APPENDIX 
623 
of the banks, were the sole arbiters of all matters pertaining to the 
loaning and borrowing of money. 
“During this period the great advantages manifested under such 
control naturally led to various suggestions looking to some form of 
supervision, less stringent than that exercised by the committee of 
five, when normal conditions again prevailed, and the need for this 
committee was ended. As the outcome of numerous conferences and 
suggestions, the present money desk was made a fixture, with Mr. 
Blake in direct charge, but under the supervision and authority of 
a committee of three members of the Executive Committee of the 
Stock Clearing Corporation, with Mr. S. F. Streit, President, as 
Chairman. 
“This Committee is responsible for the renewal rate each day, 
and for any rate changes that may take place from the renewal rate 
during the day. Money may be placed by lenders at the money desk 
at the market, or at fixed rates, or borrowers may apply for new loans 
at the market, or restrict their applications to a fixed rate. In each 
case, they use their own judgment as to the probable trend of money 
rates during the day, so you can readily see we have a true open 
money market, even if under some supervision. 
“Now the great advantages of this supervision become ‘evident 
when one compares the old methods with the present method. In the 
old days, some houses could obtain whatever accommodation was 
needed, while others, belated in learning their requirements, or not 
having so good a credit, had difficulty in obtaining loans, even at 
exorbitant rates of interest, and there were days when even 1009 
was bid for money. 
“, . . Due to the stability of the rates for money, commission 
houses find less competition for their cost of money, month by month, 
and they are able to obtain accommodations without effort or com- 
petitive bidding, and the rate for renewal loans is no longer subject 
to indiv:dual negotiation. 
“Perhaps a few words in explanation of how the renewal rate is 
arrived at will not be amiss. The average rate of all loans during 
the preceding day, the amount of money carried over—that is, un- 
loaned at the end of the day—the amount of money on hand before 
the renewal rate is made in the morning, and any unusual or extraor- 
dinary payments that may be falling due by the banks, which might 
affect the money market, are all factors entering into the decision as 
to the money rate. All loans carried over, that is, renewed, are done 
at the renewal rate of the day, but it is at the pleasure of the borrower 
or of the lender to return or call anv loans if dissatisfied with the rate.