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. Nei- 
ther the Reserve nor the Stock Exchange statistics as to secu- 
rity loans in New York are necessarily all-inclusive, since 
Reserve figures do not, of course, include loans made by non- 
members of the Federal Reserve system, while the Stock 
Exchange compilation does not include borrowings by non- 
members 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, bor- 
rowings are divided into two main classes: (1) those from 
New York banks and trust companies—which group corre- 
sponds 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-