Die deutsche Mark von 1914-1924

Das Viehversicherungswesen im Deutschen Reich

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Monograph

Identifikator:: 829213031

URN:: urn:nbn:de:zbw-retromon-33862

Document type:: Monograph

Author:: Adler, Heinrich

Title:: Die österreichisch-rumänische Zollfrage

Place of publication:: Wien

Publisher:: Frick

Year of publication:: 1886

Scope:: 1 Online-Ressource (45 S)

Collection:: Economics Books

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SECURITY COLLATERAL LOAN MARKET 277 loans on securities came to constitute centralized reserves which, next after till money, were depended upon by banks everywhere to maintain their liquidity and solvency. To condemn either the Stock Exchange or security loans for the lapses and defects of this system, seems thoroughly beside the point. No other stock exchange in history ever had such a responsibility for bank liquidity thrust upon it. Cer- tainly the New York Stock Exchange never sought and did not relish a banking system which constantly imposed insta- bility and artificially violent price movements in the securities market. In the defective condition of American banking, “call loans” were not a cause, but actually a partially effective remedy. At least, the development of the call loan market in New York was a natural and constructive evolution, even if burdened with improper banking functions; in addition to con- stituting the only existing mechanism for centralizing interest rates and surplus bank reserves, it performed spasmodically yet very extensively a vital work in facilitating the flotation of the great amounts of new American securities which the building up of our vast continental areas continually required. It is one of the ironies of American history that the New York stock market was rarely thanked for its long and valiant services in behalf of American banking and industry, and continually assailed for the recurring financial crises imposed upon it by the unwisdom and inertia of American banking legislation. The Federal Reserve System.—The financial crisis of 1907 at length compelled legislative consideration of a better banking and currency system. In 1913 the Federal Reserve Act was passed and the establishment of the new central bank- ing mechanism for which it provided, began. Unlike the Bank of England, which had experienced a slow and mainly empiri- cal growth since 1604, the Reserve system thus sprang full- armed from the foreheads of our legislators, and factors of a temporary and purely theoretical nature inevitably played an important part in its formulation. The new Reserve banks,

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