chapter  XXIX
4 Pages

NEW SECURITIES (continued)-THE CHARACTERISTICS OF THE MARKET

This manner of expressing the standard in which the efficiency of a market agency may be judged is convenient enough in dealing with agencies whose work lies mainly on the side of Supply. But we need now to translate this standard into terms appropriate to a different point of view; for the work of this market lies mainly on the side of Demand (d. pp. I03, I22). It is its business to formulate the social need for capital into an effective market demand, and by so doing to facilitate the flow of capital to the points of highest net yield. What are the essential conditions which must be satisfied if this ideal is to be attained?