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The Forum (Volume 41)

The Forum (Volume 41)


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About the Book

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: wholly unexampled in the history of New York banking. This occurred through the virtual transfer of loans to trust companies and out-of-town banks, and it averted a deficit in reserves; though, even with this heavy transfer of liabilities, the surplus reserve fell to $10,000,000, which was not far from the average of that date. But the second effect of the 4 per cent, money rate was to remove the strongest argument which had prevailed in the stock speculation?namely, that when money could be borrowed at 1 per cent, and invested in stocks paying 4, 5 or 6 per cent, dividends, there was a sure chance of profit on the difference. This chance now had disappeared, not only by the rise in money rates themselves to 4 per cent., but because prices of stocks were already on so high a level, that the net yield in dividends to the purchaser was very greatly reduced, and in many cases was less than the price which he must pay for money. The inevitable result was a break of great severity on the Stock Exchange, which by Christmas week had cancelled the greater part of the extraordinary rise achieved since election day. It was computed, on the basis of those prices of December 21st, that since election day Union Pacific stock had advanced 10J points and declined lOf, that United States Steel common had gone up lOf and down 7; Beading up 10 and down ?, Amalgamated Copper up 8 and down 12f; Chicago, Milwaukee and St. Paul up 9 and down 9; Northern Pacific up llf and down 9. It remains of course to see what changes in prices hereafter will affect such comparisons. But, in the meantime, it is not unfair to say that this rise and relapse of speculative stocks measures, not unreasonably, the relative part which fiction and fact have played in the popular notion of the trade boom since election....


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Product Details
  • ISBN-13: 9780217082280
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 264
  • Spine Width: 14 mm
  • Width: 189 mm
  • ISBN-10: 0217082289
  • Publisher Date: 02 Feb 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 476 gr


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