SECURITY COLLATERAL LOAN MARKET 283

The Supply of Call Money.—The security loan market in
New York can and does attract funds from all over the United
States, and even from foreign countries. The Federal Reserve
statistics on stock market loans are for convenience divided
into three main classes, according to the three chief sources of
the funds: (1) loans for the account of New York banks and
trust companies; (2) loans for the account of out-of-town
American correspondent banking institutions: and (3) loans
for the account of “other lenders” —oprincipally foreign banks,
private individuals, and domestic business corporations. Neither
 the Reserve nor the Stock Exchange statistics as to security
 loans in New York are necessarily all-inclusive, since
Reserve figures do not, of course, include loans made by nonmembers
 of the Federal Reserve system, while the Stock
Exchange compilation does not include borrowings by nonmembers
 of the New York Stock Exchange. If a non-member
of the Reserve system should lend to a non-member of the
New York Stock Exchange, the loan would not be reported in
either compilation. In the Stock Exchange statistics, borrowings
 are divided into two main classes: (1) those from
New York banks and trust companies—which group corresponds
 fairly closely with the total Federal Reserve figures;
and (2) those from “private bankers, brokers, foreign bank
agencies or others in the City of New York”—which are not
of course included in the Reserve compilation at all.
When funds of out-of-town banks or “other lenders” are
remitted to New York banks and trust companies to be loaned
in the stock market, the New York institutions may act either
as depository and principal, or as agent. In the former case,
the New York institution really borrows the funds itself, pays
a rate of interest upon them to the original lender, and relends
them in such ways and at such rates as it sees fit. In the latter
case, the New York institution is an agent only, and obtains a
commission from the original lender. In either case, the New
York institution assumes responsibility for making the loan,
and supervising its collateral while it is outstanding. Some-