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.

568 APPENDIX the contemporary wide post-war fluctuations in foreign exchange rates. In behalf of the proposal it was urged that a centralization of the New York foreign exchange market on the New York Stock Ex- change would make for uniform and more stable rates, and would make it possible to standardize market practice and enforce com- pliance with them in the interest of the public. But it was found that the existing organization of the New York money market would not coincide with such a plan, and that further difficulties arese in standardizing the financial instruments in which the prospective deal- ings were to occur. The result was that after some discussion, inter- est in the proposal waned and finally died out. (XVIIId) “There is one point I think I am justified in referring to, and that is the influence of the exchange on the international money market. If we had no general market like the stock exchange, and no great mass of listed securities which are known abroad as well as at home, the movements in the international money market would be much more violent and acute than they now are. Today the ordinary merchant, or the manufacturer on a large scale, can go about his business serenely conscious that he will get his money at from 4 to 6 per cent at the outside, and he does not concern himself to see whether we are exporting gold or not. But if we had no general securities market by which we could borrow on securities in Europe and sell drafts to meet demands, you would have a most violent and convulsive movement of the foreign exchanges, which would react upon the whole money market. You would have large exports of gold, because there was no other way of meeting obligations or getting credits abroad. We have had, as you know, violent fluctuations, in fact, by reason of the defects in our, currency system, but they would be multiplied many fold if we could not establish foreign credits. As you know, there is a class of persons who make it a business of seeking a profit of a small fraction of 1 per cent when securities are a little higher here than they are in Paris or a little lower in London than they are in New York. Their operations tend to keep uniform, com- paratively uniform, the supply of credit and they influence the foreign exchange market, and thereby travel toward the same stabilizing tendency as short-selling and the general functions of the exchange itself.” (Regulation of the Stock Exchange, p. 189, testimony of Charles A. Conant.) (XVIIle) “To close America’s chief securities market, and thereby render its $40.000.000.000 of listed securities almost non-negotiable,

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