342 
APPENDIX 
quimbo, Huasco, San Antonio, Santiago, Serena, Talca, Talcuhuano, 
Tome, Valparaiso; Peru, Lima; Uruguay, Montevideo; Venezuela. 
Caracas. 
(IIb) U. S. Internal Revenue receipts from Federal taxes on 
stock transfers, and on sales of produce on exchanges (000 omitted) : 
 NIQ 
Piscal 
Years 
Ending 
Tune 30 
ae 
. 
Stock TRANSFERS 
U.S.A. 
New 
York 
Citv 
rn 
« 
79¢ 
012 
671 
¢3¢ 
7,888 
8,165 
8,808 
~ 105 
ene 
89.7 
90.6 
| 0.2 
~~ 
SALES oF PRODUCE ON EXCHANGES 
U.S.A. 
New 
York 
Citv 
NT C. | Chicago 
% 
Chicago 
",52¢ 
58¢ 
r?,521 
1,378 
025 
845 
¢ 
20.2 
24.8 
43.1 
50.9 
HES 
$4,576 | 6C.8 
3.107 | 55.9 
2,250 | 32.0 
1.446 | 19.1 
-.804 | 51.9 
“425 ' 57.9 
647 57.1 
960 48.4 
456 43.6 
L GE 
(IIc) In the “Agricultural Inquiry” of 1921 (pp. 684-686), the 
late Governor Strong of the New York Federal Reserve Bank testified: 
The security markets—that is, the markets through which the raising 
of new capital for the industries of the country is effected—are and must 
be the markets where the greatest amount of capital naturally gravitates; 
I mean that is the point where the flow of funds concentrates for the 
purpose of investment and reinvestment to a greater extent than in any 
other market in the country. 
That is especially true of the money centers of the world—London, 
Berlin, Tokyo—and I think also we must all recognize that it is not a 
man-made affair. It is a natural law, I think more primarily due to the 
fact that the great flow of foreign and domestic commerce of the United 
States is into and out of the port of New York than to any other factor. 
Representative Sumners. The theory, at least, of the economic function 
of the exchange is that it provides a meeting place for the persons who 
want to buy and the people who want to sell these securities? 
Governor Strong. Yes, sir. 
Representative Sumners. And the sales of the securities are found to 
be necessary from time to time in order to acquire the necessary capital for 
starting new enterprises and maintaining established enterprises, in develop- 
ing established enterprises? 
Governor Strong. It is an essential part of the machinery for purposes 
of that nature, if you please, and has contributed to the development of the 
resources of the country by the direction of the flow of capital into new 
enterprise. That is where the management, if you please, is undertaken, 
for a commission or for a brokerage, for this direction of the stream of 
savings of the Nation into new enterprises. . . . 
It is a significant fact that, since the earliest times, the tendency in trade 
has been continually for those people trading in certain things to group 
together, and in the bazaars of India today you will find all of the jewelry 
markets in one place, all of the silk in another, and all of the money