CHAPTER XVII

CONCLUSIONS

110. An evaluation of the results of our investigations may be facilitated by an abstract in catalogue form. The critic of this book should, however, not be tempted by such a handy digest to save time by skipping the first sixteen chapters and to form his opinion on the basis of the abstract.

APPENDICES.

APPENDIX A

THE MOVEMENTS IN LEDGER BALANCES OF BANKS AND BROKERS ARISING OUT OF STOCK-EXCHANGE OPERATIONS

The five illustrations in Chapter VII are followed up here in the form of daily movements of ledger balances. The essential items in the balance sheets of banks and brokers at the outset are the following:

APPENDIX B

THE CIRCULATION OF BROKERAGE DEPOSITS

Brokerage deposits are the credit balances held with stockbrokers by customers. These balances constitute a special sort of “money,” the quantity of which increases elastically in times of heavy stock-exchange tradings. Its velocity of circulation is capable of rising extremely high.

APPENDIX B

STATISTICAL NARRATIVE FOR THE UNITED STATES

How large were the funds which flowed onto the securities markets in a certain period? What was the origin of the funds which were devoted to the purchase of securities? What did the brokers do with the funds received; to whom were they paid out? What did the sellers of securities do with their sales proceeds? How large were the funds which came to corporations for newly issued securities, and what did the corporations do with the funds received? How much of these funds went into real investment?

APPENDIX D

A FEW STATISTICAL FIGURES FOR ENGLAND

The statistical material concerning the relationship between stock market activity, the money market situation, industrial investment and monetary circulation was described as meagre for the United States. For the United Kingdom such material is, to my knowledge, almost non-existent. There are no figures published on the volume of stock exchange transactions, on stock exchange loans (beyond 1931), on stock exchange clearings or on the balances carried by stock exchange members.

TABLE I.

_____

BROKERS’ BORROWINGS

NET BORROWINGS ON COLLATERAL (ON CALL AND ON TIME) IN NEW YORK CITY
AS REPORTED BY MEMBERS OF THE NEW YORK STOCK EXCHANGE

In Millions of Dollars

INDEX OF NAMES.

ALDRICH, Winthrop W., 267n, 269

ANDERSON, Benjamin M., 113n, 119n, 121n, 283–284

BALOGH, Thomas, 68, 70, 94n, 129, 262

BECKERATH, Herbert von, 67, 68, 226n, 278

BECKHART, Benjamin H., 106

BENDIXEN, Friedrich, 190

BLAISDELL, William M., 325n

BOHM-BAWERK, Eugen von, 8–12, 18n

BURGESS, W. Randolph

CANTILLON, Richard, 94n

CASSEL, Gustav, 6, 7, 10, 11, 17, 31, 32, 46, 69, 164, 165n, 171, 180–182, 267, 278

CATCHINGS, Waddill, 168

CLARK, John Maurice, 49n, 54n

INDEX OF SUBJECTS.

Absorption of capital—

meaning of, 5–7; through increase in stock prices, 7, 120n, 148–153; through real investment, 30, 39, 288; through consumption of profits, 32–34, 54, 63

Absorption of circulating media—