goes, I do not think that any serious objection can be raised against the brokers’ or dealers’ loans. The records in regard to losses of banks, although not perfect, clearly indicate that the losses of banks arising out of this class of loans have been very small.” In the Stabilization hearings (p. 679), Dr. Adolph Miller of the Federal Reserve Board, speaking of loans available to country banks, declared of the call loans on security collateral “it is the safest loan there is.” In an address by Robert R. Atterbury upon “Call Loans and the Renewal Rate” (October 25, 1928), he stated: “The president of one of the largest banks, which is a large lender in the Street, told me only a short time ago, that in forty years connection with the bank and in lending hundreds of millions of dollars during that time, they had only lost a matter of less than $15,000. and he laughingly added that that was his own fault.” In an address by President E. H. H. Simmons in Omaha in 1928, he stated: “Today the New York call loan market is undoubtedly the most highly organized security loan market in the World. For many years there has never been a loss to a single lender arising from a call loan made to a Stock Exchange member and based on the col- lateral of Stock Exchange securities. Thus call loans are unparalleled in their safety to lenders, for the same safety has not heen seen even with Government bonds.” In the hearings on the La Follette resolution (p. 39), Professor O. W. M. Sprague stated: “. . . as far as safety goes, I do not think that any serious objection can be raised against the brokers’ or dealers’ loans. The records in regard to losses of banks, though not perfect, clearly indicate that the losses of banks arisine out of this class of APPENDIX

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