The Stock Market, Credit and Capital Formation

TABLE I.

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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

Sources: 1926-1929—Annual Reports of the Federal Reserve Board (end of month figures).
1930-1937—New York Stock Exchange Bulletins (first of month figures).

TABLE II.

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MONEY LOANED OUT BY BROKERS
1932–1935

TOTAL OF MONEY LOANED IN FIRM NAME EXCLUSIVE OF
MONEY LOANED AS AGENT FOR OTHERS

Source: New York Stock Exchange (unpublished).

TABLE III

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BROKERS’ LOANS
1922–1925

STREET LOANS (ON CALL AND ON TIME) BY REPORTING MEMBER BANKS
IN NEW YORK CITY

Monthly Averages of Weekly Figures—in Millions of Dollars

Source: Annual Report of the Federal Reserve Board, 1927.

TABLE IV

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BROKERS’ LOANS
1926–1935

LOANS TO BROKERS AND DEALERS (ON CALL AND ON TIME) SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN NEW YORK CITY

In Millions of Dollars

* November 16, 1931—New clearing-house rule.

Source: Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

TABLE IVa

BROKERS’ LOANS

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1936–1939

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LOANS TO BROKERS AND DEALERS (ON CALL AND ON TIME) SECURED BY STOCKS AND BONDS, MADE BY REPORTING MEMBER BANKS IN NEW YORK CITY—FOR OWN ACCOUNT

(in Millions of Dollars)

* Loan classification revised May 19, but figures are still sufficiently comparable.

       Source: Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

TABLE V.

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COMPARISON OF BROKERS’ LOANS WITH ALL LOANS BY MEMBER BANKS, AND ALL
LOANS AND INVESTMENTS BY MEMBER BANKS ON CALL DATES
1928–1939
(In Millions of Dollars)

Sources: Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

TABLE VI

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AVERAGE RATE ON STOCK EXCHANGE NEW CALL LOANS
1922–1939

Per Cent. per Annum

Source: Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

NOTE.—The statistics for 1937 to 1939 are for call loan renewals, not new call loans. However, the difference between the tow rates is usually negligible.

TABLE VII

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CAPITAL ISSUES
1922–1938

In Millions of Dollars

Sources: Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

TABLE VIII

UNITED STATES DOMESTIC NEW CORPORATE SECURITES
(NON-FINANCIAL AND FINANCIAL)

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1922–1939

In Thousands of Dollars

Source: Commercial and Financial Chronicle.

NOTES.—The columns “Non-financial” were obtained by subtracting the issues of investment trusts, holding companies, etc., from their totals.

The column “Bonds and Notes” includes both long and short-term issues.

For the year 1922-1925 no separate figures were published for financial issues.

TABLE IX

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THREE MONTHS MOVING AVERAGE OF NON-FINANCIAL STOCK
ISSUES AND THE STANDARD STATISTICS STOCK PRICE INDEX
1922–1939

Sources: For stock issues, see preceding table.
For stock price index: Standard Statistics Company, STANDARD TRADE AND SECURITIES.

NOTE ON THE STANDARD STOCK INDEX:—“In relatives, 1926 = 100. Weighted by the number of shares of each stock outstanding. Corrected for the value of rights, stock dividends, changes in par value, and consolidations. Since 1926 the indexes are an average of Standard’s Daily Stock Price Index. Prior to 1926 averages of the monthly high-low prices were used.”

TABLE X

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CAPITAL MOVEMENTS
1922–1938

UNITED STATES BALANCE OF INTERNATIONAL PAYMENTS

In Millions of Dollars

Sources: United States Department of Commerce. The Balance of International Payments of the United States. Federal Reserve Bulletins.

TABLE XI

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CASH BALANCES OF BROKERS COMPARED WITH
MARGIN LOANS TO CUSTOMERS, BROKERS’ BORROWINGS, AND
CUSTOMERS’ BROKERAGE DEPOSITS
1935–1939

Member Firms of New York Stock Exchange—Ledger Balances in Millions of Dollars

Sources: Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

TABLE XII

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COMPARISON OF BROKERS’ CASH BALANCES
WITH STOCK PRICES AND BROKERS’ BORROWINGS
1935–1939
January, 1936 = 100

Sources:—Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.

TABLE XIII

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OBVIATION OF CHECK PAYMENTS
THROUGH STOCK EXCHANGE CLEARING
1925–1938

Source: New York Stock Exchange Bulletins.

TABLE XIV

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TOTAL CLEARING HOUSE TRANSACTIONS AND
CLEARING HOUSE BALANCES SETTLED BY CHECK
1929–1938

Source: New York Stock Exchange Bulletins.

TABLE XV

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BROKERS’ CASH BALANCES, TOTAL CLEARING HOUSE TRANSACTIONS,
AND CLEARING HOUSE BALANCES SETTLED BY CHECK
1935–1939
In Millions of Dollars   January, 1936 = 100

Sources: For cash balances—Annual Reports of the Federal Reserve Board and Federal Reserve Bulletins.
For clearing house transactions—New York Stock Exchange Bulletins.

TABLE XVI

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TRANSACTIONS AND CUSTOMERS’ BALANCES

1932–1939

In Millions of Dollars   January, 1932 = 100

* Beginning from January, 1936, the figures published by the Federal Reserve Board were used. They differ only slightly from those collected by the N.Y. Stock Exchange, as can be seen by comparing the figures for September to December, 1935, from the above series with those reproduced in Table XI.

Sources: For customers’ balances—1932-1935, New York Stock Exchange (unpublished).
                                        1936-1939, Federal Reserve Bulletins.
For transactions—New York Stock Exchange Bulletins.

TABLE XVII

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NEW CAPITAL ISSUES FOR THE UNITED KINGDOM, CALL MONEY,
CALL MONEY RATES AND STOCK PRICE INDEX
1922–1939

Sources: For New Capital Issues and for Industrial Stock Price Index. London and Cambridge Economic Service, Monthly Bulletins and Special Memorandum No. 33.
For Money at call and at Short Notice and for Money rates, Bank of England, Statistical Summary.

TABLE XVIII.

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LOANS OF MONEY AT SHORT NOTICE TO THE STOCK EXCHANGE
AS REPORTED BY THE LONDON CLEARING BANKS
1922–1931

£000

Source:—Report of the Committee on Finance and Industry (MacMillan Report), 1931.